Call us 24/7: + 1(925)399 0085

Get your paper done by an expert

No matter what kind of academic paper you need, it is simple and secure to hire an essay writer for a price you can afford at StudyAcer. Save more time for yourself.

Order A Custom Paper

Approximate price: $

19 k happy customers
8.5 out of 10 satisfaction rate
527 writers active

Project Management Accounting

Group Assignment (Group of Four)

BBAC501-Project Management Accounting

Due date: Session 5.2

Total Marks 25 (18+7)

Problem # 1 Marks (9+9=18)

On 1 January, Johnson set up Valleyview Playgyms Company to manufacture and sell children’s outdoor playgyms. He was an engineer by profession but he understood the importance of accounting information and kept his accounting records meticulously throughout the year. At the end of the year he prepared the following income statement for the year:

Valleyview Playgyms Company

Income Statement

for the year ended 31st December, 2012

Sales

450,000

Less Operating expenses:

Purchase of Raw Material

$200,000

Purchase of factory supplies

10,000

Wages of the factory employees (who worked directly on the playgyms)

75,000

Wages for other factory employees

10,000

Managers’ salary

40,000

Office staff salaries

10,000

Sales Staff salaries

22,000

Advertising

10,000

Administrative Expenses

8,000

Clearing costs

5,000

Rent

25,000

Electricity

4,500

Purchase of factory equipment

140,000

Purchase of Office Equipment

10,000

Purchase of Sales vehicles

15,000

Total Operating expenses

584,500

Net Loss

$(134,500)

Although disappointed, Johnson was not surprised. He knew that expenses were higher than sales because, throughout the year, he had been able to generate a cash surplus. His bank overdraft had blown out and his bank manager has asked him to present his financial statements for 2012 to the bank.

Required:

You are the bank’s accountant and the bank manager has asked you to:

1. Review the performance of Valleyview Playgyms in 2012 and make a recommendation as to whether Johnson’s overdraft facility should be cancelled.

2. Prepare a report for Johnson explaining the errors he made in his income statement.

To perform this analysis you will need to recast Johnson’s income statement. The following information may be useful:

· The factory occupies 80 per cent of the rented building, the sales area 15 per cent and the administration area 5 per cent.

· All the company’s fixed assets are estimated to have a useful life for five years and no salvage value at the end of their life.

· Johnson spends 50 per cent of his time as factory manager and spends the remaining time equally on sales and general administration.

· Electricity costs are consumed almost entirely by the factory.

· At 31 December 2012, the following inventories existed:

· Raw Material $20,000

· Work in Process $40 000

· Finished Goods $51 500

Problem # 2 Marks7

Write a short essay (700 words) on how management accounting can help the managers of an organization to run their business efficiently?

Our guarantees

Study Acers provides students with tutoring and help them save time, and excel in their courses. Students LOVE us!No matter what kind of essay paper you need, it is simple and secure to hire an essay writer for a price you can afford at StudyAcers. Save more time for yourself. Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Our Homework Writing Disciplines

With a highly diverse team in almost all academic fields including: