Question 1: (Total 7 Marks)
List and define four ethical standards (codes of professional conduct) that are part of the Australian Society of Certified Practising Accountant’s Code of Professional Conduct. Give an example of an imaginary situation where the management accountant would be in breach of each of these standards (one situation for each standard/code).
Question 2: (Total 4 Marks)
Consider any product/brand (for ‘a’) and the given service-sector company (for ‘b’) and describe the aspects of the products that you value as a customer (name any four ‘values’ for each category).
A recent model car
‘City-Link’ membership (an electronic toll-road billing device)
Question 3: (Total 14 Marks)
Armidale Aluminium Company, a manufacturer of recyclable soft drink cans, had the following inventory balances at the beginning and end of the current year:
Inventory Account
January 1($)
December 31($)
Raw Material
120,000
140,000
Work in Process
240,000
230,000
Finished Goods
300,000
330,000
During the year the company purchased $500,000 of raw material and spent $800,000 on direct labour. Manufacturing overhead costs were as under:
Indirect Materials
20,000
Indirect Labour
50,000
Depreciation on Plant and Equipment
200,000
Electricity
50,000
Other
60,000
Sales revenue was 2,210,000 for the year. Selling and administrative expenses for the year amounted to 220,000. The firm’s tax rate is 40%.
Required:
Prepare a schedule of cost of goods manufactured
Prepare a schedule of cost of goods sold
Prepare an income statement for the company
Question 4: (Total 15 Marks)
Kinzhong, a florist, operates retail stores in several shopping malls. The average selling price of an arrangement is $30 and the average cost of each sale is $18. A new mall is opening where Kinzhong wants to locate a store, but the location manager is not sure about the rent method to accept. The mall operator offers the following three options for its retail store…