Accounting 30 - Module 4

116 Pages·1991·8.7 MB·English

by  Alberta. Alberta Education. Alberta Distance Learning Centre

Digitized by the Internet Archive
2015
in
https://archive.org/details/accounting3000albe_2
Accounting 30
LEARNING FACILITATOR S
MANUAL
Distance
Learning Ahexia
EDUCATION
Note
ThisAccounting LearningFacilitator'sManual containsanswersto teacher-assessedassignmentsandthe
final test; therefore,it shouldbe kept securebytheteacher. Studentsshouldnothaveaccess tothese
assignmentsorthefinal testuntil theyareassignedin asupervisedsituation. Theanswersshouldbestored
securely bytheteacheratall times.
Accounting30
Learning Facilitator's Manual
Module 4
CostAccounting
Alberta Distance Learning Centre
ISBN No. 0-7741-0416-3
ALL RIGHTS RESERVED
Copyright*1992,theCrowninRightofAlberta,asrepresentedbytheMinisterofEducation,AlbertaEducation,11160JasperAvenue,
Edmonton,Alberta,T5K0L2.
Allrightsreserved. AdditionalcopiesmaybeobtainedfromtheLearningResourcesDistributingCentre.
Nopartofthiscoursewaremaybereproducedinanyform includingphotocopying(unlessotherwiseindicated)withoutthewritten
permissionofAlbertaEducation.
Everyefforthasbeenmadebothtoprovideproperacknowledgementoftheoriginalsourceandtocomplywithcopyrightlaw. Ifcases
areidentifiedwherethishasnotbeendone,pleasenotifyAlbertaEducationsoappropriatecorrectiveactioncanbetaken.
Module4
Module 4 Overview
TherearebasicaccountingconceptsneededinCostAccountingforrunningabusinessona
departmentalizedsystem.
Inthismodulestudentswilllearntheaccountingtheoryandpracticeforthecreationoffinancial
documentsneededinmakingeffectiveand responsibledecisions. Procedureswillbetaughtforthe
merchandisingbusinesses(sellinggoodsandservices) andmanufacturingbusinesses(making
products) onadepartmentalizednature.
TheAccountingCycleisfollowed,butspecificterminologyandprocedureswillbetaught.
Cost Accounting
Evaluation
Thestudent'smarkinthismodulewillbedeterminedbytheworkinthe AssignmentBooklet. All
assignmentsmustbecompleted. Inthismodulethe studentisexpectedtocompletetwosection
assignments. Thesuggested assignmentbreakdownis asfollows:
Section 1 Assignment 50%
SecUon2Assignment 50%
Total 100%
Pleasenotethisis asuggesfiononly. Teachersmaydevisetheirownmethodofevaluation.
Accounting30 1 Learning Facilitator's Manual
Module4
Possible Classroom Openers
• Discusswhatismeantbybeingresponsible- intheirownlives andfinancially.
• Inviteaguestspeakertoexplainwhatresponsibilityaccountingisandhowitrelatesto
merchandisingandmanufacturingbusinesses.
• Showavideoofadepartmentalizedoperation, forexample, adepartmentstoreorautoindustry,
thatshowshoweachdepartmentmustbeefficientinrunningitsareaandhowthisrelatestothe
overalloperationofthebusiness.
Section 1: Merchandising Business
Thebasicgoalsofthissectionaretoensurethatstudents
• learnwhatismeantbyresponsibilityaccounting
• areabletounderstandhowandwhy accountsaredepartmentalized
• areabletopreparefinancialdocuments foramerchandisingbusiness
• canjournalizeadjustingandclosingentries
PossibleActivities
• Prepareabulletinboarddisplayofdepartmentalizedbusinesses(merchandisingand
manufacturing).
• Discussandflowcharttheprocedures forpreparingadepartmentalizedincomestatement.
• Illustratethedifferencebetweengrossprofitanddepartmentalmargin.
• Withtheuseofanoverheadprojector,analysetheend-of-fiscalperiodadjustmentsofa
departmentalizedmerchandisingbusiness.
Accounting30 2 LearningFacilitator'sManual
Module4
Section 1 Activity 1
1. TiffanyTrentoperatesabusinessunderthenameofTheQeaningLady. HerQeaningIncome
forthemonthtotals $1 800.00. Herexpensesinclude$225.00forAutomobileExpense,$110.00
forCleaningSuppliesExpense,and$20.00forLiabilityInsuranceExpense.
Instruction: PrepareherincomestatementforthemonthendedJanuary31, 19xx.
Sncomc'Statement-
^te/>€/i//£y
(oleanm^'income' 1 8 0 0 00
&ci>en&es/
jtutoma/n/e/&x^i>eme' 2 2 5 00
^leanuupiSu^!>^t>/ce£y&tyl>ense' 1 1 0 00
^utln/tluy^nsi/rance^&vlt>en&& 2 0 00
^otal&r^t*€mes' 3 5 5 00
J/et'^ncome^ 1 4 4 5 00
2. AmerchandisingbusinesshadMerchandiseInventoryonJuly 1, 19xx,of$7509.30. The
Merchandise InventoryonJuly31, 19xx,was$8404.25. Purchasesduringthemonthwere
$20450.00.
Instruction: CalculatetheCostofGoodsSoldforthemonthofJuly.
MercAanc/ise'Snaentaruy. ^/eiy 1. 19xx 7 5 0 9 50
^urcAases^ 20 4 5 0 00
27 9 5 9 30
MercAanc/ise'•^noentoru^, 57. I9xx 8 4 0 4 25
19 5 5 5 05
Accounting30 3 LearningFacilitator'sManual
Module4
3. You areemployedbyTheSoccerStore andare askedtoprepareastatementshowingtheNet
IncomeorNetLossforthemonth. Youobtainthefollowinginformationfrom thegeneral
ledger:
MerchandiseInventory,March 1,$4340.00; MerchandiseInventory,March31, $1 975.00;
Sales,$23 557.00; Purchases, $10848.50; SalaryExpense,$2400.00;RentExpense,$950.00;
AdvertisingExpense,$450.00; UtilitiesExpense,$238.50
Instruction: PreparetheincomestatementforthemonthendingMarch31, 19xx.
^le^Soccer-tStarC'
Snamie^Statement
JiofitA(Sm/edJ{!arcAy3l. 19xx
^eoenuc'
Sa/e&' 23 5 5 7 00
(SoAtaf^ocn/sySa/a(
JlercAanc/ise^^laentarw, J^tarcA 1. 19xx 4 3 4 0 00
^urcAasesy ^ 10 8 4 8 50
(S^tsto/^^och/s^^yiiHii/a/^/e Sa/e^ 15 1 8 8 50
J^tercAanc/iA&<9riU€nt&rfiy, J£zrcA/Zl. I9xx 1 9 7 5 00
(oast-o/^och/s'Sa/d 13 2 1 3 50
10 3 4 3 50
(Sjcj^enses^
Sa/aru^iSji^t>ensey 2 4 0 0 00
'^ent(Sa^bense^ 9 5 0 00
y(c/(>€rtism/^ (SjoS^ense^ 4 5 0 00
llti/ltiesy(Sa^ttense' 2 3 8 50
^atal&r^ife/i&esy 4 0 3 8 50
J^'et^ncwne 6 3 0 5 00
Accounting30 4 LearningFacilitator'sManual
Module4
Section 1 Activity2
1. Labeleachofthefollowingexpensesofalargegrocerystoreaseitherdirectorindirect
expenses.
a. wagesofthebutcher direct
b. salaryofthestoremanager indirect
c. wagesofacashier indirect
d. weeklyadvertisingflyer indirect
e. wagesofthenightlycleaningstaff indirect
f. bagsusedatthecheckouts indirect
g- wagesofaclerkatthetobaccocounter direct
h. in-storedisplaypromotingbagels direct
i. propertytaxesonthebuilding indirect
j- repaintinglinesintheparkinglot indirect
2. CalculatethedepartmentalmarginoftheShoeDepartmentatFaye'sDepartmentStorefromthe
informationgiven. Useonlythoseamountsthatapplytocalculationofdepartmentalmarginfor
theShoeDepartment.
DryGoodsRevenue $3400.00
CostofGoodsSold(DryGoods) 55%
PropertyTaxesonBuilding 1 700.00
WeeklyAdvertising 350.00
ShoeRevenue 2675.00
CostofGoodsSold(Shoes) 60%
DeliveryCosts(Shoes) 225.00
ShoeQericWages 550.00
DepartmentalMargin=Revenue-CostofGoodsSold-DirectExpenses
=$2675.00-($2 675.00x60%)-($225.00 + $550.00)
= $2675.00-$1 605.00-$775.00
=$295.00
Accounting30 5 LearningFacilitator'sManual
Module4
Section 1 Activity3
1. WayneBrucewouldlikeamore-detailedbreakdownofhisprofits; therefore,threemoreaccounts
inthechartofaccountsforWayne Meatsalsohavetobeexpanded. Givetheaccountnumbers
andaccountnamesforthesixnew accountsthatmustbecreated.
3901 IncomeSummary-Meats
3902 IncomeSummary-Delicatessen
4101 Sales-Meats
4102 Sales-Delicatessen
5101 Purchases-Meats
5102 Purchases-Delicatessen
2. Usingthepartialchartofaccounts forLaBoutique Ltd.,calculatethetotalindirectexpensesfrom
thefollowinginformation:
PayrollTaxesExpense-Women's Wear $ 650.00
RentExpense 1 500.00
Sales-Children'sWear 2250.00
UtilitiesExpense 835.00
Purchases-Men'sWear 1 750.00
AdvertisingExpense 550.00
InsuranceExpense 225.00
CapitalStock 9950.00
IndirectExpenses $1 500.00
835.00
550.00
225.00
Total $3 110.00
Accounting30 6 LearningFacilitator'sManual