MANAGEMENT FOUNDATION STUDIES ASSIGNMENT MFS105

MANAGEMENT FOUNDATION STUDIES

INDIVIDUAL ASSIGNMENT (2)

Subject : Principles of Accounting and Business Finance

INSTRUCTIONS :

1. Refer to APPENDIX A for the Individual

2. Date of submission of written assignment:

24 February 2025

Marks will be deducted for late submission.

3. Each written assignment will be marked out of 100 marks and counts for20% of the total assessment of the course.

4.FORMAT OF WRITTEN PROJECT

Please note the following technical requirements:

a) Font & Size : Times New Roman & Size Single spacing

b) Colour : Black (for text)

c) Paper : White

Appendix A

Answer ALL questions.

Question 1 (25 marks)

Ms. Erika operates a cosmetic retail shop in the Yishun MRT station area of Singapore. The following are transactions for April 2024.

a) Erika started her cosmetic retail business with $110,000 in the business bank

b) She purchased furniture and fittings at $12,700 from Rooma SG Pte Ltd, Singapore on credit.

c) A damaged furniture and fittings costing $1,200 was returned to Rooma SG Pte

d) Erika received cash of $4,859 from the walk-in client on her cosmetic product

e) She paid Rooma SG Pte with a cheque.

f) Erika took a DBS bank loan of $40,000.

g) Erika paid salaries and wages of $18,000 and utilities of $2,600 with a

h) An amount of $1,350 was withdrawn from the bank as cash in

i) Erika have issued an invoice to Reena Lee of $7,800 for the sale of cosmetic products.

j) She collected rental of $9,500 by cheque from her

k) A cheque for $11,700 was given to pay for

l) Erika invests an additional cash of $25,000 in the business to further its

m) Paid instalment due on bank loan $900 with a

n) Erika issued a personal cheque of $780 to pay for her home telephone

Required:

1. For each of the above transactions, write the accounts and amounts to bedebited and credited. (22 marks)

2. Compute the total revenue for the month of April 2024 of Erikas Cosmetic business. (Workings are to be shown clearly). (3 marks)

(Total: 25 marks)

Question 2 (25 marks)

The following is a summary of Jayden Tradings Cash Book for the month of September 2024.

Credit Balance $1,858

The Bank Statement received for October 2024 showed the following:

Additional information:

It was discovered that cheque no. 1584 was entered wrongly in the cashbook but correctly in the bank statement.

Required:

• Bring the cash book up to Calculate the updated balance on 31 October 2024 and state whether it is a debit or credit balance.

(12 marks)

• Prepare a statement to reconcile the difference between your amended cash book balance and the balance in the bank statement on 31 October 2024.

(12 marks)

• State the amount of the bank balance, which would appear in Jayden Tradings Statement of Financial Position as at 31 October 2024.

(1 mark)

(Total: 25 marks)

Question 3 (35 marks)

Iman Co. is a manufacturing company with two production centers such as Assembly and Finishing. Budgeted overhead costs for the third quarter of 2024 are listed below:

Production Centres

$

Costs allocated: Assembly 18,500

Finishing 14,600

$

Assembly Department is machine intensive while Finishing Department is largely labour-based.

Required

1. Calculate the overhead absorption rate in each department by completing the You are required to use the most appropriate basis to apportion the relevant overhead costs.

(Please show detailed workings and round up your answers to two decimal places.) (30 marks)

2. One of the products of Iman Co. is Irmani leather jacket. Cost information to produce one unit of Irmani leather jacket is as follows:

Direct materials 2 kg at $4.00 per kg

Direct labour 3 hours at $6.50 per hour

Time spent in:

Assembly Department 2 machine hours

Finishing Department 5 labour hours

Find the cost per unit of Irmani leather jacket.

(Please show detailed workings and round up your answers to two decimal places.)

(5 marks)

(Total: 35 marks)

Solutions:

(i)

ii)

Question 4 (15 marks)

1. Explain how revenue and expenses are recorded under:
   
   
   • Cash accounting
   
   
   • Accrual

(3+3=6 marks)

2. Explain and give an example of each type of cost listed below:

• Committed fixed cost (b) Discretionary fixed cost

(4.5+4.5=9 marks)

(Total: 15 marks)