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Problem 1: Jim is a 15-year-old boy living in London. Briefly explain to Jim the legal position arising from the following scenarios:
(a) In the morning Jim offers to wash his dad's car for £10. Having washed the car, his dad tells him that he changed his mind and does not pay Jim!
(b) Later in the afternoon, Jim is out at the high street, when he sees in a shop his favourite skateboard being offered for £50, i.e. half the normal price. He enters the shop and asks to buy it at that price. The shopkeeper tells him that there has been a mistake on the price labelling and the price is £100 for the skateboard!
Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.
Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.
Prepare a master budget for the three-month period.
Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.
Evaluate the Predetermined Overhead Rate
Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.
Complete the schedule to compute the pool rates for the different activities.
Prepare Company financial statements
This individual assignment is based on the TerraCycle Inc.
Discuss the ethical issues
Calculate the GDP in Income Approach and Expenditure Approach
A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.
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