Mike Smart founded Dubbo Canoe Pty Ltd and later purchased Current Designs Pty Ltd, a

company that designs and manufactures kayaks. The kayak manufacturing facility is located

just a few minutes from the canoe company's headquarters in North Sydney, New South

Wales.

The current Design makes kayaks using two different processes. First, The rotational process

uses high temperatures to melt polyethylene powder in a closed rotating metal mould to

produce a complete kayak hull and deck in a single piece. These kayaks are less labour-

intensive and less expensive for the company to produce and sell.

Secondly, Its other kayaks use the vacuum-bagged composite lamination process (which we

will refer to as the composite process). Layers of fibreglass are carefully placed by hand in a

mould and are bonded with resin. Then, a high-pressure vacuum is used to eliminate any

excess resin that would otherwise add weight and reduce the strength of the finished kayak.

These kayaks require much skilled labour as each boat is individually finished. The exquisite

finish of the vacuum-bagged composite kayaks gave rise to Current Designs' tagline, "Work

of art, made for life."

Current Designs has the following Managers :

Mike Tanoto, CEO

Diane Wisdom, Controller

Dora Chan, Purchasing Manager

Bill Sarimin, Production Manager

Angelo Yellow, Kayak Plant Manager

Required (Maximum 500 words for questions A and B)

A. Name one special-purpose management accounting report that could be designed for

each manager. Include the report's name, the information it would contain and how

frequently it should be issued. (5 Marks)

B. Explain and provide examples of the relationship between five (5) reports that you

mentioned in no A in Dubbo Canoe Pty Ltd. (5 Marks)

The following data refer to Sydney Manufacturing Pty Ltd for the year 2023

Sales revenue $2,546,000

Raw material inventory, 1 January 106,800

Purchase of raw material 877,200

Raw material inventory, 31 December 70,800

Direct labour cost incurred 568,800

Selling and administrative expense 322,800

Indirect Labour cost incurred 180,000

Council rates 108,000

Depreciation on factory building 150,000

Income tax expense 30,000

Indirect material used 54,000

Depreciation on factory equipment 72,000

Insurance on factory and equipment 48,000

Electricity for factory 84,000

Work in Process inventory, 1 January 0

Work in Process inventory, 31 December 48,000

Finished goods inventory, 1 January 42,000

Finished goods inventory, 31 December 48,000

Required (Maximum 250 words for Question B)

A. Prepare Schedule of cost of goods sold and Income statement. (5 Marks)

B. What is the relationship between the Schedule of Cost goods manufactured and cost of

goods sold in Sydney Manufacturing Pty Ltd? (5 Marks)