Happy Drink Ltd is the licensed bottle So far reputable overseas beverage company for Singapore.It imports concentrates, mixes them with other ingredients and bottles the resulting beverage under the brand name”Refresh” for sales in Singapore.

In the Mixing Process, other ingredients (water, flavouring agents, sugar and carbon dioxide)are added to the concentrates. These are then transferred to the Bottling Process where thebeverage is then bottled into standard 250ml cans and transferred to the finished goods storefordeliveries to thecustomers.

Concentrates are issued at the beginning of the Mixing Process. The other mixing costs(including other ingredients) are incurred evenly throughout that process. Similarly, cans areaddedat the beginning of the Bottling Process while the other costs are in curredevenly.

Overhead is applied into The Mixing and The bottling, At a Rate of 50% and 100% of direct labour cost respectively.

It Is Considered Normal For Some Of The Beverage To Be “lost” Due To evaporation during mixing and some cans of beverage to be rejected during bottling.Quality control inspection is applied at the end of the Bottling Process to determine whether completed products are safe for consumption. Those canned drinks that a redeemed un safe are rejected and considered as spoilt.

It is acceptable that spoilage is normal if rejected cans of beverage are no more than 2% of the completed good cans of beverage produced.

The loss of the beverage in the Mixing Process is assumed to take place at the end of theprocess. The cost of this loss is written off as a loss of the period in which it occurs. This cost is measured at the cost of the concentrates plus the cost soft he Mixing Process,but no  bottling cost is charged.

Happy Drink Ltd uses FIFO system of costing.

The following data summarize the firm’s activities during August:

None of the opening work in process and closing work in process had entered the BottlingProcess. The units in the closing work in process were on average 60% complete as to the mixing process; none had entered the theBottlingProcess.

Required:

• Using the four-step approach:
• Calculate the closing work in process for the Mixing Process in litres and for the Bottling Process in cans.
• Calculate the number of equivalent units processed in August, distinguishing between Mixing Process and Bottling Process.
• Calculate the costs per equivalent unit for each product cost category processed in August for the Mixing Process and the Bottling Process ,the costs of beverage per litre transferred from the Mixing Process to the Bottling Process, the cost of each can of bottled beverage transferred from the Bottling Process, the costs of abnormal spoilage, lost and closing WIP.
• Prepare and show all the necessary journal entries.

Question2

 To drive top performance in an organization, Zimme rm annoyed that it is important to keep the organizational architecture balanced. This would mean that the three activities namely (i)partition of decision rights, (ii) measurement of performance, and (iii) reward of performance must be“aligned”.Unfortunately, mismatches among these three legs is common occurrences.

Required:

 Select a company you are familiar with or one you are currently working in, or one with information publicly available. Using your own words as much as possible, and in not morethan1,200 words (in total):

• Describe the industry the chosen company is operating in, and an outline of the background, nature of business, the industry and the environment it is operating in, its products/services,etc.
• Choose one (1) functional area (e.g. sales, admin, etc.) and describe what effective organizational architecture has been put in place by the company to maximize firm value.
• Describe any“mismatch” of the three legs of the existing system.
• Give suggestions on the possible improvements that the company can adopt.