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Are you struggling with complex accounting concepts and thinking, “I wish someone could Do My Accounting Assignment”? You are not alone. Accounting at the master’s level often goes beyond simple journal entries or ledger balancing. It requires a deep understanding of financial analysis, managerial decision-making, and intricate reporting standards. Many students face challenges when dealing with topics such as consolidated financial statements, advanced cost management, and corporate financial strategy. That is why our team at Do My Accounting Assignment specializes in providing expert guidance that transforms confusion into clarity.

In this post, we will share two master-level accounting questions along with comprehensive theory-based solutions, demonstrating how our experts approach complex assignments. These examples will help students understand not only the solution but also the methodology behind resolving high-level accounting problems.

Question 1: Consolidation of Financial Statements

Question: A parent company owns 80% of a subsidiary company. The subsidiary has reported a net profit of 500,000 for the year. During the year, the parent company sold inventory worth 50,000 to the subsidiary at a 20% profit margin. At year-end, 10,000 worth of that inventory remains unsold in the subsidiary. Prepare the consolidated profit considering the unrealized profit and explain the theory behind the consolidation adjustments.

Solution:

Consolidation of financial statements is an essential aspect of accounting when one company controls another. The main objective is to present the financial position and performance of the parent and subsidiary as if they were a single economic entity.

Identify the Parent and Non-Controlling Interest: In this case, the parent owns 80% of the subsidiary. Therefore, 20% represents the non-controlling interest, which must be reflected in the consolidated profit.

Calculate Unrealized Profit: When the parent sells inventory to the subsidiary, any profit on the remaining unsold inventory must be eliminated in consolidation. Here, the unrealized profit is calculated as follows: Profit percentage = 20% Unsold inventory = 10,000 Unrealized profit = 10,000 × 20% = 2,000

Adjust Subsidiary Profit for Unrealized Profit: Subsidiary’s net profit = 500,000 Less unrealized profit = 2,000 Adjusted subsidiary profit = 498,000

Allocate Profit to Parent and Non-Controlling Interest: Parent share (80%) = 498,000 × 80% = 398,400 Non-controlling interest (20%) = 498,000 × 20% = 99,600

Consolidated Profit: Consolidated net profit reported in the parent’s financial statements = Parent share of subsidiary profit + Parent’s own net profit (if any). For simplicity, assuming parent’s standalone profit is 600,000, the consolidated profit = 600,000 + 398,400 = 998,400

Theory Behind the Adjustment: Consolidation ensures that intra-group transactions do not inflate profits or assets. Eliminating unrealized profits prevents overstatement of income or inventory in the consolidated financial statements. Additionally, recognizing the non-controlling interest fairly represents the portion of subsidiary profit not owned by the parent. This approach complies with International Financial Reporting Standards (IFRS) and promotes transparency in financial reporting.

Question 2: Advanced Cost Management and Decision-Making

Question: A manufacturing company produces two products, A and B. Product A has a contribution margin ratio of 40%, and product B has a contribution margin ratio of 30%. The company’s fixed costs are 200,000 per month. Determine the break-even point in units if the company produces an equal number of both products. Also, explain the significance of contribution margin in managerial decision-making.

Solution:

Master-level accounting often requires students to not only perform calculations but also interpret their results for business decision-making.

Understand the Contribution Margin Concept: The contribution margin (CM) is the portion of sales revenue that exceeds variable costs. It contributes towards covering fixed costs and generating profit. Higher contribution margin ratios indicate more efficient cost recovery per unit sold.

Weighted Average Contribution Margin: Since the company produces equal quantities of both products, the weighted average contribution margin (WACM) is calculated: WACM = (Contribution margin ratio of A + Contribution margin ratio of B) ÷ 2 WACM = (40% + 30%) ÷ 2 = 35%

Calculate Break-Even Point (Units): Break-even point (sales) = Fixed Costs ÷ WACM Fixed costs = 200,000 WACM = 35% Break-even sales = 200,000 ÷ 0.35 = 571,429 units (sales value equivalent)

If each unit is priced equally for simplicity, the company needs to sell approximately 571,429 units in total to break even.

Theory Behind the Analysis: The contribution margin approach is vital in managerial accounting as it assists in short-term financial decision-making, including pricing, product mix optimization, and cost control. By focusing on variable and fixed costs, managers can identify the level of sales required to achieve profitability. Furthermore, understanding product contribution helps allocate resources efficiently and make strategic decisions such as discontinuing low-margin products or adjusting production levels.

Conclusion

Master-level accounting assignments can seem daunting due to their complexity and the need for both theoretical and practical knowledge. Questions involving consolidation, advanced cost management, and financial decision-making require careful analysis and an expert approach. By focusing on both accurate calculations and conceptual clarity, students can transform their accounting challenges into opportunities for learning.

Our expert solutions demonstrate that with the right guidance, it is possible to tackle even the most intricate accounting problems confidently. Whether it is eliminating unrealized profits, calculating weighted contribution margins, or understanding non-controlling interests, our team provides comprehensive, step-by-step guidance.

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