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- Explain the meaning of the following terms in regard to the cost and financial accounting
systems:
i) Integrated cost accounts
ii) Interlocking cost accounts
iii) Cost ledger control account
iv)...(Solved)
Explain the meaning of the following terms in regard to the cost and financial accounting
systems:
i) Integrated cost accounts
ii) Interlocking cost accounts
iii) Cost ledger control account
iv) Cost ledger contra account
Date posted: February 21, 2019. Answers (1)
- More Ltd. is a medium size manufacturing company and it maintains separate cost and financialaccounting books. The financial accountant provided the following statement for the...(Solved)
More Ltd. is a medium size manufacturing company and it maintains separate cost and financial
accounting books. The financial accountant provided the following statement for the year ended 31
March 2004.
Required:
Prepare a profit reconciliation statement for the year ended 31 March 2004.
Date posted: February 19, 2019. Answers (1)
- Bora Ltd. Commenced its operations on 1 march 2005 with a fully paid up issued share capital of
Sh.500,000 represented by fixed assets of Sh.275,000 and...(Solved)
Bora Ltd. Commenced its operations on 1 march 2005 with a fully paid up issued share capital of
Sh.500,000 represented by fixed assets of Sh.275,000 and cash at bank of Sh.225,000.
The company has two departments; A and B.
As at 30 may 2005, the following transactions had taken place:
1. Credit purchases from suppliers amounted to Sh.573, 500 of which Sh.525, 000 were in respect
of raw materials and Sh.48, 500 were in respect of purchases classified in the ledger accounts
as production overhead items.
2. Production overhead costs absorbed in the period were:
9. Sales on credit amounted to Sh. 870,000 and the cost of these credit sales was Sh. 700,000.
10. Depreciation on production plant and equipment was Sh. 15,000.
11. Cash received from debtors totaled Sh. 520,000 and payments made to creditors totaled
Sh.150,000.
Required:
(i). Using integrated cost accounting system, record the above transactions for the three months
ended 30 May 2005.
(ii). Profit and loss account for the period ended 30 May 2005 and balance sheet as at 30 May
2005.
Date posted: February 19, 2019. Answers (1)
- State possible causes of differences between reported profits in cost accounting and financial
accounting under the non-integrated cost accounting system.(Solved)
State possible causes of differences between reported profits in cost accounting and financial
accounting under the non-integrated cost accounting system.
Date posted: February 19, 2019. Answers (1)
- Outline the advantages to a business firm of using an integrated cost accounting system.(Solved)
Outline the advantages to a business firm of using an integrated cost accounting system.
Date posted: February 19, 2019. Answers (1)
- Lenga Juu Ltd. Produces three products, Exe, Wye and Zed in a single process. For the months of
September 2006, the following budgeted figures were available:(Solved)
Lenga Juu Ltd. Produces three products, Exe, Wye and Zed in a single process. For the months of
September 2006, the following budgeted figures were available:
Date posted: February 15, 2019. Answers (1)
- Smart Options Limited has been selling a product branded Exe for the last five years
The demand for product Exe for the past one year is...(Solved)
Smart Options Limited has been selling a product branded Exe for the last five years
The demand for product Exe for the past one year is as follows:
Date posted: February 15, 2019. Answers (1)
- Mtwapa Ltd sells Rollum at the rate of 500 per day throughout a working year of 250 days. The
product is normally purchased by Mtwapa Ltd...(Solved)
Mtwapa Ltd sells Rollum at the rate of 500 per day throughout a working year of 250 days. The
product is normally purchased by Mtwapa Ltd ready for sale at Sh. 70 per unit. Investigations
have shown that Rollum can be made at the rate of 800 units per day in a part of the factory
presently unoccupied. The direct costs per unit are as follows:
Date posted: February 15, 2019. Answers (1)
- Tengeneza Ltd makes three main products using broadly the same production methods and
equipment for each. A conventional product costing system is used at present, although...(Solved)
Tengeneza Ltd makes three main products using broadly the same production methods and
equipment for each. A conventional product costing system is used at present, although an
Activity Based Costing (ABC) system is being considered.
Date posted: February 15, 2019. Answers (1)
- Briefly explain bases of apportionment of overheads.(Solved)
Briefly explain bases of apportionment of overheads.
Date posted: February 15, 2019. Answers (1)
- Apex Furniture Ltd. manufactures three products: S, M and L.(Solved)
Apex Furniture Ltd. manufactures three products: S, M and L.
Date posted: February 15, 2019. Answers (1)
- Explain the four stages of the activity based costing method of allocating costs.(Solved)
Explain the four stages of the activity based costing method of allocating costs.
Date posted: February 15, 2019. Answers (1)
- Muungano Limited manufactures four products branded A, B, C and D. The company operates
the traditional absorption costing system. The production mangerha suggested that the company
should...(Solved)
Muungano Limited manufactures four products branded A, B, C and D. The company operates
the traditional absorption costing system. The production manager suggested that the company
should adopt the activity based costing system in determination of cost per product
Required:
i. The unit and the total costs of each products using the traditional absorption costing system
ii. The unit and the total costs of each product using the activity based costing system
Date posted: February 15, 2019. Answers (1)
- i. Distinguish between back flush accounting system and just in time (JIT) system
ii. Highlight four key features of just in time (JIT) system(Solved)
i. Distinguish between back flush accounting system and just in time (JIT) system
ii. Highlight four key features of just in time (JIT) system
Date posted: February 15, 2019. Answers (1)
- Stockmart Limited manufactures a product branded "Bora". The main raw material used in the
manufacture of 'Bora' is material 'MT2011'.
The current stock control policy of the...(Solved)
Stockmart Limited manufactures a product branded 'Bora'. The main raw material used in the
manufacture of 'Bora' is material 'MT2011'.
The current stock control policy of the company is to order material 'MT20 II' twice a year. The
quantity of each order is equivalent to one-half of the year's forecast demand.
Date posted: February 15, 2019. Answers (1)
- BabyCom Limited manufactures different types of toys. The company engages three employees.
Abel, Bilha and Charles.(Solved)
BabyCom Limited manufactures different types of toys. The company engages three employees.
Abel, Bilha and Charles.
Date posted: February 15, 2019. Answers (1)
- Toy Master Ltd. is located at the industrial area in the capital city of your country. The company
makes quality toys to customer's orders. The company...(Solved)
Toy Master Ltd. is located at the industrial area in the capital city of your country. The company makes quality toys to customer's orders. The company has three production departments; P, Q and R and two service departments; X and Y.
The overhead costs budget for the year ending 31 December 2012 is as follows:
Date posted: February 15, 2019. Answers (1)
- Explain the reasons why an organisation might use overheads allocation and apportionment in
allocating costs among cost centres.(Solved)
Explain the reasons why an organisation might use overheads allocation and apportionment in
allocating costs among cost centres.
Date posted: February 15, 2019. Answers (1)
- Explain the meaning of the following terms in the context of cost accounting:
i) Overtime premium.(Solved)
Explain the meaning of the following terms in the context of cost accounting:
i) Overtime premium.
Date posted: February 15, 2019. Answers (1)
- Gemini Ltd. Manufactures a product branded "Bora” that uses two inputs of raw materials; Exe
and Wye. As a newly appointed cost accountant of Gemini Ltd.,...(Solved)
Gemini Ltd. Manufactures a product branded "Bora” that uses two inputs of raw materials; Exe
and Wye. As a newly appointed cost accountant of Gemini Ltd., you have obtained the following
information:
1. Annual demand for the finished product is 64,000 units.
2. Each unit of "Bora" requires 3 kgs and I kg of material Exe and Wye respectively.
3. The production loss for material Exe is 5% of input.
4. It is not planned to change the stockholding of the finished product for the financial period
ahead, reduction of 6,000 kgs in the stock of material Exe is planned.
5. The ordering and holding costs are as follows:
6. A safety stock of 580 kgs of material Wye is held.
7. On average lead time is 2 weeks.
Assume 50 weeks in a year
Required;-
(i) Quantity of material Exe to be purchased.
(ii) Economic order quantity for materials Wye.
(iii) Re-order level for material Wye.
(iv) Annual ordering cost of material Wye.
(v) Annual holding cost of material Wye.
Date posted: February 15, 2019. Answers (1)