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a) Explain why it is necessary to distinguish between direct labour and indirect labour, with
particular reference to the effect on gross profit and net profit.
b)...
(Solved)
a) Explain why it is necessary to distinguish between direct labor and indirect labor, with
particular reference to the effect on gross profit and net profit.
b) Unique Ltd. manufactures a single product. The product passes through three processes before
completion. In the month of January 2013, the following data was recorded in respect to process
Required:
i) Statement of equivalent production.
ii) Statement of costs.
iii) Process 2 account
Date posted:
February 21, 2019
.
Answers (1)
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Nald Ltd. manufactures a chemical product and uses process costing to account for its work in
progress. During the month of October 2013, 5,000 units...
(Solved)
Nald Ltd. manufactures a chemical product and uses process costing to account for its work in
progress. During the month of October 2013, 5,000 units were introduced to process 1 and the
following costs were incurred:
Additional information:
1. The normal loss in process 1 was estimated at 10%.
2. The scrapped normal loss units were sold at Sh.4 per unit.
3. Inspection is usually done at the end of the process; therefore any units scrapped would have
passed through the entire process.
Required
i) Statement of equivalent production
ii) Statement of cost
iii) Statement of evaluation of finished goods
iv) Process 1 account
Date posted:
February 21, 2019
.
Answers (1)
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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)
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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
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Answers (1)
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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
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Answers (1)
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Briefly explain bases of apportionment of overheads.
(Solved)
Briefly explain bases of apportionment of overheads.
Date posted:
February 15, 2019
.
Answers (1)
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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
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Answers (1)
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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)
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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)
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Copytech Ltd. sells and services photocopying machines. The company's sales department sells
the photocopying machines and consumables while the service department provides an after sale
service to...
(Solved)
Copytech Ltd. sells and services photocopying machines. The company's sales department sells
the photocopying machines and consumables while the service department provides an after sale
service to customers.
Currently, Copytech Ltd. uses a single overhead absorption rate to charge overheads based on total
sales revenue from copy charges. However, the service manager has proposed to change to activity
based costing (ABC) system and the following information has been obtained
Date posted:
February 15, 2019
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Answers (1)
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Distinguish between 'cost allocation' and 'cost absorption
(Solved)
Distinguish between 'cost allocation and 'cost absorption
Date posted:
February 15, 2019
.
Answers (1)
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Kenya Auto Assemblers Ltd assembles cars from imported knocked-down-kits. The company
has been operating at 60% capacity, assembling 3,000 cars per year.
The following information relates to...
(Solved)
Kenya Auto Assemblers Ltd assembles cars from imported knocked-down-kits. The company
has been operating at 60% capacity, assembling 3,000 cars per year.
The following information relates to the company‟s operations at two different levels of capacity.
Date posted:
February 15, 2019
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Answers (1)
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In practice there is no cost that can be described as, entirely and always variable or fixed.'
Comment on the above statement.
(Solved)
In practice there is no cost that can be described as, entirely and always variable or fixed.'
Comment on the above statement.
Date posted:
February 15, 2019
.
Answers (1)
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The information given below relates to Wasp Ltd. which manufactures a single type of
chemical. Overhead processing costs for the last thirteen accounting months (of four...
(Solved)
The information given below relates to Wasp Ltd. which manufactures a single type of
chemical. Overhead processing costs for the last thirteen accounting months (of four weeks
each) have been as follows:
Date posted:
February 15, 2019
.
Answers (1)
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Central Machinery Ltd ,Is preparing its budget for the year ending 30 June 2004.For the fuel
expenses consumption it is decided to estimate an equation of...
(Solved)
Central Machinery Ltd ,Is preparing its budget for the year ending 30 June 2004.For the fuel expenses consumption it is decided to estimate an equation of the form ,y=a + b x, where y is the total expense at an activity level x, a is the fixed expense and b is the rate of variable cost.
Date posted:
February 15, 2019
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Answers (1)
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Explain the advantage and disadvantages of high-low method of cost estimation.
(Solved)
Explain the advantage and disadvantages of high-low method of cost estimation.
Date posted:
February 15, 2019
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Answers (1)
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The management of Limuru processing Company Ltd. Wishes to obtain better cost estimates to
evaluate the company's operations more effectively
(Solved)
The management of Limuru processing Company Ltd. Wishes to obtain better cost estimates to
evaluate the company's operations more effectively
Date posted:
February 15, 2019
.
Answers (1)
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State three disadvantages of using the high – low method for estimating costs
(Solved)
State three disadvantages of using the high – low method for estimating costs
Date posted:
February 15, 2019
.
Answers (1)
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Briefly explain the following cost estimation methods:
(i). High-low method.
(ii). Simple regression method.
(Solved)
Briefly explain the following cost estimation methods:
(i). High-low method.
(ii). Simple regression method.
.
Date posted:
February 15, 2019
.
Answers (1)
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ABC Dental Clinic outsources specialized dental surgeons from private hospitals. The following
relates to the total labour hours and indirect labour costs for the year ended...
(Solved)
ABC Dental Clinic outsources specialized dental surgeons from private hospitals. The following relates to the total labour hours and indirect labour costs for the year ended 31 October 2010.
Date posted:
February 15, 2019
.
Answers (1)