Answer five (5) of the following six (6) questions.
Question 1
(i)Journalize the below transactions
(ii)Post the Journal entries into ledger accounts
Date | Transactions |
2016 Oct 1 | Niel started business with cash $ 800,000 |
Oct 2 | purchased goods worth $ 3000 |
Oct 15 | Sold goods for $ 25000 |
Oct 18 | Purchased stationeries $4000 |
Oct 23 | Purchased furniture for $ 24,000 |
Oct 25 | Paid electricity charges with cash $3000 |
Oct 26 | Paid Salary $18000 |
Oct 28 | Paid rent $500 |
(10 Marks)
(10 marks)
Question 2
Particulars | Amount ($ ‘000) |
Sales | 37,436 |
Cash | 4,895 |
Cost of goods sold | 26,980 |
Accounts Payable | 7,156 |
Accounts Receivable | 5,714 |
Selling, general, and administrative expense | 3,624 |
Inventories | 8,517 |
Research and Development expense | 1,982 |
Plant and Equipment | 7,154 |
Interest expense | 450 |
Long term liability | 20105 |
Land | 981 |
Income tax expense | 1,100 |
(10 Marks)
(10 Marks)
Question 3
Month | Sales | Purchases | Wages | Selling Overheads | Office Overheads | Mfg. Overheads |
$ | $ | $ | $ | $ | $ | |
January | 60,000 | 36,000 | 9,000 | 4,000 | 2,000 | 4,000 |
February | 62,000 | 38,000 | 8,000 | 5,000 | 1,500 | 3,000 |
March | 64,000 | 33,000 | 10,000 | 4,500 | 2,500 | 4,500 |
April | 58,000 | 35,000 | 8,500 | 3,500 | 2,000 | 3,500 |
May | 56,000 | 39,000 | 9,000 | 4,500 | 1,000 | 4,000 |
June | 60,000 | 34,000 | 8,000 | 4,500 | 1,500 | 3,000 |
Additional Information:
(10 Marks)
(10 Marks
Question 4
A.(i) Moment Inc. provides the following data for June 2016 when 15,000 Units are manufactured:
Standard Material Cost (Per Unit)
8.50 kg @ $ 7.50/kg
Actual Material Cost (Per Unit)
6.75 kg @ $ 13.5/kg
StandardLabor cost (Per Unit)
5.5 hrs @ $ 15/hr
Actual Labor cost (Per Unit)
6.5 hrs @ $ 12.2/hr
Calculate:
Direct Material Price Variance
Direct Material Quantity/Usage Variance
Total Material Cost Variance
Direct Labor Rate Variance
Direct Labor Efficiency Variance
Total Labor Cost Variance
(ii) Calculate Variable Overhead Spending Variance if actual labor hours used are 260, standard variable overhead rate is $10.40 per direct labor hour and actual variable overhead rate is $9.30 per direct labor hour. Also specify whether the variance is favorable or unfavorable.
(iii) Calculate the variable overhead efficiency variance using the following figures:
Number of Units Produced | 620 |
Standard Direct Labor Hours Per Unit | 0.2 |
Actual Direct Labor Hours Used | 260 |
Standard Variable Overhead Rate | $10.40 |
(20 Marks)
Question 5
Selling price, $ 250 per unit (SP)
Variable cost, $ 100 per unit (VC)
Fixed Cost, $ 56000
The managers of the firm wish to know the following:
(20 marks)
QUESTION 6
(20 marks)