Level Four Code 2 Project One: Process Payroll

Level Four Code 2
PROJECT ONE: PROCESS PAYROLL

s/n Employer’s name Basic Over time Allowance
salary worked
1 Roza Yohannes 7,500 1500 Position
1250 Transport
House
1000
2 Haile Selama 2,827 5hrs Public Holiday 30% of basic Hardship
(2.5) salary
3 Yonas Abera 5,052 4hrs Evening (1.25)
40% of basic Hardship
2hrs Night (1.50) salary
4 Niguse Yihdego 1,455 12hrs Weekend (2.00) -
Additional Information
1. All Employees are permanent except Niguse Yihdego and all worked 40 hours per week.
2. During Ginbot 2007 all workers have done as they have been expected.
3. Yonas Abera monthly pay birr 750.00 from his basic salary for credit association.
4. Assuming that pension contribution 7% from Employee&11% from Employer.
Required:
1. Prepared payroll Register sheet.
2. Prepared necessary journal entry for preparation of payroll and payment of deduction to
concerned party.
PROJECT TWO: SALE BUDGET

Expected monthly sales of HIWOT Mechanization are as follows;
1. October------------------------------------Birr 5,000,000
2. November---------------------------------Birr 4,000,000
3. December---------------------------------Birr 3, 500, 000
 Management expects futures sales collection past experience: 80% on cash sales, 20% on
credit sales and credit sales will be collected 80% on the current month, 10% collected on
the next month and the remaining balance collected on the following month.
Required:
1. Prepare sales budget.
2. Prepare sales Collection budget.
3. Determine the Receivable balance.
PROJECT THREE: MANUFACTURING COST
The following data pertain to the operation of Nobel Company, manufacturing of furniture of
Dec 31, 2001:
Direct Material Used---------------------------------------------------------------Birr 243,000
Direct Labor Cost------------------------------------------------------------------------ 236,000
Total FOHs-------------------------------------------------------------------------------- 288,000
Beginning Inventory Work in Process------------------------------------------------- 118,000
Ending Inventory Work in Process----------------------------------------------------- 122,000
Beginning Inventory Finished Goods--------------------------------------------------- 20,000
Ending Inventory Finished Goods--------------------------------------------------------25,000
Sales----------------------------------------------------------------------------------------1,246,000
Selling Expense-----------------------------------------------------------------------------265,000
Administrative Expense-------------------------------------------------------------------- 87,000
Required:
1. Prepare Cost of Goods Manufactured
2. Prepare Income Statement
Project Four: Bank Reconciliation

Tsegay Trading has received his bank pass sheets for the year to 31, October 2015. As the date,
his balance at the bank amounted to birr 14,130 whereas his own cash book showed a balance of
birr 47,330. His accountant investigated the matter and discovered the following discrepancies:
a. Bank charges of birr 60 had not been entered in the cash book.
b. Checks drawn by Tsegay & totaling 450 had not yet been presented to the bank.
c. Tsegay had not entered receipts of birr 530 in his cash book from credit customer.
d. The bank had not credited Tsegay with receipts of birr 1,970 paid in to the bank on 31 st
October, 2015.
e. Payments of creditors amounting to birr 1,240 had not been entered in the cash book.
f. Tsegay had entered a payment of wages expense birr 560 in his cash book as birr 650.
g. A check received for birr 300 from debtor had been returned by the bank marked “refer to
drawer”, but this had not been written back in the cash book.
h. Check totaling birr 6,585 draw on 29th October for payment of notes payable had been
debited instead of credited.
i. Deposits in transit October 31, totaled birr 880.
j. Some of Tsegay’s customers had paid to settle their debts by direct debit. Unfortunately,
the bank had credited some direct debits amounting to birr 16,650 to another customer’s
account.
Required:
1. Prepare bank reconciliation for Tsegay trading at November 30, 2015.
2. Prepare the general journal entries necessary to bring the cash in bank account into
agreement the adjustment.
Project Five: Inventory
Consider the following data for XYZ Company:
Date Purchase Sold Units
Jan 1 Balance 200 units @birr 9
Jan 15 300 units @birr10
Jan 18 400 units @birr 11
Jan 19 No purchase 600 units
Jan 25 100 units @birr 12
Required:
1. Using periodic inventory system &FIFO method determine cost of goods sold & cost of
ending inventory.
2. Using perpetual inventory system & LIFO method determine cost of goods sold & cost of
ending inventory. .

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Level Four Code 2

PROJECT ONE: PROCESS PAYROLL

PROJECT TWO: SALE BUDGET

Project Four: Bank Reconciliation

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