Level Four Code 4

Level Four Code 4
Project One: Perform Cost Accounting and Planning

The following data is related to Tulu wood work shop for the month of March, 2014.
Beginning Direct Material Inventory ----------------100,000
Ending Direct Material Inventory---------------------17,000
Beginning WIP inventory-------------------------------31,000
Ending WIP inventory ----------------------------------29,000
Beginning FG Inventory -------------------------------62,000
Ending FG Inventory-------------------------------------48,000
Direct Labor ------------------------------------------------80,000
Direct Material Used -------------------------------------142,000
Indirect Material Used ------------------------------------9,000
Indirect Labor ----------------------------------------------12,000
Other Manufacturing Overhead -------------------------27,000
Task 1.1: Calculate costs of goods manufactured and calculate cost of goods sold for the
given period.
Assume XYZ Company manufactured and sells adding machine. The company’s income
statement for the most recent year is given below:
Total Cost Per Unit
Sales(40,000 units ) 1,600,000 40
Variables expense 1,200,000 30
Contribution margin 400,000 10
Fixed expense 240,000
Net income 160,000
Task 1.2: Based on the above data perform the following tasks compute the company’s
breakeven point both in unit and sales birr.
Task 1.3: Compute cash disbursement in August.
Langano trading has the following purchases budget for the last half of, 2015:
July-----------------------Br 100,000 October----------------------Br 90,000
August-------------------Br 80,000 November-------------------Br 100,000
September---------------Br 110,000 December-------------------Br 94,000
Task 1.4: If the company pays one half at the time of purchase and the remainder in the month
following purchase, calculate the expected cash disbursement for purchase in August.
Rifty valley university sululta campuss
First year mid exam degree acc &finance
Time allowed 1hour
Project Two: Process Business Documents and Financial Report
July 01: Bacha invested Br 40,000 in cash to form Bacha Website Design.
July 02: Order office supplies Br 5,200.
July 03: Rent an office pays two months’ rent in advance, Br 3,200.
July 05: Received office supplies ordered on July 2 and an invoice for Br 5,200.
July 09: Made a partial payment of the amount owed for the office supplies received on July 5,
Br 2,600.
July 10: Performed a service for an automobile dealer by designing a website and collects a fee
in cash Br 2,800.
July 12: Purchased Office Equipment Br 16,320 for cash.
July 15: Performed a service for a department store by designing a website bills for the fee new
but will collect the fee later, Br 9,600.
July 19: Accepted an advance fee a deposited on website to be designed, Br 1,400.
July 22: Received cash from customer previously billed on July 15, Br 5,000
July 26: Paid Employees four weeks wages, Br 4,800.
July 30: Received but doesn’t pay the utility bill that is due next month, Br 680.
July 31: Bacha withdraw, 2,800 in cash.
Instruction: record the journal entry, post to ledger and prepare unadjusted trial Balance
Additional Information for adjustment
a. Expiration of one month’s rent Br 1,600.
b. Consumption of office supplies Br 1,540.
c. Depreciation of office equipment Br 300.
d. Accrued of unrecorded wages Br 720.
e. Performance of service for which cash was received in advance, Br 800.
f. Accrued of unrecorded revenues, Br 400.
Instruction: Record the:

1. Adjusting entry
2. Prepare income statement.
3. Prepare owner equity statement.
4. Prepare Balance sheet (ignore business profit tax).
Project Three: Revenue Recognition
The first year of operations Hope Company dealer of house hold appliances had a total
installment sales of Br 800,000 with a related cost of Br 480,000 of merchandise sold. The
collection of the installment account receivable as spread over three years as follows.
1st year Br 300,000
2nd year Br 280,000
3rd year Br 220,000
Instruction: Show your computation clearly for the following tasks.
Task 1: Compute the gross profit recognized at the point of sale.
Task 2: Compute the gross profit recognized for each year based on installment method.
Project Four: Inventory System

Abdi Boru PLC had the beginning inventory and purchases during the month of December 30,
2015 are given, the company uses the periodic inventory system.
Unit Unit Cost

Dec 1. Inventory 300 Br 10
10. Purchase 350 Br 11
At the end of the months the physical count of the remaining inventory items shows that 650 unit
are on hand. The company’s uses periodic FIFO cost assumption.
Task 4.1: Compute the cost of merchandise sold and cost of ending inventory on December 31,
2015.
Task 4.2: Compute the gross profit of Abdi Boru Company for the month of December 2015.
Assuming sales price is Br 20 for the merchandise sold.
Task 4.3: Compute the business profit tax if the company has incurred Br 3,500 general expense
including 1,000 entertainment expenses during the fiscal year.
Project Five: Process Payroll
CYZ Agency a government enterprise pays the salary of the employees as per the Ethiopian
calendar months. The agency has an eight working hours per day and five working days per
week.
S/ Name of Employees Basic Salary Monthly OT Hours Duration of
N Allowance worked OT work
1 Hawi 7,800 1,000 - -
2 Ware 4,000 800 10 Public holy
day
3 Sorsa 2,800 600 8 Up to 10pm
4 Gelane 1,800 200 6 10pm to 5 am
5 Momina 600 200 10 Weekend
Additional Information
 All employees are permanent.
 Gelane agreed to contribute monthly birr 50 from her salary to credit association.
 The workers are expected to work 40 hours per week & 160 hours month.
 Allowance in excess birr 800 are taxable.
Instruction:
Task 1.1 Prepare payroll register sheet for the month of Tir, 2008.
Task 1.2 Records the payment of salary as Tir 30, 2008.
Task 1.3 Record payroll tax expenses as Tir 30, 2008.
Task 1.4 Record the payment of payroll withholding to concerned bodies, assuming the payment
was made on Yekatit 15, 2008.

Level Four Code 4

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Level Four Code 4

Project One: Perform Cost Accounting and Planning

Instruction: Record the:

Project Four: Inventory System

Unit Unit Cost

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