Accounting Level IV COC Model

Project One
Harrick is private company registered in Ethiopia that does not maintain book of
account during the period of 2012. The company leased a building for birr 4500
per annual. The company employed Professor Admasu Zerihun as required
employee and paid 5400 birr per annual and also he lecture in AAU and paid birr
7030 per month.

Required

1. Determine amount of monthly employment income tax that is collected

from professor Admasu by Harrick payable to FIRA.
2. Determine the taxable income and rental income tax liability paid by
Harrick to FIRA.

Project Two
ETC trading company discloses the following information for the month of July 28,
2013.

Inventory January 1 ----------------------------------- 20 unit @ 50

Purchase July 3 ----------------------------------- 20 unit @ 51

Purchase July 20 --------------------------------- 15 unit @ 52

Sales July 7 --------------------------------- 10 unit

Sales July 18 --------------------------------- 10 unit

Sales July 27 --------------------------------- 10 unit

Required

Assume the company uses perpetual inventory system.

Compute

1. Cost of goods sold and ending inventory FIFO

2. Cost of goods sold and ending inventory LIFO
 Accounting Level IV COC Model
3. Cost of goods sold and ending inventory Average
4. Prepare journal entry

Project Three

Direct material purchase ---------------------------------------- 25,000

Direct material used ---------------------------------------------- 21,000
Direct labor cost --------------------------------------------------- 35,000
Factory Over Head (80 % Direct labor cost)
Beginning inventory finished goods -------------------------- 16,000
Ending inventory finished goods ------------------------------ 18,000
Beginning inventory Raw material ---------------------------- 13,000
Sales ----------------------------------------------------------------- 117,000
Required
1. Calculate cost of goods manufacturing sold
2. Calculate cost of goods sold.
3. Calculate gross profit

Project Four
AB Company produce two product A and B. Prepare the followings budgets
from the information given below
Product Product
A B
EistBest I 60,000 70,000
Desired In 51,000 45,000
Selling price per unit 30 35

Estimate A1 A2
Sales unit
A 30,000 30,000
B 20,000 50,000
 Accounting Level IV COC Model
Required; -
1. prepare sales budget for the year
2. prepare production budget for the year

Project Five
Cash transaction and cash balance KY Company for June were as follow

1. The ledger account of cash should a balance of birr 7430 on June 30.
2. The bank made payment of rent expense amounted to birr 3200 on behalf of
the customer as per standing instruction.
3. Also include in bank statement was a debit memorandum from the bank for birr
25 representing service charge.
4. Accredit memorandum enclosed with the bank statement indicated that a non-
interest bearing note receivable for birr 5753 from ABC Company had been
collected and credit to the account.
5. Comparison of paid checks returned by the bank revealed that check No 903 for
birr 236 issued on June 20 for payment of computer purchased had been
erringly entered in XY company’s Recorded as birr 263.
6. Outstanding checks total birr 3410.
7. Included with the bank statement was birr 225 check drawn by shorn Suffer
customer of XY Company. This check was marked NSF.
8. A deposit of birr 3200 had been made too late to appear on the bank statement.
9. The bank statement should birr 40 interest earned.
10. A Birr400 Deposit by XY Company was wrongly credit to AB company account
by the bank.
Required;-
A). Prepare bank reconciliation
B). prepare necessary journal entries.
 Accounting Level IV COC Model
Project Six
AAA Company has the following data for the month of Hidar , 2006 and wants to prepare
payroll register for the month.

ID .No Employee Basic Allowance Over time

Name Salary Work
01 DerejeKidane 950 750 6 hr 2.5, 8 hr 1.5
02 MeskeremTewelde 1630 900 12 hr 1.25
03 MelarMelaku 2900 300 4hr 1.25, 5 hr 2, 7 hr 2.5
04 GetuYimer 7800 1200 4hr 1.25, 8 hr 1.5, 6 hr 2

Additional information
1. All employees are permanent and worked 40 hour per week
2. Allowance of all employees up to 500 birr is exempted from tax
3. All employees agreed to contribute one month salary for Abay dam construction to
paid for a year.
4. All employees agreed to contribute 1% of their basic salary to credit and saving
association.
Required
1. Prepare a payroll register
2. Prepare the necessary journal entries

.
 Accounting Level IV COC Model
Matching

A Column B Column

_________ 1).Balance per adjustment A). Indirect tax

__________2).Triple bottom principles B).Service compensation

__________3).Performance measure C). Cash difference

__________4).Lodgment schedule D). Inventory Turn Over

__________5).Used in uploading data E). Discrepancies b/n monies owed and Monies paid

__________6).Cost allocation F). Receivable

__________7).Raving forecast G). Next period budget

__________8).Doubtful method H). Cost charge to product

__________9).Quality slandered I). Spread sheet

__________10).Adhoc report J). Fringe benefit

__________11).Analyze and verify source document K). Sustainable issue for the financial service

L). Deprecation

______12).Bank reconciliation M). Materials, components, process and procedures

__________13).Develop and refine system N).Continuous Improvements

O). Profit and loss for improvement

__________14).Severance pay

__________15).Consumer pay
 Accounting Level IV COC Model
1. triple bottom line principles

2. Lodgment schedule

3. ad hoc reports - Prepare inventory schedules and ad hoc reports

4. Balance day adjustments – depreciation

5.
Suppose Addis Techno company produce SMART mobile apparatus in Addis Ababa . The company is
preparing to Build a master budget for the coming year 2007 E.C. units sales for each quarter are
estimated as follows.

Q1 = 30,000 Q2 = 45.000

Q3=35,000 Q4=60,000

Required

Prepare sales budget for the company

Project Two
AB company producer product A sells for br.15 per unit and product B sells For br.18 per units.

Estimated sales for the coming year are given below.

Product

A B

Quarter 1 = 200,ooo 300,000

Quarter 2 = 150,000 300,000

Quarter 3 = 260,000 400,000

Quarter 4 = 300,000 500,000

Required
Prepare sales budget for each quarter and for the year ended sene 30, 2007.

Project Three
Suppose AB Company‘s policy is to have 500,000 & 1,000,000 tones of product A&B role
asterism in ending inventory. Product A&B requires to 40,000 tones & 50,000 tons of raw
 Accounting Level IV COC Model
materials as beginning inventory for A&B. The cost per unit of raw materials for A&B are 2
birr & 150 birr. For the year ended 2014.

Required : - prepare direct material budget.

Project Four

Assume DAT trading company discloses the following information for

the month of June 30,2014.

June 1. Beginning Inventory--------------------------------600 unit @10birr

June 10 sales -----------------------------------------------------500 unit@10birr

November -------------------------- Purchase ------------------- 50@10birr

February 10 ------------------------ Purchase ------------------- 150@10birr

May18 ----------------------------- Purchase ------------------- 300@10birr

Additional Information
The physical amount taken at the end of the physical period shows inventory 100 units.

Required

1. Determine the cost of inventory using FIFO,LIFO and Average Method