New Holistic Project

Rift valley University Bishoftu Campus
Department Accounting and finance TVET Level IV

Project 1 prepare budget
Case 1 scenario
ABC companies whole sales distributor leaf rakes occur in august. Sales the company planning budget for the
third quarter are show below
July august September total
Budget sales on account 600,000 900,000 500,000 2,000,000
Price per unit br. 150 br.250 br. 280
From the past experience the company learned that 25% of the month sales are collected in the month of sales
another 60% are collected in the month following sales and the remaining 15% are collected in the second
month following sales. Bad debts are negligible and can be ignored. May sales totaled 430,000 and June sales
totaled birr 540,000.
Task 1 prepares the schedule expected cash collections from sales by month and in total for the third quarter
Task 2 compute account receivable
a) At August 30
b) at September 30
Case 2 scenario
Micro Corporation has budgeted sales for its microchips for next four months Total
manufacturing cost incurred during November 2022… .................. 1,610,000
Unit sold
April 20,000
May 25,000
June 35,000
July 40,000
The company is prepared the production budget for the third quarter. Ending inventory level must equal 20%
of the next month sales.
Task 1 calculate the ending inventory as of march 31
Prepared by Department of Accounting and finance

Task 2 calculate production budget for the third quarter by month and in total
Project 2 prepare financial report
JJ Ethiopia Corporation opened for 2020 for the following trail balance JJ Ethiopia Corporation
Trail balance Jan1, 2020
Account name Debit Credit

Cash 100,000
Account receivable 300,000
Merchandise inventory 254,000
Land 346,000
Account payable 240,000
Loan payable 120,000
Capital stock 200,000
Retained earning 440,000
Dividend
Revenue
Salary expense
Rent expense
Supply expense
Interest expense
Total 1,000,000 1,000,000
Additional information
JJ Ethiopia Corporation has the following data for the year of 2020 G.C
Jan 2020 December 2020
Account receivable 430,000
Merchandise inventory 162,000
Account payable 238,000
Accrued salary 134,000 145,000
Unearned sales 17,000 28,000
Prepaid expense 11,000 16,000
 Cash collects from the customers during the period was 130,000

 Cash paid for supply during the period was 44,000
 Cash paid for operating expense during the period was 34,000
Task 1Calculate the total sales income during the period using accrual and cash basis accounting
Task 2 Calculate the total purchase during the period using accrual and cash basis accounting
Task 3 Calculate the total cost of goods sold during the period using accrual and cash basis accounting
Task 4 Calculate the total operating expense during the period using accrual and cash basis accounting
Task 5 prepare financial statement
I. Income statement
II. Retained earnings statement
Project 3 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.
Project 4
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.
Project 5 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 6 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 7 process pay roll
List of employee in Xyz Company
No Name of employee Basic salary Overtime earning

1 Alemu Megersa 18,000.00 600.00
2 Hiwot Abay 2,700.00 300.00
3 Fana Hailu 5,200.00 1,400.00
4 Hayat Mohamed 7,800.00 1,500.00
5 Tigist Desta 2,200.00 1,350.00
Additional information
 Monthly house allowances of each employee are 11% from basic salary

 Pension contribution from basic salary 7% from employee and 11% from employers
 All employees are responsible to pay 10% to the credit association from basic salary
 House allowance is non-taxable
 Transport allowance of each employee is ¼ (25%) from basic salary which in excess 600 is taxable
Task 1 prepare payroll

Task 2 prepare journal entry of payroll liability
Task 3 prepare journal entry for payment for payroll liability
Based on the above information Hayat Mohamed has to save some money from her net income by reducing her
expenditure during the month. Her expenditure during the month was as follows:
 Food …………………………..10%
 Cloth …………………………...15%
 Transport …………………….. 5%
 Rent ………………………….40%
What is the personal saving plan

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Rift valley University Bishoftu Campus

Department Accounting and finance TVET Level IV

July august September total

Budget sales on account 600,000 900,000 500,000 2,000,000

Price per unit br. 150 br.250 br. 280

Task 2 compute account receivable

manufacturing cost incurred during November 2022… .................. 1,610,000

Task 1 calculate the ending inventory as of march 31

Prepared by Department of Accounting and finance

Project 2 prepare financial report

Trail balance Jan1, 2020

Account name Debit Credit

Merchandise inventory 162,000

Account payable 238,000

Accrued salary 134,000 145,000

Unearned sales 17,000 28,000

Prepaid expense 11,000 16,000

Prepared by Department of Accounting and finance

Task 5 prepare financial statement

Prepared by Department of Accounting and finance

No Name of employee Basic salary Overtime earning

Prepared by Department of Accounting and finance

Task 1 prepare payroll

Prepared by Department of Accounting and finance

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