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    Coursework

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    lizah0beth

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    Coursework

    Uploaded by

    lizah0beth
    6 views4 pages

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    6 views4 pages

    Coursework

    Uploaded by

    lizah0beth

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    COLLEGE OF BUSINESS AND MANAGEMENT

    SCIENCE
    SCHOOL OF BUSINESS

    COURSE NAME: BACHELOR OF COMMERCE


    COURSE UNIT: FUNDAMENTAL ACCOUNTING PRINCIPLES
    COURSE CODE: COX 11O9
    TOPIC: MANUFACTURING ACCOUNTS
    YEAR ONE: SEMESTER ONE
    INSTRUCTOR: DR KINTU HESSEIN
    STUDENT: NANNOZI MOLLY
    REG. NO: 24/U/09593/EXT

    November 26, 2024


    Solutions

    Unrealized profits

    Opening stock of finished goods Shs 30,000,000


    Add: Unrealized profits (20% * shs30,000,000) Shs 6,000,000
    Shs 36,000,000

    Closing stock of finished goods Shs 40,000,000


    Add: unrealized profits (20% * shs40,000,000) Shs 8,000,000
    Shs 48,000,000

    Unrealized profits account


    DR CR
    Balance carried down Shs 8,000,000 Balance brought Shs 6,000,000
    down
    Increase in provision Shs 2,000,000
    Shs 8,000,000 Shs 8,000,000

    Prepaid direct wages account


    DR CR
    Balance brought down Shs 5,000,000 Manufacturing account Shs 21,000,000
    Cash /bank Shs 20,000,000 Balance carried down Shs 4,000,000
    Shs 25,000,000 Shs 25,000,000

    Provision for bad debts account

    DR CR
    Balance carried down Shs 700,000 Balance brought down Shs 500,000
    Increase in provision Shs 200,000
    Shs 700,000 Shs 700,000

    Apportionment of costs

    Particulars Amount Factory Office Selling and Distr


    ibution
    Salaries Shs 10,000,000 Shs 5,000,000 Shs 2,500,000 Shs 2,500,000
    Power Shs 8,000,000 Shs 3,200,000 Shs 1,600,000 Shs 3,200,000
    Insurance Shs 1,500,000 Shs 450,000 Shs 450,000 Shs 600,000

    1
    Ogikuteko Industries
    Manufacturing Account
    For The Period Ended 31st Dec 2021
    Detail Amount Amount
    Opening stock of raw materials 10,000,000
    Purchase of raw materials 50,000,000
    Returns outwards (3,000,000)
    47,000,000
    Carriage on Raw material 4,000,000 51,000,000
    Cost of materials available for production 61,000,000
    Less closing stock of raw material (15,000,000)
    Material cost 46,000,000
    Direct wages 21,000,000
    Royalties 6,000,000
    PRIME COSTS 73,000,000
    Factory Overheads
    Indirect material cost 5,000,000
    salaries 5,000,000
    power 3,200,000
    insurance 450,000
    Total manufactured goods 86,650,000
    Opening work in progress 3,000,000
    89,650,000
    Closing work in progress 2,000,000
    Cost of goods fully manufactured 87,650,000
    Manufacturing profit 17,530,000
    Transfer value of manufactured goods 105,180,000

    2
    Ogikuteko Industries
    Income Statement
    For The Period Ended 31/12/2021
    Detail shs Shs

    sales 350,000,000
    Sales returns (2,000,000)
    Net sales 348,000,000
    Cost of finished goods

    Opening stock of finished goods 36,000,000


    Add Transfer value of fully manufactured goods 105,180,000
    Purchase of finished goods 40,000,000
    Cost of goods completed 181,180,000
    Closing stock (48,000,000)
    Cost of sales 133,180,000
    Gross profit 214,820,000
    Profit 17,530,000
    232,350,000
    OPERATING EXPENSES
    Office and administrative expenses

    Salaries 2,500,000
    Power 1,600,000
    Insurance 450,000
    Office stationery 500,000
    Administrative allowance 4,500,000
    Selling and distribution
    salaries 2,500,000
    power 3,200,000
    Insurance 600,000
    Delivery expenses 5500,000
    Advertising 2,500,000
    Financial Charges
    Increase in provision 200,000
    Increase in unrealised profit 2,000,000 (26,050,000)
    Net profit 206,300,000

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