Find Related Questions by Tags, levels, etc.
a) The following data has been extracted from the books of ABC Ltd for the month of October 2023.
| Date | Description |
|---|---|
| 2/10/2023 | Bought 200 units @ GH₵100 per unit |
| 5/10/2023 | Bought 150 units @ GH₵120 per unit |
| 8/10/2023 | Issued 120 units |
| 12/10/2023 | Bought 100 units @ GH₵90 per unit |
| 20/10/2023 | Issued 140 units |
| 24/10/2023 | Bought 300 units @ GH₵150 per unit |
| 28/10/2023 | Issued 210 units |
Required:
Using the FIFO method, calculate the value of the closing inventory. (10 marks)
b) Identify FOUR (4) pieces of information that can be seen on an invoice. (5 marks)
c) Preka body lotion is a product produced from the combination of two materials: prekese and kakaduro. Preka body lotion has a standard direct material cost as follows:
| Material | Quantity (kg) | Cost per kg (GH₵) | Total Cost (GH₵) |
|---|---|---|---|
| Prekese | 6 | 15 | 90 |
| Kakaduro | 10 | 10 | 100 |
During period one, 1,000 units of Preka body lotion were manufactured, using 11,700 kilograms of prekese and 10,000 kilograms of kakaduro, costing GH₵98,600 and GH₵78,000 respectively.
Required:
Calculate the following variances for prekese and kakaduro:
i) The direct material price variance (2.5 marks)
ii) The direct material usage variance (2.5 marks)
Find Related Questions by Tags, levels, etc.
a) Employees may be paid either using piece rate or hourly rate.
Required:
In reference to the statement above, state THREE (3) tasks/jobs that:
i) Piece rate may be used. (3 marks)
ii) Hourly rate may be used. (3 marks)
b) Krenkren enterprise uses the hourly rate to pay her employees. The current rate is GH¢6 per hour. However, employees are paid 1.5 times for each overtime hour worked. Each employee is to work a minimum of 40 hours a week without a guaranteed payment. Any extra hour will attract overtime rate.
Extract from the time sheet for a week has been provided below:
| Name | Staff Number | Hours worked |
|---|---|---|
| Kwame Sarfo | H 1356 | 56 |
| John Addae | H 3456 | 38 |
| Thomas Appia | F 2254 | 48 |
| Rose Danso | F 8645 | 50 |
Required:
Calculate the basic pay for each of the staff. (9 marks)
c) The following standard costs apply to the manufacture of a product by Pontir Ltd:
Actual production and costs for one accounting period were:
| Cost Element | Actual Usage | Actual Cost (GH¢) |
|---|---|---|
| Material | 3,770 kgs | 35,815 |
| Labour | 2,755 hours | 11,571 |
The actual output was 290 units.
Required:
Calculate relevant material and labor cost variances and present these in a format suitable for presentation to the management of Pontir Ltd. (5 marks)
Find Related Questions by Tags, levels, etc.
a) Inventory refers to the goods and materials that a business holds for the ultimate goal of resale, production, or utilization in the near future. Inventory could be in the form of raw materials, finished goods, work in progress, among others.
Required:
Identify FIVE (5) reasons actual inventory counted may be different from the balance in the inventory records. (5 marks)
Find Related Questions by Tags, levels, etc.
a) Asase Aban Ltd pays some of the employees on a time basis but is subject to a monthly minimum wage of GH¢800 as directed by the Government of Ghana. For one of the months, the following data were extracted from the timesheet of the company:
| SRN | Name | Staff Number | Number of hours |
|---|---|---|---|
| 1 | Kwame Sarfo | K00324 | 262 |
| 2 | Ajoa Mansa | A00225 | 240 |
| 3 | Salomy Adiku | S00552 | 180 |
| 4 | Joseph Asiedu | J00654 | 332 |
| 5 | Thomas Tinge | T00724 | 204 |
The hourly rate was GH¢4.00, the minimum hours to be worked by each staff beyond which overtime can be paid is 224 per month. All overtime attracts a premium of GH¢1.50 per hour.
Required: i) Calculate the direct labour cost for the month. (8 marks) ii) Calculate the total indirect labour cost for the month. (2 marks)
b) Most businesses overlook their actual inventory cost, but in reality, the inventory price is more than its purchase price. It is because it includes the cost of ordering, as well as the cost of storing and maintaining until sales happen. Therefore, for assessing inventory value, every business must consider carrying or holding cost and ordering cost, together with the purchase price.
Required: i) State TWO (2) examples of inventory ordering costs. (2 marks) ii) State THREE (3) examples of inventory holding costs. (3 marks)
c) Explain TWO (2) uses of standard costing. (5 marks)
Find Related Questions by Tags, levels, etc.
a) Grains Dealers Ltd is in the business of buying farm produce in bulk from out-growers for onward sale to manufacturers. In view of the huge volumes of receipt and sale transactions, the company is unable to use the specific pricing method for valuing inventories. The company needs advice on the impact on profit of using the FIFO or Weighted Average methods of inventory valuation. The following data has been extracted for the month of October 2019 for use:
Inventory balance as at 01/10/19 was 800 units at GH¢4 per unit.
| Date | Purchases | Sales |
|---|---|---|
| Quantity | Price (GH¢) | |
| 05/10/2019 | 1,200 | 5.00 |
| 10/10/2019 | ||
| 12/10/2019 | 1,500 | 6.00 |
| 15/10/2019 | 1,800 | 7.25 |
| 18/10/2019 | ||
| 25/10/2019 | 2,400 | 8.00 |
| 28/10/2019 |
Additional information:
A physical inventory count on 31 October 2019 revealed a shortage of 200 units.
Required:
i) Prepare the inventory ledger showing the value of costs of inventory sold, and the closing inventory on the basis of the perpetual inventory valuation system under:
ii) Compute the profit for the month for each method in columnar form. (3 marks)
b) Explain the following as used in standard costing and variance analysis:
i) Ideal standard;
ii) Attainable standard; (5 marks)
Find Related Questions by Tags, levels, etc.
Walata Ltd manufactures and sells a unique anti-cold formula called the Magic Ball. The product is produced from a combination of two ingredients; R and Q with the following details:
Standard quantity per unit:
Standard prices:
For the quarter just ended, the following results were recorded:
| Material | Quantity purchased and used | Price per Kilogramme |
|---|---|---|
| Q | 4,800 kg | GH¢4.25 |
| R | 5,400 kg | GH¢2.20 |
Required:
i) Calculate the price variance for each material. (3 marks)
ii) Calculate the usage variance for each material. (3 marks)
b) Apagya Ltd has two product lines AB and CD. Time rate and piece rate labour rewarding systems are used for AB and CD products respectively.
Required:
Explain the terms time rate and piece rate, clearly outlining their differences and giving examples of business settings where each could be applied. (4 marks)
c) AB Ltd operates a 40-hour weekly work regime and rewards labour for all overtime worked at time and one-half.
The wage rate is GH¢80 per hour.
The following details are recorded for the month of October 2019 for an employee (Adamu):
| Week | Hours Worked |
|---|---|
| 1 | 36 |
| 2 | 48 |
| 3 | 45 |
| 4 | 46 |
Required:
i) Compute the total direct labour costs for Adamu for the month of October 2019. (4 marks)
ii) Calculate the total indirect labour costs for Adamu for the month of October 2019. (4 marks)
d) Explain the treatment of overtime premium in accounting for labour costs. (2 marks)
Find Related Questions by Tags, levels, etc.
Find Related Questions by Tags, levels, etc.
a) The following data has been extracted from the books of ABC Ltd for the month of October 2023.
| Date | Description |
|---|---|
| 2/10/2023 | Bought 200 units @ GH₵100 per unit |
| 5/10/2023 | Bought 150 units @ GH₵120 per unit |
| 8/10/2023 | Issued 120 units |
| 12/10/2023 | Bought 100 units @ GH₵90 per unit |
| 20/10/2023 | Issued 140 units |
| 24/10/2023 | Bought 300 units @ GH₵150 per unit |
| 28/10/2023 | Issued 210 units |
Required:
Using the FIFO method, calculate the value of the closing inventory. (10 marks)
b) Identify FOUR (4) pieces of information that can be seen on an invoice. (5 marks)
c) Preka body lotion is a product produced from the combination of two materials: prekese and kakaduro. Preka body lotion has a standard direct material cost as follows:
| Material | Quantity (kg) | Cost per kg (GH₵) | Total Cost (GH₵) |
|---|---|---|---|
| Prekese | 6 | 15 | 90 |
| Kakaduro | 10 | 10 | 100 |
During period one, 1,000 units of Preka body lotion were manufactured, using 11,700 kilograms of prekese and 10,000 kilograms of kakaduro, costing GH₵98,600 and GH₵78,000 respectively.
Required:
Calculate the following variances for prekese and kakaduro:
i) The direct material price variance (2.5 marks)
ii) The direct material usage variance (2.5 marks)
Find Related Questions by Tags, levels, etc.
a) Employees may be paid either using piece rate or hourly rate.
Required:
In reference to the statement above, state THREE (3) tasks/jobs that:
i) Piece rate may be used. (3 marks)
ii) Hourly rate may be used. (3 marks)
b) Krenkren enterprise uses the hourly rate to pay her employees. The current rate is GH¢6 per hour. However, employees are paid 1.5 times for each overtime hour worked. Each employee is to work a minimum of 40 hours a week without a guaranteed payment. Any extra hour will attract overtime rate.
Extract from the time sheet for a week has been provided below:
| Name | Staff Number | Hours worked |
|---|---|---|
| Kwame Sarfo | H 1356 | 56 |
| John Addae | H 3456 | 38 |
| Thomas Appia | F 2254 | 48 |
| Rose Danso | F 8645 | 50 |
Required:
Calculate the basic pay for each of the staff. (9 marks)
c) The following standard costs apply to the manufacture of a product by Pontir Ltd:
Actual production and costs for one accounting period were:
| Cost Element | Actual Usage | Actual Cost (GH¢) |
|---|---|---|
| Material | 3,770 kgs | 35,815 |
| Labour | 2,755 hours | 11,571 |
The actual output was 290 units.
Required:
Calculate relevant material and labor cost variances and present these in a format suitable for presentation to the management of Pontir Ltd. (5 marks)
Find Related Questions by Tags, levels, etc.
a) Inventory refers to the goods and materials that a business holds for the ultimate goal of resale, production, or utilization in the near future. Inventory could be in the form of raw materials, finished goods, work in progress, among others.
Required:
Identify FIVE (5) reasons actual inventory counted may be different from the balance in the inventory records. (5 marks)
Find Related Questions by Tags, levels, etc.
a) Asase Aban Ltd pays some of the employees on a time basis but is subject to a monthly minimum wage of GH¢800 as directed by the Government of Ghana. For one of the months, the following data were extracted from the timesheet of the company:
| SRN | Name | Staff Number | Number of hours |
|---|---|---|---|
| 1 | Kwame Sarfo | K00324 | 262 |
| 2 | Ajoa Mansa | A00225 | 240 |
| 3 | Salomy Adiku | S00552 | 180 |
| 4 | Joseph Asiedu | J00654 | 332 |
| 5 | Thomas Tinge | T00724 | 204 |
The hourly rate was GH¢4.00, the minimum hours to be worked by each staff beyond which overtime can be paid is 224 per month. All overtime attracts a premium of GH¢1.50 per hour.
Required: i) Calculate the direct labour cost for the month. (8 marks) ii) Calculate the total indirect labour cost for the month. (2 marks)
b) Most businesses overlook their actual inventory cost, but in reality, the inventory price is more than its purchase price. It is because it includes the cost of ordering, as well as the cost of storing and maintaining until sales happen. Therefore, for assessing inventory value, every business must consider carrying or holding cost and ordering cost, together with the purchase price.
Required: i) State TWO (2) examples of inventory ordering costs. (2 marks) ii) State THREE (3) examples of inventory holding costs. (3 marks)
c) Explain TWO (2) uses of standard costing. (5 marks)
Find Related Questions by Tags, levels, etc.
a) Grains Dealers Ltd is in the business of buying farm produce in bulk from out-growers for onward sale to manufacturers. In view of the huge volumes of receipt and sale transactions, the company is unable to use the specific pricing method for valuing inventories. The company needs advice on the impact on profit of using the FIFO or Weighted Average methods of inventory valuation. The following data has been extracted for the month of October 2019 for use:
Inventory balance as at 01/10/19 was 800 units at GH¢4 per unit.
| Date | Purchases | Sales |
|---|---|---|
| Quantity | Price (GH¢) | |
| 05/10/2019 | 1,200 | 5.00 |
| 10/10/2019 | ||
| 12/10/2019 | 1,500 | 6.00 |
| 15/10/2019 | 1,800 | 7.25 |
| 18/10/2019 | ||
| 25/10/2019 | 2,400 | 8.00 |
| 28/10/2019 |
Additional information:
A physical inventory count on 31 October 2019 revealed a shortage of 200 units.
Required:
i) Prepare the inventory ledger showing the value of costs of inventory sold, and the closing inventory on the basis of the perpetual inventory valuation system under:
ii) Compute the profit for the month for each method in columnar form. (3 marks)
b) Explain the following as used in standard costing and variance analysis:
i) Ideal standard;
ii) Attainable standard; (5 marks)
Find Related Questions by Tags, levels, etc.
Walata Ltd manufactures and sells a unique anti-cold formula called the Magic Ball. The product is produced from a combination of two ingredients; R and Q with the following details:
Standard quantity per unit:
Standard prices:
For the quarter just ended, the following results were recorded:
| Material | Quantity purchased and used | Price per Kilogramme |
|---|---|---|
| Q | 4,800 kg | GH¢4.25 |
| R | 5,400 kg | GH¢2.20 |
Required:
i) Calculate the price variance for each material. (3 marks)
ii) Calculate the usage variance for each material. (3 marks)
b) Apagya Ltd has two product lines AB and CD. Time rate and piece rate labour rewarding systems are used for AB and CD products respectively.
Required:
Explain the terms time rate and piece rate, clearly outlining their differences and giving examples of business settings where each could be applied. (4 marks)
c) AB Ltd operates a 40-hour weekly work regime and rewards labour for all overtime worked at time and one-half.
The wage rate is GH¢80 per hour.
The following details are recorded for the month of October 2019 for an employee (Adamu):
| Week | Hours Worked |
|---|---|
| 1 | 36 |
| 2 | 48 |
| 3 | 45 |
| 4 | 46 |
Required:
i) Compute the total direct labour costs for Adamu for the month of October 2019. (4 marks)
ii) Calculate the total indirect labour costs for Adamu for the month of October 2019. (4 marks)
d) Explain the treatment of overtime premium in accounting for labour costs. (2 marks)
Find Related Questions by Tags, levels, etc.
Elevate your professional expertise across key business domains with our comprehensive training programs
Follow us on our social media and get daily updates.
This feature is only available in selected plans.
Click on the login button below to login if you’re already subscribed to a plan or click on the upgrade button below to upgrade your current plan.
If you’re not subscribed to a plan, click on the button below to choose a plan
