Accounting Answers

A company had 8.28 million shares in issue at the start of the year and made no new issue of
shares during the year ended 31st December 2004, but on that date there were outstanding
options to purchase 920,000 ordinary $1 shares at $1.7 per share. The average fair value of
ordinary shares was $1.80. Earnings for the year ended 31st December 2004 were $2,208,000.
Required
Calculate the fully DEPS for the year ended 31st December, 2004

Is interest payable and interest expense the same when preparing the cash flow statement?

In recent years it has become increasingly evident that statistics and statistical methods have provided the businessman with one of his most valuable tools for decision-making. Even though they are extremely useful in taking decisions, they are not a perfect substitute for commonsense. A businessman must, therefore combine the knowledge of the business environment in which he operates and its technological characteristics with a heavy dose of commonsense and ability to interpret statistical methods. Discuss

Writers' Company produces 2 products presently
Fountain
Pen ball point
Unit 10000 20000
Area occupied (sq feet) 7000 8000
Variable cost - direct 32 25
Fixed cost - direct (per unit) 10 8

Rent – fixed cost per
Month(indirect – common for all products)

Compute cost per unit of each product using Activity Based Costing

Break-up of Indirect Fixed Costs Allocation basis

Rent 3,00,000 Area of operations

You purchased 10 shares of l&t company last year. On 5march 2019,the company has declared a dividend rs 50per share. The income is earned but not yet collected in your account during this financial year.

Calculate the present value of a growing perpetuity with the following information (round off the answer to the nearest rand)
Cash flow at the end of the first year R60 000
Growth rate(g) 10%
Opportunity cost 20%

Calculate the present value of a growing perper

2. The information given below has been taken from the costing records of an Engineering works in respect of Job No. 303.
Materials Sh. 41,100
Wages:
Department A – 60 Hours at Sh.300 per hour
Department B – 40 Hours at Sh.200 per hour
Department C – 20 Hours at Sh.50 per hour
Overhead expenses for these three departments were estimated as follows:
Variable overheads:
Department A – Sh.50,000 for 5,000 labour hours
Department B – Sh.30,000 for 1,500 labour hours
Department C – Sh.20,000 for 500 labour hours
Fixed overheads:
Estimated at Sh.200,000 for 10,000 normal working hours.
Required:
i) Calculate the cost of job 303

A company calculates the prices of jobs by adding overheads to the prime cost and adding 30% to total costs as a mark up. Job number Y256 was sold for $1,690 and incurred overheads of $694. What was the prime cost of the job? *