Accounting Answers

Mr. Akbar provides you with the following information-(all the transactions are separate and independent of each other)  Started business with cash Rs150000  Purchased goods for cash Rs 25000  Sold goods to C on credit Rs 20000  Paid salary for cash Rs15000  Deposited cash into the bank account Rs100000.

a. Identify the accounts being affected in the monetary transaction and Identify the type of accounts identified - real, personal or nominal

ABC has employees 300 workers as a team. Standard production of 800 pieces per hour. Each employee in the team is paid a bonus for the excess production in addition to wages at hourly rates.

The bonus= % of production more than the standard quantity is found. Five % is regarded as the employees share. The employee in the team is paid as a bonus this percentage of a wage  rate of $30 per hours.

Total hours worked=     2100                            

Total Production=2700000

During the week Paul worked 40 hours and was paid $20 per hour. Margaret also worked 40 hours and was paid $20.

Calculate

     The bonus rate for the week                               

     Total bonus for the Team                                   

     Total pay for Paul and Margaret.                               

Morgan Ltd is a retailer of Juice barrels. The company has an annual demand of 74,000 barrels. The barrels cost $20 each. Fresh supplies can be obtained immediately but ordering cost and the cost of carriage inwards are $300 per order. The annual holding cost of holding one barrel in inventory is estimated to be $2. The economic order quantity has been calculated to be 7,000 x 12 barrels.

The suppliers introduce a quantity discount of 3% (.97)  on orders of at least 9,000 barrels and 4% on orders of at least 10,000 barrels.

Calculate to determine whether the least cost order quantity is still the EOQ of 7,000 barrels

You have been appointed financial manager of AB Ltd which is listed on the

Johannesburg Stock Exchange. You need to establish the company’s current cost of

capital and you have been provided with the following information:

Ordinary share capital

There are 240 000 shares in issue at a nominal value of R2.00 each. A dividend of

R2.06 as recently been paid and this dividend amount is expected to continue in the

foreseeable future.

17% preference shares – R120 000

The preference shares dividends for the year end 31 December 2020 have been paid.

Similar preference shares are currently trading at 15% yield to maturity.

10% bonds– R1 280 000

The market interest rate for the same class of bonds as AB Ltd, is 12% per annum.

Additional information

AB Ltd’s beta is 1.57. The return on the market is 20%. The current return on Treasury

bills is 8% per annum. The company tax rate is 28% and the company is in a tax paying

position.

Required:

Calculate the WACC

Batch No 465 required $ Kgs of materials in stores which cost $15/Kg, and also a special

component had to be bought at a cost of $1,000. 30 Hours labor were spent on the Batch where the employees were paid at $ 90/Hour. In addition, 3 Hours were spent by supervisor who is paid at $ 150/Hour. Overheads are absorbed at the rate of $ 40/Labor hour. Calculate the total absorption cost of the Batch No 465

Conversion cost formula and examples

Bank

Receipts from debtor 290,200 Balance b/d 104,500

Commission 87,300 Loan 98,000

Bank interest 16,000 Payments to supplier 111,600

Cash sales 317,600 Equipment 442,000

Fixtures 377,400 Utilities 11,200

Drawings 66,700

Wages 55,000

Cash purchases 72,100

Rent 19,600

Rate 22,500

Balance c/d 85,300

1,088,500 1,088,500

List of balance:

Details May 1 Apr 30

Stock 34,000 12,500

Loan 196,000 98,000

Land 811,000 811,000

Fixtures 740,000 314,000

Equipment 0 433,000

Creditor 44,700 68,500

Debtor 92,300 52,300

Rate prepaid 10,100 8,400

Commission prepaid 12,400 19,600

Wage owing 17,400 18,200

Additional notes:

1. Stock taken for personal use amount 16,200.

2. Amounts written-off as bad debts total 8,700.

3. Discount received from credit suppliers & discounts given to debtor amount to

14,800 & 11,100.

4. Return inward total 22,000.

5. A set-off of 3,600 was applied to the sale & purchase ledger.

6. The sale of fixtures was at net book value.

REQUIRED:

Derive the control account & trial balance.

5Q^2+8Q+20

Find the

Total fix cost

Fixed cost

Marginal cost

Variable cost

Is the firm with the above cost function in the short-run or long-run

A. Assume you are the authorized check signor of Melch Corporation, draw a check from the Company's account with LLB Bank for Southern Camarines Electric Power Corporation payable on November 22,2021 for 12,550.25 to pay the electric bill for October 28 - November 15, 2021.

A. Prepare Me-me Young Company's Common-size Statement of Financial Performance analysis for the year ended, 2020 given the following information:

-Cost of Goods Sold - 460,000.00

-Gross Profit - 640,000.00

-Net Income - 260,000.00

-Net Sales - 1,100,000.00

-Operating Expenses - 375,000.00

-Operating Income - 265,000.00

-Other Expenses - 5,000.00