Financial Math Answers

The manufacturer of product Gero requires three distinct processes A-C. On completion the product was passed from process C to finished goods stock. The following information was obtained in respect of the product

5,000 units of raw materials at ksh 250 were issued to process A and other costs incurred are given below

ELEMENT OF COST

PROCESS

TOTAL

A

B

C

Kshs

kshs

kshs

Kshs

Direct materials

5,000

12,000

18,000

35,000

Direct labour

30,000

20,000

10,000

60,000

Direct expenses

2,800

5,200

2,000

10,000

Production overheads

-

-

-

90,000

Production overhead is absorbed by each process at 100% of direct labour

You are required to prepare the process accounts

ABA Marketing is currently selling at ₱1,870 and with a dividend of ₱150. What is the current yield of the stock?

Write true if the statement is true

Write false if the statement is false

1.the amount of an employees gross earnings is the total amount that he or she earns in a specific period.

2.the net earnings of an employee are the sun of his or her gross earnings and the total deductions.

3.the minimum wage in a certain region refers to the latest amount that a worker in that region should receive in exchange for a rendered service.

4.a seperation pay must be given to an employee who was dismissed from a company due to a crime that the employee committed.

5.a night shift differential refers to the additional compensation a wage earner receives for working between 9pm to 6 am.

6.a maternity leave benefit is given to all married employees who sre pregnant.

7.a holiday pay refers to the additional compensation required by law for work performed within 8 hours on nonworking regular days.

.

.

Determine the present value of a loan if R12 000 is due in ve years' time, at a simple dis

ount rate of 15%

per annum.

[1℄ R12 656,25

[2℄ R12 972,97

[3℄ R13 125,00

[4℄ R13 664,28

QUESTION ONE

The manufacturer of product Gero requires three distinct processes A-C. On completion the product was passed from process C to finished goods stock. The following information was obtained in respect of the product

5,000 units of raw materials at ksh 250 were issued to process A and other costs incurred are given below

ELEMENT OF COST PROCESS TOTAL

A B C

Kshs kshs kshs Kshs

Direct materials 5,000 12,000 18,000 35,000

Direct labour 30,000 20,000 10,000 60,000

Direct expenses 2,800 5,200 2,000 10,000

Production overheads - - - 90,000

Production overhead is absorbed by each process at 100% of direct labour

You are required to prepare the process accounts

A.    Distinguish the following terms as used in the Not-for- profit organizations.

                                     i.           Capital and revenue donations

                                   ii.           Receipts and payment accounts

Life fund                 

1. On 15 November in each of the years 1964 to 1979 inclusive an investor deposited £500 in a special bank savings account. On 15 November 1983 the investor withdrew his savings. Given that over the entire period the bank used an annual interest rate of 7% for its special savings accounts, find the sum withdrawn by the investor.

Patric borrows money from Zanele at a simple discount rate of 9,75% per annum. He must pay him R35 000 in 27 months' time. The amount of money that he receives from Zanele now is