Program (SQ): PROFESSIONAL PROGRAM

Search 500 + past questions and counting.
Sort & Filter

Reset filters

Search

Filter by Professional Bodies

Filter by Subject

Filter by Topics

Filter by Levels

  • 8 Marks

MA – L2 – Q55 – Decision making techniques

Provide the optimal production plan for Harmony Company Ltd with limited labour hours for three products.

Harmony Company Ltd is preparing for next season’s operations. The company has provided the following information relating to its three products:

TA GB DC
GH¢ GH¢ GH¢
Selling price 18.5 16.2 12.6
Material cost 8.75 10.5 3.5
Labour cost 7.7 4.4 7.7

Labour hours per unit:

TA GB DC
Labour hours 3.5 2.0 3.5

Annual Demand:
2,150 units (TA), 3,235 units (GB), 1,556 units (DC)

The company can only make available a total of 18,560 hours in the short run.

Required:
(a) Provide the optimal production plan for Harmony Ltd for the ensuing period.

(b) What is the total incremental benefit of producing DC instead of GB, assuming available resources can only meet demand of DC?

Login or create a free account to see answers

Login | Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "MA – L2 – Q55 – Decision making techniques"

  • 20 Marks

FA – L1 – Q99 – Statement of Cash Flows

Prepare a statement of cash flows for Nordex Limited for 20X9 using financial statements and non-current asset details.

The following information has been extracted from the draft financial information of Nordex Limited.

Statement of Profit or Loss for the Year Ended 31 December 20X9

GH¢’000 GH¢’000
Sales revenue 1,350
Administration costs (346)
Distribution costs (246)
Operating profit 758
Interest expense (110)
Profit before tax 648
Taxation (208)
Profit after tax 440
Dividends paid (120)
Retained profit for the year 320

Statements of Financial Position

31 December 20X9 31 December 20X8
GH¢’000 GH¢’000 GH¢’000 GH¢’000
Non-current assets 1,145 957
Current assets
Inventory 157 142
Receivables 203 184
Cash and cash equivalents 41 10
401 401 336 336
Total assets 1,546 1,293
Equity and liabilities
Equity
Share capital 200 200
Revaluation surplus 170 100
Retained earnings 604 404
974 974 704 704
Non-current liabilities
Loans 350 450
Current liabilities
Trade payables 43 43
Taxation 29 36
Accruals 150 100
222 222 179 179
Total equity and liabilities 1,546 1,293

Note on Non-Current Assets

Land and Buildings Machinery Fixtures & Fittings Total
GH¢’000 GH¢’000 GH¢’000 GH¢’000
Cost or Valuation
At 31 December 20X8 830 470 197 1,497
Additions – 43 55 98
Disposals – (18) – (18)
Adjustment on revaluation 70 – – 70
At 31 December 20X9 900 495 252 1,647
Depreciation
At 31 December 20X8 (90) (270) (180) (540)
Charge for the year (10) (56) (8) (74)
Disposals – 12 – 12
Adjustment on revaluation 100 – – 100
At 31 December 20X9 0 (314) (188) (502)
Carrying Amount
At 31 December 20X8 740 200 17 957
At 31 December 20X9 900 181 64 1,145

You have been informed that included within distribution costs is GH¢4,000 relating to the loss on a disposal of a non-current asset.

Required
Prepare a statement of cash flows for Nordex Limited for the year ended 31 December 20X9.

Login or create a free account to see answers

Login | Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "FA – L1 – Q99 – Statement of Cash Flows"

  • 20 Marks

FA – L1 – Q98 – Statement of cash flows

Prepare a statement of cash flows for Tango Limited for 20X9 using the direct method, based on provided financial statements.

The following information has been extracted from the financial statements of Tango Limited for the year ended 31 December 20X9.

Statement of profit or loss for the year ended 31 December 20X9

GH¢ GH¢
Sales
Cost of sales
Gross profit
Loss on disposal of non-current asset (4,000)
Wages and salaries (137,000)
Other expenses (including depreciation GH¢46,000) (193,000)
Interest charges (19,000)
Profit before tax
Tax on profit
Profit after tax

The asset disposed of had a carrying amount of GH¢31,000 at the time of the sale.

Extracts from the statements of financial position:

At 1 January 20X9 At 31 December 20X9
GH¢ GH¢
Non-current assets 157,000 142,000
Inventory 42,000 45,000
Receivables 43,600 51,000
Cash and cash equivalents 4,000 11,200
Trade payables 45,000 41,000
Taxation payable 10,000 12,000
Interest payable 3,000 2,000

Note on non-current assets

Land and buildings Machinery Fixtures & fittings Total
GH¢000 GH¢000 GH¢000 GH¢000
Cost or valuation
At 31 December 20X8 830 470 197 1,497
Additions – 43 55 98
Disposals – (18) – (18)
Adjustment on revaluation 70 – – 70
At 31 December 20X9 900 495 252 1,647
Depreciation
At 31 December 20X8 (90) (270) (180) (540)
Charge for the year (10) (56) (8) (74)
Disposals – 12 – 12
Adjustment on revaluation 100 – – 100
At 31 December 20X9 0 (314) (188) (502)
Carrying amount:
At 31 December 20X8 740 200 17 957
At 31 December 20X9 900 181 64 1,145

You have been informed that included within distribution costs is GH¢4,000 relating to the loss on a disposal of a non-current asset.

Required
Prepare a statement of cash flows for Tango Limited for the year ended 31 December 20X9.

Login or create a free account to see answers

Login | Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "FA – L1 – Q98 – Statement of cash flows"

  • 20 Marks

FA – L1 – Q97 – Preparation of accounts from incomplete records

Prepare statement of profit or loss, statement of affairs, and statement of financial position for Ansah Ventures for 20X9 using incomplete records.

ANSAH VENTURES

Kwame Ansah is a vehicle spare parts dealer in Kumawu. He pays into his bank account the amount of his cash takings after keeping an amount of GH¢2,000 per week for personal use and after payment of wages and other expenses, which for the accounting period ending 31st December 20X9, were as follows:

Expenses GH¢
Staff wages 1,440
Goods 120,580
Cleaning 1,200
Carriage 600
Sundry 5,000

The following are his bank transactions:

Bank Transactions GH¢
Income tax 3,000
Telephone 650
Bank lodgements 15,000
Cash sales 6,000
Bulk sales (cheques) 10,000
Treasury bill interest 5,000
Payments to suppliers 15,000
Rent 11,000
Electricity 650
Balance as at 1st January 20X9 6,000

The following additional information was also provided:

Assets and Liabilities 01/01/20X9 (GH¢) 31/12/20X9 (GH¢)
Furniture & fittings 1,200 1,200
Stocks in trade 10,500 7,650
Payables – Goods purchased 1,670 2,750
Payables – Rent 5,000 6,000
Payables – Electricity 500 650
Payables – Telephone 150 200
Payables – Accountancy fee – 750
Treasury bills 10,000 15,000
Receivables – Bulk sales 8,000 15,000

Required:
(i) Prepare statement of profit or loss for the year ending 31st December 20X9. (10 marks)
(ii) Prepare statement of affairs as at 1st January 20X9. (2 marks)
(iii) Prepare statement of financial position as at 31st December 20X9. (8 marks)

Login or create a free account to see answers

Login | Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "FA – L1 – Q97 – Preparation of accounts from incomplete records"

  • 20 Marks

MA – L2 – Q54 – Transfer pricing

Calculate profits for Zora Shoes Ltd's departments under different pricing methods, evaluate an outsourcing offer, and explain transfer pricing principles.

Zora Shoes Ltd sells 5,000 pairs of shoes each month through its Production/Sales department. 25% of the shoes (by number) sold require repairs which are carried out by the company’s Repairs department. The Production/Sales department collects an additional GH¢5 for each pair of shoe requiring repairs as an anticipated repair charge when the shoes are sold to customers. The following additional information is available:

GH¢
Material 2.50
Labour 1.5 per Labour hour
Variable Overheads 0.5 per Labour hour
Fixed Overheads 1.15 per Labour hour

Each repair takes 2 labour hours and the Repairs department processes 1,250 repairs each month (5,000 pairs × 25%). The Production/Sales department sells each pair of shoe for GH¢22.

Required:
(i) Calculate the individual profits of the Production/Sales department, Repairs department and Zora Ventures if repairs are done by the repairs department of Zora Ventures at either full cost plus 20% margin on sales or at marginal cost. (8 marks)
(ii) Lee Shoe Repairs has offered to repair each pair of shoe for Zora Ventures at GH¢10.00, a price which is cheaper than what the repairs department is offering. Should Zora Ventures accept this offer? (5 marks)
(iii) Identify THREE other factors Zora Ventures should consider in finalizing the decision in (ii) above? (3 marks)
(iv) Explain TWO principles of a good transfer pricing method.

Login or create a free account to see answers

Login | Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "MA – L2 – Q54 – Transfer pricing"

  • 10 Marks

MA – L2 – Q53 – Cost-volume-profit (CVP) analysis

Evaluate four assumptions required for valid cost-volume-profit analysis.

(a) For any cost volume profit analysis to be valid, a number of important assumptions must reasonably be satisfied within the relevant range. As a management accountant for your organization, evaluate any four assumptions that must be satisfied in cost-volume-profit analysis.

 (b) Determine the number of units at the break-even point.

Login or create a free account to see answers

Login | Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "MA – L2 – Q53 – Cost-volume-profit (CVP) analysis"

  • 20 Marks

FA – L1 – Q95 – Preparation of accounts from incomplete records

Prepare Kofi Mensah's statement of profit or loss and financial position for 20X9 using incomplete records and bank summary.

Kofi Mensah retired from his employment abroad and returned to this country, where he purchased a small kiosk.
He took over the business on 1 July 20X8, acquiring the existing inventory at a valuation of GH¢1,142,000. The rest of the purchase price was apportioned as to GH¢1,500,000 for fixtures and fittings and the balance for goodwill.
The following day he acquired a second-hand computer and accounts package at a price of GH¢80,000. Unfortunately, Kofi Mensah made an error when printing his year-end accounts causing him to lose all data except for printed a summary listing of payments from the till. Other than this, the only records available were his bank statements and a number of vouchers. Surplus cash was banked during the year.
A summary of his bank account for the year ended 30 June 20X9 shows the following.

Receipts GH¢000 Payments GH¢000
Cash introduced 5,000 Purchase of business 3,192
Bankings from shop 16,427 Purchase of accounts computer 80
Loan from mother (long-term) (interest at 5% pa) 1,000 Rent (15 months to 30 September 20X9) 500
Rates (9 months to 31 March 20X9) 84
Electricity 92
Purchases for resale 14,700
Private cheques 1,122
Balance 30 June 20X9 2,657
22,427 22,427

The computer print-out was as follows.

GH¢000
Cash purchases for resale 1,606
Staff wages 742
Sundry shop expenses 156
Cash drawings 520

On 30 June 20X9 inventory, measured at cost, amounted to GH¢1,542,000, amounts due from customers GH¢74,000, and cash in hand amounted to GH¢54,000. Depreciation is to be recognised on fixtures and fittings at a rate of 10%.
Accounts outstanding on 30 June 20X9 were purchases of GH¢470,000 and rates of GH¢120,000 for the year ended 31 March 20Y0.

Required:
Prepare Kofi Mensah’s statement of profit or loss for the year ended 30 June 20X9 and a statement of financial position at that date.

Login or create a free account to see answers

Login | Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "FA – L1 – Q95 – Preparation of accounts from incomplete records"

  • 20 Marks

FA – L1 – Q94 – Preparation of accounts from incomplete records

Prepare statement of profit or loss and financial position for a sole trader using incomplete records for 20X9.

Kofi Mensah does not keep proper books of account due to his lack of knowledge of double entry system of accounting. He has supplied you the following information with respect to the year ended 31 December 20X9 from the records kept in his diary:
(i) Transactions during the year:

GH¢
Cash received from customers 80,000
Discount allowed to customers 1,400
Irrecoverable debts written off 1,800
Cash paid to suppliers 63,000
Discount allowed by suppliers 1,000
Sales returns 3,000
Purchases returns 2,000
Expenses paid 6,000
Drawings 5,000
Rent paid 2,500

(ii) Opening balances as on 1 January 20X9:

Assets and liabilities GH¢
Receivables 45,000
Payables 24,000
Cash 4,500
Furniture and fixtures 15,000
Inventory 25,000
Motor van 16,000

(iii) Receivables and payables as on 31 December 20X9 amounted to GH¢ 48,600 and GH¢ 27,000 respectively.
(iv) Outstanding expenses as on 31 December 20X9 amounted to GH¢ 1,200.
(v) Depreciation is charged on furniture and fixtures at the rate of 10% and on motor van at 20%.
(vi) Kofi Mensah sells goods at cost plus 40% and follows a policy of maintaining an allowance of 5% of the outstanding receivables.

Required:
Prepare the following:
(a) Statement of profit or loss for the year ended 31 December 20X9.
(b) Statement of financial position as at 31 December 20X9.

Login or create a free account to see answers

Login | Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "FA – L1 – Q94 – Preparation of accounts from incomplete records"

  • 9 Marks

FA – L1 – Q93 – Inventory

Calculate gross profit and percentage for FreshProduce with given sales, inventory, and purchases.

(A). A FreshProduce made sales during the month of GH₵49,200. Opening inventory amounted to GH₵3,784 and month-end inventory was GH₵5,516. During the month, he purchased for cash goods which cost GH₵38,632.

Required:
Determine the gross profit and calculate the gross profit percentage as a percentage of sales value.

(B). A Competitor has made sales of GH₵50,100 at a fixed mark-up of 25%. Closing inventory was valued at GH₵5,438 and he purchased goods during the month amounting to GH₵38,326.

Required:
Determine the value of the opening inventory.

(C) . A CommunityMart makes sales at a fixed gross profit of 10% on sales value. Sales during the month amounted to GH₵186,460; closing inventory was GH₵16,800 and represents an increase of 25% over the value of the opening inventory.

Required:
Determine the cost of purchases during the month.

Login or create a free account to see answers

Login | Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "FA – L1 – Q93 – Inventory"

Oops!

This feature is only available in selected plans.

Click here to view all 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.

Login
Upgrade Plan

If you’re not subscribed to a plan, click on the button below to choose a plan

Subscribe to a plan

Pick a Form

Professional Tutor Application Form
Academic Tutor Application Form
Student Tutor Application Form