Project one EXAM 1

Unit of competency covered process payroll

Tectalk company engaged with it activity and has for permanent employee who have diferent position

NAME OF EMPLOYEE BASIC OVER TIME OVER TIME CREDIT ALLOWANCE

NO SALARY HOUR DAYS ASSOCIATION
MELAKU TELAHUN 5,000 8 HOUR WEEKEND 1,750 500
1.
OLGA JIGSA 650 0 - 150 100
2.
GIDEY GEBRA 2,350 4 HOUR PUBLIC 0 230
3. HOLIDAY
BELACHEW TADES 3,600 12 HOUR PUBLIC 0 400
4. HOLIDAY
ADDITIONAL INFORMATION

 Allowance is not taxable for all employee

 All employees are regular
 All employees worked 40hour per week
 Employee and employer are expected to contribute 7% and 11%

REQUIRED

1. Prepare payroll document/register sheet as of april 30

2. If salary is paid to may(next month), journalize
A. Salary and other benefits
B. Payment of payable
C. Payroll tax or contribution of pension by company

PROJECT TWO
3F-MANUFACTURES THREE PRODUCTS A,B,C

PRODUCT A PRODUCT B PRODUCT C

ESTIMATED BEGINNING INV 60,000 70,000 65,000

DESIRED INVENTORY UNIT 51,000 45,000 41,000

SELLS PRICE PER UNIT 30 35 40

ESTIMATED SALES UNIT

AREA 1 AREA 2 TOTAL

A 30,000 30,000 60,000

B 20,000 50,000 70,000

C 26,000 56,000 82,000

REQUIRED

1. PREPARE SALES BUDGET

2. PREPARE PRODUCTION BUDGET
Project three
During the month of February the following transaction will occure to produce products

1. Direct materials purchased Birr 25,000

2. Direct materials issued Birr 21,000
3. Direct labore cost Birr 35,000
Inventory
 Beginning inventory finished goods Birr 16,000
 Beginning inventory raw materials Birr 13,000
 Ending inventory finished goods Birr 18,000
4. Factory overhead cost is 80% of direct labor cost
5. Sales is Birr 117,000

Required

A. Calculate cost of goods manufactured

B. Calculate cost of goods sold
C. Calculate gross profite

Project four BANK RECONCILATION

The cash in bank account for xyz company at MAY 31,of the current year indicated a balance of Br 13,215.80
after both the cash receipts journal and the check register for MAY had been posted.the bank statement
indicated a balance of Br 19,513.90 on MAY 31,comparison of the bank statement and the accompanying
canceld checks and memorandums with the records revealed the following reconciling items

A. Checks outstanding totaled Br 7070.10

B. A deposite of Br 3,915.20 representing receipts of MAY 31,had been made too late to appear on the
bank statement
C. The bank had collected Br 3,120 on an interest bearing note left for collection the face of the note was
Br 3,000
D. A check for Br 69 returned with the statement had been recorded errounusly in the check register as Br
96 the check was for the payment of an obligation to LEE and company for the purchase of office
supplies on account
E. A check drawen for Br 42 had been errounsly charged by the bank as Br 24
F. Bank service charge for MAY amounted to Br 21.80

Required

1. Prepare bank reconciliation

2. Record the necessary entries

PROJECT FIVE MAINTAIN INVENTORY RECORDS

FIR FAX manufacturing has the following information inrelation to commodity D2 for july

INVENTORY:

July 1. 20units at Br 50

Sales:

July 7 10units

July 18 10units
 July 27 10units

Purchase:

July 3 20units at Br 51

July 20 15 units at Br 52

Required

A. If the company used perpetual inventory system and LIFO costing method determine cost of good sold
and ending inventory
B. If the company uses periodic inventory system and FIFO costing method determine cost of good sold
and ending inventory

Project six
HORREC is a private company registered in Ethiopia that does not maintain book of account during the period of
2012 the company leases a building for Br 4,500 per month.the company employed professor admasu zerihun as
regular employee and paid 5,400 Br per month and also he is lecturer in AAU and paid Br 7,060 per month

Required

1. Determine amount of monthly employment income tax that is collected from professor admasu by
HORREC payable to ERCA
2. Determine the taxable income and rental income tax liability paid by HORREC to ERCA