The cost of production is sh 996,600. Raw materials returns to the suppliers of sh 6,200 and the closing raw materials of 21000 are removed from the cost of raw materials. The cost of production is adjusted with the opening and closing work in progres to arrive at the cost of producing complete goods. Sales commission, fixed admission and marketing manager salary expense are not production cost hence not included. The cost statement is attached.
Munekare answered the question on June 26, 2018 at 12:15
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Define managerial accounting
(Solved)
Define managerial accounting
Date posted:
June 16, 2018
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Answers (1)
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What are the differences between ledger entries of cash transaction and ledger entries for credit transactions?
(Solved)
What are the differences between ledger entries of cash transaction and ledger entries for credit transactions?
Date posted:
May 25, 2018
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Answers (1)
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Auditors carry out various audit assignments. In relation to the above statement, explain four non-assurance assignments that auditors undertake
(Solved)
Auditors carry out various audit assignments. In relation to the above statement, explain four non-assurance assignments that auditors undertake.
Date posted:
May 22, 2018
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Answers (1)
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Outline the limitations of financial ratios.
(Solved)
Outline the limitations of financial ratios.
Date posted:
May 22, 2018
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Answers (1)
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Outline the agency costs incurred by shareholders in trying to control management behavior and actions.
(Solved)
Outline the agency costs incurred by shareholders in trying to control management behavior and actions.
Date posted:
May 22, 2018
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Answers (1)
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State five the disadvantage of management accounting
(Solved)
State five the disadvantage of management accounting.
Date posted:
April 24, 2018
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Answers (1)
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Clearly, give the differences between management accounting and financial accounting
(Solved)
Clearly, give the differences between management accounting and financial accounting.
Date posted:
April 24, 2018
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Answers (1)
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Outline four contents of a letter of representation
(Solved)
Outline four contents of a letter of representation.
Date posted:
April 14, 2018
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Answers (1)
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a) Explain the following terms as used in auditing: (i) Audit risk. (ii) Inherent risk. (iii) Control risk. (iv) Detection risk.
(Solved)
(a) Explain the following terms as used in auditing:(i) Audit risk. (ii) Inherent risk. (iii) Control risk. iv) Detection risk.
Date posted:
April 14, 2018
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Answers (1)
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(a) Define the term recurring audit (b) State the circumstance under which the auditor may send a new engagement letter to the existing ...
(Solved)
(a) Define the term recurring audit (b) State the circumstance under which the auditor may send a new engagement letter to the existing ...
Date posted:
April 14, 2018
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Answers (1)
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Explain the procedures an auditor should follow before and after accepting nomination.
(Solved)
Explain the procedures an auditor should follow before and after accepting nomination.
Date posted:
April 10, 2018
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Answers (1)
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Why would a company not share all its profits to shareholders?
(Solved)
Why would a company not share all its profits to shareholders?
Date posted:
March 30, 2018
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Answers (1)
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(a) Explain why auditors carry out circularisation of debtors. (b) Distinguish between positive and negative debtors circularisation procedures. (c) Describe in...
(Solved)
(a) Explain why auditors carry out circularisation of debtors.
(b) Distinguish between „positive? and „negative? debtors circularisation procedures.
(c) Describe in detail the work you would carry out in scrutinizing the replies to the debtors circularisation and in confirming whether the debtors balances are collectable in the following situations:
i. where the debtor does not agree with the balance and states a difference; (6 marks)
ii. where the debtor reports that he cannot confirm the balance
iii. where no reply is received from the debtor
Date posted:
March 28, 2018
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Answers (1)
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John Mutiso bought shares of Sh.2 million six months ago in Kenya Company Limited which has since gone into liquidation. He intends to sue...
(Solved)
John Mutiso bought shares of Sh.2 million six months ago in Kenya Company Limited which has since gone into liquidation. He intends to sue XYZ & Co. Certified Public Accountants for the imminent loss of Sh. 2 million which he is likely to suffer. XYZ & Co. had audited the Kenya Company Ltd. The previous year and issued an unqualified report. John Mutiso claims that he solely relied on the audit report when he took that investment decision.
Required:
a) Do the auditors, XYZ & Co. have any liability to Mr. John Mutiso?
b) What circumstances must Mr. John Mutiso demonstrate if he has to succeed against the auditors?
c) State the measures XYZ & Co. should undertake to minimize potential liability for professional negligence.
Date posted:
March 28, 2018
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Answers (1)
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Distinguish between Accrual concept and Prudence concept
(Solved)
Distinguish between Accrual concept and Prudence concept.
Date posted:
March 23, 2018
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Answers (1)
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The auditing guideline on ‘recording’ requires audit working papers to be sufficient complete and detailed so that an experienced auditor who has no previous connection...
(Solved)
The auditing guideline on ‘recording’ requires audit working papers to be sufficient complete and detailed so that an experienced auditor who has no previous connection with the audit is able to subsequently ascertain from working papers the work performed and to further support the conclusions reached thereon.
Required:
(a) State four benefits that the auditor will obtain from the working papers that meet the above requirements.
(b) Outline the contents of a typical:
(i) Current audit file;
(ii) Permanent audit file.
Date posted:
March 22, 2018
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Answers (1)
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Give four examples of internal audit work that may be used by the external auditor
(Solved)
Give four examples of internal audit work that may be used by the external auditor
Date posted:
March 22, 2018
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Answers (1)
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Explain the matters you would consider and the work you would perform to enable you assess the extent to which you would rely on the...
(Solved)
Explain the matters you would consider and the work you would perform to enable you assess the extent to which you would rely on the work of the internal audit department of your client
Date posted:
March 22, 2018
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Answers (1)
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Distinguish between internal audit and internal check ...
(Solved)
Distinguish between internal audit and internal check
Date posted:
March 22, 2018
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Answers (1)
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What are the similarities between internal and external audits?
(Solved)
What are the similarities between internal and external audits?
Date posted:
March 22, 2018
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Answers (1)