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The following information is obtained in respect of process 2 of the month of September;
There was a normal loss in the process of 10% of production units' scrapped realized sh. 50 per unit,
use FIFO method
Required:
i. Statement of production
ii. Statement of cost and evaluation
iii. Process account
iv. Abnormal loss / gain account
Date posted:
February 21, 2019
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Required:
a) Calculate the cost of completed units transferred to process 3
b) Calculate the value of closing WIP
c) Show (i) Process 2 account
(ii) Abnormal Gain account
Date posted:
February 21, 2019
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Kenya chemical industries limited, process a range of products including bleaching detergent which
passes three processes before completion and transferred to finished goods store. The following
information was extracted from the books of the company for the month of October.
Date posted:
February 21, 2019
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You have been asked by your firm to examine the payment vouchers of a company to establish the level of errors and then decide whether better results can be obtained through statistical techniques.
Required:
a) State the steps you would take in order to test the vouchers for the errors.
b) Why is it not satisfactory to pick vouchers from a limited period?
c) State under what circumstances statistical sampling is a good technique
Date posted:
February 21, 2019
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Outline the statutory provisions with regard to duties of external auditors
Date posted:
February 21, 2019
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The manufacturing process of ABC limited results in three products namely Exe, Wye and Zed
Additional information;-
1. The final selling prices per litre of products Exe, Wye and Zed are shs.15, shs.18 and shs.4
respectively.
2. There are no further costs associated with by product Zed
3. Product Wye requires further processing at a cost of sh. 1.50 per litre
4. All the three products incur packaging costs of sh. 0.50 per litre before they are sold.
Required:
i) Calculate the number of equivalent units produced
ii) Calculate the costs of products Exe and Wye
iii) Apportion the common costs to joint products based on sales at the point of separation
iv) Prepare process II account for the month of January 2008
Date posted:
February 21, 2019
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Good Hope Pharmaceutical Company purchases raw material that is processed to yield three
chemicals namely;Zetamol,Paramol, and Bethamol.In January 2009,the company purchased 10,000
kilogrammes of the raw material nat a cost of sh.2,500,000 and incurred joint conversion costs of
sh.700,000.Sales and production information for the month of January wered as follows;
Zetamol and Paramol are sold to other pharmaceutical companies at the split off point. Bethamol can
be sold at the split off point or processed further and packaged for sale as an asthma medication.
Required
Allocate the joint costs to the three products using;
i) The physical units sold
ii) The sales value at split off method
iii) The net realizable value method
iv) Suppose that half the production of Paramol could be purified and mixed with all the
production of Zetamol to yield parazetamol.All further processing costs amount to
sh.350,000.The selling price for parazetamol is sh.1,120 per kilogramme.Advise the company
on whether to further process Zetamol into 2,000 kilogrammes of parazetamol.
Date posted:
February 21, 2019
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ABC Company limited produces four products A, B, C and D
The following information is provided
1. The joint processing requires 10,000 kilograms of raw materials input, costing sh. 6 million
2. Joint process labour and material costs are sh. 5,920,000
3. Normal loss is 20% of raw material input, with product A's output being 2000 kilogram mes,
product B's output being 2,500 kilogram mes, product C's output being 2,500 kilogram mes and
the balance being from product D. No abnormal loss was reported.
4. Product A enters into process 2 incurring a further cost of sh. 1,255,000 , product B enters
process 3 incurring a further cost of sh. 1,493,750 product C enters into process 4 incurring a
further cost of sh. 1,118,750. Product D does not require additional processing. There are no
further processing costs.
5. The company‟s policy is to apportion joint costs on the basis of output
6. The selling price of each unit of products A, B C and D is sh. 1,500, sh. 3,460, sh. 2760 and sh.
1,000 respectively.
7. The company is in the process of analyzing the performance of each product in order to make
better decisions.
Required:
a) i) Cost per unit of product A
ii) Profit and loss statement for each individual product and for the company in a columnar
format
b) The company's management intends to start using the net realizable value method to allocate
joint costs. Show how this method would affect the profitability of individual products and that
of the company in (a) (ii) above.
Date posted:
February 21, 2019
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Explain how an Internal Control Evaluation Questionnaire (ICEQ) differs from an Internal Control Questionnaire (ICQ).
Date posted:
February 21, 2019
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The auditing standard on subsequent events provide the basic principles and procedures as to the auditor‘s responsibilities and deal with:
i. Dating the auditor‘s report
ii. Audit procedures
iii. Events after the date of the audit report.
Required:
a) In the context of subsequent events, what is the significance of the data of the auditor‘s report?
b) Outline the audit procedures considered necessary between the balance sheet date and the date of the auditor‘s report.
c) Summarise the appropriate actions of the auditor regarding events after the date of the audit report.
Date posted:
February 21, 2019
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a) Explain why it is necessary to distinguish between direct labor and indirect labor, with
particular reference to the effect on gross profit and net profit.
b) Unique Ltd. manufactures a single product. The product passes through three processes before
completion. In the month of January 2013, the following data was recorded in respect to process
Required:
i) Statement of equivalent production.
ii) Statement of costs.
iii) Process 2 account
Date posted:
February 21, 2019
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Write in point form an audit programme to cover salary and wages of a small size firm.
Date posted:
February 21, 2019
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Nald Ltd. manufactures a chemical product and uses process costing to account for its work in
progress. During the month of October 2013, 5,000 units were introduced to process 1 and the
following costs were incurred:
Additional information:
1. The normal loss in process 1 was estimated at 10%.
2. The scrapped normal loss units were sold at Sh.4 per unit.
3. Inspection is usually done at the end of the process; therefore any units scrapped would have
passed through the entire process.
Required
i) Statement of equivalent production
ii) Statement of cost
iii) Statement of evaluation of finished goods
iv) Process 1 account
Date posted:
February 21, 2019
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Explain the meaning of the following terms in regard to the cost and financial accounting
systems:
i) Integrated cost accounts
ii) Interlocking cost accounts
iii) Cost ledger control account
iv) Cost ledger contra account
Date posted:
February 21, 2019
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Does the auditor require a codified definition of ―reasonable care and skill or should this be left to professional judgment? Explain
Date posted:
February 21, 2019
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Explain the auditor‘s planning process when planning for an audit of a new client.
Date posted:
February 21, 2019
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Give names of refugee camps.
Date posted:
February 21, 2019
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A two digit number is four times the sum of its digits.If the digits are interchanged the number formed is more than the original number by twenty seven.Find the number.
Date posted:
February 20, 2019
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Give problems encountered by the Mau Mau fighters.
Date posted:
February 20, 2019
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State three methods of presentation during public speaking.
Date posted:
February 20, 2019
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A project has 11 activities with the activities preceding constraints, time estimates and work team requirements as shown
Required:
i) Prepare a network and indicate critical path.
ii) Prepare a time chart and work team requirement.
iii) Can the work team resource be levelled further? Why?
Date posted:
February 20, 2019
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In a linear programming problem the objective function and constraints were determined to be as follows
Required:
i) By simplex method find the final table.
ii) Give the optimal solution and the value of the corresponding objective function
iii) For the variable x2, give an interval for their objective function coefficient such that the present basic solution remains optimal
Date posted:
February 20, 2019
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Differentiate linear programming from assignment and transportation problems
Date posted:
February 20, 2019
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What is sensitivity analysis on the objective function coefficients? Differentiate this with sensitivity analysis on the right hand side (RHS) constants
Date posted:
February 20, 2019
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A land resale firm, Shamba Nyingi Limited, sells land around the environs of Nairobi. The size and price data for a given year are as shown.
Required:
i) Determine the linear-regression equation of price on size.
ii) Describe the relationship between size and price.
iii) What do the equation coefficients represent?
iv) What is the estimated standard error of the regression equation?
v) Determine the prize when the size of land is 2,150 square meters.
Date posted:
February 20, 2019
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What is the estimated standard error of a regression equation?
Date posted:
February 20, 2019
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A performance test was done before and after training on 12 persons appointed in clerical positions in a cement factory warehouse in Athi River. Marks were awarded on a 10-point scale as follows
Did the training improve performance?
Date posted:
February 20, 2019
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A major bank BKR Ltd calculates the credit ratings of its credit card customers on a monthly basis. The ratings are poor, good and excellent depending on the payment history. The following matrix shows how the customers change from one category to the other in one month.
Required:
i) Interpret the elements 0.84, 0.2, 0.18 and 0.16. (4 marks)
ii) Given that in August 2003, from customer base of 100,000 the accountswere classified as
Poor 30,000
Good 50,000
Excellent 20,000
What is expected in October?
Date posted:
February 20, 2019
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A Markov process describes the movement among the different states of a system as a function of time. Give the various steps in using a Markov process for determining a state at (t + 2) and steady state two periods after given state.
Date posted:
February 20, 2019
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The total cost function and demand function of Migoya Construction company (MCC) are as follows:
Required:
i) Write down the expression of average cost per unit and graph it for x values between x=0 and x=8.
ii) Write the expression for total revenue.
iii) If total revenue is to be maximized, what is the price to be charged?
v) What is the price that maximizes profit?
Date posted:
February 20, 2019