Project 1.
Process and develop Budget
Case Scenario I
Lopez Company, a wholesale distributor of local market occurs in August. Sales the company’s planning
budget for the third quarter is shows below.
July August September Total
Budgeted sales on account Br 600.000 Br 900.000 Br 500.000 Br 2.000.000
From past experience, the company has learned that 25% of a month’s sales are collected in the month of
sale; another 60% are collected in the month following sale and the remaining 15% are collected in the
second month following sales. Bad debts are negligible and can be ignored May sales totaled Br 430,000
and June sales totaled Br 540.000 Based on the given case scenario perform the following tasks,
Task 1. Prepare a schedule of expected cash collections from sales, by month and in total. For the third
quarter.(July-sep)
Task 2. Computer the accounts receivable:
September 30
August 31
Case Scenario II
Micro Corporation has budgeted sales of its microchips for next four months as follows,
Unit sold
April 20,000
May 25,000
June 35,000
July 40,000
The company is pre panning a production budget for the second quarter, ending inventory level must
equal 20% of the next month’s sales. Based on the given case scenario perform the following tasks.
Task 1. Calculate beginning inventory April
Task 2. Prepare a production budget for each month and the second quarter (April - July)
Project 2: Produce job order and process costing system
The following selected data are taken from Reca’s Company for the month of November 2022,
Direct Materials Inventory: November 1, 2022……………………….105.000
Direct Material Inventory Purchase………………………………,…...365,000
Direct Materials used…………………………………………………..385,000
Total Manufacturing overhead costs……………………………… .…450,000
Variable Manufacturing Overhead Costs………………………………265,000
Total manufacturing costs incurred during November 2022………….1,610,000
Work in process inventory: November 1,2022…………………………230,000
Cost of Goods Manufactured…………………………………………1,660,000
Finished Goods Inventory: November 1, 2022…………………………130,000
Cost of Goods Sold……………………………………………………1,770,000
Instruction: Under this project the candidate is expected to perform the tasks based on the given
information provided on the above.
Task 1. Direct Materials inventory on November 30,2022
Task 2.Fixed Manufacturing Overhead Cost for November,2022
Task 3. Direct Manufacturing Labor Costs for November, 2022
Task 4. Work in process inventory November 30, 2022
Task 5. Cost of finished Goods available for sale in November 2022
Task 6. Finished Goods inventory on November 30, 2022
Project 3. Process financial transaction and prepare financial report
Project information
KK Ethiopia Corporation opened the year 2020 E.C with the following trial balance information
KK Ethiopia Corporation
Trial Balance
Jan, 1, 2020
Accounts Debit Credit
Cash 100,000
Account Receivable 300,000
Merchandise Inventory 254,000
Land 600,000
Account Payable 240,000
Loan payable 120,000
Capital Stock 200,000
Retained Farming 440,000
Dividend
Revenues
Salaries Expense
Rent Expense
Supplies Expense
Interest Expense
Total 1,000,000 1,000,000
KK Ethiopia Corporation has the following data for the year of 2020 G.C
Item January December
Account Receivable 430,000
Merchandise Inventory 162,000
Account Payable 238,000
Accrued Salary 134,000 145,000
Unearned sales 17,000 28,000
Prepaid expenses 11,000 16,000
Additional Information
Cash paid to suppliers during the period is Br.44,000
Cash collection from customers during the period is Br. 130,000
Cash paid to operating expenses is Br. 34,000
Instruction
Task 1.Calculate sales by using accrual method for the month of January
Task 2.Calculate purchase by using accrual method for the month of January
Task 3.Calculate cost of merchandise by using accrual method for the month of January
Task 4. Prepare financial statements for the month January
I. Income statements
II. Retained earning
Project 4. Perform accounting for Government and Not for Profit Entities
Project information
Harari Municipality Approved and adopted the budget for the year 2014 E.C on July 1. The estimated
Revenue from property tax is br 2,500,000.00 interests and penalty br. 15,000.00 and license and permits
br.14,400.00 and the amount of authorization for appropriation for general government is br 1,500,000.00
public safety br. 600,000.00 and health and welfare br. 155,000.00 Based on the information given on the
above perform the following tasks.
Task 1. Calculate the Fund Balance
Task 2. Make the necessary Journal entries Including the Subsidiary accounts.
Project 5. Process Payroll
Project information
Case Scenario I
TEBABER industrial PLC manufactures a high-quality, fertilizer, which is used primarily by commercial
vegetable growers, the following partial payroll data were taken from the firm’s payroll records for the
month of Hidar 2015 E.C
S.No Employees Name Basic salary Over Time
1 Alemu mugersa 18000.00 600.00
2 HiwotAbay 2700.00 300.00
3 Fana Hailu 5200.00 1400.00
4 Hayat Mohammed 7800.00 1500.00
5 Tigist Desta 2200.00 1350.00
Total 35900.00 5150.00
Additional information
A monthly house allowance of each employee is 11% of their basic salary
A monthly transport allowance of each employee is 25% or (1/4)of their basic salary
Transport allowance up to Br600 exempted from income tax
Pension contribution 7% from employee and 11% from the Employer.
All employees contribute 10% of their basic salary for credit and saving association
Task 1. Prepare a payroll sheet TEBABER industrial PLCHidar 2015E.C
Task 2. Pass the necessary journal entry
Case Scenario II
Hayat Mohammed prepare budget allocation based on net salary
Rent cost--------------------------15% of Salary
Food and related-----------------20% of salary
Utilities----------------------------25% of salary
Communication------------------10% of salary
Task 1. Calculate personal saving
Task 2. Prepare budget allocation for the month Hidar 2001
