With the knowledge you have acquired, discuss the documents that can be used in material planning and control.

Learning Goal: I’m working on a accounting exercise and need an explanation and answer to help me learn.

Biden Company Limited purchased the following articles in 2018:

1 Jan,2,000 units at ugx 1,000 each

6 Feb,1,300 units at ugx1,300 each

25 April3,000 units at ugx 1,450 each

Sales were made from the store as follows:

10 Jan800 units

15 Feb1,000 units

30 March600 units

30 April2,000 units

Required:

• Prepare the Stores Ledger Account of the company, using FIFO, LIFO of Stock Valuation to determine the closing stock as at 30 April, 2018 (12 marks)
• Why is stock valuation important to any business? (7 marks)
• Describe the first in first out (FIFO), last in first out (LIFO) and Average cost methods of stores pricing and the circumstances under which these methods can be applied (6 marks)

Total 25 marks

Q.2

• Materials if not properly controlled can be wasted, stolen or risk destruction this can affect the profitability of an organization. With examples suggest and describe the techniques that can be applied by organizations in order to control materials. (10 marks)
• With the knowledge you have acquired, discuss the documents that can be used in material planning and control. (8 marks)
• Write a report on the different material losses a company may incur and how they are treated in the books of accounts.(7 marks)
• .3 a) Identify and explain the components that make up costs in any organization.(6 marks) b) With examples, illustrate how costs can be controlled in a business entity of your choice.(6 marks) c) The following data relates to Kamilo Ltd, the production process is managed by two departments, namely mixing and packaging.
  

  Particulars	Totals	Mixing	Packaging	Repairs Department	Storage Department
  Indirect material cost	305,000,000	95,000,000	20,000,000	150,000,000	40,000,000
  Indirect Labor	355,000,000	90,000,000	100,000,000	100,000,000	65,000,000
  Electricity	600,000,000
  Welfare costs	400,000,000
  Rent	280,000,000
  No. of employees	200	100	50	25	25
  Kilowatts (KWH)	1200	400	600		505
  Floor area occupied	1	3/10	4/10	1/10	2/10

  Required a) From the information above, determine the overhead costs for each department. (13 marks) Q.4 a) “Cost accounting is an unnecessary luxury for business establishments” Do you agree with the statement? Discuss (10 marks) b) Discuss the reasons why budgets may not achieve their intended objectives. (9 marks) c) Evaluate the possible financing options available to a company facing a cash deficit situation. (6 marks)