Question one
ZMWORKS LIMITED – AN EARLY STAGE MANUFACTURING COMPANY
ZMWorks Limited is young furniture manufacturing company. The case provides an introduction to the setting up a cost and management accounting system.
‘’It is commonly suggested that a management accounting system should be capable of supplying different measures of cost for different purposes. Costs maybe classified in a variety of ways according to their nature and the information needs of management’’
a). As a Cost accountant for ZMWorks you are required to set out the many types of purpose for which cost information may be required. (20 marks)
b). Explain and discus this statement, illustrating with examples of classifications required for different purposes (44 marks)
Question twoKZ Ltd had the following transactions in one of its raw materials during June 2016:Opening stock 40 units @ K20,000 eachJune 14 bought 140 units @ K22,000 eachJune 15 Used 90 units June 15 Bought 60 units @ K24,000 eachJune 18 Used 100 unitsJune 19 Bought 200 units @ K20,000 eachJune 21 Used 70 units June 24 Used 80 unitsJune 27 Bought 50 units @ K24,000 eachJune 30 Used 60 unitsJuly 11 Bought 80 units @ K24,000 eachJuly 30 Used 90 units
As a cost Accountant, you are asked toWrite up the stores ledger card (table) usingFIFO,LIFO andWeighted Average methods of stock valuation (30 marks)State the cost of material used for each system during June; ( 6 marks)
NOTES:This assignment carries 10 marks of your CA.USE page limit of 6 – 10 excluding cover page and reference page. (Use Harvard reference style)Use font size 12, times new roman and 1.5 spacingThe due date is 10th March 2017, @ 23.59hrsLate submission will attract a penalty - 5 marks deduction per dayNo assignment will be accepted after 17th March 2017 except under circumstances beyond control.