1.Tindo ltd buys and sells product Q-3. On 1 June 2010, stock in hand consisted of 4,500 units which were acquired at ksh. 50 per unit. The operations for the month were as follows:

Date PurchasesSales

June25,000 @ ksh.48

4 6,000 @ ksh. 60

55,500 @ ksh. 49

74,000 @ ksh. 50

117,000 @ ksh. 61

125,000 @ ksh. 50

136,000 @ ksh. 47

187,000 @ ksh. 62

198,000 @ ksh. 64

206,000 @ksh. 49.50

215,000 @ ksh. 65

227,000 @ ksh. 50

256,000 @ ksh. 49

262,000 @ ksh. 47

28500 @ ksh. 60

2914,000 @ ksh. 64

The company incurred operating cost of ksh. 450,000 during the month.

Required:

a) Prepare the stores ledger card using FIFO AND WEIGHTED AVERAGE

b) Ascertain the closing inventory and cost of sales using each of the two methods

c) Prepare the trading account for the month.

2.Ushindi Ltd manufactures ornaments for export trade. Jobs are allocated to two operators. Mbotela and Juma with bonus paid for hours saved.

In the month of February 2009, Mbotela made 186 units and Juma made 210 units for which the time allowed of 30 standard minutes and 25 standard minutes per unit respectively was credited.

The basic wage was ksh. 18 per hour for both employees. For every hour saved a bonus was paid at 20% of the basic wage rate. Hours worked in excess were paid at the basic wage rate plus two thirds.

Mbotela completed his job in 44 hours and Juma completed his job in 39 hours.

A basic working week has 40 hours.

Required:

For each operator, calculate:

i. The amount of bonus payable.

ii. The total gross wage payable.

iii. The wages cost per unit.