Q1. Al Nahda Electronics Company is listed in Muscat Securities Market. The total Capital Invested in a company is 20 Million in which loan from Bank was 5 Million. For the year 2019 company has manufactured and Sold 1,000 Laptop sets. The following are the particulars regarding the laptop sold and manufactured by them. Materials in the Stock were OMR 30,000 and they purchased additional material of OMR 65,600 and paid for Carriage 4,300. Wages amounting to OMR 10,750 has been incurred. Foreman was Paid salary of OMR 1,800. They have spent the following expenses on Utilities for Factory OMR 10,000; for Office OMR 5,200, Rent and Insurance for Factory OMR 5,450, for Office OMR 7,150, Total of Managers salary amounting to 25,000 which belongs to 40% for Factory manager and 60% to Office manager. Depreciation was calculated on diminishing balance method for the machineries in the office and factory and the value of depreciation for the Office was OMR 1,000 and Factory was OMR 2,400.

There was Opening balance of finished goods of 10,000 and Closing Balance of Finished goods were 8,500. Work in process Opening 18,000, Work in process closing 12,000. Once the goods were manufactured all the finished products were kept in a warehouse for which company has spent OMR 19,000 for its rent. One fourth of the warehouse was given for rent and the rent received by the company was OMR 2467.

To increase their Sales Company has spent on Advertisement OMR 12,500, Sales man expenses OMR 8,400 Show room cleaning expenses and Insurance were OMR 1,550 and OMR 180 and Sales Managers Salary of OMR 13,000. Free transportation was given to Customers and the company has spent OMR 27,000 for transporting the goods to different areas. In the Year end Company has paid Dividends to shareholders for OMR 51,288 and Paid Interest on the Bank Loan of OMR 11,555. Total laptops manufactured has been sold at OMR 415,000

1. You are required to prepare a Cost Sheet from the relevant information provided in Al Nahda Electronics Company (6 Marks)
2. Al Nahda Electronic Company was expecting to earn a profit of 35% on sales. You are required to identify from the cost sheet whether the company has earned the profit as per their expectations or not. If not find out the difference in profit which the company has earned and the company has expected. (1 Mark)

Q2. The new productive undertaking purchased from time-to-time quantities of commodities used in production of one of its products, the following details are available regarding the stock of materials and its movement during the three-Month period from December, January and February.

There was no Opening stock for the month of December. Purchases done on 2 December 200 units @ 12 per unit, 8 December 150 units @14 per unit, 17 December 225 units @13 per unit 25 December 300 units @ 12 per unit and Issues were made on 3rd December 125 units, 15 December 200 units and 30 December 150 units.

Stock on 1st January 150 units @OMR 22 per unit On January 4, Purchased 320 units @OMR 30 January 12, Purchased 215 units @OMR 35, January 15, Purchased 200 units @ OMR 40, January 28, Purchased 200 units @OMR 47, January 5, Issued 225 Units, January 14, Issued 190 units, January 20 , Issued 200 units, January 25,Issued 250 units, January 30,Issued 90 units.

Stock on 1st February 130 units @ OMR 47 per unit and Purchases done on 5 February 200 units @ 52 per unit, 9 February 150 units @54 per unit, 17 February 225 units @ 53 per unit 26 February 300 units @ 49 per unit and Issues were made on 7th February 225 units, 10 February 200 units and 19 February 150 units.

a. You are required to prepare stock register using Simple Average Method for the Period of January. (6 Marks)

b. You are required to write the highest and lowest purchase price with dates and find out the difference in both the prices. (1 Marks)

Q3. Mansoor Garment Industry workers produce or repair clothing made from cloth. The three basic processes of garment production are cutting, sewing and pressing. According to the Labour department there are 5 sewing operator, 10 cutting operators and 8 pressing operators. the Standard rate per hour for operators is OMR 25, Normal rate per hour is OMR 30, Normal rate per unit is OMR 20, Working hours per day are 8 hours, Standard Output per hour is 120 units. Five Sewing workers Khalid, Rashid, Ahmed, Khamis and Nasir were engaged in the work and receives earnings by using Merrick Differential Piece Rate System. The Output is as follows Khalid 1,120 units, Rashid 600 units, Ahmed 875 units, Khamis 795 units and Nasir 940 units.

You are required to calculate the earnings of all the five workers of sewing operators and also identify which of the worker is getting the highest earnings among all. (5+1= 6 Marks)