Thank you tutors for your help. Please help me also on this one.

Section A

A. McCalla Company issued 400,000 $100 6% convertible loan notes on 1 April 2015. The company has in issue 50M $1 ordinary shares. Interest is payable annually in arrears on 31 March each year. The loan notes can be converted to equity shares on the basis of 20 shares for each $100 loan note on March 2018 or redeemed at par for cash on the same date. The debt component of the loan is $37,792M and a similar loan with no conversion right would be at 8% interest. The carrying amount for the loan as at 31 March 2016 is $38,415M with a finance cost of $3.023M. The company's tax rate is 20% and the earnings for the period is $14.327M

Calculate the diluted EPS for McCalla Company for the year ended 31st March 2016. (12 marks)

B. On 1 October 2019, Carl Co had 25 million equity shares of 50 cents each. No new shares were issued during the year ended 30 September 2020. However, on that date, there was an outstanding share option to purchase 2 million equity shares at $1.20 each. The average value of equity shares during the year to September 30, 2020, was $3. Carl's profit after tax for the year-end was $1,550,000.

Calculate the basic and diluted earnings per share for Carl (8 marks)

Section B

Lindsay manufactures a range of generators that are assembled from components that are bought in from other suppliers. The company does not use a standard cost accounting system and work in progress and finished goods are valued as follows:

i. Material costs are determined from the product specification. The specification lists the components that are required to make the generators.

ii. Employees record the time spent on assembling each type of generator. This information is input into the payroll system which prints out the total hours spent each week to assemble each type of generator.

iii. Each employee is paid at the same rate and there is no overtime.

iv. Overheads are added to the inventory value in accordance with IAS2 Inventories.

v. The financial accounting records are used to calculate the overhead costs and then this is applied as a percentage of direct labour costs.

vi. For direct labour costs, it was established that the labour used for each unit in work in progress is estimated to be half that of completed units.

vii. Variable overheads are assumed to be included in the direct cost of inventory

You have been presented with the following summary of direct costs in inventory:

Raw materials Work in progress Finished goods

Materials ($) 74,786 85,692 152,693

Direct labour ($) 13,072 46,584

Based on the financial records, the costs incurred for the year ended 31 December 2019 were as follows:

Direct labour 61,320

Selling costs 43,550

Depreciation and finance costs of production machines 4,490

Factory manager's wages 2,560

Distribution costs 6,570

Other production overheads 24,820

Purchasing and accounting costs relating to production 5.450

Other accounting costs 7,130

Other administration overheads 24,770

Assume that all work in progress and finished goods were produced in August 2020 and that Lindsay was operating at a normal level of capacity. ACCT

Required

A. Identify the components of cost of inventories as outlined by IAS 2 Inventories. (1 mark) B.

Explain ONE (1) component of costs of conversion as outlined by IAS 2 Inventories. (1 mark)

C. From the details in the financial records above, identify ONE (1) cost incurred that would not be included in the cost of inventories. (1 mark)

D. Suggest how the costs identified should be treated or recognized based on relevant accounting policies. (2 marks)

E. Calculate the production overheads for inventory. (3 marks)

F. Determine the production overhead rate. (2 marks)

G. make a schedule to show the total value of inventory in each category (10 marks)