TW manufactures two products, the D and the E, using the same material for each. Annual demand for the D is 9,000 units, while demand for the E is 12,000 units. The variable production cost per unit of the D is $10, that of the E $15. The D requires 3.5 kg of raw material per unit, the E requires 8 kg of raw material per unit. Supply of raw material will be limited to 87,500 kg during the year.
A subcontractor has quoted prices of $17 per unit for the D and $25 per unit for the E to supply the product. How many of each product should TW manufacture in order to maximise profits?
Required
Fill in the blanks in the sentence below.
TW should manufacture ........... units of D and .............. units of E to maximise profits.
Your organisation sold goods to PQ Co for $800 less trade discount of 20% and cash discount of 5% for payment within 14
days. The invoice was settled by cheque five days later Which one of the following gives the entries required to record
BOTH of these transactions?
DEBIT CREDIT
$ $
What are the constraints in the situation facing WX Co?
Which one of the following is not a purpose of a receivables ledger control account?
Which of the following lists is composed only of items which would appear on the credit side of thereceivables control
account?
The following receivables ledger control account has been prepared by a trainee accountant:
RECEIVABLES LEDGER CONTROL ACCOUNT
$ $
20X5 20X5
1 Jan Balance 318,650 31 Jan Cash from credit customers 181,140
Credit sales 161,770 Interest charged on overdue
accounts 280
Cash sales 84,260 Irrecoverable debts written off 1,390
Discounts allowed to Sales returns from credit
credit customers 1,240
customers 3,990
What should the closing balance at 31 January 20X5 be after correcting the errors in the account?
At 1 April 20X9, the payables ledger control account showed a balance of $142,320. At the end of April the following totals are extracted from the subsidiary books for April:
$
Purchases day book 183,800
Returns outwards day book 27,490
Returns inwards day book 13,240
Payments to payables, after deducting $1,430 cash discount 196,360
It is also discovered that:
(a) The purchase day book figure is net of sales tax at 17.5%; the other figures all include sales tax.
(b) A customer's balance of $2,420 has been offset against his balance of $3,650 in the payables ledger.
(c) A supplier's account in the payables ledger, with a debit balance of $800, has been included on the list of payables as
a credit balance
What is the corrected balance on the payables ledger control account?
P & Co maintain a receivables ledger control account within the nominal ledger. At 30 November 20X0, the
total of the list of individual balances extracted from the receivables ledger was $15,800, which did not agree
with the balance on the receivables ledger control account. An examination of the books revealed the following
information, which can be used to reconcile the receivables ledger and the receivables ledger control account.
1 The credit balance of $420 in Ahmed's payables ledger account had been set off against his account in the receivables
ledger, but no entries had been made in the receivables and payables ledger control accounts.
2 The personal account of Mahmood was undercast by $90.
3 Yasmin's balance of (debit) $780 had been omitted from the list of balances.
4 Thomas' personal account balance of $240 had been removed from the receivables ledger as a bad
debt, but no entry had been made in the receivables ledger control account.
5 The January total of $8,900 in the sales daybook had been posted as $9,800.
6 A credit note to Charles for $1,000, plus sales tax of $300, had been posted to the receivables ledger
control account as $1,300 and to Charles' personal account as $1,000.
7 The total on the credit side of Edward's personal account had been overcast by $125.
What is the revised total of the balances in the receivables ledger after the errors have been corrected?
In the context of the tort of negligence, what is the legal effect of res ipsa loquitur?
To establish a case of 'passing-off', what must the claimant prove?