SECTION A

Answer all questions from this section $(30$ marks$)$

Question One $($A$)$

The following store data relates to part no $8810x$ for October $2020.$

The following store data relates to part no $8810x$ for October $2020.$

$\backslash$table$[[$Date$,$Receipts,Issues,Balance$],[$June $1,,,500$ units at GHS $4$ per unit$],[$June $5,600$ units at GHS $5$ per unit,,$],[$June $10,400$ units at GHS $6$ per unit,,$],[$June $15,,500$ units,$],[$June $20,650$ units at GHS $7,,],[$June $22,,1000$ units,$],[$June $25,200$ units at GHS $8$ per unit,,$],[$June $30,,350$ units,$]]$

Required; from the data above, prepare the Store Ledger Account under the following inventory method.

i$.$ First$-$In$-$First$-$Out $($FIFO$)$

ii$.$ Last$-$In$-$First$-$Out $($LIFO$)$

$(15$ marks$)$

Ouestion One $($B$)$

Distinguish between the following:

i$.$ Cost accounting and financial accounting.

ii$.$ Product cost and period cost

iii. Variable cost and fixed cost

iv$.$ Avoidable cost and unavoidable cost

v$.$ Direct cost and indirect costs

$(15$ marks$)$

TOTAL $(30$ MARKS$)$

SECTION B

Answer only two $(2)$ questions from this section $(40$ marks$)$

Question Two

Norwich Enterprises operate in the leisure and entertainment industry, and one of its activities is to promote concert at locations throughout Ghana. The company is examining the viability of a concert in Koforidua. From experience the following estimated nonvariable expenses are incurred: fees to performance $3,000,$ hire of venue $10,000,$ advert cost $13,000,$ concert manager's salary $12,000,$ depreciation of concert equipment $12,000,$ marketing manager's salary $10,000.$

Variable costs consist of the cost of a pre$-$packed buffet which will be provided by a firm of caterers at a price, which is currently being negotiated. But it is likely to be in the region of &$10$ per ticket sold. The proposed price for the sale of a ticket is $$20.$ The management of Norwich have requested the following information:

$2$

a$)$ The number of tickets that must be sold to break even.

b$)$ The number of tickets that must be sold to earn $$30,000$ target profit.

c$)$ What profit would result if $8000$ tickets were sold.

d$)$ What selling price would have to be charged to give a profit of $30,000$ on sales of $8000$ tickets, fixed costs of $$60,000$ and Variable costs of $$10$ per ticket?

TOTAL $(20$ MARKS$)$