Aptisi Transactions On Management

Running head: MPA
MPA
Name of the Student:
Name of the University:
Author Note

1MPA
Executive Summary:
The assessment aims in analyzing the best inventory costing method that could be used by the
organization, where average cost method is selected for Super Kites Ltd, as it would provide
appropriate cost of sales for their valuation. The bank reconciliation system has been
analyzed, which highbies different entries that was not listed in the bank account and cash
book, which was creating problems for the organization to determine the actual cash balance.
Further elaboration has been conducted on the internal control conditions of Super Kites Ltd,
which was violated after a scam was found. Hence, improvements in the current internal
control conditions and cash payment has been discussed, which could be sued by Super Kites
Ltd to strengthen their activities and reduce the occurrence of frauds in future.

2MPA
Table of Contents
Question 1:.................................................................................................................................3
i) Preparing a Memo to Harry:...................................................................................................3
ii) Preparing excel worksheet using average-cost method:........................................................3
iii) Preparing journal entries of the business transactions:.........................................................4
iv) Preparing T-accounts for journal entries:.............................................................................6
v) Prepaying adjusted trial balance for 31st October 2019:........................................................8
vi) Preparing income statement, balance sheet and statement of equity:...................................9
vii) Calculating the business gross profit and current ratio of the organisation:.....................10
Question 2:...............................................................................................................................10
i) Preparing the bank reconciliation for Kite Galore as 31 December 2019:...........................10
ii) Preparing the journal entries:...............................................................................................11
iii)Preparing the bank T-Balance for December 2019:............................................................13
Question 3:...............................................................................................................................14
i) Explaining about internal controls and discussing the three common controls:..................14
ii) Explaining how individuals could have carried out the scam:............................................14
iii) Explaining how bank reconciliation act as an internal control:.........................................14
iv) Outlining two other internal controls that should be considered while implementing cash
payments:.................................................................................................................................15
Conclusion and Recommendation:..........................................................................................15
References and Bibliography:..................................................................................................16

3MPA
Question 1:
i) Preparing a Memo to Harry:
Memorandum
Super Kites Ltd
Kites Galore
Subject: Calculating the net cost of kites to the business
The use of average cost of method is the most viable method, which could be used by the
company for detecting the net cost of kites. This method helps in determining the appropriate
costing for each cost and adjusting for the relevant alternation in the cost of sales of the
company (Copacino, 2019). Therefore, the calculations mainly assign specific cost to
inventory items based on the total cost of goods, after which it is divided by the total number
of items in inventory. Thus, the method would allow Kites Galore to detecting the weighted-
average method for deriving the actual cost of their kites (Muller, 2019).
Regards
Financial Controller
ii) Preparing excel worksheet using average-cost method:
Dat
e
Purchases Sales Balance
Unit
s
Price per
unit
Amo
unt Units
Price
per unit
Amo
unt
Unit
s
Price
per unit
Amo
unt
5-
Oct
50.0
0 55.00
2,750.
00
50.0
0 55.00
2,750
.00
12-
Oct 20.00 55.00
1,100
.00
30.0
0 55.00
1,650
.00
25-
Oct
100.
00 49.50
4,950.
00
130.
00 52.25
6,792
.50
27-
Oct
(20.0
0) 49.50
(990.0
0)
110.
00 52.25
5,747
.50
29-
Oct 60.00 52.25
3,135
.00
50.0
0 52.25
2,612
.50