CONTACT: PRAKASH
Mob:
+919741410271
Accounting
1. X is the manufacture
of Mumbai purchased three chemicals A, B and C from U.P.The bill gave the
following information:
Chemical A: 6000 kgs @ Rs. 4.20
per kg Rs 25,200
Chemical B: 10000 kgs @ Rs. 3.80
per kg 38,000
Chemical C: 4000 kgs @ Rs. 4.75
per kg 19,000
VAT 2,055
Railway Freight 1,000
Total Cost 85,255
A shortage of 100 kgs
in chemical A, of 140 Kgs in chemical B and Of 50 kgs in chemical C was noticed
due to breakages. At Mumbai, the manufacture paid octroi duty @ 0.20 kg. He
also paid hamali, Rs 20 for the chemical a, Rs 58.12 for chemical B and Rs
35.75 for chemical C. Calculate the stock rate that you would suggest for
pricing issue of chemicals assuming a provision of 4 % towards further deterioration
and also show the quantity (kgs) of chemicals available for issue.
CONTACT: PRAKASH
Mob:
+919741410271
2. ABC Ltd has
collected the following data for its two activities. It calculates activity
cost rates based on cost driver capacity.
Activity Cost driver Capacity Cost
Power Kilowatt
hours 50000 hrs Kilowatt Rs 200000
Quality Inspection Numbers of inspection 10000 inspection Rs 300000
The Company makes three
products, A, B and C.For the year ended March 31, 2004, the following consumption
of cost drivers was reported:
Product Kilowatt-hours
Quality Inspection
A 20000
7000
B 40000
5000
C 30000
6000
Compute the costs
allocated to each product from each activity
Calculate the cost of
unused capacity for each activity.
CONTACT: PRAKASH
Mob:
+919741410271
3. Reliable company
wishes to discontinue the sale of one of the products in vew of unprofitable operations.
Following details are available with regard to turnover, cost and activity for
the current year ending 31st March.
Products
P Q R
S
Sales Turnover Rs.600000 Rs.1000000 Rs.500000 Rs.900000
Cost of sales 350000 800000 370000 480000
Storage area (square
meters) 40000 60000 70000 30000
Number of cartons sold 200000 300000 150000 350000
Number of bills raised 100000 120000 80000 100000
Overhead costs and
basis of apportionatement are:
Fixed Expenses
Basis of Apportionatement
Administration wages
& salaries Rs.100000
Number of bill raised
Salesmen salaries a
& expenses 120000 Sales
turnover
Rent and insurance 60000 Storage
area
Depreciation 20000 Number
of cartons
Unfixed Expenses
Commission 3
% of sales
Packing material &
wages Re
1 per carton
Stationery Re
0.50 per bill
You have to prepare
1. Staement showing
summary of Selling & Distribution Costs to the products
2. Profit & Loss
Statement showing contribution and profit or loss of each of the products to
enable the Company take an appropriate decision on discontinuance of the sale
of a product.
CONTACT: PRAKASH
Mob:
+919741410271
4. The Tata
Infrastructure Co. is involved in two contracts Contract 69 & Contract 96
during the current year. The following information relates to these contracts,
which were started on January 1 and July 1, respectively.
Contracts
A
B
Contract Price Rs.300000
Rs.400000
Direct material issued 55000 40000
Material returned to
store 1500 2500
Direct Labour 36000 22000
Wages accrued on Dec 31
2000 2500
Plant installed (at
cost) 30000 40000
Establishment Charges 20000 15000
Direct Expenses 20000 30000
Direct expenses
accrued, December 31 2000 3000
Work certified by
architect 280000 140000
Cost not work not yet
certified 10000 30000
Material on site, 31
December 11000 5500
Cash received from
contractees 160000 50000
Depreciation of plant
p.a 12
% 34%
Prepare Contract &
Contractees Account for Contract 69 & Contract 96.
CONTACT: PRAKASH
Mob:
+919741410271
5. A company
manufactures a product which involves two processes, namely, pressing and polishing.
For the months of January, the following information is available:
Pressing
Polishing
Opening Stock
Inputs of unit in
process 1200
1000
Units completed 1000
750
Unit under process 200 250
Material Cost Rs.69000
Rs.17500
Conversion Cost 328500 82500
For incomplete unit in
process, charge material costs at 100% and conversion costs at 60% in the pressing
process and 50 % in the polishing process. Prepare a statement of cost and
calculate the selling price per unit which will result in 25 % on the sale
price.
6. M/s Modern Company
Ltd furnishes the following summary of Trading & Profit and Loss account
for the current year ending March 31.
To Raw Material 140000 By sales (12000 units) 510000
To direct wages 72000 By
finished stock (200 units) 6000
To production overheads
45000 By
work in Process
To selling &
distribution overheads 43500 Material
26800
To administration
overheads 41010 Wages
11786
To Preliminary Expenses
w/off 3250 Production
overheads 8000 46586
To Goodwill w/off 2541 By
interest on securities (gross) 5000
To dividend (net) 4000
To income-tax 5870
To net profit 210415
567586 567586
The Company
manufactures a standard unit. The scrutiny of cost records for the same period shows
that-
1. Factory overheads
have been allocated to production at 20 percent on prime cost
2. Administration
overheads have been charged at Rs.3 per cent on units produced
3. Selling &
distribution expenses have been charged at Rs.4 per unit on unit sold.
You are required to
prepare a statement of cost, to work out profit as per cost accounts, and to reconcile
the same with that shown in the financial accounts.
CONTACT: PRAKASH
Mob:
+919741410271
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