Cost and Management Accounting - May Mtp 2020 MTP

(a) A company gives the following information: Margin of Safety Rs.7,50,000 Total Cost Rs.7,75,000 Margin of Safety (Qty.) 15,000 units Break Even Sales in Units 5,000 units You are required to CALCULATE: (i) Selling price per unit (ii) Profit (iii) Profit/ Volume Ratio (iv) Break Even Sales (in Rupees) (v) Fixed Cost (b) ZX Ltd. has furnished the following information: Number of working days Production (in units) Fixed Overheads Budgeted Actual March 2020 25 27 20,000 22,000 Rs. 3,00,000 Rs.…

(a) ZA Ltd. is a manufacturer of a range of goods. The cost structure of its different products is as follows: Particulars Product A Product B Product C Direct Materials Direct Labour @Rs.10/ hour Production Overheads Total Cost Quantity Produced 100 30 30 160 20,000 80 40 40 160 40,000 80 50 50 180 60,000 Rs./u Rs./u Rs./u Rs./u Units ZA Ltd. was absorbing overheads on the basis of direct labour hours. A newly appointed management accountant has suggested that…

(a) A company manufactures a product from a raw material, which is purchased at Rs.180 per kg. The company incurs a handling cost of Rs.1,460 plus freight of Rs.940 per order. The incremental carrying cost of inventory of raw material is Rs.2.5 per kg per month. In addition, the cost of working capital finance on the investment in inventory of raw material is Rs.18per kg per annum. The annual production of the product is 1,00,000 units and 2.5 units are…

The Trading and Profit and Loss Account of a company for the year ended 31-03-2020 is as under: Trading and Profit and Loss Account Particulars Rs. Particulars Rs. To Materials 26,80,000 By Sales (50,000 units) 62,00,000 To Wages 17,80,000 By Closing stock (2,000 units) To Factory expenses 9,50,000 By Dividend received 1,50,000 80,000 To General administrative expenses 4,80,200 To Selling Expenses To Preliminary expenses written off 2,50,000 70,000 To Net profit 2,19,800 64,30,000 64,30,000 In the Cost Accounts: (i) Factory…

Resorts (P) Ltd. offers three types of rooms to its guests, viz deluxe room, super deluxe room and luxury suite. You are required to DETERMINE the tariff to be charged to the customers for different types of rooms on the basis of following information: Types of Room Number of Rooms Occupancy Deluxe Room 100 90% Super Deluxe Room Luxury Suite 60 75% 40 60% Rent of ‘super deluxe’ room is to be fixed at 2 times of ‘deluxe room’ and…

Marks) (a) DISCUSS the accounting treatment of Idle time and overtime wages. (b) EXPLAIN the stages in Zero-based budgeting. (c) STATE the differences between Job costing and Batch costing. (d) EXPLAIN the treatment of by-product cost in cost accounting. (4 × 5 =20 Marks)