Cost and Management Accounting - November 2020

(a) G Ltd. manufactures a single product for which market demand exists for additional quantity. Present sales of ` 6,00,000 utilises only 60% capacity of the plant. The following data are available: (1) Selling price ` 100 per unit (2) Variable cost ` 30 per unit (3) Semi-variable expenses ` 60,000 fixed + ` 5 per unit (4) Fixed expenses ` 1,00,000 at present level, estimated to increase by 25% at and above 80% capacity. You are required to prepare…

(a) X Ltd. manufactures two types of pens 'Super Pen' and 'Normal Pen'. The cost data for the year ended 30th September, 2019 is as follows: Direct Materials 8,00,000 Direct Wages 4,48,000 Production Overhead 1,92,000 Total 14,40,000 It is further ascertained that : (1) Direct materials cost in Super Pen was twice as much of direct material in Normal Pen. (2) Direct wages for Normal Pen were 60% of those for Super Pen. (3) Production overhead per unit was at…

(a) ABC Ltd. has furnished the following information regarding the overheads for the month of June 2020 : (i) Fixed Overhead Cost Variance (ii) Fixed Overhead Volume Variance ` 2,800 (Adverse) ` 2,000 (Adverse) (iii) Budgeted Hours for June, 2020 2,400 hours (iv) Budgeted Overheads for June,2020 (v) Actual rate of recovery of overheads ` 12,000 ` 8 Per Hour From the above given information Calculate: (1) Fixed Overhead Expenditure Variance (2) Actual Overheads Incurred (3) Actual Hours for Actual…

(a) Following details are related to the work done in Process-I by ABC Ltd. during the month of May 2019 : Opening work in process (3,000 units) Materials 1,80,500 14 INTERMEDIATE (NEW) EXAMINATION: NOVEMBER, 2020 Labour Overheads Materials introduced in Process-I (42,000 units) Labour Overheads Units Scrapped 32,400 90,000 36,04,000 4,50,000 15,18,000 4,800 units Degree of completion Materials 100% Labour & overhead 70% Closing Work-in-process 4,200 units Degree of completion Materials 100% Labour & overhead 50% Units finished and transferred…

(a) SEZ Ltd. built a 120 km. long highway and now operates a toll road to collect tolls. The company has invested ` 900 crore to build the road and has estimated that a total of 120 crore vehicles will be using the highway during the 10 years toll collection tenure. The other costs for the month of “June 2020” are as follows: (i) Salary: Collection personnel (3 shifts and 5 persons per shift) - ` 200 per day per…