Cost and Management Accounting - December 2021

(a) XYZ Ltd. uses two types of raw materials – ‘Material A’ and ‘Material B’ in the production process and has provided the following data for the year ended on 31 st March, 2021: Particulars Opening stock as on 01.04.2020 Purchase during the year Material A 30,000 90,000 Material B 32,000 51,000 Closing stock as on 31.03.2021 20,000 14,000 (i) You are required to calculate: (a) The inventory turnover ratio of ‘Material A’ and ‘Material B’. (b) The number of…

(a) G Ltd. manufactures leather bags for office and school purposes. The following information is related with the production of leather bags for the month of September, 2021. (1) Leather sheets and cotton clothes are the main inputs and the estimated requirement per bag is two metres of leather sheets and one metre of cott on cloth. 2,000 metre of leather sheets and 1,000 metre of cotton cloths are purchased at ` 3,20,000 and ` 15,000 respectively. Freight paid on…

(a) Paras Travels provides mini buses to an IT company for carrying its employees from home to office and dropping back after office hours. It runs a fleet of 8 mini buses for this purpose. The buses are parked in a garage adjoining the company’s premises. Co mpany is operating in two shifts (one shift in the morning and one shift in the afternoon). The distance travelled by each mini bus one way is 30 kms. The company works for…

(a) A construction company has obtained a contract of ` 30 lakhs contract price. The following details are available in respect of this contract for the year ended March 31, 2021: Particulars Materials purchased Materials issued from stores Wages paid Plant Supervisor Salary Drawing and maps Sundry expenses Electricity charges Plant hire expenses paid Sub-contract cost Materials returned to stores Materials returned to suppliers 2,00,000 8,00,000 1,50,000 2,40,000 50,000 30,000 40,000 75,000 40,000 35,000 50,000 The following balances related to…

(a) In a manufacturing company the standard units of production for the year were fixed at 1,20,000 units and overhead expenditures were estimated to be as follows: Particulars Amount (`) Fixed 12,00,000 Semi-variable (60% expenses are of fixed nature and 40% are of variable nature) 1,80,000 Variable 6,00,000 Actual production during the month of April, 2021 was 8,000 units. Each month has 20 working days. During the month there was one public holiday. The actual overheads were as follows: Particulars…