Cost and Management Accounting - November 2022

India Pvt Ltd is a startup company engaged in manufacturing of Agro Tech product from a raw material, which is purchased at `190 per kg. The company incurs a handling cost of `1,470 plus, freight of `770 per order. The incremental carrying cost of inventory of raw material is `3 per kg per month. In addition, the cost of working capital finance on the investment in inventory of raw material is `20 per kg per annum. The annual production of…

Following information are available from the cost records of BMR Limited, CALCULATE Labour turnover rate and Labour flux rate: No. of Employees as on 01.04.2021 = 9,400 No. of Employees as on 31.03.2022 = 10,600 During the year, 160 Employees left while 640 Employees were discharged and 1,500 Employees were recruited during the year; of these, 400 Employees were recruited because of exits and the rest were recruited in accordance with expansion plans. Overhead

Ltd. is a manufacturing company having three production departments, ‘A’, ‘B’ and ‘C’ and two service departments ‘X’ and ‘Y’. The following is the budget for December 2022: Total (`) A (` ) B (` ) C (` ) X (` ) Y (` ) Direct material 1,60,000 3,20,000 Direct wages 8,00,000 3,20,000 12,80,000 1,60,000 3,20,000 Factory rent 6,40,000 Power 4,00,000 Depreciation 1,60,000 6,40,000 3,20,000 1,60,000 2 INTERMEDIATE EXAMINATION: MAY, 2023 Other overheads 14,40,000 Additional information: Area (Sq. ft.) 800…

Hygiene Care Ltd. is a manufacturer of a range of goods. The cost structure of its different products is as follows: Particulars Hand Wash Detergent Powder Dishwasher Direct Materials (` / Pu) 150 120 120 Direct Labour @ `10/ hour (` / Pu) 45 60 75 Production Overheads ( ` / Pu) 40 50 40 Total Cost (` / Pu) 235 230 235 Quantity Produced (Units) 30,000 60,000 90,000 Hygiene Care Ltd. was absorbing overheads on the basis of direct…

From the following data of Motilal Ltd., CALCULATE Cost of production: (i) (ii) Repair & maintenance paid for plant & machinery Insurance premium paid for inventories 9,80,500 26,000 (iii) Insurance premium paid for plant & machinery 96,000 (iv) Raw materials purchased 64,00,000 (v) Opening stock of raw materials 2,88,000 (vi) Closing stock of raw materials 4,46,000 (vii) Wages paid 23,20,000 (viii) Value of opening Work-in-process 4,06,000 (ix) (x) Value of closing Work-in-process Quality control cost for the products in manufacturing…

The financial records of Riva Private Limited showed a net profit of `1,69,500 for the year ended 31st March, 2022. The cost accounts, however, disclosed a net loss of ` 88,500 for the same period. The following information were revealed as a result of scrutiny of the figures of cost accounts and financial accounts: (i) (Administrative overhead under recovered (ii) Factory overhead over recovered (iii) Depreciation under charged in Cost Accounts 65,000.0 (iv) Dividend received 50,000.0 (v) Loss due to…

A jobbing factory has undertaken to supply 200 pieces of a component per month for the ensuing six months. Every month a batch order is opened against which materials and labour hours are booked at actual. Overheads are levied at a rate per labour hour. The selling price contracted for is ` 80 per piece. From the following data. PAPER – 3: COST AND MANAGEMENT ACCOUNTING 5 COMPUTE the cost and profit per piece of each batch order and overall…

XYZ LLP, contractors and civil engineers, are building a new wing to a school. The quoted fixed price for the contract is `30,00,000. Work commenced on 1 st January 20X2 and is expected to be completed on schedule by 30 June 20X3. Data relating to the contract at the year ended 31 st March 20X3 is as follows. Plant sent to site at commencement of contract Hire of plant and equipment Materials sent to site Materials returned from site 2,40,000…