Cost and Management Accounting - April Mtp 2023 MTP

(iii) To earn same amount of profit in 2022-23 as it was in 2021-22, the company has to earn the same amount of contribution as it had earned in 2021-22. Sales – Variable cost = Contribution equal to 2021-22 contribution Contribution in 2021-22 = Sales in 2021-22 × P/V Ratio in 2021-22 = `5,93,10,000 × 20% = `1,18,62,000 Let the number of units to be sold in 2022-23 = X Sales in 2022-23 – Variable cost in 2022-23 = Desired…

Production Budget of ‘X’ for the first Quarter Particulars Bags (Nos.) Budgeted Sales 50,000 Add: Desired Closing stock 11,000 Total Requirements 61,000 Less: Opening stock 15,000 Required Production 46,000 (ii) Raw–Materials Purchase Budget in Quantity as well as in ` for 46,000 Bags of ‘X’ Particulars ‘Y’ ‘Z’ Empty Bags Kgs. Kgs. Nos. Production Requirements 2.5 7.5 1.0 1,15,000 3,45,000 46,000 (46,000 × 2.5) (46,000 × 7.5) (46,000 × 1) 26,000 47,000 28,000 Total Requirements 1,41,000 3,92,000 74,000 Less: Opening…

Total production of three products for the year 2022-2023 Products Quantity sold in tones Quantity of ending inventory in tons Total production Ending inventory percentage (%) (1) (2) (3) (4) = [(2) + (3)} (5) = (3)/ (4) X 186 180 366 49.18 Y 527 60 587 10.22 Z 736 25 761 3.29

Totalcos t of Product X = ` 12,50,000  ` 10,98,000 = ` 4,66,797 ` 29,40,250 Totalcos t of Product Y = ` 12,50,000  ` 13,20,750 = ` 5,61,496 ` 29,40,250 Totalcos t of Product Z = ` 12,50,000  ` 5,21,500 = ` 2,21,707 ` 29,40,250 Table of Primary Distribution of Overheads Particulars Basis Apportionme Total Amount Production Service Department Departments Fabrication Assembly Stores 27,28,000 15,52,000 7,44,000 2,36,000 1,96,000 Actual 86,36,000 71,88,000 14,48,000 Floor Area 15,28,000 9,16,800 3,82,000…

Normal working hours in a month = (Daily working hours – lunch break) × no. of days = (8 hours – 0.5 hours) × 26 days = 195 hours

Hours worked by Mr.Z = No. of normal days worked + Overtime + holiday/ Sunday worked = (21 days × 7.5 hours) + (9.5 hours + 8.5 hours) + (5 hours + 6 hours) = 157.5 hours + 18 hours + 11 hours = 186.50 hours. (i) Calculation of earnings per day Particulars Amount (`) Basic salary (`1,000 × 26 days) 26,000 Dearness allowance (20% of basic salary) 5,200 31,200 House rent allowance (16% of basic salary) 4,160 Employer’s contribution…