Cost and Management Accounting - May 2023

(a) TSK Limited manufactures a variety of products. The annual demand for one of its products- Product 'X' is estimated as `1,35,000 units. Product 'X' is to be manufactured done in batches. Set up cost of each batch is ` 3,375 and inventory holding cost is ` 5 per unit. It is expected that demand of Product 'X' would be uniform throughout the year. Required: (i) Calculate the Economic Batch (EBQ) for Product 'X'. (ii) Assuming that the company has…

(a) A Limited has furnished the following information for the months from 1 stJanuary to 30th April, 2023: January February March April Number of Working days 25 24 26 25 Production (in units) per working day 50 55 60 52 Raw Material Purchases (% by weights to total of 4 months) 21% 26% 30% 23% Purchase price of raw material (per kg) ` 10 ` 12 ` 13 ` 11 Quantity of raw material per unit of product: 4 kg.…

(a) PQR Limited manufactures three products - Product X, Product Y and Product Z. The output for the current year is 2,50,000 units of Product X, 2,80,000 units of Product Y and 3,20,000 units of Product Z respectively. Selling price of Product X is 1.25 times of Product Z whereas Product Y can be sold at double the price at which product Z can be sold. Product Z can be sold at a profit of 20% on its marginal cost.…

(a) ABC Company produces a Product 'X' that passes through three processes: R, S and T. Three types of raw materials, viz., J, K, and L are used in the ratio of 40:40:20 in process R. The output of each process is transferred to next process. Process loss is 1 0% of total input in each process. At the stage of output in process T, a by-product 'Z' is emerging and the ratio of the main product 'X' to the…

(a) NC Limited uses a standard costing system for the manufacturing of its product ‘X’. The following information is available for the last week of the month: 25,000 kg of raw material were actually purchased for ` 3,12,500. The expected output is 8 units of product 'X' from each one kg of raw material. There is no opening and closing inventories. The material price variance and material cost variance, as per cost records, are ` 12,500 (F) and ` 1800…