Cost and Management Accounting - May Rtp 2024 RTP

The purchase committee of A Ltd. has been entrusted to review the material procurement policy of the company. The chief marketing manager has appraised the committee that the company at present produces a single product X by using two raw materials A and B in the ratio of 3:2. Material A is perishable in nature and has to be used within 10 days from Goods received note (GRN) date otherwise material becomes obsolete. Material B is durable in nature and…

The board of the J Ltd. has been appraised by the General Manager (HR) that the employee attrition rate in the company has increased. The following facts has been presented by the GM(HR): (1) Training period of the new recruits is 50,000 hours. During this period their productivity is 60% of the experienced workers. Time required by an experienced worker is 10 hours per unit. (2) 20% of the output during training period was defective. Cost of rectification of a…

During half year ending inter departmental review meeting of P Ltd., cost variance report was discussed and the performance of the departments were assessed. The following figures were presented. 4 MAY 2024 EXAMINATION REVISION TEST PAPER COST AND MANAGEMENT ACCOUNTING For a period of first six months of the financial year, following information were extracted from the books: Actual production overheads ` 34,08,000 The above amount is inclusive of the following payments made: Paid as per court’s order ` 4,50,000…

The sales department of A Limited is analysing the customer profitability for its Product Z. It has decided to analyse the profitability of its five new customers using activity-based costing method. It buys Product Z at ` 5,400 per unit and sells to retail customers at a listed price of ` 6,480 per unit. The data pertaining to five customers are: Customers A B C D E Units sold 4,500 6,000 9,500 7,500 12,750 Listed Selling Price `6,480 `6,480 `6,480…

P Ltd. has gathered cost information from ledgers and other sources for the year ended 31 st December 2023. The information are tabulated below: Sl. No. Amount Amount (i) Raw materials purchased (ii) Freight inward 9,20,600 (iii) Wages paid to factory workers 25,20,000 (iv) Royalty paid for production 1,80,000 (v) Amount paid for power & fuel 3,50,000 (vi) Job charges paid to job workers 3,10,000 (vii) Stores and spares consumed 1,10,000 (viii) Depreciation on office building 50,000 (ix) Repairs &…

The financial books of a company reveal the following data for the year ended 31st March, 2023: Opening Stock: Finished goods 875 units 76,525 Work-in-process 33,000 01.04.2022 to 31.03.2023 Raw materials consumed 7,84,000 Direct labour 4,65,000 MAY 2024 EXAMINATION REVISION TEST PAPER INTERMEDIATE EXAMINATION Factory overheads 2,65,000 Goodwill written off 95,000 Administration overheads 3,15,000 Income tax paid 72,000 Bad debts 21,000 Selling and distribution overheads 65,000 Interest received 18,500 Rent received 72,000 Sales 14,500 units 20,80,000 Closing Stock: Finished goods…

Arnav Ltd. operates in beverages industry where it manufactures softdrink in three sizes of Large (3 litres), Medium (1.5 litres) and Small (600 ml) bottles. The products are processed in batches. The 5,000 litres capacity processing plant consumes electricity of 90 Kilowatts per hour and a batch takes 1 hour 45 minutes to complete. Only symmetric size of products can be processed at a time. The machine set-up takes 15 minutes to get ready for next batch processing. During the…

The following data are available in respect of Process-I for January 2024: (1) Opening stock of work in process: 600 units at a total cost of ` 4,200. (2) Degree of completion of opening work in process: Material 100% Labour 60% Overheads 60% (3) Input of materials at a total cost of ` 55,200 for 9,200 units. (4) Direct wages incurred ` 18,600 (5) Overheads ` 8,630. (6) Units scrapped 200 units. The stage of completion of these units was…