Cost and Management Accounting - Jan Rtp 2025 RTP

Popular company produces various articles for student purposes. It has been in industry since last 25 years. Company had a very humble start but gained popularity over the years due to excellent quality products which were sold at very competitive prices. Company has huge reserves and feel that it is also obligated to give back to the society from which it has grown. Last year management decided to produce and supply special quality school bags, water bottles, & geometry boxes…

Knowing the hectic schedule of a student preparing for the examination, a homemaker managing work from home or a new parent busy in neonatal care, a freshly qualified professional (Mr. Rishi) entered into a start-up business of manufacturing frozen foods. The process majorly involve washing and cutting the vegetables (Process I), blanching, cooling and mixing of ingredients with spices (Process II), forming, frying and freezing the final product (Process III). In Accounts, Mr. Rishi normally transfers the output of one…

Phalsa Ltd. pays its workers on time-basis because their services cannot be tangibly measured. The company’s normal working week includes 5 days of 8 hours each. Sometimes, the workers needs to work late at night which was 3 nights of 3 hours each for the current week. The average output produced per worker for the week is 120 units. Information regarding incentive rate is as follows: Rate of Payment Day shift: ` 320 per hour Night shift: ` 450 per…

Gaarmentz Ltd. run a sewing factory for medical garments. But, the company suffers from the limiting factor i.e. labor. Each sewing machine needs 100% attention of one person at a particular point of time to operate it. The company has 8 number of alike sewing machines on which 8 operators work separately. The following particulars are furnished for a six months period: Paid hours for all the 8 operators 9,594 hours Effective working hours for all the 8 operators 9,360…

Following information is available for the month of March relating to manufacturing of a product: Particulars Amount (`) Cost of Sales Stock of Raw material as on 01 March 37,51,540 6,50,000 Direct Wages 11,44,000 Salary to office staff 1,78,750 Hire charges paid for Plant (indirect expenses) Maintenance of office building 3,24,740 13,000 Depreciation on Delivery van 39,000 Warehousing charges 61,750 Stock of Raw material as on 31 March Realisable value on sale of scrap 1,95,000 32,500 Factory overheads are 20%…

ICT Ltd. belongs to pharmaceutical industries. The chemical process that ICT Ltd. operates convert one compound into three category of medicines viz. BetaTab, Folick and TegriCap. Though BetaTab and Folick are already converted to final product at split-off point, Tegricap needs further processing along with addition of new compound with it. The market for BetaTab and Folick is highly active, thus the production is sold at split-off point, however, Tegricap can be sold only after further processing. Following information is…

Ms. Gauri has the business of selling pens. She has setup this pen retailing for over 10 years with good profit volume ratio. Her average cost from the retailing is ` 11.25 per unit if she sells 16,000 units and is ` 11 per unit if she sells 20,000 units. For the current month, she also charged ` 5,000 towards depreciation and the rental payment due. The excess of sales revenue over the variable costs is ` 3.333 per unit.…

Ani Ltd. uses 6 kg. of Material ‘EXE’ to produce 1 finished unit of Product ‘EME’. The current demand of Product ‘EME’ is 16,000 units quarterly. 1 kg. of Material ‘EXE’ costs ` 40. The cost relating to quotations, documentation works, employee cost directly attributable to the procurement of material, every-time the order is made, is ` 2,000. The 9 JANUARY 2025 EXAMINATION REVISION TEST PAPER INTERMEDIATE EXAMINATION cost of fund invested in inventories, cost of storage, insurance cost, etc.…