Cost and Management Accounting - January 2025

(a) XYZ Company has an option to buy any one of the two machines N or M to manufacture its unique industrial component P. Each of the machines have the capacity to produce same quality of component P and are almost identical except for the fact that they are being manufactured by a different manufacturers. The specifications for each Machine are: Machine M: It has the capacity to produce 50,000 components of P per annum, the fixed costs being 1,50,000…

(a) The following information relates to a manufacturing concern A Ltd. for the year ended 31stMarch, 2024. Particulars As on 1st April,2023 As on 31st March,2024 Raw Material (in `) 3,40,000 1,80,000 Work in Progress (in `) 5,50,000 3,50,000 Particulars Amount Raw Material Purchased [Inclusive of GST@18% (Ineligible for ITC)] 8,00,000 Packaging Cost (primary) 3,00,000 Fee Paid to Independent Directors 5,00,000 Production bonus paid to factory workers Job charges paid to job workers 10% of Wages paid to factory workers…

(a) A chemical compound manufactured through two processes namely Process X and Process Y. Process Y is dependent on the output generated by Process X and the semi-finished chemical compound received from Process X shall be mixed up with further materials in Process Y. The details of costs and other particulars for each process are given as follows: Direct Material Direct Labour ` 35,000 Process Plant time Expected output Actual output kgs Realizable value of Normal Process X Process Y…

(a) XYZ Transport is running a bus between town A and town B which are 25 kms apart. The bus will make 4 round trips every day carrying on an average 30 passengers on each trip. The bus costs the company a sum of ` 5,00,000. It has been insured at 2% per annum and the annual tax will amount to ` 2,000 and the garage rent is ` 500 per month. Annual repairs will be ` 8,000 and the…

(a) The following information has been provided by a company: Number of units produced and sold 7,000 Standard labour rate per hour `9 23 INTERMEDIATE EXAMINATION: JANUARY 2025 Actual hours worked 17,820 hours Labour efficiency 106.8% Labour rate variance 71,280 (A) You are required to calculate : (i) Actual labour rate per hour (1 Marks) (ii) Standard hours required for 7,000 units (2 Marks) (iii) Labour Efficiency variance (1 Marks) (iv) Standard labour cost per unit (1 Marks) (v) Actual…

(a) Explain the steps involved in procedure for reconciliation of Cost & Financial accounts. Also explain the circumstances where reconciliation statement can be avoided. (3+2 = 5 Marks) (b) State cost unit of the following Industry Sector: Industry Sector Cost Unit Professional services Education Brick-making Education Brick-making Engineering Electricity Hotel/Catering Coal mining Brewing Hospitals (5 Marks) (c) Explain the methods that can be used for controlling Selling and Distribution Overheads. (4 Marks) 27 INTERMEDIATE EXAMINATION: JANUARY 2025 (c) Suggest any…