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    CMA Session

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    rishabh tyagi
    The document provides information on contribution margin income statement, cost components, and cost allocation using traditional and activity-based costing methods. It includes: 1) A contribution margin income statement showing sales, variable costs, contribution margin, fixed costs, and profit/loss. 2) Details on direct material, labor, and overhead costs, as well as production, administrative, selling and distribution costs. 3) An example of allocating production overhead costs like material handling, storage, and electricity to products using different cost drivers like weight, number of batches, and machine operations.

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    CMA Session

    Uploaded by

    rishabh tyagi
    18 views10 pages
    The document provides information on contribution margin income statement, cost components, and cost allocation using traditional and activity-based costing methods. It includes: 1) A contribution margin income statement showing sales, variable costs, contribution margin, fixed costs, and profit/loss. 2) Details on direct material, labor, and overhead costs, as well as production, administrative, selling and distribution costs. 3) An example of allocating production overhead costs like material handling, storage, and electricity to products using different cost drivers like weight, number of batches, and machine operations.

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    The document provides information on contribution margin income statement, cost components, and cost allocation using traditional and activity-based costing methods. It includes: 1) A contribution margin income statement showing sales, variable costs, contribution margin, fixed costs, and profit/loss. 2) Details on direct material, labor, and overhead costs, as well as production, administrative, selling and distribution costs. 3) An example of allocating production overhead costs like material handling, storage, and electricity to products using different cost drivers like weight, number of batches, and machine operations.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    Download as xlsx, pdf, or txt
    18 views10 pages

    CMA Session

    Uploaded by

    rishabh tyagi
    The document provides information on contribution margin income statement, cost components, and cost allocation using traditional and activity-based costing methods. It includes: 1) A contribution margin income statement showing sales, variable costs, contribution margin, fixed costs, and profit/loss. 2) Details on direct material, labor, and overhead costs, as well as production, administrative, selling and distribution costs. 3) An example of allocating production overhead costs like material handling, storage, and electricity to products using different cost drivers like weight, number of batches, and machine operations.

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    of 10

    CONTRIBUTION MARGIN INCOME STATEMENT

    Sales 22650 150 3


    Less - Variable 7550 100
    Contribution 15100 300
    Less - Fixed 15000
    Profit/Loss 100

    SP 150
    VC 50
    Contribution 100

    Fixed
    Rent 5000
    Security 10000
    15000 3000

    18000 180
    Direct Material Cost XXX open
    Direct Employees (labour) Cost XXX pur
    Direct Expense XXX -closing
    Prime Cost XXX
    Add: Factory Overhead XXX Material Consu
    Gross Works/Factory Costs XXX
    Add: Opening stock of Work-in-process XXX
    Less: Closing stock of Work-in-process XXX
    Factory or Works Costs XXX
    Add: Administrative overheads XXX Only related to production (Utlities)
    Cost of Production XXX
    Add: Opening inventory FG XXX
    Less: Closing FG XXX
    Cost of Goods sold XXX
    Add: Selling and distribution overheads XXX
    Add: Administrative (General) XXX
    Cost of Sales XXX
    Material Consu

    ed to production (Utlities)
    Units
    Direct Material Cost 138,600 200000 kg
    Direct Employees (labour) Cost 30,000
    Direct Expense
    Prime Cost 168,600
    Add: Factory Overhead
    Plant & Enery 5,000
    Indirect Labour 26,000
    Indirect Others 32,000
    Gross Works Costs 231,600
    Add: Opening stock of Work-in-process -
    Less: Closing stock of Work-in-process -
    Factory or Works Costs 231,600
    Add: Office/Administrative overheads -
    Cost of Production 231,600 100000 2.316
    Add: Opening inventory FG -
    Less: Closing FG 20,970 9054.404
    Cost of Goods sold 210,630
    Add: Selling and distribution overheads 162,850
    Add: Administrative (General) 50,000
    Cost of Sales 423,480
    Revenue 436,800
    Profit 13,320
    Set 2 - Q 2
    Traditional Costing Based on Machine hours, Labour Hours, etc
    ABC Based on Cost DRIVER

    Categories
    Ex
    Unit level activities testing
    Batch level activities Setup
    Product level activities Designing
    Facilities level activities Security, maintenance

    Problem Solving - ICAI

    Identify Cost
    Identify Activities
    Identify Activity Drivers
    Production overhead 4000 3000 1600
    A B C
    Material handling 29100 3 4.5 2.25
    (Weight) 16000 18000 4800 38800
    Storage Cost 31200 2.6 1.733333 9.75
    (No. of batches) 10 5 15 30
    Electricity 39150 6.48895 3.244475 2.162983
    (No. of Machine Operations) 6 3 2
    24000 9000 3200 36200
    99450

    12.08895 9.477808 14.16298


    0.75 per kg

    1040 Per batch

    1.081492 Per Operation


    Shared separetely on group
    On moddle

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