N is the number from journa

1 Habibi MMC has two production cost centres ( A and B) and two service cost centres (stores and maintenance)
production departments in the following proportions

Stores 140000 + (N*1000)

Production centre A 45%
Production centre B 45%
Maintenance 10%

Question 1 After repeated distribution, how much of the service department costs will end up in production centre A

Cost and selling price details for product Z are as follows.

Direct materials 6+N

Direct labour 7.5 + N
Variable overhead 2.5 + N
Fixed overhead absorption rate 5 +N

Profit 9 +N
Selling price 30 + N

Budgeted production for the month was 5000+(N*200) units although the company managed to produce 5800
(N*200)
Question 2 What was the marginal costing profit for he month?
Question 3 What was the absorption costing profit for the month?

Date Units
1-Mar Opening inventory 100+(N*10)
3-Mar Receipts 300+(N*10)
5-Mar Issues
12-Mar Receipts 170+(N*10)
24-Mar Issues

Question 4 Using the weighted average price method of inventory valuation, the costs of the materilas issued on 12 March
Question 5 Using the weighted average price method ot inventory valuation, the value of closing inventory on 24 March w

Habibi MMC sells one product for which data is given below:

Selling price 10 + N
Variable cost 6+N
Fixed cost 2+N
 The fied costs are based on a budgeted level of activity of 5000 + (N*100) units for the period.

Question 6 How many units must be sold if Habibi MMC wishes to earn a profit of 6000 + (N*1000) AZN for one period
Question 7 What is Habibi MMC margin of safety for the budget period if fixed costs prove to be 20% higher than budgete
If the selling price and variable cost increase by 20% and 12% respecteively by how much sales volume change
Question 8 level in order to achieve the original budgeted profit for the period?
e number from journal placement
cost centres (stores and maintenance). It has been estimated that the service costs centres do work for each other and the

Maintenance 70000 + (N*1000)

Production centre A 50%
Production centre B 45%
Store 5%

will end up in production centre A

he company managed to produce 5800+(N*200) units, selling 5200+(N*200) of them and incurring fixed overhead costs of 27400+

Issued
Receipt Azn/unit Calculate the Value Units Azn/unit Value
5
4.8
220
5.2
300

sts of the materilas issued on 12 March was?

lue of closing inventory on 24 March was?
0) units for the period.

000 + (N*1000) AZN for one period

s prove to be 20% higher than budgeted?
vely by how much sales volume change compared with the original budgeted
k for each other and the

fixed overhead costs of 27400+

 Habibi MMC has two production cost centres ( A and B) and two ser
service costs centres do work for each other and the production dep

Stores 140000 + (N*1000)

Production centre A 45%
Production centre B 45%
Maintenance 10%

Question 1 After repeated distribution, how much of the service department co

Stores 149000
Production centre A 0.45
Production centre B 0.45
Maintenance 0.1

Store portions 0.45 0.45 0

Maintenance portions 0.5 0.45 0.05
Production A Productio Stores
Initial 0 0 149000
Store 1 distribution 67050 67050 -149000
End of distribution 67050 67050 0
Maintenance 2 distribution 46950 42255 4695
End of distribution 114000 109305 4695
Store 3 distribution 2112.75 2112.75 -4695
End of distribution 116112.75 111417.8 0
Maintenance 4 distribution 234.75 211.275 23.475
End of distribution 116347.5 111629 23.475
Store 5 distribution 10.56375 10.56375 -23.475
End of distribution 116358.06375 111639.6 0
Maintenance 6 distribution 1.17375 1.056375 0.117375
End of distribution 116359.2375 111640.6 0.117375

From Store to Prod A as a currency 69173.31375

 ost centres ( A and B) and two service cost centres (stores and maintenance). It has been estimated that the
each other and the production departments in the following proportions

Maintenance 70000 + (N*1000)

Production centre A 50%
Production centre B 45%
Store 5%

much of the service department costs will end up in production centre A

Maintenance 79000
Production centre A 0.5
Production centre B 0.45
Store 0.05

0.1
0
Maintenance
79000 Sum --> 228000
14900
93900
-93900
0
469.5
469.5
-469.5
0
2.3475
2.3475
-2.3475
0 Sum --> 228000
Hikmet Isgenderov
N 9
 Cost and selling price details for product Z are as follows.

Direct materials 6+N 15

Direct labour 7.5 + N 16.5
Variable overhead 2.5 + N 11.5
Fixed overhead absorption rate 5 +N 14

Profit 9 +N 18
Selling price 30 + N 39

Budgeted production for the month was 5000+(N*200) units although the company managed to
incurring fixed overhead costs of 27400+(N*200)

Budgeted production for the month was 6800 units although the company managed to produce
29200
Question 2 What was the marginal costing profit for he month?
Question 3 What was the absorption costing profit for the month?

Direct materials 15
Direct labour 16.5
Variable overhead 11.5
Fixed overhead absorption rate 14

Profit 18
Selling price 39
 Hikmet Isgenderov
N 9

ough the company managed to produce 5800+(N*200) units, selling 5200+(N*200) of them and

company managed to produce 7600 units, selling 7000 of them and incurring fixed overhead costs of
 Calculate
Date Units Receipt Azn/unit the Value
1-Mar Opening inventory 100+(N*10) 5
3-Mar Receipts 300+(N*10) 4.8
5-Mar Issues
12-Mar Receipts 170+(N*10) 5.2
24-Mar Issues

Question 4Using the weighted average price method of inventory valuation, the costs of the materilas issued on 12
Question 5Using the weighted average price method ot inventory valuation, the value of closing inventory on 24 M
 Issued
Units Azn/unit Value

220

300

sts of the materilas issued on 12 March was?

ue of closing inventory on 24 March was?
 Habibi MMC sells one product for which data is given below:

Selling price 10 + N
Variable cost 6+N
Fixed cost 2+N

The fied costs are based on a budgeted level of activity of 5000 + (N*100) units for the perio

Question 6 How many units must be sold if Habibi MMC wishes to earn a profit of 6000 + (N*1000) AZN
Question 7 What is change
volume Habibi MMC margin
compared of safety
with for the
the original budget period
budgeted level iniforder
fixed to
costs provethe
achieve to be 20% hi
original
Question 8 budgeted profit for the period?

Habibi MMC sells one product for which data is given below:

Selling price 19
Variable cost 15
Fixed cost 11

The fied costs are based on a budgeted level of activity of 5900 units for the period.

Question 6 How many units must be sold if Habibi MMC wishes to earn a profit of 15000 AZN for one pe
Question 7 What is change
volume Habibi MMC margin
compared of safety
with for the
the original budget period
budgeted level iniforder
fixed to
costs provethe
achieve to be 20% hi
original
Question 8 budgeted profit for the period?

Units 5900
To earn 15000
Total Fixed Cost for the period 64900
Q6
Contribution for the period 79900
Per unit contribution 4
Units to sold 19975

20% high 77880

Breakeven point 19470
Q7
Difference 505
Margin of Safety 2.53%

%increase in selling price 20%

%increase in variable cost 12%
New Selling price 22.8
New Variable cost 16.8
Q8 Total Fixed Cost for the period 64900
Contribution for the period 79900
Per unit contribution 6.00
Units to sold 13316.67
Volume change 6658.333
 Hikmet Isgenderov
N 9

N*100) units for the period.

t of 6000 + (N*1000) AZN for one period

dr to
costs provethe
achieve to be 20% higher than budgeted?
original

ts for the period.

t of 15000 AZN for one period

dr to
costs provethe
achieve to be 20% higher than budgeted?
original