ao University. of Chittagong Department of Accounting inal Examination, 2020 BBA 7" Semester Course Title: Advanced Finaneial Accounting I Full Marks: 75 Course No. 401 gin indicate marks. Different parts of Time: 4 Hours IN.B.: Answer any Fi cach question must b 1, a) MPMIN Limited went into. voluntary, Hau ive questions. Figures in the right mar answered sequentially.) ‘on on 31% December2019. The 30 balances in its books of accounts an that date were: ee rc tgs eee Tasued and subseribed capital Tand and Buildings Vi 4.00,000 19,00,000 000, 6% preference shares of TK 8,00,000, Plan and Machinery ‘TK 100each 4,000 ordinary shares of TK 100 3,00,000 Patents 1,60,000 cach, TK 75 paid 12,000 ordinary sheres of TK 7,20,000 Inventory (at cost) 2,20,000 ‘100, TK 60 aie sve debentures having 2 Moaing 4,00,000 Accounts Reveivables 440,000 charge on all assets Interest outstanding 20,000 Cash at bank 120,000 Debentures ‘Accounts Payables '5,80,000 Profit and oss account 4.80,000 Total 220,009 Tote! 38.20,000 ‘The preference geil was Tr wears Tor Two yous, Recounts payable includes a Joan of TK2,00,000 on mortgage of land and buildings. The assets realized as fellows: Tand and Buildings > FR 4, 50,000, Plant and Machinery ‘ 8,00,000, Patenis 1.20.00 Inventory 2.40.00 3,20,000 ‘The expense of iquidation ‘amounted to TK 43600. The liquidator is entitled to a JL assets realized except cash at bank and a commission of 2% commission of 3% on a rmamounts distributed among unsecured ereiors. Preferential creditors amount to x 60,000, all the payments were made on June 30,2020, the Liquidator’s Statement of Account Prepare by Mr. ABC is appoint [Pace ted liquidator of company involuntary liquidation on July I. 05 Scanned with CamScanner %2020.'The following are extracted from the books on that date: oe ee Capi 320,000 shares of TK S each ‘TK 1,60,0000 Machinery TK 6,00,000 Bad debt allowance 2,00,000 Leasehold properties 8,00,000 | oobemuines 10,00,000 Accounts receivables 1,20,0000 Bank overdraft 3,60,000 Inventories 20,000 Accounts payables 4,00,000 Investments 1,20,000 Calls in arear 1,00,000 Cash 20,000 Profit and Loss Account 7,00,000 35,60,000 35,60,000 3 Investments at TK. 80,000 ; Inventories at TK. 40,000 ; bad debts are TK. 40,000 ; doubtful debts are TK. 80,000, (estimated to realize) TK. 40,000. The Bank Overdraft is Secured by deposit of title deeds of Leasehold Properties. Preferential creditors for taxes and wages TK. 20,000. Telephone rent owing is TK:. 1,600. You are required to make out Statement of Affairs as regards creditors and contributories, . ca) Landmark Company had available at the end of 2020 the following information: 2 Laridmark Company Comparative Statements of Financial Position as of December 31, 2020 And 2019 2020 201 qtand ‘TK 125,000_TK175,0 Buildings 350,000 —— 350,00 JAccumulated depreciation-buildings (105,000) (87,500) equipment 525,000 — 400,00 ‘Accumulated depreciation-equipnient (130,000) (112,000) Patents 45,000 50,00 inventory 42,000 ——-35,000.— Prepaid rent SST 00 12.0 Supplies Accounts receivable [Short-term equity investments Cash Total assetsaes "7240,000 25,000 Share capital-ordinary Share premium-ordinary Retained earnings 123,297 88,747] [Long-term notes payable 60,000 70,00 Bonds payable 720,303 425,853) Accounts payable 22,000 452.00 Income taxes payable 5,000 —— 4.001 Salaries and wages payable 5,000 —~ 3,00 Short-term notes payable 40,000 10,00 equity and -7910,600 ‘TK871.100 Landmark Company . Income Statement Forthe year ended December 3! 2020 Sales revenue Cost of goods sold Gross margin 412.001 Operating expenses ; ~ Selling expenses TK 79.200 ‘Administrative expenses 156,700 40,500 Depreciation/Amortization expense ‘Total operating expenses (276.400) Income from operations 135,601 Incomfncome andempense : Gain on sale of land 8.009) in an sale of short-term investment Dividend revenue 3.400 Interest expense (51,750) —— (37.350 Income before taxes 98.251 Income tax expense (39.400 58,85 Net income 8 dinary shareholders + To retained earnings ara cash ows Tor Landmark Company using the investments are non-trading. Bond premium amortized was Dividends to ot Prepare @ statement of Aseume the short-term i TK5,550. b) Unlike the ‘other major financial statements, the statement of cash flows jis not prepared from the adjusted trial balance. From what sources does the information to prepare this statement come, ‘and what information does each source provide? a) Yellow of Chittagons has a branch at Dhaka to which goods are sent @ above cost. The branch makes both cash and credit sales: Branch expenses are met partly from H and partly by the branch, ‘The statement of expenses incurred by the 03 3| Pace Scanned with CamScannerbranch every month is sent to head office For recording. are given for the year ended 31st December, 2020: Following further details Cost of goods sent to Branch at cost ‘ TK 2,00,000/).4 oy Goods received by Branch till 31-12-2020 at invoice price 2,20,000 Credit Sales for the year @ invoice price 1,65,000 Cash Sales for the year @ invoice price 59,000 2,22,500 Cash Remitted to head office gsvo Expenses paid by H.O. — & Bad Debts written off ey que Vale Balances as on 11-2020 TR? -12-2020 12,000 Stock TK25,000 (Cost) TK28,000 (invoice price) Debtors 32,750 26,000 Cash in Hand 5,000 2,500 Show necessary ledger accounts in the books of the head office ‘and determine the Profit and Loss of the Branch for the year ended 31st December, 2020 following stock and debtors method. b) On 31" December 2020, the following balances (Dr./Cr) appeared in the books 07 of Chittagong Branch of an US firm having its HO office in New York: Stock on Ist Jan., 2020 TK2,34,000 Purchases and Sales 15,62,500 TK23,43,750 Accounts receivable and Accounts payable 7,65,000 5,10,000 Bills Receivable and Payable 2,04,000 1,78,500 Salaries and Wages 1,00,000 - Rent, Rates and Taxes 1,06,250 - Furniture 91,000 : Bank Account 5,68,650 : . New York Account - 5,99,150 Stock on 31” December, 2020 was TK 6,37,500. Branch account in New York Scanned with CamScanner11 31" December, 2020 and Furniture ‘exchange for gional ‘The average appeared in the Hi December 3019 was TK 8Y-and on 31 Decembll "= ez rate for the year was TK 80. Prepare in the Head Office books the Branch. ory, 1, 2020. Bach partnot and ¥- began business on Ja" their fair values The partnership of X sh assets are stated at contributed the following assets (the nonea on January 152029. x Cash TK60,000 TKSO. Inventories 80,000 A a) oie? 0 Land Equipment 100,000 “re land was subject 2 150.000 mont which the partnership assumed 00 January 1, 2020. The jaipment was subject 19 installment ote PEs that had ‘an unpaid principal amount TK 20,000 on January |» 3020, The partnership also resumed this nove payable X and ¥ agreed to shave partnership income and losses in the following manner: Y x Interest on beginning capital 3% 3% aloncee 712,000 TK 12,000 Salaries Remainder 60% 40% During 2020, the following events occurred: 2020, the 1, Inventory acquired at a COS! of TK30.000. At December 31. partnership owed “TK 6,000 0 its suPPHers- Lo ee oy oT 5,000 was paid on the mortgage. Interest expense incusted oF f ee Fr 2,000, all of which, was paid by December's}. 2020 the mortgage WAS — a — perk 3,500 was paid O° ih installment note. Interest EXPE. incurred ve was TK 2,000. all sr vhich was paid by December 31, 2020. inted to TK 155,000. At December 31. 2020, customers 3, Principal 0! ga the installment et 4, Sales on account Emer uved the partnership TK 21,000. 15 5|paee Scanned with CamScannerit reciation, amounted to TK 34,000, cpenses, excluding depreciation, amoun 000, Selling and general expenses, exclud ci anit : ; pipe 3 2020, the partnership ‘owed TK 6,200 of accrued expenses, jecember 31, , Depreciation expense was TK 6,000 a 6. Bach partner withdrew TK 200 each week in anticipation of partnership profits. 1. ‘The partnership’ invgntory at December 31, 2020, was ‘TK 20,000. rtners allocated the net income for 2020 and closed! the accounts. 8. The pa Instructions: 2) Prepare journal entries to record the formation of the partnership on January |, 2020, and to record the events that occurred during 2020. statement for the X-Y Partnership for the year ended b) Prepare the ineome December 31, 2020. ©) Prepare a balance sheet for the X-Y Partnership at December 31, 2020. a) Differentiate between “accounting for the employer” and “accounting for the 02 pension fund”. b) Identify the five components that comprise pension expense. Briefly explain the 03 nature of each component. i . c) Jablonski Corp. sponsors a defined benefit pension plan for its employees. On 10 January 1, 2014, the following balances related to this plan. . Plan assets (market-related value) $170,000 f Projected benefit obligation 340,000 Pension asset/liability 7 170,000 Cr. Prior service cost 100,000 OCI-Loss 39,000 As a result of the operation of the plan during 2014, the actuary provided the following additional data at December 31, 2014. Service cost for 2014 $45,000 ‘Actual return on plan assets in 2014 a0 ‘Amortization of prior service cost 20,000 Contributions in 2014 85,000 Benefits paid retirees in 2014 51,000 6|Page Scanned with CamScannerSettlement tale ent rat 2s . 1% Ex, ec ——. bs __—_|— - Pected retum on plan assets 8% ‘Average remai a ——- _—___| aS rage remaining service life of active employees 10 years i) Compute pension expense for Jablonski Corp. for the year 2014 by preparing a pension worksheet that shows the journal entry for pension expense, ii) Indicate the pension amounts reported in the financial statements. 6. a) What are the differences between Govt. accounting and commercial accounting? 05 b) Mr. Adil is in business as a wholesale coal merchant. The. following transactions 10 took place during December 2016: TDee Balance at bank Tk. 500,000 | J Dee} Purchased goods onciedit trom English Coal Tor Tk. 400,000 plus | . rN SP sat ——— VAT Fs Dee} Bought stationery costing Tk. 24,000 plus VAT and paid by cheque. al Dee} Sord goods on credit to Black for T,7600,000)plus VAT. se ae 7 Dee} Bought goods on credit from ScoutiSirEGAl for Tk. 320,000 plus VAT. ht goods on ered To bee | Sold goods for Tk. 520,000 plus VAT and received a cheque for this | cae ET amount, eee TT Dee | Purchased goods costing Tk. 720,000 plus VAT and paid by cheque. | 12 Dec Sold goods on credit to White for Tk. 800,000 plus VAT. eee A eh 18 Dec Sold goods for Tk. 640, 000 plus VAT and received a cheque. 1 a 20 Dec Purchased stationery for Tk. 16,000 plus caine Ses Required: i. Write up the sales: and purchases day books using appropriate analysis columns where there is more than one transaction of the same type. ii. Make the necessary entries in the ledger. Assume the rate of VAT to be 15%. iii, Comment on how much money has to pay by Mr. Adil to the Government exchequer. 7|Page Scanned with CamScanner4) "Government accounting is called fund accounting” Explain. fa b) Explain the following terms: 03 rietary funds, Fiduciary funds. Governmental funds. Prop General of Bangladesh. he functions of Comptroller and Auditor 03 c) State th 03 sions of environmental accounting. d) Briefly explain the basic dimen: Jain the need for forensic 03 ©) Write your understanding about forensic accounting, Exp] accounting in brief. 8| Page Scanned with CamScannerUniversity of Chittagong z Department of Accounting bas Te BA 7" Semester Final Examination, 2020 = : Time: 4 Hours ae Co uae Full Marks: 75 INB.: Answer any Fi any Five questions. Figures in the right margin indicate marks. Different parts of each questi question must be answered sequentially. (a) Define stock Option: State the accounting record of stock option. 04 06 (b) The shareholders’ equity of Cadiz Ltd, on January 1, 2020 was: Share Capital -200,000 shares fully paid up - Tk. 2,000,000 General Reserv 1,000,000, Retained Earnings: Tk. 500,000. ‘The following transactions occurred during the ye + ended 31 December 2020: |. On February 1, 2020, a renounceable |-fo jghts issue was made (0 existing shareholders. The issue price was Tk. 10 per share, payable in full on application. ‘The issue was underwritten for & ‘commission of Tk. 70,000. The issue closed fully subscribed on 31 march, the holders of 40,000 shares having transfer their rights. The underwriting commission was paid on $ March. 2, 0n 30 June 2020, 10,000 shares were privately investment Ltd. at Tk. 10 per share. Required: Prepare journal entries to record the above transactions. (b) Schuss Inc. issued Tk. 3,000,000 of 10%, 10-year convertible bonds on April 05° 1, 2019, at 98. ‘The bonds were dated April 1, 2019, with interest payable April and October |. Bond discount is amortized semiannually using the effecti interest method. The net present value of the bonds without the conversion feature discounted at 12% (its market rate) was Tk. 2,655,888. On April 1, 2020, Tk. 1,000,000 of these bonds were convert ted into 30,000 shares of Tk. 20 par value ordinary shares. ‘Accrued interest was paid in cash at the time of conversion. Required: : (a) Prepare the entry to record the issuance of the convertible bond on April Le 2019. (b) Prepare the entry to'record the interest expense at October 1, 2019. } (c) Prepare the entry(ies) to record the conversion on April 1, 2020. (The book value method is used.) + Nw) placed with IDLC (a) Distinguish between 20 Associate and a Subsidiary. What are the requirements 5, ofequity accounting as Per JAS-28? (6) What do you mean by 8 State how SPEs are treated in Accounting. ole 06 (b) Piesented below are two independent situations. Situation 1: Hatcher Cosmetics acquired 10% of the 200,000 ordinary shares of Ramirez Fashion at 2 total cost of $14 per share on March 18, 2020. On June 30, Ramirez declared and paid a $75,000 cash dividend, On December 31, Ramirez reported net income of $122,000 for the year. At December 31, the market price of Ramirez Fashion was $15 per share. ‘The investment is classified as trading. Situation 2: Holmes, Inc. ‘obtained significant influence over Nadal Corporation by buying 25% of Nadal’s 30,000 outstanding ordinary shares at a total cost of $9 per share on January 1, 2020. On June 15, Nadal declared and paid a cash pager of6 Scanned with CamScannerdividend of $36,000. On December 31, Nadal reported a nel income of $85,000 for the year. Required: Pi 1 2020 for both situations. repare all necessary journal entries i Describe different forms of Business (a) Define Business Combination. Combination. 0 - 5 (b) The following financial statements information was) prepared for Blue 10 Corporation and Sparse Corporation at December 31, Blue Corporation Sparse Corporation Cash L 140,000 | 70,000_| ‘Account Receivable | [170,000 |__| 110,000 _ inventory 00 __| 180,000 Land 80,000 100,000 Building & 680,000 | 450,000 _| [‘ess: Ace. Depreciation | 320,000 | 360,000 __| 230,000 _} 220,000 Goodwill | 70,000 20,000 Total Assets _____}4,070,000 700,000 Accounts Payable 70,000 195,000 Bonds Payable 320,000 100,000 Bond Premium 10,000 | Common Stock 120,000 150,000 Additional-paid in 170,000 60,000 Capital . . _| Retained Earning ms : | 390,000 : 185,000 Total liabilities. & 1,070,000 700,000 Equity Blue and Sparse agreed to combine as of January 1, 2020. To effect the merger, Blue paid finder’s fees of Tk. 30,000 and legal fees of Tk.24,000. Blue also paid “Tk. 15,000 of audit fees related to the issuance of Stock, stock registration fees of “Tk. 8,000.and stock listing application fees of Tk. 6,000._ At January 1, 2020, book value of ‘Sparse company’s assets and liabilities approximated market value of Tk. 200,000, building and equipment with a market value of Tk. 350,000, and bonds payable with a market value of Tk. 105,000. All assets and liabilities were immediately recorded on Blue Required: Give all journal entries that Blue recorded assuming Blue issued 40,01 ‘Tk. 8 par value common stock to acquire all of Spare’s assets and business combination, Blue common stock was trading at Tk. January 1, 2020. 05 a) Define Non-controlling Interest. How do you calculate and report it? 10 b) Sun Corporation was created on January 1, 20X2, and quickly became successful. On January 1, 20X6, its owner sold 80 percent of the stock to Weatherbee Company at underlying book value. At the date of that sale, the fair value of the remaining shares was equal to 20 percent of the book value of Weatherbee. Weatherbee continued to operate the subsidiary as a separate legal entity and used the equity method in accounting for its investment in Sun. The following consolidated financial statements have been prepared: Page 2 of 6 Scanned with CamScannerWEATHERBER : TERBER COMPANY AND SUBSIDIARY 2s Consolidated Bala heets December 31, | Cash 20x6 __|___20X6__| Accounts Resivble 1000 sian cae 230000 360000 Renal pice § 95000 100000 uildings & Equipment 800000 650000 Less: Accumulated Depreciation (290000) (230000) Total Assets $.1010000, $.1066000, Accounts Payable 90000 105000 Bonds Payable 300000 2500000 Non-controlling Interest 30000 38000 Common Stock 300000 300000 Retained Earnings 290000 373000 1 & Owners’ Equity | $.10.10000 | ____ $.1066000 | WEATIERBEE COMPANY AND SUBSIDIARY Consolidated Income Statement Year Ended December 31, 20X6__ Sales $1,070,000 30,000 er ee $1,100,000 $750,000 Gain on Sale of Equipment Cost of Goods Sold Depreciation Expense 40,000 Other Expenses 150,000. '$ (940,000) Total Expenses Income to ‘Noncontrolling [Interest Income to Controlling Interest ,000 000) 8,000 eG! SS oe $14 ——$——__—— WEATHERBEE COMPANY AND SUBSIDIARY Consolidated Retained Karnings Statement ‘Year Ended December 31,20X6_____ Balance, January |, 20X6 $290,000 Income to Controlling Interest Hed Sl beegets 0148 000) $438,000 Dividends Declared, 20X6 65,000), Balance, December 31, 20X6 $373,000 —— ae ee reported net income of $60,000 and paid dividends of $20,000; rt income of $148,000 and paid dividends of $65,000. any transfers during the period. During 20X6, Sun Weatherbee reported ‘There were no intercom) Reguired a consolidated statement of cash flows for 20X6 using the Prepare a worksheet for indirect method of com puting cash flows from operations. page 306 Scanned with CamScanner“the » summarized income statements have been prepared for the year 5) Fi 30 Je 2018 by llalloween Limited and its subsidiary undertaking Ringo {ante Halloween Ltd Ringo Ltd cu cu cu eu in Revenue 649,000 a Cost of sales (429,900) oon Gross profit 219,100 (40,200) Operating expenses (108,100) _ ne Profit from operations, 111,000 st Investment Income: Dividends from Ringo Lid 6,900 Dividends from — quoted 1,800 2,000 investment Interest from Ringo Ltd 1,700 10,400 Finance Costs _ (8,000) Profit Before Tax 121,400 56,000 Income ‘Tax Expense (59,700) (28,100) Profit After Tax 61,700 27,900 ‘The following information is relevant, i, Halloween Limited acquired 73% of the CU100,000 issued ordinary shares of Ringo Limited for CU95,000 on I* July 2014 when retained earnings of Ringo Limited were CU13,200. On the same date, Halloween Limited acquired 20% of the 8% loan stock of Ringo Limited. The total loan stock issued at par is CU100,000. ¢ revenue of Ringo Limited includes sales to Halloween limited of 36,000, all invoiced at cost plus 25%. On 30 June 2018 the inventory of Halloween Limited included CU9,000 in respect of such goods. Three years ago a goodwill impairment loss of CUS.910 was recognized in Halloween Limited’s consolidated financial statements. A further loss of CU1,970 needs to be reflected in the current year consolidated financial statements. iv. Halloween Limited paid an int ordinary dividends of CU20,000 and total dividends to deemable preference shareholders of CU8,000. Ringo limited paid an interim dividends of CU10,000. v. The retained earnings of Halloween Limited and Ringo Limited as at 1* July 2017 were CU72,400 and CU29,600 respectively. The share capital of Halloween Limited comprises 500,000 CUI ordinary shares 100,000 CUI irredeemable preference shares. Required: Prepare the consolidated income statement of changes in equity for the year ended 30 June 2018. And. Griukement ok aks UnArys 6 On I* April 2018, Belview Limited, a New Zealand Bxplain the statement 4 ‘Variable manufacturing ove" snead is applied to product for one unit of produet are aS follows: 6 $3.00 4 = 8.00 $10.00 per hour ith June's operations were #8 direct labor, and variable manufacturing overhead identify the reasons for variances: re equivalent-unit calculations 5 clothes. t has a Knitting department and a 10 ain — | Transferred-in- Direct Conversion Costs Materials Page 1 of 4 Scanned with CamScannerrp Tansteredin dainghme [100 [| | ompleted and transferred out 120 during June | Work in process, ending 40 inventory at 5 % 75% Degree of completion, ending 100% 0% work in process seal : ‘Total costs added during June $117,00 $27,000 $62,400 Required: (i) Calculate equivalent units of transferred-in-c osts, direct materials, (ii) Calculate the cost per equivalent unit for transferred-in-costs, direct materials, and conversion costs. and conversion costs, (iii) Summarize total costs to account for, and assign total costs to units completed and to units in ending work in process. Alex company produces and sells a single j roduct, a wooden hand loom for weaving small éms such as scarves, Selected cost and operatiiig data relating to the product for two years are given below: x 12 Selling price per unit $50 : Manufacturing costs: Variable per unit produced: Direct materials sul Direct labor $6 Variable overhead $3 ed per year $120000 Selling and administrative costs: Variable per unit sold $5 Fixed per year $70000 , Year-] Year-2 Units in beginning inventory 0 2000 Units produced during the year 10000 6000 Units sold during the year 8000 8000 Units in ending inventory 2000 0 Required: are an income statement for each year unde: absorption costing and variable costing. Prep: Reconcile the variable costing and absorption ccsting net operating incomes. b, State the advantages of using variable costing 3 5, a. Define cost audit. Why is it important for en organization? 4 6 b. What points are to be considered while planning the program for cost audit? Explain. c. Write short on ‘Management audit’ and “Ethical audit’. Page 2 of 4 Scanned with CamScanner1) What do you mean by servi 1B" istics: Umea rvi i you mean by service costing? What are its characteristics (b) Mr. X owns a bus whi (i) Delhi to Chan May us scoring els Tollowing schedule: 2 Distance covered: 150 kms, ee eye ae Number of d ONE WY op DE 1 lays run each month: 8 sie < Seating capacity occupied 90% (ii) Delhi to Agra and baick, the same day. Distance covered : 120 kms. One way x Number of days run each month: 0 ___ Seating capacity occupied 85% Gi) Delhi to Jaipur and back, the same day Distance covered: 270 kms. one way. Number ofdays run each month: 6 Seating capacity occupied 100% (iv) Following are the other details: Cost of the bus Rs, 6,00,000 Salary of the driver s_ 2,800 p.m: Salary of the Conductor Rs. 2,200 p.m. Salary of the parttime Accountant Rs. 200 pm. Insurance ofthe buss Rs. 4,800 pa. Diesel consumption 4 Iams per lite Rs. 6 per litre Road tax Rs. 1,500 pa. Lubricant oil Rs. 10 per 100 kms. Permit fee Bs. 315 pam. Repairs and maintenance Rs, 1,000 p.m. Depreciation of the bus @ 15% pa. Seating capacity ofthe bus 50 Perm the bus fare to be charged from each 1% of the total takings- Calculate 0% on total takings. The fares are to be indicated per Passenger tax is 20 passenger to earn a profit of 31 passenger for the journey (i) Delhi to ‘Chandigarh. (ji) Delhi to Agr Gi) Delhi to Jaipur Page 3 of 4 Scanned with CamScanner} When is the sales valuc at split-offmethor considered preferable for allocating joint costs {0 individual products and why? (b) Armstrong Foods produces two 39 (small rice gratis) and Pancito (large rice grains)-frofi common iuputs (rice, x, cheese, nd aa pices) and seils them to food Companies who Paani aot si prodiits tinder their owned brand names. A waste product referred to as STudg from the production on of Ricito and Pancito, and until now, Amstrong-tias_dumped the ee cal ‘at negligible cos followirig data were reportet oF the prodétion and sales of Ricito and Pancit in a local landfill. In June 2018, the 10 Particulars: i= Join Costs sis to rice and other inputs and p-ocessing to split $600,000 J a Particulars Ricito Pancito Beginning inventory (ons) 0 0 Production (tons) 25,000 50,000 Sales (tons) 25,000 50,000 Selling price per ton $10 $15 With Yhe rising popularity of meals-in-a-cup, A'mstrong’s Marketing Department urges that they should add bits of preprocessed vegetables to Ricito and Pancito, package them and sell them under the brand names Rilaf and Pilaf. Their a alysis yields the following monthly data for the all the products, Particulars _ Join Costs Rilaf Pilaf Join costs (cost of rice and other inputs and $ 600,00 | processing to split-off point) Separable costs of processing 25,000 tons of $120,000 | Ricito into 30,000 tons to Rilaf Scparable costs of processing 50,000 tons of $420,000 | Pancito to 60,000 tons of Pilaf Particulars Ricito Pancito Rilaf Pilaf ‘Beginning inventory (tons) 0 0 0 0 | Production (tons) 25,000 50,000 30,000 60,000 Transfer for further processing 25,000 50,000 (tons) Sales (tons) 30,000 60,000 Selling price per fon $10 S15 $18 $25 Required: Calculate Armstrong’s gross- margin percent: ge for Rilaf and Pilaf when join costs are allocated using: ——— a, Sales value at split-off method b. Physical-measure method Net realizable va Page 4 of 4 Scanned with CamScannerUniversity of Chittagong partment of Accounting ester BBA Final Examination 2020 Course: Operations Research Course Cade: 405 Subject: Accounting 7 Sem Full Marks 75 Timed Hours UN.B:, Answer any FIVE questions. The figures inthe margin indicate full marks. All pats of a question must be answered serially.] ~ 1. @) Define operations research, Describe the classifications of operations research. A (b) What are the scopes of operations research in Bangladesh. 3 (©) What are the characteristics of operations research approach? 4 (@) Deseribe the various techniques for solving the operations research. a 2. (a) Define competitive games, strategy and saddle point. 4 (b) Solve the following 3%3 game by arithmetic method. 5 Player B Br Bz Bs AL 1 I =I i s Player A | Az ef a.) 3 [As =1 2 eee (6) Solve the following 6*2 game by using waphical method. 6 Player B Bi oB Ai 6 Ties Aa 4 2 3 3 Player A = = As a5 aie | AG al cr | Pay Write the solution procedure of VAM applied to solve 1* stage solution in transportation 3 ee problen able to design four projects, Engineer 2 is not competent to 6 Four engineers are avail 9 ja the project B. Given the following time estimates needed by each engineer to WY design a given project, find hoe the engineers should be assigned to projects so as to ‘ minimize the total design time of the projects. Page 1 of 4 Scanned with CamScannerProjects A B c D 1 12 _10 10 Be 2 14 Not suitable 15, Me Engineer | 5 0 [16 a) 4 8 10 9 2 (©) Consider the following minimum cost transportation problem. . sS Destination Supply 3 Los Angeles | San Francisco | San Diego San Jose |_| 4 10 6 100 Origin [Las Vegas a 162 6 300 Tueson 4 18 10 300 Demand | 200 | 300 200 700 ') Use the minimum cost method to Tind an inital feasible solution. —#Use MODI method to find an optimal solution, 4.(@) Define critical path, activities, activities, (b) Doug Casey is in chau training program for immediate predecessors, project network, critical "ge of planning and coordinating next spring's sales management ‘is company. Dow listed the following activity information for this project. Activity Immediate | Optimistic | Most ,] Pessimistic es + Predecesor | a | probabid ey |_A_ [Plan Topic > 1S 20 254 _B [Obtain speakers a 20 25 60 C List meeting : 10 20 30 locations D [Select location c 15 20 25 E | Finalize speaker |B, 5 0ST 10 1s travel plans F [Make final 10 20 30 check with speakers G | Prepare and mail BD EX) 35 70 brochure H | Take G 30 40 50 reservations 1 [Handle fast Ril 15 20 25 minute details 2 Page 2 of 4 Am intel x % Scanned with CamScanner ”Required: ) Draw a project network, i D Daw activity schedule AWD hat arc ‘iti i are the critical activities, and ie and what is the expected project completion iv) Which activi ie ul os e delayed without delaying the project completion time? i bows in probability of completing the project on ime, how far led meeting sate should he begin working on the Oa (©) What is dynamic i os programming? What is the principle of optimality in dynamic 4 5.(@) TI i (a) ie cae payoff table shows for a decision problem with two states of nature and 10 three decision altematives. The payoffs are profit in million taka. Decision altemative a ee ; Strong demands, | Weak demand s2 Small complex, di 3 Medium complex, d2 14 Large complex, ds 20 Required: Seer. \ i) Use graphical sensitivity analysis to determine the range of probabilities of state of nature si for which each of the decision alternatives has the largest expected value. ii) Suppose P(s1) = Qf Plsa) = 0:2. ‘What is the best decision uising the expected value approach? A alternative di and alternative Perform sensitivity analysis on the payots fOr decisiot do. Assume the probabilities are as given in part (ind find the cng. of pavodls under states of nature st and s7 that will keep the solution found in part (ii) optimal. Js the solution more Sensitive to the payoff under state of nature s1 oF $2? (b) ‘The following payoff ble wes presented in State of nature a eal 00 100 75 ‘The probability for the state ofnature are, P(s1) = 0.65, P(sa) = 15, P(s:) = 0.20 ‘What is the optimal decision strats8y itperfect information were available? ‘What isthe expected value for the decision strategy developed in part (i)? iit) Using the expected value approcch, ‘what is the recommended decision without perfect information? ‘What is the expected value? Page 3 of 4 Scanned with CamScanner6. (a) Consider the following lincar programa ing problem. Max z= 5x1 + 6x2 + 4x3 st. 3x1+ 4xa+ 2x3 $120 xi + 2x24 x35 50 xa + 2x2 + 3x3 2 30 and x1, x2, x3 2 0 Required : i) Solve the linear programming probl :m ii) From the optimal simplex tableau, ¢ loulate the range of optimality for e1, c2 ii) From the optimal simplex tableau, calculate the range of feasibility for by and be (b) What is the procedure to convert a prim! problem into dual problem? 3 ing line problem? Whai are the components in a waiting line system? 7. (a) What is the wai (b) What are the assumptions underlying ec mmon queuing models? 2 (0) Describe the important operating charac 'eristics of a queuing system. (d) Automobiles arrive at the drive-through window at a post office at the rate of 4 every 10 minutes. The average service time is 2 1 tinutes. The Poisson distribution is appropriate for the artival rate and service times are exponentially distributed. i) What is the average time a car is in the system? ii) What is the average number of cars in the system? iii) What is the average times cars sper d waiting to receive service? nye iv) What is the average number of cars in line behind the customer receiving service? v) Whatis the probability that there a: no cars in the window? vi) What percentage ofthe time is the vostal clerk busy? vii) What is the probability that there ai 2 exactly two cars in the system? ty) enw . Page 4 of 4 Scanned with CamScanner