Cost and Management Accounting

Assignment Questions
Q.1) From the following particulars prepare cost sheet for the year ended 31 st
March,2020

Particulars Rs.
Direct Materials 3,50,000
Opening Stock of Finished goods (1,000) 85,250
Closing Stock of Finished goods (2,000) ?
Depreciation on Plant and Machinery 95,000
Trade fair expenses 85,500
Direct Expenses 1,60,000
General Manager’s Salary 3,90,000
Dividend Paid 8,000
Direct Wages 2,50,000
Advertisement 1,85,250
Depreciation on Office Computers 1,70,000
Depreciation on Delivery Van 1,14,000
Office Maintenance Charges 1,80,000
Factory Rent 1,50,000
Sales (19,000 Units) 22,80,000
Drawings and Designing Expenses 55,000
Closing Stock of Finished goods to be valued at Cost of Production.

Q.2) SKILL Manufacturing Company gives you the following particulars for the year
2019.Production and Sales during the year was 10,000 units.

Particulars Rs. Particulars Rs.

Materials 5,00,000 Factory Overhead :
Direct Wages 3,00,000 Fixed 2,00,000
Administrative
2,00,000 Variable 4,00,000
Overheads(Fixed)
Sales 24,00,000 Selling &Distribution Overheads :
Profit 5,00,000 Fixed 1,20,000
Variable 1,80,000
The Company has worked to its maximum capacity of 20,000 units during 2018.The
Management has decided to increase production capacity to 30,000 units for the year 2019
and it is estimated that:

a) There will be all around rise in all variable expenditures by 10 %.

b) There will be increase of 20% in all fixed overheads.
c) There will be no need to change the selling price for the year 2019.
Prepare a statement showing total as well as unit cost and profit for 2018.Also prepare a
statement showing estimated profit 2019 taking into consideration the changes in 2019.

Q.3) Y Ltd. manufactures a chemical product which passes through three processes.
The cost records show the following particulars for the year ended 30 th June 2020.
Input to Process I- 20,000 Units @Rs.28 per unit.

Process I Process II Process III

Material Consumed 48,620 1,08,259 1,03,345
Direct Labour 32,865 84,553 77,180
Expenses 2,515 10,588 16,275
Normal loss 20% 15% 10%
Scrap Value per unit 1 2 3
Actual Output (Units) 18,000 16,000 15,000
Prepare Process Accounts, Abnormal Gain/Loss Account. Also show process cost per unit for
each process.

Q.4) The Reliable Battery Co., furnishes you the following income information
Year 2015.
First half year (Rs.) Second half year(Rs.)
Sales 8,10,000 10,26,000
Profit earned 21,600 64,800

From the above, you are asked to compute the following assuming that the fixed cost remains
the same in both the periods:
1. Profit/Volume Ratio.
2. Fixed Cost.
3. Amount of profit or loss when sales are Rs. 6,48,000.
4. Amount of sales required to earn a profit of Rs. 1,08,000.

Q.5) The Following details relating to a Product are made available to you.

Standard Cost Per Unit : Actual Cost :

Material 50Kg @Rs.40 per kg. Material 490Kg @Rs.42 Per Kg
Labour 400 hours @Rs.1 per hour. Labour 3,960 hours @Rs.1.10 per hour
Actual Production was 10 units. Calculate all possible Material and Labour Variances.

Q.6) Short Notes.

1) Process Costing and their Advantages.

2) Marginal Costing
3) Material Variances