MANAGEMENT

ACCOUNTING
PROJECT
PROF. SHUBHASIS PAL

SY BBA B
PREPARED BY:
SAACHI KAROGAL (U004)
SHALINI GANESH (U070)
KIMAYA ASHTIKAR (V003)
SHOBHIT BAJIYA (V006)
NANDINI RATHI (V010)
HANISHA KOTWANI (V020)
 ABOUT
ZEPTONICS
"POWERING MOBILE
INNOVATION, ONE
COMPONENT AT A TIME."

Welcome to Zeptonics Private Limited, a pioneering force in mobile phone component

manufacturing. Specializing in batteries, modems, and a myriad of other essential
components, Zeptonics leverages advanced technology and premium materials like
Lithium and Industry Grade Plastic to ensure unparalleled quality and performance.

With our headquarters and flagship manufacturing plant nestled in Nagpur, Maharashtra,
Zeptonics boasts a robust presence across key cities in India. Our state-of-the-art facilities,
manned by skilled professionals, enable us to uphold our commitment to excellence and
innovation.

At Zeptonics, our mission is clear: to redefine industry standards through innovation and
precision engineering. With a vision to become the preferred global partner for mobile
device manufacturers, we strive relentlessly to exceed expectations and deliver superior
products.

Driven by a passion for excellence, Zeptonics stands as a beacon of reliability and quality in
the mobile technology landscape. Our comprehensive range of components ensures
seamless integration and optimal performance for end-users.

Join us on our journey as we shape the future of mobile technology, one component at a
time. Experience the difference with Zeptonics, where innovation meets reliability to
power the next generation of mobile devices.
 BUDGETING
Zeptonics Private Limited is in the business of manufacturing mobile phone components. At their Nagpur
factory they manufacture 2 essential elements of a mobile phone: the battery and the modem. You are
required to prepare the Sales, Production, Material Purchase, Direct Labour Cost, Flexible and Cash
Budget for the month of February with the information provided below:

The Direct Labor Hours for Battery & Modem is 7 hours & 4 hours respectively.
The Sales forecast is as follows:

The Opening Stock and Closing Stock is as follows:

Standard Cost data is as follows:

Cash in Hand on January 1st is ₹50,00,000.

Cash Inflows and Outflow details are as follows:

SHOBHIT BAJIYA (V006)

SALES & PRODUCTION

BUDGET
KIMAYA ASHTIKAR (V003)

MATERIAL PURCHASE &

DIRECT LABOR COST
BUDGET
SAACHI KAROGAL (U004)

FLEXIBLE BUDGET
SHALINI GANESH (U070)

CASH BUDGET
 ABOUT
NANSHA
"ENGINEERING
EXCELLENCE, CRAFTING
TOMORROW."

At Nansha Ltd., we are dedicated to engineering excellence and innovation in the

manufacturing of Machinery Equipment. With a commitment to quality and precision, we
specialize in the production of two essential products: the Band Saw and the Agitator.

Our Band Saw line represents cutting-edge technology designed to meet the diverse
needs of industries ranging from woodworking to metal fabrication. Engineered for
efficiency and reliability, our Band Saws boast advanced features such as variable speed
control, automatic blade tensioning, and precise cutting capabilities. Whether you're
crafting intricate woodwork or processing heavy-duty metal materials, our Band Saws
deliver unparalleled performance and precision.

Nansha Ltd. is proud to offer a comprehensive range of Agitators tailored to the unique
requirements of various industrial processes. From mixing and blending to homogenizing
and emulsifying, our Agitators are engineered to deliver consistent and efficient
performance in demanding applications. Equipped with state-of-the-art technology and
customizable options, our Agitators are trusted by industries worldwide to optimize
production processes and enhance product quality.
 ACTIVITY BASED
COSTING
Nansha Limited Manufactures two types of Machinery Equipment Band Saw and Agitator and
applies/absorbs overheads on the basis of Direct-Labor Hours. The budgeted overheads and Direct-Labor
hours for the month of December are ₹12,42,500 and 20,000 hours respectively. The information about
Company's products is as follows:

Nansha Ltd.'s overheads of ₹12,42,500 can be identified with three major activities: Order Processing (₹
2,10,000), Machine Processing (₹8,75,000), and Product Inspection (₹1,57,500). These activities are
driven by number of orders processed, machine hours worked, and inspection hours, respectively. The data
relevant to these activities is as follows:
 NANDINI RATHI (V010)
HANISHA KOTWANI (V020)

Required:

(i)Assuming use of Direct-Labor hours to absorb/apply overheads to production, COMPUTE the unit
manufacturing cost of the equipment Band Saw and Agitator, if the budgeted manufacturing volume is
attained.

(ii)Assuming use of activity-based costing, COMPUTE the unit and total manufacturing costs of the
equipment Band Saw and Agitator, if the budgeted manufacturing volume is achieved.

SOLUTION:
THANK
YOU