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    Group B: - Cost Management Accounting

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    Siddharth Devnani
    The document discusses cost management accounting for a company that produces 204,000 boxes per month. Material costs are Rs. 1499400 per month and labor costs are Rs. 980000 per month for 140 workers. It also provides an elements of cost sheet showing various expenses like wages, power, taxes, and maintenance. The company undertakes both job costing for special orders and batch costing for regular designs. The break even point is calculated as 67500 boxes per month based on fixed costs of Rs. 3378000, variable cost of Rs. 42 per box, and selling price of Rs. 1511 per box.

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    Group B: - Cost Management Accounting

    Uploaded by

    Siddharth Devnani
    6 views4 pages
    The document discusses cost management accounting for a company that produces 204,000 boxes per month. Material costs are Rs. 1499400 per month and labor costs are Rs. 980000 per month for 140 workers. It also provides an elements of cost sheet showing various expenses like wages, power, taxes, and maintenance. The company undertakes both job costing for special orders and batch costing for regular designs. The break even point is calculated as 67500 boxes per month based on fixed costs of Rs. 3378000, variable cost of Rs. 42 per box, and selling price of Rs. 1511 per box.

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    Original Title

    CMA

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    The document discusses cost management accounting for a company that produces 204,000 boxes per month. Material costs are Rs. 1499400 per month and labor costs are Rs. 980000 per month for 140 workers. It also provides an elements of cost sheet showing various expenses like wages, power, taxes, and maintenance. The company undertakes both job costing for special orders and batch costing for regular designs. The break even point is calculated as 67500 boxes per month based on fixed costs of Rs. 3378000, variable cost of Rs. 42 per box, and selling price of Rs. 1511 per box.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    6 views4 pages

    Group B: - Cost Management Accounting

    Uploaded by

    Siddharth Devnani
    The document discusses cost management accounting for a company that produces 204,000 boxes per month. Material costs are Rs. 1499400 per month and labor costs are Rs. 980000 per month for 140 workers. It also provides an elements of cost sheet showing various expenses like wages, power, taxes, and maintenance. The company undertakes both job costing for special orders and batch costing for regular designs. The break even point is calculated as 67500 boxes per month based on fixed costs of Rs. 3378000, variable cost of Rs. 42 per box, and selling price of Rs. 1511 per box.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 4

    Group B

    • Cost Management Accounting


    Material costing Labour costing

    Firm produces: 204000 box per 140 workers x 7000 wages per
    month.
    month
    Material cost per Box = = 980000
    7.35 ( approx)
    = 7.35 x 204000 980000/204000
    = 1499400.Rs per month. =4.80 per box
    Elements of cost sheet in companay
    PARTICULARS Amount Particular Amount
    Material cost per month Taxes
    Wages per month Gas expense per month
    power bill per month Packing expense per
    month
    Insurance per month Maintenance per month
    shelter, kitchen and Other expenses per
    lunch room for worker month
    per month
    3 supervisiors salary Water per month
    per month
    Depreciation of TOTAL expenses per
    machinery per year month
    Sundry office expenses
    Audit fees and legal
    charges per month
    HR manager salary
    JOB AND BATCH PRODUCTION & COSTING

    • CROMA CERAMIC undertakes both JOB and


    BATCH production:
    • Job costing
    – For special Orders

    • Batch Costing
    – For regular designs
    BEP(BREAK EVEN POINT)-LEVEL

    BEP UNITS

    Fixed Cost 3378000

    Varaible Cost 42 per box

    Selling Price 1511

    Contribution =1511-42
    =1469
    BEP =(3378000/1469)*30
    =67500 box per month.

    HENCE, this company should produce at least 67500 box per month to reach
    at BEP LEVEL

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