FINANCE & COST ACCOUNTING

ITM-XMBA

Finance & Cost Accounting

Contents
Problem solving Costing Reading Annual Reports of a Company

Finance & Cost Accounting

Material Costing
A manufacturer of Surat purchased 3 chemicals A, B & C from Mumbai. The invoice gave the following information:
Chemical A 3000 kgs @ Rs 4.20 per kg Rs 12,600 Chemical B 5000 kgs @ Rs 3.80 per kg 19,000 Chemical C 2000 kgs @ RS 4.75 per kg 9,500 Sales Tax 2,055 Railway Freight _ 1,000_ Total Cost Rs.44,155 A shortage of 200 kgs in chemical A, 280 kgs in chemical B & of 100 kgs in chemical C was noticed due to breakage. At Surat he paid octroi @ Rs.0.10 per kg. He also paid cartage Rs.22 for chemical A, Rs 63 for chemical B & Rs.32 for chemical C. Calculate the stock rate per kg for each assuming a provision of 5% towards further deterioration.
Finance & Cost Accounting 3

The information of Sunrise Ind. Ltd. for fortnight of April is given: Stock on Apr 1 100 units @ Rs.5 per unit 300 units @ Rs 6 per unit 500 units @ Rs 7 per unit 600 units @ Rs 8 per unit 250 units 400 units 500 units

Purchase Apr 5 Apr 8 Apr 12

Issues: Apr 6 Apr 10 Apr 14

Calculate using FIFO & LIFO method (1) value of material consumed (2) Value of stock on Apr 15 (3) Explain why the figures of (1) & (2) are different

Finance & Cost Accounting

 G Ltd. produces a product which has a monthly demand of 4000 units. The product requires a component X which is purchased at Rs. 20. For every finished product, one unit of component X is required.
The ordering cost is Rs.120 per order and the holding cost is 10% per annum. Calculate: (1) Economic Order Quantity (EOQ) (2) If the minimum lot size to be supplied is 4000 units, what is the extra cost, the company has to incur?

Finance & Cost Accounting

Labour Costing
Labour Turnover

Note : Recruitment done for expansion is to be ignored.

Finance & Cost Accounting

 The information relating to workforce of Premier Industries Ltd. during the last month is listed below:
- No. of workers in the beginning & end of the month 19,000 and 21,000 respectively. - During the month workers dischared 600, left on their own 200 - During the month workers engaged 2000 out of which workers appointed against vacancies due to separation 400 & on account of expansion 1600 Compute the monthly labour turnover rate & equivalent annual rates under the 3 methods.

Finance & Cost Accounting

 Supreme Industries Ltd. Recently adopted an incentive plan. Factory workers are paid at Rs. 3.75 per unit with a guaranteed minimum wages of Rs.1000 per week.
Following is the report on employees productivity for the week ending March. All employees had worked the full 40 hour week. Workers A B C D E F Units produced 240 275 250 280 220 300

Compute each workers gross wages per week. What amount should be charged to work-in-process & factory overheads.
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CLASS TEST ALL THE BEST 45 mins .i.e 11.30 am

Finance & Cost Accounting

THANK YOU

Finance & Cost Accounting

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