ARTHANVESH- DEPARTMENT OF COMMERCE AND MANAGEMET: Cost & Management Accounting IV- VI SEM B.COM

^{Credit-Based VI Semester B.Com. Degree
Examination, April/ May 2019}

^{(2016-17 Batch Onwards)}

^{COST
AND MANAGEMENT ACCOUNTING- VI}

^SECTION-A

^{Answer any four
questions
(4X6=24)}

¹⁾^{What is a cash
flow statement? Give classification of cash flows as per Accounting Standard- 3
(Revised)}

²⁾^{Define Marginal
costing. How would you treat variable cost and fixed cost in marginal costing?}

³⁾^{Explain the
objectives of Budgetary Control.}

⁴⁾^{Calculate funds from
operation from the following Profit and Loss A/C of Akash and Co.}

^{Profit
and loss account}

^Particulars	^₹	^Particulars	^₹
^{To salaries}	^20,000	^{By gross profit}	^4,00,000
^{To rent}	^6,000	^{By profit on sale of machine}	^10,000
^{To commission}	^4,000	^{By refund tax}	^6,000
^{To discount allowed}	^2,000	^{By dividends received}	^4,000
^{To provision for depreciation}	^28,000
^{To transfer to reserve}	^40,000
^{To provision for taxation}	^20,000
^{To loss on sale of investments}	^10,000
^{To discount on issue of debentures}	^4,000
^{To preliminary expenses}	^6,000
^{To selling expenses}	^40,000
^{To net profit}	^2,40,000
	^4,20,000		^4,20,000

⁵⁾^{X company
manufactures and sells 60,000 units of a product at a variable cost of ₹42 each. The fixed costs are ₹
1,80,000. The selling price is fixed to make a profit of 25% on sales. You are
required to calculate.}

^a)^Contribution

^b)^{P/V ratio}

^c)^{Break-even point
units and}

^d)^{Break-even-sales}

⁶⁾^{The standard
cost card reveals the following information}

^{Standard
Labour rate- ₹ 50 per hour}

^{Standard
hours required per unit- 10 hours}

^{Actual
data area given below:}

^{Units
produced- 500}

^{Actual
Hours worked- 6000}

^{Actual
labour cost- ₹ 2,40,000}

^{Calculate-
a) Labour cost variance}

^{b) Labour rate variance}

^{c) Labour efficiency
varianc}

^{SECTION
– B}

^{Answer
any four questions
(4x12=48)}

⁷⁾^{Discuss the
advantages and limitations of standard costing.}

⁸⁾^{Explain the
concept of Break-even-point and Cost-volume-profit (CVP) relationship.}

⁹⁾^{Anup Ltd. made a
profit of ₹ 1,85,000 after considering the following}

^a)^{Depreciation on
fixed assets ₹ 5,000}

^b)^{Profit on sale
of building ₹ 10,000}

^c)^{Loss on sale of
machinery ₹ 4,000}

^d)^{Taxation
provision ₹ 30,000}

^e)^{Transfer to
reserve ₹ 10,000}

^f)^{Amortization of
fictitious assets ₹ 2,000}

^{The
other details of the year as under}

^Details	^{As on 31/3/2016}	^{As on 31/3/2017}
^Debtors	^18,000	^17,000
^Creditors	^12,000	^9,000
^{Bills receivable}	^7,000	^4,000
^{Bills payable}	^3,000	^4,000
^{Bank A/C}	^1,000	^1,500

^{Calculate
the operating cash profit and cash flow from operations.}

¹⁰⁾^{Prepare
a production budget for each month and a summarised Production cost budget for
the six months period ending 30th June 2018, from the following data relating
to product “Agni”.}

^a)^{The units to be
sold for different months are as follows}

^2018-

^January

^February

^March

^April

^May

^June

^July

²²⁰⁰

³⁴⁰⁰

³⁸⁰⁰

⁵⁰⁰⁰

⁴⁶⁰⁰

⁴⁰⁰⁰

^b)^{There will be no
work in progress at the end of any month.}

^c)^{Finished units
equal to half the sales for the next month will be in stock at the end of each
month (including December 2017).}

^d)^{Budgeted
production and production cost for the year ending June 2018 are as follows:}

^{Production
(units) 22,000}

^{Direct
material per unit- ₹ 10}

^{Direct
wages per unit- ₹ 4}

^{Total
factory overhead apportioned to product- ₹ 88,000}

¹¹⁾^{From
the following summarized balance sheets of a company as on 31st March 2017 and
2018. Prepare a schedule of changes in working capital.}

^{Balance
sheets as on 31st December}

^Liabilities	^{2014 (₹)}	^2015(₹)	^Assets	^{2014 (₹)}	^{2015 (₹)}
^{Share capital}	^80,000	^1,00,000	^{Land & building}	^80,000	^76,000
^{General reserve}	^20,000	^24,000	^{Plant& machinery}	^60,000	^67,600
^{P&L A/C}	^12,200	^12,240	^Stock	^40,000	^29,600
^{Bank loan (short term)}	^28,000	^-	^Debtors	^32,000	^25,680
^Creditors	^60,000	^54,080	^Cash	²⁰⁰	²⁴⁰
^{Provision for tax (CL)}	^12,000	^14,000	^Bank	^-	³²⁰⁰
			^Goodwill	^-	^2,000
	^2,12,200	^2,04,320		^2,12,200	^2,04,320

¹²⁾^{Calculate
Labour cost variance, Labour rate variance, Labour efficiency variance for
departments A & B}

^{Dept A}

^{Dept B}

^{Actual
direct wages}

^{Standard
hours produced}

^{Standard
rate per hour}

^{Actual
hours worked}

^{₹
20,000}

^80,000

^{₹
30}

⁸²⁰

^{₹
18000}

⁶⁰⁰

³⁵

⁵⁸⁰⁰

^SECTION-
C

^{Answer
the two question
(2x24= 48)}

¹³⁾^{The
following information is available from the books of Vivek Ltd., which uses
three types of materials for production.}

	^STANDARD			^ACTUAL
^Particulars	^Qty	^Price	^Total	^Qty	^Price	^Total
^X ^Y ^Z	^5,000	^6.00	^30,000	^4,000	^6.00	^24,000
	^4,000	^3.75	^15,000	^5,000	^3.60	^18,000
	^3,000	^3.00	^9,000	^4,000	^2.80	^11,200
^Total	^12,000		^54,000	^13,000		^53,200
^{Less- normal loss (10%)}	^1,200			^2,200
^Total	^10,800		^54,000	^10,800		^53,200

^{Calculate
material cost variance, price variance, usage variance, mix variance and yield
variance.}

¹⁴⁾^{From
the following particulars prepare (a) Funds flow statement (b) A statement of
changes in working capital.}

^Liabilities	^{31/12/2017 (₹)}	^{31/12/2018 (₹)}
^{Equity capital} ^{Preference Capital} ^Debentures ^Reserves ^{Provision for doubtful debts} ^{Current liabilities}	^3,00,000 ^2,00,000 ^1,00,000 ^1,10,000 ^10,000 ^70,000	^3,50,000 ^1,00,000 ^2,00,000 ^2,70,000 ^15,000 ^1,45,000
	^7,90,000	^10,80,000
^Assets	^{31/12/2017 (₹)}	^{31/12/2018 (₹)}
^{Fixed assets (net)} ^Investments ^{Current assets} ^{Discount on debentures}	^5,10,000 ^30,000 ^2,40,000 ^10,000	^6,20,000 ^80,000 ^3,75,000 ^5,000
	^7,90,000	^10,80,000

^{Additional information}

^a)^{A machine
costing ₹ 70,000 (Book Value ₹ 40,000) was sold for ₹ 25,000}

^b)^{Preference
shares were redeemed at a premium of 5%}

^c)^{Dividend at 15%
was paid on equity shares for the year 2017}

^{Provision
for depreciation was ₹ 1,50,000 on 31st December 2017 was written up to its
cost ₹ 1,00,000 for preparing the profit and loss account for 2018.}

¹⁵⁾^{Following
are the summarised balance sheets of Supreme Ltd. As on 31st March 2017 and
2018.}

^Liabilities	^{31/03/2017 (₹)}	^{31/03/2018 (₹)}
^{Share capital} ^Reserves ^{Profit and loss account} ^{Mortgage loan} ^{Taxation provision} ^Creditors	^4,50,000 ^3,00,000 ^56,000 ^- ^75,000 ^1,68,000	^4,50,000 ^3,10,000 ^68,000 ^2,70,000 ^10,000 ^1,34,000
	^10,49,000	^12,42,000
^Assets	^{31/03/2017 (₹)}	^{31/03/2018 (₹)}
^{Fixed assets} ^{Long term investments} ^Stock ^Debtors ^{Cash at bank}	^4,00,000 ^50,000 ^2,40,000 ^2,10,000 ^1,49,000	^3,20,000 ^60,000 ^2,10,000 ^4,55,000 ^1,97,000
	^10,49,000	^12,42,000

^{Additional
information}

^a)^{Investments
costing ₹ 80,000 were sold during the year 2017-18 for ₹ 8,500}

^b)^{Provision for
tax made during the year was ₹ 9,000}

^c)^{During the year
part of the fixed assets costing ₹ 10,000 was sold for 12,000. The profit was
included in profit and loss account.}

^d)^{Dividend paid
during the year amounted to ₹ 40,000}

¹⁶⁾^{ABC
Company furnished the following information of its cost and profit for the year
2017 and 2018}

^Year	^Cost	^Profit
²⁰¹⁷	^12,00,000	^2,00,000
²⁰¹⁸	^15,00,000	^3,00,000

^{Compute the
following}

^a)^{P/V ratio}

^b)^{Fixed expenses}

^c)^{Variable
expenses for 2017 and 2018}

^d)^{Margin of safety
2017 and 2018}

^e)^{Most likely
profit when sales are ₹ 20,00,000}

^f)^{Break-even point}

^g)^{Estimated sales
when the desired profit is ₹ 2,50,000}

^h)^{Sales for a
variable cost of ₹ 8,28,000 when P/V ratio is increased to 40%.}

Credit Based VI Semester B.Com. Degree Examination, April/ May 2018

(2016-17 Batch Onwards)

COST AND MANAGEMENT ACCOUNTING- VI

SECTION-A

Answer any four questions (4X6=24)

1) Define marginal costing. What are its advantages?

2) Write a note on cash flow statement.

3) Calculate funds from operation from the following Profit and Loss A/C o Ramdev Ltd.

Profit and loss account

Particulars	₹	Particulars	₹
To salaries	10,000	By gross profit	2,00,000
To rent	3,000	By profit on sale of machine	5,000
To commission	2,000	By refund tax	3,000
To discount	1,000	By dividends received	2,000
To RBD	10,000
To transfer to reserve	10,000
To depreciation	14,000
To provision for tax	10,000
To loss on sale of investments	5,000
To discount on issue of debentures	2,000
To net profit	1,43,000
	2,10,000		2,10,000

4) From the following particulars, find out the selling price per unit if BEP is to be brought down to 9,000 units

Variable cost per unit- ₹ 75

Fixed expenses- ₹ 2,70,000

Selling price per unit- ₹ 100

5) Write a note on sales budget and production budget.

6) From the following information, find out labour rate variance, labour cost variance, labour efficiency variance.

Standard

Output 1,000 units

Rate of payment ₹ 6 per unit

Time taken 50 hours

Actual

Output 1200 units

Wages paid ₹ 8,000

Hours worked 40 hours

SECTION B

Answer any four questions (4x12=48)

7) What are the advantages and limitations of standard costing?

8) What is cash flow statement? Explain the sources and uses of cash with reference to operating, financing and investing activities.

9) From the following summaries of the balance sheet of a company as on 31^st March 2016 and 2017

Balance sheets as on 31^st December

Liabilities	2014 (₹)	2015(₹)	Assets	2014 (₹)	2015 (₹)
Share capital	1,80,000	180,000	Machinery	72,000	80,000
Profit & loss A/c	16,000	23,000	Building	1,00,000	1,00,000
Reserves	60,000	50,000	Stock	92,000	1,06,000
Depreciation fund	40,000	44,000	Prepaid expenses	1,000	2,000
5% debentures	90,000	70,000	Short term investments	1,10,000	84,000
Outstanding expenses	13,000	22,000	Debtors	77,000	73,000
Sundry creditors	1,03,000	96,000	Cash at bank	50,000	40,000
	5,02,000	4,85,000		5,02,000	4,85,000

You are required to prepare a statement showing changes in working capital

10) From the following particulars compute

a) Cost variance

b) Usage variance

c) Price variance

d) Yield variance

Standard- Materials for 70 Kg of finished product-100 Kg, price of materials ₹ 1 per Kg.

Actual- Output-2,10,000 Kg; materials used 2,80,000 Kg.

Cost of materials ₹ 2,52,000

11) The sales turnover and profits of Major Ltd., during the two years 2016 and 2017 were as follows

Year	Sales (₹)	Profit (₹)
2016	4,50,000	60,000
2017	5,10,000	75,000

You are required to calculate:

a) P/V ratio

b) Fixed cost

c) Break even point

d) Margin of safety 2016

e) Sales required to earn a profit of ₹ 1,20,000

f) Variable cost 2017

12) Ranjan Ltd. Had a profit of ₹ 17,50,000 for the year ended 31/03/2017 after considering the following

Depreciation on building ₹ 1,30,000

Depreciation on plant and machinery ₹ 40,000

Goodwill written off ₹ 25,000

Loss on sale of machinery ₹ 9000

Following was the position of current assets and current liabilities of thge company as on 31/03/2016 and 31/03/2017

2016

2017

Stock

Bills receivable

Cash

Creditors

Outstanding salary

Bills payable

70,000

67,000

60,000

68,000

7,000

43,000

87,000

58,000

75,000

77,000

4,000

29,000

Calculate the cash flow from operating activities

SECTION C

Answer any 2 questions (2X24=48)

13) The following are the summarised balance sheet of Supreme Ltd. As on 31/3/16 and 31/3/2017

Assets	₹	₹
Fixed assets Investments Stock Debtors Bank	4,00,000 50,000 2,40,000 2,10,000 1,49,000	3,20,000 60,000 2,10,000 4,55,000 1,97,000
	10,49,000	12,42,000
Liabilities	₹	₹
Share capital Reserves P/L A/C Creditors Taxation provision Mortgage loan	4,50,000 3,00,000 56,000 1,68,000 75,000 -	4,50,000 3,10,000 68,000 1,34,000 10,000 2,70,000
	10,49,000	12,42,000

Additional information

a) Investment costing ₹ 8,000 were sold during the year for ₹ 8,500

b) Provision for tax made during the year was ₹ 9,000

c) During the year part of the fixed assets costing ₹ 10,000 sold for ₹ 12,000. The profit was included in the Profit/ Loss A/C

d) Dividend paid during the year amounted to ₹ 40,000

You are required to prepare a statement of source and uses of cash

14) Moon Ltd., manufactures 2 products X and Y, and estimated number of units expected to be sold in the first seven months of 2017 are given below

Product

Jan

Feb

March

April

May

June

July

500

1,400

600

1,400

800

1,200

1,000

1,200

800

1,200

800

1,000

900

Finished units equal to half the anticipated sales for the next month will be in stock at the end of each month including Dec 2016

Details

Product X

Product Y

Production (units)

Direct materials (per unit)

Direct wages (per unit)

Total manufacturing charges (based on units produced)

11,000

₹ 12

₹ 5

₹ 33,000

12,000

₹ 19

₹ 9

₹ 48,000

Prepare:

a) Production budget showing the number of units to be manufactured each month and

i) A production cost budget for 6 months ending on 30/6/2017

15) The following is the balance sheet of Sharan Ltd.

Liabilities	2016	2017
Equity share capital Capital redemption reserve 10% preference share capital Reserve fund Share premium P/L A/C 12% Debentures Creditors	3,00,000 - 2,00,000 2,00,000 30,000 1,20,000 2,00,000 8,000	4,00,000 1,00,000 - 1,20,000 30,000 1,80,000 3,00,000 1,40,000
	11,30,000	12,70,000
Assets	2016	2017
Building Machinery Furniture Investment Stock Debtors Cash at bank	2,50,000 3,00,000 20,000 1,00,000 3,00,000 1,40,000 20,000	30,000 3,20,000 18,000 1,50,000 2,50,000 2,00,000 32,000
	11,30,000	12,70,000

The following transactions took place during the year 2017

a) Preference shares were redeemed at 10% premium

b) ₹ 20,000 were transferred to reserve fund from Profit and Loss A/c

c) Investments (book value ₹ 40,000) were sold for ₹ 70,000

d) Depreciation provided on building, machinery and furniture were ₹ 20,000, ₹ 30,000, ₹ 2,000 respectively.

e) Dividends paid ₹ 50,000 and income tax paid ₹ 45,000

Prepare fund flow statement and a statement showing changes in working capital along with relevant ledger accounts.

16) The standard labour mix for producing 100 units of a product is

4 skilled men at ₹ 3 per hour for 20 hrs

6 unskilled men at ₹ 2 per hour for 20 hrs

But due to shortage of skilled men more unskilled men were employed to produce 100 units. Actual hours paid for were

2 skilled men at ₹ 4 per hour for 25 hrs

10 unskilled men at ₹ 2.5 per hour for 25 hrs

Compute

a) Labour cost variance

b) Labour rate variance

c) Labour efficiency variance

d) Labour yield variance

e) Labour mix variance

Credit-Based VI Semester B.Com. Degree Examination, April/ May 2017

(2016-17 Batch Onwards)

COST AND MANAGEMENT ACCOUNTING- VI

SECTION-A

Answer any four questions (4X6=24)

1) Write any six differences between cash flow statement and funds flow statement.

2) What are the objectives of budgetary control?

3) Define ‘Standard cost’ and ‘Standard costing’.

4) State with reasons whether the following transactions result in flow of funds or not:

a) Rent outstanding

b) Salary paid

c) Issue of preferential shares for cash

d) Purchased building and payment made by issue of shares

e) Depreciation on plant

f) Profit transferred to general reserve

5) The Gabrial Ltd. has budgeted sales for 50,000 units of its product for the year 2015. Expected unit costs based on past experience should be:

Direct materials- ₹ 3

Direct labour- ₹ 2

Manufacturing overhead- ₹ 1.50

The company begins the year with 20,000 units (finished goods) in hand but the ending inventory (finished goods) at 5,000 units.

Compute production cost budget to find cost of production for 2015.

6) Calculate

a) Labour cost variance

b) Labour price variance

c) Labour efficiency variance

	Standard	Actual
Output	1,000 units	1100 units
Time taken	50 hours	45 hours

Rate of payment – ₹ 5 per unit

Wages paid- ₹ 5,400

SECTION- B

Answer any four questions (4x12=48)

7) Write the advantages and limitations of standard costing.

8) The following are the summarized balance sheets of Kennametal Ltd. As on n31/12/2015 and 2016

Liabilities	₹	₹	Assets	₹	₹
Equity shares	30,000	40,000	Machinery	30,000	27,000
Profit & loss A/c	14,000	16,000	Furniture	8,000	10,000
Current liabilities			Currents assets
Creditors	16,000	18,000	Stock	18,000	16,000
Bills payable	12,000	8,500	Debtors	16,000	26,000
Provision for tax (CL)	8,000	11,500	Prepaid expenses	1,500	4,000
Provision for dividend (CL)	6,000	4,000	Bank	12,5000	15,000
	86,000	98,000		86,000	98,000

You are required to prepare a statement showing changes in the working capital.

9) The following information are supplied to you from the books of M/S Shubha Electronics. You are required to calculate cash flow from operations

a) Depreciation on fixed assets ₹ 5,000

b) Loss on sale of building ₹ 10,000

c) Profit on sale of building ₹ 10,000

d) Proposed dividend ₹ 3,000

e) Dividend received on investment ₹ 5,000

f) Amortization of fictitious asset ₹ 2,000

g) Salary paid ₹ 10,000

The other details of the year as under

Details

31/03/2015 (₹)

31/03/2016 (₹)

Debtors

Creditors
bills receivable

Bills payable

Outstanding expenses

Profit for the year

Cash at bank

18,000

12,000

8,000

6,000

3,000

2,000

15,000

8,000

10,000

8,000

2,000

1,56,000

3,000

10) Standard hours required for manufacturing one (1) unit of a product is 12 hours at ₹ 10 per hour. If the company incurred ₹ 1,43,000 for manufacturing 1000 units at ₹ 11 per hour.

Calculate

a) Labour cost variance

b) Labour rate variance

Labour efficiency variance and verify the same

11) A company produces and sells 50,000 units of a product at a variable coat of ₹ 88 each. Fixed cost is ₹ 2,50,000. The selling price is fixed to make a profit of 25% on sales. You are required to calculate:

a) Contribution

b) P/V ratio

c) Break-even points (in units)

d) Break-even points (in ₹)

e) Margin of safety

f) How many units have to be made and sold to make a profit of ₹ 12,00,000

12) The sales manager of a manufacturing company reports that next year he expects to sell 1,00,000 units of a certain product.

The production manager consults the store keeper and costs his figures as follows:

Each unit of the finished produce requires 4 units of raw material ‘X’ and 6 units of raw material ‘Y’.

The estimated opening balances at the commencement of the next year

Finished product-20,000 units

Raw material X-24,000 units

Raw material Y-32,000 units

The desirable closing balances at the end of next year

Finished product-28,000 units

Raw material X-26,000 units

Raw material Y-32,000 units

Draw up a production budget and raw materials purchases for the next year.

SECTION-C

Answer any two questions (2x24= 48)

13) The following information is taken from the books of a factory

	Standard mix			Actual mix
Material	Units (kgs)	Price (₹)	Amount (₹)	Units (kgs)	Price (₹)	Amount (₹)
X Y Z	450 350 300	20 15 10	9,000 5,250 3,000	480 380 340	19 16 12	9,120 6,080 4,080
	1,100		17,250	1,200		19,280
Standard loss (9.09%)	100			Actual loss 100
Output	1,000		17,250	1,100		19,280

Calculate

a) Material cost variance

b) Material price variance

c) Material usage variance

d) Material mix variance

e) Material yield variance

14) The following are summarised balance sheets and other information of Hero Ltd., as on 31/12/2015 and 2016. Prepare funds flow statement and statement of changes in working capital.

Liabilities

2015

2016

Assets

2015

2016

Share capital

General reserve

Profit & loss A/C

12% debentures

Current liabilities

Provision for taxation (CL)

Proposed dividend (NCL)

5,00,000

1,80,000

70,000

4,00,000

1,30,000

80,000

40,000

6,00,000

2,30,000

90,000

3,00,000

1,20,000

60,000

50,000

Fixed assets

Less-Accumulated depreciation

Investments (long term)

Current assets

Preliminary expenses

12,00,000

(2,60,000)

1,10,000

3,20,000

30,000

12,00,000

(3,10,000)

90,000

4,50,000

20,000

14,00,000

14,50,000

14,00,000

14,50,000

During the year the company:

1) Sold one machinery for ₹ 60,000 the cost of which was ₹ 1,00,000 nd the depreciation provided on it was ₹ 20,000

2) Provided ₹ 90,000 as current year depreciation

3) Redeemed the debentures of ₹ 100 at ₹ 105

4) Decided to write off a fixed assets (fully depreciated) costing ₹ 20,000, no scrap realised.

5) Decided to value opening stock at cost which was valued previously at cost less 10%. The opening stock according to book value was ₹ 54,000, the closing stock was correctly valued at cost.

6) Consider provision for taxation and proposed dividend as non current liabilities.

Show the workings clearly.

15) The following are summarised balance sheets and other information of Ananth Raj Ltd. As on 31^st December 2015 and 2016, prepare cash flow statement.

Liabilities

2015 (₹)

2016 (₹)

Assets

2015 (₹)

2016 (₹)

Share capital

General reserve

Profit and loss A/C

Long term loan

Accounts payable

Provision for taxation (NCL)

3,00,000

50,000

30,500

70,000

1,50,000

30,000

4,00,000

60,000

30,600

NIL

1,35,000

35,000

Goodwill

Building

Machinery

Stock

Account receivable

Cash in hand

Cash at bank

NIL

3,00,000

1,50,000

1,00,000

80,000

500

NIL

10,000

3,20,000

1,69,000

74,000

64,200

5,600

8,000

6,30,500

6,60,800

6,30,500

6,60,800

Additional information

1) Dividend paid during the year ₹ 30,000

2) Asset of another company purchased for a consideration of ₹ 1,00,000 payable in shares. The following assets were purchased: Stock- ₹ 50,000 and Machinery- ₹ 40,000.

3) Machinery was further purchased for ₹ 28,000

4) Depreciation written off machinery ₹ 12,000

5) Income tax paid during the year ₹ 37,000

6) Loss on sale of machinery ₹ 2,000 was changed to general reserve account.

16) A) You are given the following data:

Year

Sales (₹)

Profit (₹)

2015

2016

6,00,000

8,00,000

80,000

1,00,000

You are required to calculate

a) Contribution

b) P/V ratio

c) BEP

d) Profit when sales are ₹ 4,00,000

e) Calculate sales when profits is ₹ 6,00,000

f) Margin of safety for the year 2015.

B) Prepare a production budget for each month and a summarised production cost sheet for six-monthperiod ending 30^th June, 2016, from the following

a) The units to be sold for different months are as follows:

Year	January	February	March	April	May	June	July
2016	1,000	1,100	1,700	1,900	2,500	2,300	2,200

b) There will be no work in progress at the end of any month

c) Finished units equal to half the sales for next month will be in stock at the end of each month (including December, 2015)

d) Budgeted production and production cost for the year ending June 2016 are as follows:

Production (units) 22,000. Direct material per unit ₹ 40. Direct wages per unit ₹ 4. Total factory overhead apportioned to product ₹ 88,000.

ARTHANVESH- DEPARTMENT OF COMMERCE AND MANAGEMET

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Cost & Management Accounting IV- VI SEM B.COM

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