Cost Management and Accounting | NMIMS Assignment Help June 2023 Questions

Question 1:

Office Products Ltd provides the Sales and the cost data for 60,000 units as given below. At full capacity the plant can produce 100,000 units

Sales Costs: Variable:Rs. 12,00,000
MaterialRs. 2,40,000
LabourRs. 3,60,000
OverheadsRs. 1,80,000
Fixed CostRs. 3,20,000
PROFITRs. 1,00,000

Prepare the Income statement under marginal costing for production at 80,000 units.

Question 2:

Nikson Ltd provides the following information relating to the activities of a production department for the month of January 2023

Material Used Rs. 72,000

Direct wages Rs. 60,000

Machine hours 20,000 hours

Labour hours 24,000 hours

Overhead chargeable to the department Rs. 48,000

The relevant data for carrying out one order in the month of February is given below:

Material used Rs. 4,000

Direct Wages Rs. 3,300

Machine hours 1,200 hours

Labour hours 1,650 hours

Using the rates of the month of January, prepare a comprehensive statement of cost for this order by using the following absorption of overheads

  1. 1) Direct labour hours
  2. 2) Percentage of direct wages
  3. 3) Machine hour rate

Question 3a

Samsung Ltd. are the manufacturers of Television. The following are the details of a Product during the year 2022.

Ordering Cost Rs.50 per order

Inventory carrying cost 10% per annum

Cost of Product A is Rs. 500 per unit

Annual consumption of Product A is 5000 units.

Compute the Economic order quantity. What if the inventory maintained by the company is 200 units?

Question 3 (b)

New Corp Ltd. incurs fixed costs of Rs. 5,00,000 per annum. The company produces a single product with annual sales budgeted to be 70,000 units at a sales price of Rs.300 per unit. Variable costs are Rs.280 per unit. You are required to determine the breakeven point and explain the significance of breakeven point.