Answer the following: (a) Surekha Limited produces 4,000 Litres of paints on a quarterly basis. Each...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Answer the following: (a) Surekha Limited produces 4,000 Litres of paints on a quarterly basis. Each Litre requires 2 kg of raw material. The cost of placing one order for raw material is 40 and the purchasing price of raw material is 50 per kg. The storage cost and interest cost is 2% and 6% per annum respectively. The lead time for procurement of raw material is 15 days. Calculate Economic Order Quantity and Total Annual Inventory Cost in respect of the above raw material. (b) The following data is presented by the supervisor of a factory for a Job: per unit Direct Material Direct Wages @ 74 per hour (Departments A-4 hrs, B-7 hrs, C-2 hrs & D-2 hrs) Chargeable Expenses Total 120 60 20 200 Analysis of the Profit and Loss Account for the year ended 31st March, 2019 Material Direct Wages Dept. A Dept. B Dept. C Dept. D Special Store items 12,000 8,000 10,000 20,000 2,00,000 Sales 50,000 6,000 4,30,000 Overheads Dept. A Dept. B Dept. C Dept. D Gross Profit c/d Selling Expenses Net Profit 12,000 6,000 9,000 17,000 44,000 1,30,000 4,30,000 90,000 Gross Profit b/d 40,000 1,30,000 4,30,000 1,30,000 1,30,000 It is also to be noted that average hourly rates for all the four departments are similar. Required: (i) Prepare a Job Cost Sheet. (ii) Calculate the entire revised cost using the above figures as the base. (iii) Add 20% profit on selling price to determine the selling price. (c) A Factory produces two products, 'A' and 'B' from a single process. The joint processing costs during a particular month are : Direct Material 30,000 Direct Labour 9,600 Variable Overheads 12,000 Fixed Overheads 32,000 Sales: A-100 units@ 600 per unit; B-120 units @ 200 per unit. 1. Apportion joints costs on the basis of: (i) Physical Quantity of each product. (ii) Contribution Margin method, and II. Determine Profit or Loss under both the methods. (d) When volume is 4,000 units; average cost is 3.75 per unit. When volume is 5,000 units, average cost is 3.50 per unit. The Break-Even point is 6,000 units. Calculate: (i) Variable Cost per unit (ii) Fixed Cost and (iii) Profit Volume Ratio. Answer the following: (a) Surekha Limited produces 4,000 Litres of paints on a quarterly basis. Each Litre requires 2 kg of raw material. The cost of placing one order for raw material is 40 and the purchasing price of raw material is 50 per kg. The storage cost and interest cost is 2% and 6% per annum respectively. The lead time for procurement of raw material is 15 days. Calculate Economic Order Quantity and Total Annual Inventory Cost in respect of the above raw material. (b) The following data is presented by the supervisor of a factory for a Job: per unit Direct Material Direct Wages @ 74 per hour (Departments A-4 hrs, B-7 hrs, C-2 hrs & D-2 hrs) Chargeable Expenses Total 120 60 20 200 Analysis of the Profit and Loss Account for the year ended 31st March, 2019 Material Direct Wages Dept. A Dept. B Dept. C Dept. D Special Store items 12,000 8,000 10,000 20,000 2,00,000 Sales 50,000 6,000 4,30,000 Overheads Dept. A Dept. B Dept. C Dept. D Gross Profit c/d Selling Expenses Net Profit 12,000 6,000 9,000 17,000 44,000 1,30,000 4,30,000 90,000 Gross Profit b/d 40,000 1,30,000 4,30,000 1,30,000 1,30,000 It is also to be noted that average hourly rates for all the four departments are similar. Required: (i) Prepare a Job Cost Sheet. (ii) Calculate the entire revised cost using the above figures as the base. (iii) Add 20% profit on selling price to determine the selling price. (c) A Factory produces two products, 'A' and 'B' from a single process. The joint processing costs during a particular month are : Direct Material 30,000 Direct Labour 9,600 Variable Overheads 12,000 Fixed Overheads 32,000 Sales: A-100 units@ 600 per unit; B-120 units @ 200 per unit. 1. Apportion joints costs on the basis of: (i) Physical Quantity of each product. (ii) Contribution Margin method, and II. Determine Profit or Loss under both the methods. (d) When volume is 4,000 units; average cost is 3.75 per unit. When volume is 5,000 units, average cost is 3.50 per unit. The Break-Even point is 6,000 units. Calculate: (i) Variable Cost per unit (ii) Fixed Cost and (iii) Profit Volume Ratio.
Expert Answer:
Related Book For
Core Concepts Of Accounting Information Systems
ISBN: 9780470507025
11th Edition
Authors: Nancy A. Bagranoff, Mark G. Simkin, Carolyn Strand Norman
Posted Date:
Students also viewed these accounting questions
-
Surekha Limited produces 4,000 Litres of paints on a quarterly basis. Each Litre requires 2 kg of raw material. The cost of placing one order for raw material is ` 40 and the purchasing price of raw...
-
Prepare Profit and Loss account for the year ended 31st March, 2011 and Balance Sheet of the Bank as at that date. Profit an Loss Account on 1.4.2016 (e) AIssued Capital (Equity shares of? 100 each)S...
-
Dunlop Company's profit and loss account for the year ended on 31st" December 2020 depicted the following position. Find out the tax liability. Marks: 20 Salaries Postage exp Cost of issuing...
-
Whitmore Company issued $500,000 of 5-year, 8% bonds at 97 on January 1, 2020. The bonds pay interest annually. Instructions a. 1. Prepare the journal entry to record the issuance of the bonds. 2....
-
Journalize the following transactions of Prairie Theater Productions: July 8. Received a $30,000, 90-day, 8% note dated July 8 from Pennington Company on account. Oct. 6. The note is dishonored by...
-
Evaluate the following integrals. 6 (? " style="" class="fr-fic fr-dib"> dx (x 36)/2" > 6 (?
-
The accounts of Highland Consulting, Inc., follow with their normal balances at August 31, 2010. The accounts are listed in no particular order. Requirements 1. Prepare the companys trial balance at...
-
T. J. Patrick is a young, successful industrial designer in Portland, Oregon, who enjoys the excitement of commodities speculation. T. J. has been dabbling in commodities since he was a teen-ager-he...
-
1. The anticipation that the coming financial year (2017/2018) would see sales grow by 20% from the previous year. 2. To budget for an increase in inflation to 4% per annum and that all costs subject...
-
Raymond Constructions trial balance at December 31, 2020, is presented as follows. All 2020 transactions have been recorded except for the items described below. Unrecorded transactions: 1. On May 1,...
-
Doyoung Corporation's product has the following information: Selling Price Php 15.00 Variable Cost per unit 10.00 Total Fixed Cost 25,000.00 Tax Rate 40% Required: 1. What is the break-even point in...
-
12 (a) Two elastic spheres of masses m and m' moving with velocity u and u' impinge directly. If e be the coefficient of restitution, find their velocities after impact. 8 (b) A planet is describing...
-
Sunflower Products has debt outstanding that has a market value of $211 million. The company's preferred stock has a market value of $125 million and the company's common stock has a market value of...
-
The Computer Equipment has an estimated useful life of 5.00 years. Management has decided that assets purchased during a month are treated as if purchased on the first day of the month. The computer...
-
What do you mean by controllable costs? Give an example. What is a purchase requisition? To whom it is submitted? What are the objectives of Cost Accounting? Name any four techniques of inventory...
-
Wonderer Inc. incurred the following expenditures in 2020: Purchase of land with a dilapidated building at the beginning of the year (no significant value) P5,600,000 Land survey 208,000 Fees for...
-
Cinderella's income increases by 25%. She decides to increase her purchases of glass slippers by 40%. To her, glass slippers are a(n)____________good and her income elasticity of demand for glass...
-
The domain of the variable in the expression x 3/x + 4 is________.
-
What is a security policy? What do we mean when we say organizations should have an integrated security plan?
-
What is client/server computing? How does it differ from host/mainframe computing? What are some of the advantages and disadvantages of client/server systems?
-
Identify several types of printers. What are the advantages and disadvantages of each type?
-
The unadjusted trial balance of Innovative Computers Pty Ltd on 30 June 2025 is presented below. The following additional information is available. 1. The inventories as of 30 June 2025 were as...
-
The Z-spread of Bond A is 1.05% and the Z-spread of Bond B is 1.53%. All else equal, which statement best describes the relationship between the two bonds? A. Bond B is safer and will sell at a lower...
-
A four-year corporate bond with a 7% coupon has a Z-spread of 200 bps. Assume a flat yield curve with an interest rate for all maturities of 5% and annual compounding. The bond will most likely sell:...
Study smarter with the SolutionInn App