(a) A hotel is being run in a Hill station with 200 single rooms. The hotel...

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(a) A hotel is being run in a Hill station with 200 single rooms. The hotel offers concessional rates during six off-season months in a year. During this period, half of the full room rent is charged. The management's profit margin is targeted at 20% of the room rent. The following are the cost estimates and other details for the year ending 31st March, 2019: (i) Occupancy during the season is 80% while in the off-season it is 40%. (ii) Total investment in the hotel is 300 lakhs of which 80% relates to Buildings and the balance to Furniture and other Equipment. (iii) Room attendants are paid 15 per room per day on the basis of occupancy of rooms in a month. (iv) Expenses: . . . Staff salary (excluding that of room attendants) Repairs to Buildings Laundry Charges Interior Charges 78,00,000 3,00,000 1,40,000 *2,50,000 Miscellaneous Expenses 2,00,200 (v) Annual Depreciation is to be provided on Buildings @ 5% and 15% on Furniture and other Equipments on straight line method. (vi) Monthly lighting charges are 110, except in four months in winter when it is 30 per room and this cost is on the basis of full occupancy for a month. You are required to workout the room rent chargeable per day both during the season and the off-season months using the foregoing information. (Assume a month to be of 30 days and winter season to be considered as part of off-season). (b) XYZ a manufacturing firm, has revealed following information for September,2019: 30th September 1st September (²) Raw Materials Works-in-progress 2,92,000 5,00,000 The firm incurred following expenses for a targeted production of 1,00,000 units during the month : 2,42,000 2,00,000 Consumable Stores and spares of factory Research and development cost for process improvements Quality control cost Packing cost (secondary) per unit of goods sold Lease rent of production asset Administrative Expenses (General) 3,50,000 2,50,000 2,00,000 2 2,00,000 2,24,000 4,13,000 Selling and distribution Expenses Finished goods (opening) Nil Finished goods (closing) 5000 units Defective output which is 4% of targeted production, realizes 61 per unit. Closing stock is valued at cost of production (excluding administrative expenses) Cost of goods sold, excluding administrative expenses amounts to 78,26,000. Direct employees cost is 1/2 of the cost of material consumed. Selling price of the output is * 110 per unit. You are required to: (i) Calculate the value of material purchased (ii) Prepare cost sheet showing the profit earned by the firm. (10 Marks) (a) A hotel is being run in a Hill station with 200 single rooms. The hotel offers concessional rates during six off-season months in a year. During this period, half of the full room rent is charged. The management's profit margin is targeted at 20% of the room rent. The following are the cost estimates and other details for the year ending 31st March, 2019: (i) Occupancy during the season is 80% while in the off-season it is 40%. (ii) Total investment in the hotel is 300 lakhs of which 80% relates to Buildings and the balance to Furniture and other Equipment. (iii) Room attendants are paid 15 per room per day on the basis of occupancy of rooms in a month. (iv) Expenses: . . . Staff salary (excluding that of room attendants) Repairs to Buildings Laundry Charges Interior Charges 78,00,000 3,00,000 1,40,000 *2,50,000 Miscellaneous Expenses 2,00,200 (v) Annual Depreciation is to be provided on Buildings @ 5% and 15% on Furniture and other Equipments on straight line method. (vi) Monthly lighting charges are 110, except in four months in winter when it is 30 per room and this cost is on the basis of full occupancy for a month. You are required to workout the room rent chargeable per day both during the season and the off-season months using the foregoing information. (Assume a month to be of 30 days and winter season to be considered as part of off-season). (b) XYZ a manufacturing firm, has revealed following information for September,2019: 30th September 1st September (²) Raw Materials Works-in-progress 2,92,000 5,00,000 The firm incurred following expenses for a targeted production of 1,00,000 units during the month : 2,42,000 2,00,000 Consumable Stores and spares of factory Research and development cost for process improvements Quality control cost Packing cost (secondary) per unit of goods sold Lease rent of production asset Administrative Expenses (General) 3,50,000 2,50,000 2,00,000 2 2,00,000 2,24,000 4,13,000 Selling and distribution Expenses Finished goods (opening) Nil Finished goods (closing) 5000 units Defective output which is 4% of targeted production, realizes 61 per unit. Closing stock is valued at cost of production (excluding administrative expenses) Cost of goods sold, excluding administrative expenses amounts to 78,26,000. Direct employees cost is 1/2 of the cost of material consumed. Selling price of the output is * 110 per unit. You are required to: (i) Calculate the value of material purchased (ii) Prepare cost sheet showing the profit earned by the firm. (10 Marks)