Section-A (Marks: 15 Marks)

Attempt all ( Each question consists 7.5 Marks)

1. Texla Company has a production capacity of 12,000 units and normal capacity utilization is 80%. Opening stock of finished goods on 01-01-2018 was 3000 units. During the year ending 31-12-2018, it produced 10000 units while it sold only 8,000 units. Standard variable cost per unit is Aed 6.5 and standard fixed factory cost per unit Aed 2.50.Total fixed selling and administration overhead amounted to Aed. 10,000.The Company sells its product at Aed 5 /unit.

Prepare income statement under absorption costing

2. The following information relates to XYZ Company for the year 2017 -18

• Sales 60,000 units @ 10 dhs each = 600,000 dhs
• Variable Cost @ 5 dhs each -= 300,000 dhs
• Fixed Cost - 20,000 dhs

Calculate a. P/V Ratio b. Break-Even sales c. Margin of safety

d. Margin of Safety Ratio

Section-B (Marks: 15 Marks)

Attempt all ( Each question consists 7.5 Marks)

1. Mr Ys Soft drink pass through two processes. The data for the month just ended are:

Process 1	AED	KG	Process 2	AED
Ingredients	8000	8000	Packaging	11000
Labour and overhead	7000	-	Labour and overhead	2000

Mr Y allows the staff to drink 5% of the soft drink as they work on Process 1. There was no work in progress at the month end. Prepare the two process accounts and calculate the cost per kg

2. Cost accounting is different from financial accounting Comment and explain with suitable examples.

Note: Answers Should be in Word or Excel Format Kindly