JAIPURIA INSTITUTE OF MANAGEMENT, LUCKNOW

POST GRADUATE DIPLOMA IN MANAGEMENT(FS)

SECOND TRIMESTER (BATCH 2014-16)
QUIZ -1
Management Accounting & Control
Q.1) Company introduces 1000 units @ Rs 10/ per unit in Process. Additional Material of Rs 3000
and labour worth Rs 4000 is further added in Process besides incurring Overhead cost of Rs
5000. By very nature of process there is bound to be 5% loss. Final output of 925 units comes out
of the process
a) Calculate Normal Loss in the process
(1)

b) What is the value of Abnormal Loss if any

(1)

c) What is the cost / unit of the product after the end of Process
(2)

Q.2) Cleaning Job in a company requires following Material Rs 300 / unit Labour Rs 200/unit and it
requires 2 hours to complete cleaning job. The budgeted Overheads for the job in the month is
Rs 10000 which is to be charged on the basis of labour hours. It is expected that total of 100
hours will be used in month. Calculate Job Cost/ Unit
(3)

Q.3)

Sierra Company allocates the estimated Rs 200,000 of its accounting department costs to
its production and sales departments since the accounting department supports the other
two departments particularly with regard to payroll and accounts payable functions. The
costs will be allocated based on the number of employees using the direct method.
Information regarding costs and employees follows:
(3)
Department
Accounting
Production
Sales

Employees
4
36
12

How much of the accounting department costs will be allocated to the production and
sales departments?

JAIPURIA INSTITUTE OF MANAGEMENT, LUCKNOW

POST GRADUATE DIPLOMA IN MANAGEMENT(FS)
SECOND TRIMESTER (BATCH 2014-16)
QUIZ -1
Management Accounting & Control
Q.1) Company introduces 1000 units @ Rs 10/ per unit in Process. Additional Material of Rs 3000
and labour worth Rs 4000 is further added in Process besides incurring Overhead cost of Rs
5000. By very nature of process there is bound to be 5% loss. Final output of 900 units comes out
of the process
a) Calculate Normal Loss in the process
(1)

b) What is the value of Abnormal Loss if any

(1)

c) What is the cost / unit of the product after the end of Process
(2)

Q.2)

Sierra Company allocates the estimated Rs 300,000 of its accounting department costs to
its production and sales departments since the accounting department supports the other
two departments particularly with regard to payroll and accounts payable functions. The
costs will be allocated based on the number of employees using the direct method.
Information regarding costs and employees follows:
(3)
Department
Accounting
Production
Sales

Employees
6
36
12

How much of the accounting department costs will be allocated to the production and
sales departments?

Q.3) Cleaning Job in a company requires following Material Rs 300 / unit Labour Rs 200/unit and it
requires 2 hours to complete cleaning job. The budgeted Overheads for the job in the month is
Rs 15000 which is to be charged on the basis of labour hours. It is expected that total of 100
hours will be used in month. Calculate Job Cost/ Unit
(3)

JAIPURIA INSTITUTE OF MANAGEMENT, LUCKNOW

POST GRADUATE DIPLOMA IN MANAGEMENT(FS)
SECOND TRIMESTER (BATCH 2014-16)
QUIZ -1
Management Accounting & Control
Q.1) Cleaning Job in a company requires following Material Rs 300 / unit Labour Rs 200/unit and it
requires 2 hours to complete cleaning job. The budgeted Overheads for the job in the month is
Rs 15000 which is to be charged on the basis of labour hours. It is expected that total of 100
hours will be used in month. Calculate Job Cost/ Unit
(3)

Q.2)Sierra Company allocates the estimated Rs 300,000 of its accounting department costs to its
production and sales departments since the accounting department supports the other
two departments particularly with regard to payroll and accounts payable functions. The
costs will be allocated based on the number of employees using the direct method.
Information regarding costs and employees follows:
(3)
Department
Employees
Accounting
6
Production
36
Sales
12
How much of the accounting department costs will be allocated to the production and sales
departments?

Q.3) Company introduces 1000 units @ Rs 10/ per unit in Process. Additional Material of Rs 3000
and labour worth Rs 4000 is further added in Process besides incurring Overhead cost of Rs

5000. By very nature of process there is bound to be 5% loss. Final output of 900 units comes out
of the process
a) Calculate Normal Loss in the process
(1)

b) What is the value of Abnormal Loss if any

(1)

c) What is the cost / unit of the product after the end of Process
(2)