Assignment No: ONE

Unit I: What do you mean by cost accounting? Discuss the objective and
advantages of Cost accounting?
Unit II: Manasi Manufacturing Co. manufactures two types of Products A
and B, The information for the year ended on 31st March 2012 is as under :
Rs.
Material
6,75,000
Wages
9,90,000
Works overhead
1,95,000
(1) Direct material used per unit in Product A were, 3 times that of Product
B.
(2) Wages per unit in Product B were 2/3rd that of Product A.
(3) Works overhead per unit were the same for both the products.
(4) Administration overheads were 100% of the prime cost in each of the
products.
(5) Selling and Distribution cost was Rs.6 per unit sold for both A and B.
(6) 35000 units of A were produced out of which 32000 units were sold @
Rs.100 per unit.
(7) 30000 units of Product B were produced out of which 25000 units were
sold @ Rs.65 per unit.
Prepare a cost-sheet showing cost and profit in total as well as in per
unit.
Unit III: Mr. Soham Singh has started transport business with a fleet of 10
taxies. The various expenses incurred by him are given below:
(a)
Cost of each taxi
Rs.75,000
(b)
Salary of Office staff
Rs.1,500 p.m.
(c)
Salary of garage staff
Rs.2,000 p.m.
(d)
Rent of garage
Rs.1,000 p.m.
(e)
Drivers Salary (per taxi)
Rs.400 p.m.
(f)
Road tax and repairs per taxi
Rs.2,160 p.a.
(g)
Insurance premium
@ 4% of cost p.a.
The life of the taxi is 3,00,000 km. and at the end of which it is estimated
to be sold at Rs.15,000. A taxi runs on an average 4,000 km. per month of
which 20% it runs empty. Petrol consumption is 9 km. per liter and costing
Rs.6.30 per liter. Oil and other sundry expenses amount to Rs.10 per 100
km.
Calculate the effective cost of running taxi per kilometer. If the hire charge
is Rs.1.80 per km. find out the profit Mr. Soham singh may expect to make
in the first year of operation.

Assignment No: TWO

Unit IV: Given the following information for ABC Company at the end of
1999 determine the missing figures of income statement and the Balance
Sheet.
Net Sales
1,00,00
Debtors Turnover based on net sales
0
Inventory Turnover
2
Fixed assets Turnover
1.25
Debt Assets Ratio
0.80
Net Profit Margin
0.60
Gross Profit Margin
5%
Return investment
25%
2%
Income Statement
Particulars
Amount
Sales
1,00,000
(-) Cost of Sales
= Gross Margin
(-) Other expenses
Earnings before tax
(-) Taxes @ 50%
Earnings after tax
-

Equity
Long term Debt
Short term Debts

Balance Sheet
Fixed assets (Net)
Inventory
50,000
Cash

Unit V: From the following particulars find out the Break-even point of
sale :
Variable cost per unit
Rs. 30
Selling price per unit
Rs. 50
Fixed expenses
Rs.
1,00,000
(a) What should be the selling price per unit, if the Break-even point is
brought down to 4000 units?
(b)If the present volume of sales is Rs. 4,00,000, what is the "margin of
safety" on the basis of data given in (a) above ?
Unit VI: A manufacturing company has the production capacity of 20,000
units per year. .The expenses for the production of 10,000 units are given

below:Particulars

Per unit
Rs.
40
20
10

Material
Wages (50% variable)
Manufacturing Expenses (40%
fixed)
Administrative Expenses (Fixed)
5
Selling Expenses (60% fixed)
15
Total cost
90
Profit
10
Selling price
100
Prepare a Flexible budget to show 60%, 70%, 90% and 100% levels
of activity. It is expected that the selling price will remain constant up to
60% activity, beyond which a 5% reduction in selling price will be
necessary and above 90% activity, a 10% reduction in (original) selling
price per unit will have to be made.