International Management Institute

Managerial Accounting for Decision Making (MADM)

Ex-PGDM (2017-18); Quiz 1, 20 min. 10 marks

Q1. Provide examples of the type of accounting information (two examples each) the following
functional managers might request from the management accountant:
a. Marketing Manager
b. Human Resource Manager [M – 2]

Q2. Joseph Manufacturing Ltd. incurred the following costs in January:

Direct labor ₹ 50,000 Advertising costs ₹ 2,000

Indirect labor 22,000 Factory rent 10,000
Administrative salaries 15,000 Factory depreciation 5,000
Raw materials purchased 15,000 Administrative rent 5,000
Indirect materials used 6,000 Administrative depreciation 3,000

In addition, the following information is also available:

Beginning Ending
Raw materials ₹ 4,000 ₹ 6,000
Work-in-process 30,000 18,000
Finished goods 5,000 12,000

Number of units produced 10,000 units

Number of units sold
(sales price of ₹ 30 per unit) 9,000 units

Required:

a. Calculate total period costs. [M – 1]

b. Calculate total manufacturing cost. [M – 2]
c. Calculate cost of goods manufactured. [M – 1]
d. Calculate the product cost per unit. [M – 1]
e. Calculate cost of goods sold. [M – 1]
f. Calculate net income. [M – 2]