Practical assignment on cost accounting

1. A factory buys and uses a component for production at Rs 10 per unit. Annual requirement is 2000 units. Carrying cost of inventory is 10% pa and ordering cost is Rs 40 per order.
The manager argues that the ordering cost is very high so it is advantageous to place a single order for the entire annual requirement. A discount of 3% is also available if 2000 units are ordered at a time. Calculate EOQ and evaluate the proposal and make recommendations

2.The CA of AB ltd has given the following information  as estimates:
Total fixed WOH- 250K
Total variable OH- 150 K
Direct Labour hours- 50K
Actual results were as follows:
Direct Labour hours- 45 K
Total fixed WOH- 250K
Total variable OH- 130 K

Calculate
1. predetermined overhead absoprtion rates (fixed and variable)
2. Overheads absorbed (fixed and variable)
3. over and under absroption of overheads (fixed and variable)
4. Supplemetary overhead absoprtion rates (fixed and variable)

3.The following information is given for April 2019:
No of workers at the beginning of the month 1400
No of workers at the end of the month 1600
No of workers who quit during the month 50
No of workers discharged during the month 100
No of workers employed during the month
(includes 160 employed for new branch)  250
Calculate labour turnover rate using separation replacement and flux methods, also calculate Annual equivalent ratios

Comments

Post a Comment

Popular posts from this blog

Work certified and uncertified

Meaning of Work Certified  When contractor takes the contract to complete any construction work, it may complete in 4 or 5 years. but contractor has to pay different expenses for material, labor and others. So, it is very necessary to pay him some money of contract. This money is given on the basis of work done. So, any part of construction which is completed by contractor will be work certified if it is certified by an authority. Authority may be independent engineer or architect who can estimated the work. He will issue the certificate of work done after certifying the work of construction. On this work certified, contractor has right to get money of contract. Meaning of Work Uncertified Work uncertified means work done but not certified by authority. So, contractee will cut some money on the basis of work uncertified and will keep in his pocket. This will be retention money. Accounting Treatment of Work Certified and Work Uncertified  (I) Work  certified and work unce
Read more

factors influencing choice of advertising agency

The Advertiser looks for an advertising agency whose services and expertise meets his requirements. Following factors should be considered while selecting an advertising agency:- Services offered by Ad-agency  - There are different agencies provides different services, some provides all the services, some provide selected services, some provides only media services. It depends on the requirement of advertiser whether he need a fulls service agency, creative boutique, media buying service agency, or a  sweet shop . Experience of Agency  - An experienced agency performs better then a new agency  because it is familiar with different components of marketing environment like- competitors' policies, taste of consumer, income of consumer, consumer responses, fashions and trends, reputation of different media etc. Location  - A major factor to be considered while selecting ad-agency is location of office of agency. A considerable amount of communication is required at diffe
Read more

Sale of Goods Act- Conditions and Warranties

Image
The Sale of Goods Act, identifies the terms, ‘Conditions’ and ‘Warranties’ as being of a prime significance in a contract of sale. Both the terms imply a promise that is made by the seller. However, the difference between Conditions and Warranties arises due to the nature of the promise that is made in each case. In the case of ‘Condition’ the impact is on the very essence of the contract; whereas, in the case of ‘Warranty’, the promise is in the nature of a collateral to the main purpose of the contract. It is thus evident that if there is a breach of either, a condition or a warranty, the effects will be different. Illustration 1:   Sita bought a wet grinder from an electric shop. The purpose for which the grinder was to be used was known to the seller. The grinder was unfit for the purpose. In this case there is a breach of an express condition by the electric shop and Sita is entitled to return the grinder and be refunded the money paid. Illustration 2:   Varuna bought a
Read more