Cost Accounting (MBA 2009-11 Batch)Semester 1Assignment No.1Marks - 25Q.1) 14 Marks
Tiny Toys is a newly established Toy Making Company. In the month of June it has started its operations& has come up with two new toys viz. Jumping Jack & Dancing Duck. Following is their Cost Data.Particulars Jumping Jack Dancing DuckMaterial Used / Unit 175 Rs. 200 Rs.Labour Cost / Unit 50 Rs. 25 Rs.Other Cost Data for the month to be attributed equally to the two toys:Particulars Amount (RS.)Indirect Labour 10000Direct Expenses 20000Supervisors Salary 10000Royalty 5000Carriage on purchases (Carriage inward) 3000Rent & Rates - Factory 2000Salary OfficeSalary - Salesmen2000010000MDs Remuneration 20000Carriage on Sales (Carriage outward) 2000Electricity Expense 7000Telephone Expense 1000General Factory Expenses 5000Prepare a Cost Sheet for the above data.Kindly advise the Management as to what should be the price of each toy if it wants to earn a profit of 20 % on Sales at the production level of 100 units of each toy.Is there any area of Expenses that You can advise it to improve upon.ABC Distributors wants 200 units each of both the products. There are other Companies in the race aswell & Tiny Toys wants this order. Tiny Toys can produce the above quantity in one month only. CouldYou suggest the lowest quote per unit it can give covering all above Expenses (Selling & DistributionExpenses are also to be recovered) & earning no profit. (Indirect Expenses will remain the same) .