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  • Professor B.M.JENA Problems On Batch Costing National Law University, Odisha Subject: Cost and Management Accounting

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    Pragalbh Bhardwaj
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    This document provides two problems related to batch costing. [1] The first problem asks to compute the economic batch quantity for a company given annual demand of 24,000 units, a set up cost per batch of Rs. 120, and carrying cost per unit of Rs. 0.36. [2] The second problem asks to determine the optimal frequency of production runs for a contractor supplying 10,000 paper cones per day given a production capacity of 25,000 cones per run, set up cost of Rs. 18 per run and carrying cost of 2 paise per cone per year.

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    Accounts Batch Costing Problems

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    Batch Costing

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    This document provides two problems related to batch costing. [1] The first problem asks to compute the economic batch quantity for a company given annual demand of 24,000 units, a set up cost per batch of Rs. 120, and carrying cost per unit of Rs. 0.36. [2] The second problem asks to determine the optimal frequency of production runs for a contractor supplying 10,000 paper cones per day given a production capacity of 25,000 cones per run, set up cost of Rs. 18 per run and carrying cost of 2 paise per cone per year.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
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    22 views1 page

    Professor B.M.JENA Problems On Batch Costing National Law University, Odisha Subject: Cost and Management Accounting

    Uploaded by

    Pragalbh Bhardwaj
    This document provides two problems related to batch costing. [1] The first problem asks to compute the economic batch quantity for a company given annual demand of 24,000 units, a set up cost per batch of Rs. 120, and carrying cost per unit of Rs. 0.36. [2] The second problem asks to determine the optimal frequency of production runs for a contractor supplying 10,000 paper cones per day given a production capacity of 25,000 cones per run, set up cost of Rs. 18 per run and carrying cost of 2 paise per cone per year.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
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    Professor B.M.

    JENA

    PROBLEMS ON BATCH COSTING NATIONAL LAW UNIVERSITY,ODISHA

    SUBJECT: COST AND MANAGEMENT ACCOUNTING

    1. Compute the economic batch quantity for a company using batch costing with the following information Annual demand for the component 24000 Set up cost per batch Rs 120 Carrying cost per unit of production Re 0.36 2. A contractor has to supply 10000 paper cones per day to a textile mill. He finds that when he starts a production run , he can produce 25000 paper cones per day.The cost of holding a paper cone in stock for one year is 2 paise and the setting up cost of a production run is Rs 18. How frequently should production runs be made?

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