BACHELOR OF TECHNOLOGY - LEVEL 5 MEM 5336 MANAGEMENT FOR ENGINEERS ACADEMIC YEAR 2013/14 ASSIGNMENT 02
INSTRUCTIONS:
1. This assignment is based on course materials in Book 02. 2. Answer all questions. 3. Write your registration number clearly on your answer script. Write your address at the back of your answer script. 4. Send your answer script under registered cover to the address given below or put it into the Assignment box available at the Research Lab of the Department of Mechanical Engineering (S & T Building) Nawala, Nugegoda.
THE COURSE COORDINATOR IN MEM 5336, DEPARTMENT OF MECHANICAL ENGINEERING, THE OPEN UNIVERSITY OF SRI LANKA, P.O.BOX 21, NAWALA, NUGEGODA.
5. Last date of submission is 04.04.2014. 6. No late submissions will be accepted.
1. (a) List the types of prime entry books that are in common use.
(b) Record the following transactions in a set of prime entry books.
Date Activity Value in Rs. 2012 January 1 Purchase from Robert 20,000 2012 January 2 Purchase from Jinadasa 10,000 2012 January 3 Sales to Dias 40,000 2012 January 4 Sales to Gunasena 30,000 2012 January 5 Sales to Romanis 4,000 2012 January 8 Sales to Nimal 10,000 2012 January 10 Purchase from Albert 6,000 2012 January 12 Purchase from Gamini 2,500 2012 January 14 Goods returned to Robert 2,100 2012 January 15 Goods returned to Jinadas Goods returned by Gunasena 1,300 2,000 2012 January 16 Goods returned by Romanis 300 2012 January 18 Goods returned to Albert 1,000 2012 January 20 Goods returned by Nimal 2,100
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(c) Record the following transactions in the ledger and balance the accounts as at 31 st January 2012.
Purchased goods worth Rs. 10,000 from Siripala (on credit) Purchased goods worth Rs. 2,450 from Susiripala (on credit) Sold goods worth Rs. 8250 to Jayapala (on credit) Returned goods with Rs. 200 to Siripala (on credit) Sold goods worth Rs. 3,200 to Sumanapala (on credit) Sumanapala returned goods worth Rs. 320 Sold goods worth Rs. 12,450 to Rusiripala (on credit) Purchased furniture worth Rs 18,000 (on credit) from Lakmini & Co Purchased Motor vehicle for Rs. 40,000 from Lanka Motor Co. Ltd. (on credit) Purchased goods worth Rs. 12,250 from Simon (on credit)
2. Trial balance of XYZ Trading Company Ltd. as at 31 st March 2012 is given below.
Debit (Rs00) Credit (Rs00) Bank 1,200 Capital 33,000 Cash 300 Drawings 6,000 Insurance 2,000 Office expenses 15,000 Office furniture at cost 5,000 Office furniture; accumulated depreciation at 1 st April 2011 2,000 Provision for bad and doubtful debts at 1 st April 2011 500 Purchases 55,000 Salaries 25,000 Sales 100,000 Stocks at 1 st April 2011 10,000 Trade creditors 4,000 Trade debtors 20,000 139,500 139,500
Notes: The following additional information is to be taken into account.
1. Stock at 31 st March 2012 was valued at Rs. 1,500,000. 2. The insurance included
Rs. 50,000 worth of cover which related to the year 31 st March 2012. 3. Depreciation is charged on office furniture at 10% per annum of its original cost (it is assumed not to have any residual value). 4. A bad debt of Rs. 100,000 included in the trade debtors balance of Rs. 2,000,000 is to be written off.
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5. The provision for bad and doubtful debts is to be maintained at a level of 5% of outstanding trade debtors as at 31 st March 2012. ie. After excluding the bad debt referred in note 4 above. 6. At 31 st March 2012 there was an amount owing for salaries of Rs. 100,000.
Prepare the following.
(i) XYZ company Trading and Profit and Loss account for the year ended 31 st March 2012.
(ii) Balance sheet as at 31 st March 2012.
3. (a) Explain the methods used for evaluating a capital project.
(b) A machine used for making steel nails cost Rs 100,000/- (inclusive of installation). Cash flow during lifetime of the machine is as follows.
Scrap value of the machine is Rs. 10,000/-. Capital required for the project was raised at discount factor of 15%. Evaluate the feasibility of the project.
(c) Apart from evaluating techniques, what are the other factors that one should consider in deciding the location of a project, prior to its implementation?
4. (a) Explain the following. Variable cost Contribution Break-even point Margin of safety
(b) Selling price of a product is marked as Rs. 10.00 per unit. Variable cost is Rs. 6.00 per unit. Monthly fixed cost is Rs. 20,000/-. Monthly production capacity is 15,000.
Draw graphs of total variable cost, total cost and total sales revenue for various volumes of output of the product.
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Answer the following using the above graphs.
(i) Mark the break-even point and find out its value.
(ii) Mark the regions of profit and contribution.
(iii) If the number of products sold is 8,000, find out the margin of safety in terms of volume and sales (in rupees).
5. (a) Briefly describe the functions of a human resource manager in an organization.
(b) Discuss the different methods of recruitment and their merits and demerits.
(c) State what is meant by Job analysis and indicate information derived from job analysis.
(d) Briefly discuss the two approaches of job analysis, Functional Job Analysis and the Position Analysis Questionnaire.