SEMESTER SPRING 2020

MANAGERIAL ACCOUNTING (MGT404)

ASSIGNMENT NO. 01

DUE DATE: JULY 28, 2020

MARKS: 10

The accountant of Zee Limited has estimated the following sales data for six months in the
financial year 20X9:

Month March April May June July

Units 200,000 250,000 375,000 450,000 525,000

Additional information:
a) Zee has the policy to maintain each month’s ending inventory equal to 10% of the following
month’s budgeted sales. There were 25,000 units in inventory on March 31.
b) Produced units are sold in the market at a unit rate of Rs. 125.
c) The production cost of these units is estimated at 60% of the unit sales price.
d) There has also been an estimate for operating expenses equal to 10% of the unit sales price.

Required: Prepare production budget and budgeted income statement both month-wise and in
total for the 2nd quarter ending on June 30, 20X9. (5*2 Marks)
IMPORTANT NOTE:
24 hours extra / grace period after the due date is usually available to overcome uploading
difficulties. This extra time should only be used to meet the emergencies and above mentioned due
dates should always be treated as final to avoid any inconvenience.

IMPORTANT INSTRUCTIONS/ SOLUTION GUIDELINES/ SPECIAL INSTRUCTIONS

DEADLINE:
• Make sure to upload the solution file before the due date on VULMS
• Any submission made via email after the due date will not be accepted

FORMATTING GUIDELINES:
• Use the font style “Times New Roman” or “Arial” and font size “12”
• It is advised to compose your document in MS-Word format
• You may also compose your assignment in Open Office format
• Use black and blue font colors only

RULES FOR MARKING

Please note that your assignment will not be graded or graded as Zero (0), if:
• It is submitted after the due date.
• The file you uploaded does not open or is corrupt.
• It is in any format other than MS-Word or Open Office; e.g. Excel, PowerPoint, PDF etc.
• Not submitted as per given format
• It is cheated or copied from other students, internet, books, journals etc.

“Best of Luck”