N is the number from journal plac

1 Habibi MMC has two production cost centres ( A and B) and two service cost centres (stores and maintenance)
and the production departments in the following proportions

Stores 140000 + (N*1000)

Production centre A 45%
Production centre B 45%
Maintenance 10%

Question 1 After repeated distribution, how much of the service department costs will end up in production centre A

Cost and selling price details for product Z are as follows.

Direct materials 6+N

Direct labour 7.5 + N
Variable overhead 2.5 + N
Fixed overhead absorption rate 5 +N

Profit 9 +N
Selling price 30 + N

Budgeted production for the month was 5000+(N*200) units although the company managed to produce 5800
costs of 27400+(N*200)
Question 2 What was the marginal costing profit for he month?
Question 3 What was the absorption costing profit for the month?

Date Units
1-Mar Opening inventory 100+(N*10)
3-Mar Receipts 300+(N*10)
5-Mar Issues
12-Mar Receipts 170+(N*10)
24-Mar Issues

Question 4 Using the weighted average price method of inventory valuation, the costs of the materilas issued on 12 March
Question 5 Using the weighted average price method ot inventory valuation, the value of closing inventory on 24 March w

Habibi MMC sells one product for which data is given below:

Selling price 10 + N
Variable cost 6+N
Fixed cost 2+N
 The fied costs are based on a budgeted level of activity of 5000 + (N*100) units for the period.

Question 6 How many units must be sold if Habibi MMC wishes to earn a profit of 6000 + (N*1000) AZN for one period
Question 7 What is Habibi MMC margin of safety for the budget period if fixed costs prove to be 20% higher than budgete
If the selling price and variable cost increase by 20% and 12% respecteively by how much sales volume change
Question 8 budgeted level in order to achieve the original budgeted profit for the period?
mber from journal placement 11
e cost centres (stores and maintenance). It has been estimated that the service costs centres do work for each other

Maintenance 70000 + (N*1000)

Production centre A 50%
Production centre B 45%
Store 5%

will end up in production centre A

he company managed to produce 5800+(N*200) units, selling 5200+(N*200) of them and incurring fixed overhead

Calculate Issued
Receipt Azn/unit the Value Units Azn/unit Value
5
4.8
220
5.2
300

osts of the materilas issued on 12 March was?

alue of closing inventory on 24 March was?
0) units for the period.

6000 + (N*1000) AZN for one period

ts prove to be 20% higher than budgeted?
vely by how much sales volume change compared with the original
period?
 Habibi MMC has two production cost centres ( A and B) and two service cost centres (stores and maintenance). It h
service costs centres do work for each other and the production departments in the following proportions

Stores 151000 Maintenance 81000

Production centre A 45% Production centre A 50%
Production centre B 45% Production centre B 45%
Maintenance 10% Store 5%

Question 1After repeated distribution, how much of the service department costs will end up in production centre A
ores and maintenance). It has been estimated that the
owing proportions

oduction centre A
 Cost and selling price details for product Z are as follows.

Direct materials 17.00

Direct labour 18.50
Variable overhead 13.50
Fixed overhead absorption rate 16.00
49.00

Profit 20.00
Selling price 41.00

Budgeted production for the month was 7200 units although the company managed to produce 8000 units, selling
of29600
Question 2 What was the marginal costing profit for he month?
Question 3 What was the absorption costing profit for the month?

Question 2 Total variable cost 49.00

Contribution per unit -8.00
Total contribution -59200
Marginal costing profit -88800

Question 3 Fixed cost 4

product cost under absorption costing 53.00
Contribution per unit -12.00
Total contribution -88800
Absorption costing profit -118400
aged to produce 8000 units, selling 7400 of them and incurring fixed overhead costs
 Calculate
Date Units Receipt Azn/unit the Value Units
1-Mar Opening inventory 210 5
3-Mar Receipts 410 4.8
5-Mar Issues 220
12-Mar Receipts 280 5.2
24-Mar Issues 300

Question 4 Using the weighted average price method of inventory valuation, the costs of the materilas issued on 12 March w
Question 5 Using the weighted average price method ot inventory valuation, the value of closing inventory on 24 March was?

Receipt Issue
Quantity Unit price Amount Quantity Unit price Amount
1-Mar
3-Mar 410 4.8 1968

5-Mar 220 4.87 1071

12-Mar 280 5.2 1456

24-Mar 300 5.0 1501

4 We didn't issue on 12 March

5 Closing inventory is 380 units with the amount of 1902
 Issued
Azn/unit Value

aterilas issued on 12 March was?

g inventory on 24 March was?

Inventory
Quantity Unit price Amount
210 5 1050
410 4.8 1968
620 4.87 3018

400 4.87 1947

280 5.2 1456
680 5.0 3403

380 1902
Question 6
Question 7

Question 8

Question 6

Question 7

Question 8
Habibi MMC sells one product for which data is given below:

Selling price
Variable cost
Fixed cost

The fixed costs are based on a budgeted level of activity of 6100 units for the period.

How many units must be sold if Habibi MMC wishes to earn a profit of 17000) AZN for one period
What is Habibi MMC margin of safety for the budget period if fixed costs prove to be 20% higher than budgeted?

If the selling price and variable cost increase by 20% and 12% respecteively by how much sales volume change compared with
budgeted profit for the period?

Fixed cost=units*fixed cost of one unit

Required contribution= fixed cost+profit
Contribution per unit=selling price-variable cost
Number of units=required contribution/contribution per unit

fixed costs prove to be 20% higher than budgeted

Contribution per unit=selling price-variable cost
Breakeven point=total fixed cost/contribution per unit
Margin of safety=(Projected sales-breakeven point)/projected sales

Selling price=Selling price +20%

Variable cost=Variable cost+12%
Fixed cost
Required contribution
Contribution per unit
Number of unit
Change in volume
 21
17
13

e compared with the original budgeted level in order to achieve the original

79300
96300
4
24075

95160
4
23790
1.18%

25.2
19.04
79300 Units=x 25.2X-(19.04X+79300)=17000
96300 6.16X=96300
6.16 X=15633
15633
8442