Suggested Solution CMAC-NA Test 1

Question - 1 SCH Limited

Inventory ledger card (Weighted average method) Marking
Date Particulars Receipts Issue Balance
Units Rate Amount Units Rate Amount Units Rate Amount
1-Mar Opening balance 1,000 452.00 452,000 1.00
9-Mar Purchases 8,000 581.00 4,648,000 9,000 566.67 5,100,000 3.50
(W-1)
10-Mar Issue to production 3,500 566.67 1,983,345 5,500 566.67 3,116,655 1.00
15-Mar Sale of damaged units 1,000 566.67 566,670 4,500 566.67 2,549,985 1.00
20-Mar Purchases 4,500 630.44 2,837,000 9,000 598.55 5,386,985 3.50
(W - 2)
22-Mar Issue to production 2,000 598.55 1,197,100 7,000 598.55 4,189,885 1.00
25-Mar Issue return (500) (567) (283,335) 7,500 596.43 4,473,220 1.00
30-Mar Issue to production 2,800 596.43 1,670,004 4,700 596.43 2,803,216 1.00
31-Mar Loss due to shortage 200 596.43 119,286 4,500 596.43 2,683,930 1.00
14.00

W-1 Purchase Cost of 1st Shipment W-2 Purchase cost of 2nd shipment

Purchase price 4,160,000 Purchase price 2,520,000

Import duties (4160000 x 25% x 40%) 416,000 Import duties (2,520,000 x 10%) 252,000
Transport & handling charges 60,000 Transport & handling charges 60,000
Transit insurance 12,000 Transit storage 5,000
4,648,000 2,837,000
Question 2 Rusty Limited
Marking
Variable Cost Fixed Cost
Scheme
Insurance premium 50,000 0.5
Electricity charges (W-1) 100,000 20,000 1
Repairs and maintenance (W-2) 24,000 70,000 1.5
Salaries and wages (W-3) 1,200,000 300,000 1
Depreciation (W-4) 600,000 800,000 1
Direct material cost 2,000,000 0.5
Rent 1,200,000 0.5
Other factory overheads (W-5) 750,000 250,000 1
Total 4,674,000 2,690,000
7
Workings:

W-1 Electricity charges

Variable charges (8 X 12,500) 100,000
Fixed annual charges (bal.) 20,000
Total 120,000

W-2 Repair and Maintainance

Part replacement (8000 X 6000/2000) 24,000
Annual overheads (bal.) 70,000
Total 94,000

W-3 Salaries
Production wages (80 X 15000) 1,200,000
Permanent staff salaries (bal.) 300,000
Total 1,500,000

W-4 Depreciation
Variable depreciation (100 X 6000) 600,000
Fixed depreciation (bal.) 800,000
Total 1,400,000

W-5 Other factory overheads

Variable overheads (50 X15000) 750,000
Fixed overheads 250,000
Total 1,000,000