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Kunal Kamal COST 96 Nikhil ADV ACC 77 Lakshay COST 70 Akila Banu FM ECO 66 Sidak Bhatia COST 62
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Sonam ACC 89 Shiv ACC 76 Kavya Trivedi ADV ACC 69 Disha Jawandhiya COST 65 Kapil Goel ACC 61
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Kaushal ADV ACC 88 Ansh Aggarwal COST 76 Amit Sharma COST 69 Harsh Gaur COST 65 Kartik Gupta COST 61
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Sushant ACC 87 Mitali ACC 75 Pushpa FM ECO 69 Gaurav COST 65 Vansh Chhajer FM ECO 61
Sakshi Kedia COST 87 Shreyansh Mittal FM ECO 75 Saloni COST 69 Rahul K V ADV ACC 65 Harsh Goyal ACC 61
Saurav Kalra COST 86 Daljeet Singh ADV ACC 75 Jas Karan Singh COST 68 Jalpabheda FM ECO 64 Shivam FM ECO 61
Swapnil ADV ACC 86 Roop Kishore COST 75 Harsh Setiya ACC 68 Akshit Ghagara FM ECO 64 Priyansh Parmar ADV ACC 61
Srashti Agarwal COST 86 Rajan ACC 75 Harsh 2 COST 68 Dristi Goel FM ECO 64 Priyansh Parmar FM ECO 61
Yatin COST 86 Ronak Jindal FM ECO 75 Yash Dubey COST 68 Shreya COST 64 Devansh Tripathi COST 61
Harleen Kaur ADV ACC 86 Rohit Kulkarni COST 75 Hardhik Arora ADV ACC 68 Vipin Kumar COST 64 Naveeta Kansal ADV ACC 61
Ankita COST 85 Sahil Chandak COST 74 Dheeraj Jain FM ECO 68 Madhav COST 64 Vinit FM ECO 61
Parth ACC 85 Anjana ADV ACC 74 Mayuresh ACC 68 Ananya Jindal ADV ACC 64 Sanskar Panda COST 61
Tushar Aggarwal COST 85 Sreecharan COST 74 Mitesh Bajaj COST 68 Daljeet Singh FM ECO 64 Shubham Kumar COST 61
Tushar Chaturvedi ADV ACC 84 Gourav Gupta FM ECO 74 Pratik Totlani FM ECO 68 Rahul Gajanan FM ECO 64 Vishakha COST 61
Abhishek Bhoraniya COST 84 Ishan Kothari COST 74 Pallav Agarwal COST 68 Iqbal ADV ACC 63 Vishakha ACC 61
Shivani ACC 84 Garima ACC 74 Khushi COST 68 Iqbal FM ECO 63 Ajay Palakar ACC 60
Suhavi Jindal COST 84 Honey FM ECO 74 Hardik Gupta COST 68 Sourabh ACC 63 Gourav Soni COST 60
Akshat Shah ADV ACC 84 Vansh Chhajer ADV ACC 74 Yashika Sharma ACC 68 Lucky Vijay COST 63 Jalpabheda ADV ACC 60
Varun ACC 84 Tushar Gupta ADV ACC 74 Naman COST 68 Nayan COST 63 Sahil Grover FM ECO 60
Kajal COST 84 Vinayak FM ECO 73 Somani Stuti COST 68 Devanshi FM ECO 63 Harshita FM ECO 60
Pranay Dhurka COST 83 Tushar Chaturvedi FM ECO 73 Anandita ADV ACC 68 Naveen ACC 63 Sourabh COST 60
Mansi Chouhan ADV ACC 82 Shreyas Varai COST 73 Bhavya COST 68 Rakesh COST 63 Prabhat ACC 60
Shyam Sundar COST 81 Tomar ACC 73 Kushagra FM ECO 68 Bhawna ACC 63 Gautam ADV ACC 60
Bharat FM ECO 80 Aaradhya Goyal COST 73 Abhishek Bang COST 68 Yash Khot COST 63 Kaushik Baruah FM ECO 60
Naveen Kumar COST 81 Harleen Kaur FM ECO 73 Moinuddin ACC 67 Vivek Dhruve ADV ACC 63 Tarun COST 60
Disha ACC 80 Kapil Patidar COST 73 Harshita ADV ACC 67 Bhawna Yadav COST 63 Jitanshu Jindal ACC 60
Vinayak ADV ACC 80 Harsh Setiya COST 72 Bhautik ADV ACC 67 Radhika Malu COST 63 Suchtra COST 60
Sahil Grover COST 80 Ritua ACC 72 Susmita Das COST 67 Abhishek K J COST 63 Madhav FM ECO 60
Mayuresh COST 80 Kshit Ghagara ADV ACC 72 Utsuk Varshney FM ECO 67 Santosh Kumar FM ECO 63 Vansh Thakral FM ECO 60
Mukesh FM ECO 80 Vansh Gupta COST 72 Kunal Goyal FM ECO 67 Vishal Manwani COST 63 Naveen COST 60
Ashna ACC 79 Kartikey Goel FM ECO 72 Vishal Manwani ACC 67 Sumit Somani COST 63 Rishabh Billorey COST 60
Tushar Pachauri COST 79 Jitanshu Jindal COST 71 Aviral ADV ACC 66 Raj Raghani ADV ACC 62 Anmol Jain COST 60
Yashika COST 79 Ritika Arora FM ECO 71 Abhishek Gupta ADV ACC 66 Girish Shankar FM ECO 62 Anisha FM ECO 60
Lakshmi COST 79 Vivek Gupta ADV ACC 71 Vedant FM ECO 66 Pranav Gandhi COST 62 Apurva Gobade COST 60
Ibrahim Asgar ACC 79 Ayush Gupta FM ECO 71 Tushant FM ECO 66 Gautam FM ECO 62 Naveeta Kansal FM ECO 60
Pranay Punyani COST 78 Ayush Kalam COST 71 Rythem Chalana FM ECO 66 Hardhik Arora FM ECO 62 Prarena ADV ACC 60
Fazal Mahmood COST 78 Mansi Chouhan FM ECO 70 Karthik Aswani COST 66 Shruti COST 62 Dhruvil Shah FM ECO 60
Sneha ADV ACC 78 Harsh Gupta COST 70 Bharti Shukla COST 66 Vishal Kumar COST 62 Isha Jain ADV ACC 60
Dhairya ACC 78 Kartikey Goel COST 70 Rishabh ADV ACC 66 Lalit ADV ACC 62 Chintan FM ECO 60
Ibrahim Asgar COST 78 Anjali Shaghal ACC 70 Keshav Garg ACC 66 Kavya Trivedi FM ECO 62
Subodh Gupta FM ECO 77 Vivek COST 70 Pranay Dhurka FM ECO 66 Ashish Agarwal FM ECO 62 And many more...
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CA RAHUL GARG of Feb. 2022 Results

Question 1
PR Ltd. manufactures and sells a typical brand of Tiffin Boxes under its own brand name. The
installed capacity of the plant is 1,20,000 units per year distributable evenly over each month of
calendar year. The Cost Accountant of the company has informed the following cost structure of the
product, which is as follows:
a. Raw Material ₹ 20 per unit.
b. Direct Labour ₹ 12 per unit
c. Direct Expenses ₹ 2 per unit
d. Variable Overheads ₹ 16 per unit.
e. Fixed Overhead ₹ 3,00,000.
f. Semi-variable Overheads are ₹ 7,500 per month upto 50% capacity & additional ₹ 2,500 per
month for every additional 25% capacity utilization or part thereof.
The plant was operating at 50% capacity during the first seven months of the calendar year 2012 and
at 100% capacity in the remaining months of the year.
The selling price for the period from 1st Jan, 2012 to 31st July, 2012 was fixed at ₹ 69 per unit.
The firm has been monitoring the profitability and revising the selling price to meet its annual profit
target of ₹ 8,00,000.
Suggest the selling price per unit for the period from 1st Aug 2012 to 31st Dec 2012.
Prepare Cost Sheet clearly showing the total and per unit cost and also profit for the period :
1. from 1st Jan. to 31st July, 2012
2. from 1st Aug. to 31st Dec, 2012
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Question 2
Compute E.O.Q. and the total variable cost for the following :
Annual Demand 5,000 units
Unit price ₹ 20
Order cost ₹ 16
Storage rate 2% per annum
Interest rate 12% per annum
Obsolescence rate 6% per annum

Question 3
KL Limited produces product 'M' which has a quarterly demand of 8,000 units. The product requires
3 kgs. quantity of material 'X' for every finished unit of product. The other information are follows:
Cost of material 'X' ₹ 20 per Kg.
Cost of placing an order ₹ 1,000 per order
Carrying cost 15% per annum of average inventory
a. Calculate the Economic Order Quantity for material 'X'.
b. Should the' company accept an offer of 2 percent discount by the supplier, if he wants to supply
the annual requirement of material 'X' in 4 equal quarterly installments?

Question 4
A job can be executed either through workman A or B. A takes 32 hours to complete the job while B
finishes it in 30 hours. The standard time to finish the job is 40 hours. The hourly wage rate is same
for both the workers. In addition, workman A is entitled to receive bonus according to Halsey plan
(50%) sharing while B is paid bonus as per Rowan plan. The works overheads are absorbed on the job
at ₹ 7.50 per labour hour worked. The factory cost of the job comes to ₹ 2,600 irrespective of the
workman engaged.
Find out the hourly wage rate and cost of raw materials input.
Also show cost against each element of cost included in factory cost.

Question 5
Standard time for a job is 60 hours; and hourly rate of guaranteed wage is Rs. 0.75. Because of
saving in time a worker A gets an hourly wage of ₹ 0.9 under the Rowan Premium Bonus System.
For the same saving in time, calculate the hourly rate of wages a worker A will get under Halsey
Premium Plan assuming 40% bonus is given for the time saved.

Question 6
A company has 2 production and 2 service departments. The data relating to a period is :
PD1 PD2 SD1 SD2
Direct materials (₹) 80,000 40,000 10,000 20,000
Direct wages (₹) 95,000 50,000 20,000 10,000
Overheads (₹) 80,000 50,000 30,000 20,000
Power requirement at normal 20,000 35,000 12,500 17,500
capacity operations (Kwh)
During Power Consumption during 13,000 23,000 10,250 10,000
the period (Kwh)
The power requirement of these departments are met by a power generation plant. The said plant
incurred an expenditure, which is not included above of ₹ 1,21,875 out of which a sum of ₹ 84,375
was variable and the rest fixed. After apportionment of power generation plant costs to the four
departments, service department overheads are to be redistributed on following bases:
PD1 PD2 SD1 SD2
SD1 50% 40% - 10%
SD2 60% 20% 20% -
You are required to:
a. Apportion the power generation plant costs to the four departments.
b. Re-apportion service department cost to production departments.
c. Calculate the overhead rates per direct labour hour of production departments, given that the
direct wage rates of PD1 and PD2 are ₹ 5 and ₹ 4 per hour respectively.

Question 7
Chunnu Ltd. has prepared the following Sales Budget for first 5 months of 2013 :
Sales (Units)
Jan 10,800
Feb 15,600
Mar 12,200
Apr 10,400
May 9,800
Inventory of finished goods at the end of every month is to be equal to 25% of the sales estimate
for the next month. On 1stJan, 2013 there were 2,700 units of product in hand.
Every unit of product requires two types of materials :
Material A : 4 Kg
Material B : 5 Kg
Materials equal to one half of the requirement of next month’s production are to be in hand at the
end of every month. It was also met on 1stJan, 2013.
Prepare the Production Budget and Material Purchase Budget.

Question 8
PVK Constructions commenced a contract on 1st April, 2014. Total contract value was ₹ 100 lakhs.
The contract is expected to be completed by 31st December, 2016. Actual expenditure during the
period 1st April, 2014 to 31st March, 2015 and estimated expenditure for the period 1st April, 2015
to 31st December, 2016 are as follows :
Actual (₹) Estimated (₹)
1st April, 2014 to 31st March, 1st April, 2015 to 31st Dec.
2015 2016
Material issued 15,30,000 21,00,000
Direct Wages paid 10,12,500 12,25,000
Direct Wages 80,000 1,15,000
outstanding
Plant purchased 7,50,000 -
Expenses paid 3,25,000 5,40,000
Prepaid Expenses 68,000 -
Site office expenses 3,00,000 -
Part of the material procured for the contract was unsuitable and was sold for ₹ 2,40,000 (cost
being ₹ 2,55,000) and a part of plant was scrapped and disposed of for ₹ 80,000.
The value of plant at site on 31st March, 2015 was ₹ 2,50,000 and the value of material at site was ₹
73,000. Cash received on account to date was ₹ 36,00,000, representing 80% of the
work certified. The cost of work uncertified was valued at ₹ 5,40,000.
Estimated further expenditure for completion of contract is as follows :
• An additional amount of ₹ 4,62,500 would have to be spent on the plant and the residual value of
the plant on the completion of the contract would be ₹ 67,500.
• Site office expenses would be the same amount per month as charged in the previous year.
• An amount of ₹ 1,57,500 would have to be incurred towards consultancy charges.
Required : Prepare Contract Account and calculate estimated total profit on this contract.

Question 9
Arnav Confectioners (AC) owns a bakery which is used to make bakery items like pastries, cakes and
muffins. AC use to bake at least 50 units of any item at a time. A customer has given an order for
600 muffins. To process a batch of 50 muffins, the following cost would be incurred:
Direct materials ₹ 500
Direct wages ₹ 50
Oven set- up cost ₹ 150
AC absorbs production overheads at a rate of 20% of direct wages cost. 10% is added to the total
production cost of each batch to allow for selling, distribution and administration overheads.
AC requires a profit margin of 25% of sales value.
Determine the selling price for 600 muffins.

Question 10
Star Ltd. manufactures chemical solutions for the food processing industry. The manufacturing takes
place in a number of processes and the company uses a FIFO process costing system to value work-in-
process and finished goods. At the end of the last month, a fire occurred in the factory and
destroyed some of the paper files containing records of the process operations for the month.
Star Ltd. needs your help to prepare the process accounts for the month during which the fire
occurred. You have been able to gather some information about the month’s operating activities but
some of the information could not be retrieved due to the damage.
The following information was salvaged :
1. Opening work-in-process at the beginning of the month was 800 litres, 70% complete for labour
and 60% complete for overheads. Opening work-in-process was valued at ₹ 26,640.
2. Closing work-in-process at the end of the month was 160 litres, 30% complete for labour and
20% complete for overheads.
3. Normal loss is 10% of input and total losses during the month were 1,800 litres partly due to the
fire damage.
4. Output sent to finished goods warehouse was 4,200 litres.
5. Losses have a scrap value of ₹ 15 per litre.
6. All raw materials are added at the commencement of the process.
7. The cost per equivalent unit (litre) is ₹ 39 for the month made up as follows :
Raw Material ₹ 23
Labour ₹7
Overheads ₹9
39
Required :
a. Calculate the quantity (in litres) of raw material inputs during the month.
b. Calculate the quantity (in litres) of normal loss expected from the process and the quantity (in
litres) of abnormal loss / gain experienced in the month.
c. Calculate the values of raw material, labour and overheads added to the process during the
month.
d. Prepare the process account for the month.

Question 11
A company operates a chemical process which produces four products: K, L M and N from a basic raw
material. The company’s budget for a month is as under:
Raw materials consumption ₹ 17,520
Initial processing wages ₹ 16,240
Initial processing overheads ₹ 16,240
Product Production Kgs. Sales (₹) Additional Processing Costs after split- off (₹)
K 16,000 1,09,600 28,800
L 200 5,600 -
M 2,000 30,000 16,000
N 360 21,600 6,600
The company presently intends to sell product L at the point of split-off without further processing.
The remaining products, K, M and N are to be further processed and sold. However, the management
has been advised that it would be possible to sell all the four products at the split-off point without
further processing and if this course was adopted, the selling prices would be as under:
Product K L M N
Selling price per kg. 4 28 8 40
Joint costs are to be apportioned on the basis of sales value realisation at the point of split-off.
a. Prepare the statement showing the apportionment of joint costs.
b. Present a statement showing the product wise and total budgeted profit or loss based on the
proposal to sell product L at split-off point and products K, M, N after further processing.
c. Prepare a statement to show the product wise and total profit or loss if the alternative strategy
to sell all the products at split-off stage was adopted.
d. Recommend any other alternative which in your opinion can increase the total profit further.
Calculate the total profit as also product wise profit or loss, based on your recommendation.

Question 12
The following information is available from the cost records of a Company for July, 2016:
1. Material purchased 22,000 pieces ₹ 90,000
2. Material consumed 21,000 pieces
3. Actual wages paid for 5,150 hours ₹ 25,750
4. Fixed Factory overhead incurred ₹ 46,000
5. Fixed Factory overhead budgeted ₹ 42,000
6. Units produced 1,900
7. Standard rates and prices are :
Direct material ₹ 4.50 per piece
Standard input 10 pieces per unit
Direct labour rate ₹ 6 per hour
Standard requirement 2.5 hours per unit
Overheads ₹ 8 per labour hour
You are required to calculate the following variances :
a. Material price variance
b. Material usage variance
c. Labour rate variance
d. Labour efficiency variance
e. Fixed overhead expenditure variance
f. Fixed overhead efficiency variance
g. Fixed overhead capacity variance

Question 13
The cost of a manufacturing company for the product is:
Materials 12
Labour 9
Variable expenses 6
Fixed expenses 18
45
The unit of product is sold for ₹ 51.00. The company’s normal capacity is 1,00,000 units. The figures
given above are for 80,000 units. The company has received an offer for 20,000 units
@ ₹ 36 per unit from a foreign customer.
Advice the manufacturer on whether the order should be accepted.
Also give your advice if the order is from a local merchant.

Question 14
Mr. X has ₹ 2,00,000 investments in his business firm. He wants a 15 per cent return on his money.
From an analysis of recent cost figures, he finds that his variable cost of operating is 60 per cent of
sales, his fixed costs are ₹ 80,000 per year. Show computations to answer the following questions:
a. What sales volume must be obtained to break even?
b. What sales volume must be obtained to get 15 per cent return on investment?
c. Mr. X estimates that even if he closed the doors of his business, he would incur ₹ 25,000 as
expenses per year. At what sales would he be better off by locking his business up?

Question 15
The Trading and Profit and Loss Account of a company for the year ended 31-03-2016 is as under :
Trading and Profit and Loss Account
₹ ₹
To Materials 26,80,000 By Sales (50,000 units) 62,00,000
To Wages 17,80,000 By Closing Stock (2,000 units) 1,50,000
To Factory Expenses 9,50,000 By Dividend received 20,000
To Administrative Expenses 4,80,200
To Selling Expenses 2,50,000
To Preliminary Expenses written off 50,000
To Net Profit 1,79,800
63,70,000 63,70,000
In the Cost Accounts :
a. Factory expenses have been allocated to production at 20% of Prime Cost.
b. Administrative expenses absorbed at 10% of factory cost.
c. Selling expenses charged at ₹ 10 per unit sold.
Prepare the Costing Profit and Loss Account of the company and reconcile the Profit/Loss with the
profit as shown in the Financial Accounts.

Question 16
A fire destroyed some accounting records of a company. You have been able to collect the following
from the spoilt papers/records and as a result of consultation with accounting staff in respect of
January, 2013 :
(i) Incomplete Ledger Entries:
Raw Materials A/c
₹ ₹
Beginning Inventory 32,000
Work-in-Progress A/c
₹ ₹
Beginning Inventory 9,200 Finished Stock 1,51,000
Creditors A/c
₹ ₹
Closing balance 19,200 Opening balance 16,400
Manufacturing Overheads A/c
₹ ₹
Amount Spent 29,600
Finished Goods A/c
₹ ₹
Beginning Inventory 24,000 Closing Inventory 30,000
(ii) Additional Information:
1. The cash-book showed that ₹ 89,200 have been paid to creditors for raw-material.
2. Ending inventory of work-in-progress included material ₹ 5,000 on which 300 direct labour
hours have been booked against wages and overheads.
3. The job card showed that workers have worked for 7,000 hours. The wage rate is ₹ 10 per
labour hour.
4. Overhead recovery rate was ₹ 4 per direct labour hour.
You are required to complete the above accounts in the cost ledger of the company.

Question 17
A truck starts with a load of 10 tonnes of goods from station P. It unloads 4 tonnes at station Q and
rest of the goods at station R. It reaches back directly to station P after getting reloaded with 8
tonnes of goods at station R. The distances between P to Q, Q to R and then from R to P are 40 kms,
60 kms, and 80 kms, respectively.
Compute 'Absolute tonne-km' and 'Commercial tonne-km'.

Question 18
From the following data pertaining to the year 2012-13 prepare a cost sheet showing the cost of
electricity generated per k.w.h. by Chambal Thermal Power Station.
Total units generated 10,00,000 k.w.h.
Operating labour 15,00,000
Repairs & maintenance 5,00,000
Lubricants, spares and stores 4,00,000
Plant supervision 3,00,000
Administration overheads 20,00,000
5 kWh. of electricity generated per kg of coal consumed @ ₹ 4.25 per kg. Depreciation charges
@ 5% on capital cost of ₹ 2,00,00,000.

Question 19
Following are the information given by an owner of a hotel.
You are requested to advice him that what rent should be charge from his customers per day so that
he is able to earn 25 % on cost other than interest.
1. Staff salaries ₹ 80,000 per annum.
2. Room attendant’s salary ₹ 2 per day. The salary is paid on daily basis and services of room
attendant are needed only when the room is occupied. There is one room attendant for one room.
3. Lighting, heating and power. The normal lighting expenses for a room if it is occupied for the
whole month is ₹ 50. Power is used only in winter and normal charge per month if occupied for a
room is ₹ 20.
4. Repairs to building ₹ 10,000 per annum.
5. Linen etc. ₹ 4,800 per annum.
6. Sundries ₹6,600 per annum.
7. Interior decoration and furnishing ₹ 10,000 annually.
8. Cost of building ₹ 4,00,000; rate of depreciation 5 %.
9. Other equipments ₹ 1,00,000; rate of depreciation 10 %.
10. Interest @ 5% may be charged on its investment of ₹ 5,00,000 in the building and equipment.
11. There are 100 rooms in the hotel and 80% of the rooms are normally occupied in summer and 30%
of the rooms are busy in winter. You may assume that period of summer and winter is six month
each. Normal days in a month may be assumed to be 30.

Question 20
ABC Ltd. Manufactures two types of machinery equipment Y and Z and applies/ absorbs overheads on
the basis of direct-labour hours. The budgeted overheads and direct-labour hours for the month of
December, 2006 are ₹ 12,42,500 and 20,000 hours respectively.
The information about Company’s products is as follows :
Equipment Y Equipment Z
Budgeted Production volume 2,500 units 3,125 units
Direct material cost ₹ 300 per unit ₹ 450 per unit
Direct labour cost
Y : 3 hours @ ₹ 150 per hour ₹ 450
X : 4 hours @ ₹ 150 per hour ₹ 600
ABC Ltd.’s overheads of ₹ 12,42,500 can be identified with three major activities :
Order Processing (₹ 2,10,000), machine processing (₹ 8,75,000), and product inspection
(₹ 1,57,500). These activities are driven by number of orders processed, machine hours worked, and
inspection hours, respectively. The data relevant to these activities is as follows :
Orders processed Machine hours Worked Inspection Hours
Y 350 23,000 4,000
Z 250 27,000 11,000
Total 600 50,000 15,000
Required :
1. Assuming use of direct-labour hours to absorb/ apply overheads to production, compute the unit
manufacturing cost of the equipment Y and Z, if the budgeted manufacturing volume is attained.
2. Assuming use of activity-based costing, compute the unit manufacturing costs of the equipment Y
and Z, if the budgeted manufacturing volume is achieved.
3. ABC Ltd.’s selling prices are based heavily on cost. By using direct-labour hours as an application
base, calculate the amount of cost distortion (under-costed or over-costed) for each equipment.

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CA RAHUL GARG of Feb. 2022 Results

product, which is as follows:

a. Raw Material ₹ 20 per unit.

b. Direct Labour ₹ 12 per unit

c. Direct Expenses ₹ 2 per unit

d. Variable Overheads ₹ 16 per unit.

e. Fixed Overhead ₹ 3,00,000.

month for every additional 25% capacity utilization or part thereof.

at 100% capacity in the remaining months of the year.

1. from 1st Jan. to 31st July, 2012

2. from 1st Aug. to 31st Dec, 2012

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Annual Demand 5,000 units

Storage rate 2% per annum

Interest rate 12% per annum

Obsolescence rate 6% per annum

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Cost of material 'X' ₹ 20 per Kg.

Cost of placing an order ₹ 1,000 per order

Carrying cost 15% per annum of average inventory

a. Calculate the Economic Order Quantity for material 'X'.

the annual requirement of material 'X' in 4 equal quarterly installments?

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PD1 PD2 SD1 SD2

Direct materials (₹) 80,000 40,000 10,000 20,000

Direct wages (₹) 95,000 50,000 20,000 10,000

Overheads (₹) 80,000 50,000 30,000 20,000

Power requirement at normal 20,000 35,000 12,500 17,500

capacity operations (Kwh)

During Power Consumption during 13,000 23,000 10,250 10,000

the period (Kwh)

departments, service department overheads are to be redistributed on following bases:

PD1 PD2 SD1 SD2

SD1 50% 40% - 10%

SD2 60% 20% 20% -

You are required to:

a. Apportion the power generation plant costs to the four departments.

b. Re-apportion service department cost to production departments.

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Every unit of product requires two types of materials :

end of every month. It was also met on 1stJan, 2013.

Prepare the Production Budget and Material Purchase Budget.

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to 31st December, 2016 are as follows :

Actual (₹) Estimated (₹)

Material issued 15,30,000 21,00,000

Direct Wages paid 10,12,500 12,25,000

Direct Wages 80,000 1,15,000

Plant purchased 7,50,000 -

Expenses paid 3,25,000 5,40,000

Prepaid Expenses 68,000 -

Site office expenses 3,00,000 -

work certified. The cost of work uncertified was valued at ₹ 5,40,000.

Estimated further expenditure for completion of contract is as follows :

the plant on the completion of the contract would be ₹ 67,500.

• An amount of ₹ 1,57,500 would have to be incurred towards consultancy charges.

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Direct materials ₹ 500