Topics in Syllabus

Course Name: Principles of Accounting

2.00 Credits, 2hrs/week
Code: HUM 303

Topics in the Syllabus

1. Principles of Accounting: Accounts, Transactions, Accounting Procedures
and Financial Statements
2. Cost in Generals: Objectives and Classification
3. Overhead Costing
4. Cost Sheet under Job, Operating and Process Costing
5. Marginal Costing: Tools and Techniques
6. Cost Volume-Profit Analysis
7. Relevant Costing: Analyzing Profitability and Guidelines for Decision
Making
8. Long Term Planning and Control: Capital Budgeting
 Cost and Cost Sheet Analysis
• Items/Particulars Amount (Tk.)
Problem 1 Sales 800000
From the following particulars prepare a cost sheet
of ABC Company Limited for the Month of Raw materials purchased 150000
March 2018
Items/Particulars Amount (Tk.) Insurance of finished stock 13000

Opening stock of raw materials 100000 Internal transport cost 5000

Direct wages 200000 Professional fees paid to solicitor 12000

Factory power, heat, light

Warehouse wages 11000
and other expenses 19000

Closing stock of finished goods 10000 Legal expenses 2000

Bad debt 22000 Hire of accounting machines 7000

Opening stock of finished goods 40000 Finished goods warehouse expenses 6000

Abnormal loss of stores 8000

Remuneration of technical directors 25000

Personal department expenses 50000

Closing stock of raw materials 30000
 Continued…….Cost Sheet Analysis
Problem2
From the following information is given, Prepare a Statement showing the cost segments: a) Prime Cost
b) Factory /Works Cost c) Cost of Production d) Cost of Goods Sold e) Cost of Sales f) Profit

On 01.08.2017 on 31.08.2017
Tk. Tk.
• Stock of Raw Material 33,000 31,000
• Stock of Work in Progress 20,000 30,000
• Stock of finished Goods 50,000 60,000
Expenses During the Month were:
• Purchase of Raw Materials Tk. 2,58,000
• Wages Paid 1,20,000
• Factory Overheads 1,30,000
• Administrative Overhead 80,000
• Research & Development 50,000
• Selling & Distribution Overheads 70,000
• Sales 8,00,000
Continued……Problem 3

A company manufactures circuit breakers Miscellaneous Expenditure Estimated:

selling at Tk. 1000 each and the costing
data for the month of March 2019 Factory 48000
were as follows:
Office & Showroom 72000
Output- 3000 circuit breakers
Advertising 60000
Expenditure for the month: Tk.
Raw Materials consumed 600000
Wages-Factory 400000 It is estimated that all expenditure not
directly apportioned between the
- Office 200000
Office and Showroom is attributed
-Showroom 100000
1/3 to the Showroom and 2/3 to the
Rent and Rates-Factory 150000 Office. The company’s sales men
-Office & Showroom 75000 receive a commission of 10% on the
Power 300000 sale price of all circuit breakers sold,
Heating & Lighting-Factory 125000 and 2500 circuit breakers were sold
-office & Showroom during the month.
90000
Depreciation Draw up a cost statement from the
Machinery 40000 above.
Office Equipment 20000
Showroom Equipt 10000
Continued…….
Problem 4
From the records of a company distributing petrol, the following information is available for
the month of March,2019:-

Sales for the month : Rs. 7910000

Opening stock as on 1.3.2019 : 125000 litres @ Rs. 30.00 per litre
Purchases:
March 5 : 150000 litres @ Rs.31.10 per litre
March 27 : 100000 litres @ Rs. 31.20 per litre
Closing stock as on 31st March,2019 : 130000 litres
General Administration Expenses for
the month of March, 2019 : Rs.172000

From the information given above, work out the following using FIFO and LIFO methods of
inventory valuation, assuming pricing of issues being done at the end of the month:-

(a) Value of closing stock as on 31.3.2019

(b) Cost of sales for March,2019
(c) Profit or loss for March,2019
Continued…….
Problem 5
You are asked to show the price in a statement at which the company earn 10% profit on sales.
A ….. company manufactured and sold 1000 Table Fan during the year with the following
information-
Tk
Direct Materials 80000
Direct Wages 120000
Manufacturing Expenses 50000
Salaries 60000
General Expenses 20000
Rent, Rates and Insurance 10000
Selling Expenses 30000
Sales 400000

The company plans to manufacture 1200 Table in the year 2019.The following additional
information are available:
(a) Price of materials will rise by 20% on the previous years” level.
(b) Wage rates will go up by 5%.
(c) Manufacturing expenses will rise in proportion to the combined cost of materials and wages.
Continued…….
Problem 6

A manufacturing company provides you with a summary of its production

costs at three production levels:
Cost item 1000 units 2000 units 3000 units
Rs. Rs. Rs.
A 5000 5000 5000
B 1400 1800 2200
C 3000 6000 9000

i. Indicate the cost behaviour for the cost items.

ii. What would be the total cost if the company produces 2500 units?
Continued......
Problem 7
The cost of a scooter for the year 2017,the selling price being Rs.24000
each , is given below:

Direct materials 50% of total cost

Wages 30% of total cost
Overhead charges 20% of total cost
Profit 20% on selling price

In 2018, the price of materials and labour rate shall increase by 20% and 10%
respectively.

i. What will be the rate of profit if the selling price remains unchanged?
ii. What will be the selling price if the rate of profit remains unchanged?
• In the current quarter a company has undertaken two jobs