Cost accounting bcom

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COST ACCOUNTING

UNIT COSTING -COST SEEET-TENDER Prob. No.lL Prepare Cost Sheet from the following: Rs,

Opening Materiala

39,850

Opening Work-in-progress

60,850

Puurubase of materials

.1,43,250

Direot Wages:

B78,500

Works overieads

1,4280 1.12,700

Ofice.overheads *.

Closing Mateiais

37700 **** 67,750

Closing Work-in-progresa

,

Salés for the year.

8,60,625

Fiom tho:Ebllowing partioulars prepare cost statemerntfotthe year cnding 31-12-94 .

R3:

Stock of raw materials i-1-94

1:26,900

Finished, goods 1-1-94

57,500.

1.63,400

Raw materials 31-12-94 Finished goods 31-12-94

S8200

Puirohased of Raw materials

.

Sale offinished goods. on piüobiaišes iage Carnge on Sales Direot Wages

93700 **

3. 20

29900 1,51200

Indireot Wages Manufacturing Bxpenses

Salaries

29400

Renis, Taxes & Insuranoe

28,500

Light

& Pawer

Repairs to premises

7,500 3,000

e

74

Officc Fxpenses

7.500

Debentuse interest

32.200

Inoomc Tax

to Repairs to premises are and Power & Light 1/5thRent, Rates and Insurance be treated as Oice charges.

Prob. No.3

prepare a cost ghect.

From the following partioulars

Stock or raw materials Work-in-progress Stock of finished goods

On 1-493: 30,000 ,12,000 60,000

On, 31-3-94

25,000 15,000

55,000

Transactions during the year: inward Wages paid Rs.2,30,000; Cariage Rs.4.50,000; raw materials Purohase of Rs.30,000 Seli Rs.90,000; Offico overheads overheads Factoy Rs.20,000; Rs.9,00,000. overheads Rs.20,000; Sales

Prob. No4 ycar end prepare'a oost statement for the infotpnation, follöwing.

From the .

31-12-93.

Stock of Raw materials

Work-in-progres.

Stock of inishod,gooda During the year Purchase of materials Carriage inwards Wages Works Managers Salay

Factory cmplöyee's Salaries, Power Offfce Staff Salaries

General coxpeñaes Solling cxpenses

'-

On 1-93

On.31-12:93

30,000 18,000

40,000 .

10,000

8,000

6,000O

5,00,00d 12,500 1,50,000 20,000 50,000

10,000 42,000 32,000

9,500

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200

Sundry Office crxpenses

3.800

Works Cxpenses

Advertisngs

:i

Sales Dept. Salaries

Factory stationery

750

Delivery Van expenses

Office Stationery

900

Bank changcs Commission on sales

1,5)

The output for the period is 14,775 tonnes.

Prob No2 Mr. Gopal finishes the following data relating to the manufacturing ofa Standad Produot during the month of Jan., 1994: Rw

matorial oonsumed

Rs.20,00

Direct labour

Rs.10,000

Machine hours worked

1,000 Hrs

Machinc hour rate

Rs.S

w:ho

Administrative overheads - 20% on works cost Selling overheads 50 paise per unit

Direct expenses

Rs.5,0000

Units produccd

24,000 units

Units sold 20,000 @ Rs.3 each .

You are required to prepare a Cost Sheet from the above showing (a) cost pcrr unit and (b) Profit per unit sold and (o) profit for the period.

Prob No.10 From the following data relate to a manufaoluring concern for two wecks to 19th Oct., 1988 Raw material consumed

Rs.20,000

Direct Wages

Rs.12.0000

Machine hours worked 950 hrs.

Machine hour rate

Rs.2 **

Office overheads

Selling overheads

15% on works cost

-

-

37 paise per unit

Unit produced 20,000 units Units sold 18,000 at Rs.2-50 eaoh You are required to prepare a Cost Sheet in respect of the above, showing (1} Cost per unit and (2) The profit for the period.

' ' ' ' Tvekaanda ieree 'Coliege *''*

Prob. No.11

**

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PiPnal . '

From the following particulars prepare 2) Profit for the a Cost Sheet showing month

ofJanuary 1991.

Materials consumed Direct iabouir Machine worked

Machine

for

hourthell

Administrative overheads

Sclling overheads -

Ëe

,.#'

(1) Cost per (.

Rs.15,000o

Rs.9.000

900 hours

kzuv.

Rs.5

P 20% on

works,cost

Rs.0-50 per unit

Units produced 17,100 units Units sold 16,000 @ Rs.4 per unit

Prob. No.12

.

The following information

has been obtained, Electronics a manufacture from the records of T.V Sets: of MS. New a) Material cost per T:V. Set-Rs.450 b) Wages per T.V

Set-Rs.250

Charge 60% of Wages Charge 20% of Prime

as works cxpenses

Cost as ofice expenses No.of units manufacturcd and sold 4:000 Sale price per T.V. Set - Rs.2,000 Thore was no opening Stook or Closing Stock raw and finished goods. of materials work-in-progress Propare a Cost Shect showing profit as per costing records Prob, No.13 Prepare a monthly Cost Sheet per 1000 Brioks, for April 96, from information: the followingg

Materials:

Rs.

Coal

31,500

Royalty

5,500

Stores

Labour

15,000

Brick making

50,000

Indireot

15,000

Lakhs of Bricks produced

74 lakhs Stook on April 1st '96 - 2 lakhs

6

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Conii

Rs.27-50 per 1000) 70 lalchs

( Stock on April 30th 96 Sales

Final Degree

*

lakhs

You are assumed that opening Stock Cost is ns per April Cost.

Prob. No.14

Ina factory tvo types of mdiocs are manufacturcd, viz. Orient and Sujan molels.

From the follewing particulars prepare a statement showing cost and profit per ratio sold. Thcre is no opening or olosing stock.

Orient

Sujan

Rs.

Rs.

Materials

27,300

1.08,6$0

Labour

15,600

62,920

Work overheads is obarged at 80% on labour and ofioc överheads in taken at 15% on Works Cost. The Selling price of both rådioes is Rs. 1,000. 78 Orient Radioes and 286 Sujan radioes were sold.

Prob, No.115 The followig extract of Costing information relates to commodity X for the year ended 3lst Dec., 1992.

Rs. Purchases of raw materials Direot Wages Rent. Rates, Insurance aaE

Carriage invards

60.000 50,000

concost.

20,000 1,000

Stook on lst Jan., 1992

Raw materials: Finished products (2000 tonnes)

Stock on 31st.Dec., 1992: Raw materials

Finished produots (4,000 tonnes) WIP

1st Jan., 1992

WIP 31st Dec.. 1992

Cost of factory supervision Sales (finished product)

10,000

8,000

11.000

16,040

2.400 8.000

4,000

1,50.090 Advicrtising, ScllingCost are Rs.0-40 per tonne Sold. 30.000 Lonnes of'the comnodity were produced durng the ycar

' FI

AAnunGu'DeIee

Ascerta:

CCailas

(a? The Cost

...

'****'*'* ..

b)The Netprofit per ofuntpit of the period and tonne.

Prob.No.l6

In a factory

Ra PezrieLsi27:

the est per totne of production

two:types

the follewing Cycles were partioulars, of manufactüred paropårc staveruent /in.. Rusf and.Tuff. vole. showing cost From per unit and profíl pur Marcrials

w.

Wages per

unit Scling prioe Works on Cost

Ruff

Tuff

Rs.

Rs

40

S0

20

per unit

30

100

is charged 150 Cost RuffCyoles 802onvages and 12,000: TuffCVeles Oficc on Cost Profit. on Works 8400weremanufactured Prob.No.12 and sold.

Calculate

20%

In a faotory two types of artioles the following are mannufactured.Viz, particularsprepareastatemont and ascertain cost showing No.l and No.2. From the total profit. of There is no opening or closingtotal cost of cach variety stock.

No.1 No.2 Matcrials Rs Rs.

30,000

Wages

50,000

60,000

Works ou Cost

70,009 20% ontetacost is chargedat 40% Erestand No.l article sold No.2 artioles Oficeon Cost taken during the sold are 200 pcriod are 180 is at Rs.1500 ecach.

Prob. No.18 @ Rs.1200 cach and

ofee

Prepare a Cost Sheet

manufactured

Stock of Raw

by a Co., for

material

to shoy 1he total the month'of Julv cost.and Cost per Unit,.

1998. of goods Rs..

on 1-7-988

Raw maurials purchased Stock of Raw-metarials on 31-7-98 Productive wages Loss ou Salc of part of Plant

3,000

28,000

4,500 7,000

300

Factory Rent,

Rates

Other rent

General expenses

Rs. 3,000

500

Advt. cxpenses

400

Income Tax

600

paid Dep. on Plant

2,000 1,500

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Evekunanda Dcgrer Collegc ''*** **'

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Final Degree

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Costig

The Number of units produced during July 98 was 3,0f). "The Stcek of tinislhed DLOds was 200 and 409 units on 98 rcspectivcly. The tutai cont et was 1-7-98 the units on hand en 2.300°All these brcn «old dring the

9an

merth

QUOTATIONS / TENDERS Prob.Nol2

The following particulars are available from the books of a companv.

Prepare statenent showing.: (a) Cost of Materiajs uscd (b) Ptirne Cost (c) works aTotal Cost (o) %age of works ovcrheads to Wagcs () %% uge of ndministrativeCost and seling overheads to Works Cost.

Rs. Stook of finished goods 1-1-94

28,000

Stock of rawmaterials 1-1-94

12.800

Purchasc of raw materials

2.92,000

Direct Wages

1,98,000

Sale of finished goods

5,92,000

Stock of finished goods 31-12-94

30.000

Stook of raw materials 31-12-94

13,600

Works overhead charges

43.736

Administration & Selling overhead charges

88,956

ompany is about

to send a tender for tho supply of a certain machinery. It is estimatri that the materials required woüld oost Ri.20:00ind the direct wages wvuld be Rs:12,.000. the Tender is to be made at a Net Profit of 20% on the Selling Price.

State what the amount of the tender would,be it based on the above % ages. rob. No.20 The

Prepare

&ost statement from he

following

Rs. Stock 1-4-93 Ravw mate1.ials

66,560

Stock 1-4-93 Finished Gourd

1,45,600

Stock 1-4-94 Raw materialss Stook 1-4-94 Finished Goods

70,720

56,000

Purchase of materials Produotive Wages

15,18,400A

Sales

30.78.400

10.33.760

Works expenses

2,58,4400

Office expensesS

1,40.323

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n Sales is cxp*rted hl is tlh: sellin: Job 1equiring mateTials Rs.52.(00t0 and wages Rs.31,200

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Prob No.21

The following igures have been taken from the books of

Purohase of

firm

:

Rs.

Raw materials

Finished gonds:

a

.

Opening Stock

80.000

Closing Stuok

60,000

Opening Stock Closing Stock

nv naterials

Direot Wages

20.000 15,000

3,00.000 2,40,000 2.40,000b

Factory expenses Office overheads

1,00,000

Sales

9,79,000

Prepare Cost Sheet and on its basis find out the price that can be quoted for a Job requiring Rs.4.000 in materials and Rs.6,000 in Wages. Factory overheads are to be caoulated as a % age of wages and officed overheads as a % age of Works Cost. Rate of Proit is to be tho same.

Prob. No.22 The following figures relate to

a fan manufactures for thee months ending 31-12-92 Rs.

Opening Finished Stook 1-10-92

Nil

Closing Finished Stock:31-12-92

20,250

Opening Stook of Raypaterials Closing Stook of Raw matciials

5,000

3.Su0

Wages

75,000

Indirect oharges

12,500

Materials

Sales

purchased

32,500 1,12,500

No. of fans manufasdaured j3,000. Prepure a statement showing Cost.per fan and the prioe Iss be quoted for 750 fans to realiso the samo % age of profit as way realised sast three months.

2e

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Prob.

iul

Degree CGSing -

No3 Thc following particulars have been cXtracted fiom the accouns of Srinivasa Manufaoruring Co., for the year ended 31st Deo., 1991

Rs. Opening Stock of Raw matcrials

1,00,000

Purohasc of Raw materials

24,00,00

Carriage of Raw materials

1,20,000

Wages of manual and machine labour for

maufacturing motor oars

14,00,0000

Works overheads expenses

3.92;000

Establishment and general charges

2,98,340

Closing Stook of Raw materials

1.50,000

Find

out works.cost and Total Cost of genregal charges to Works Cost.

Motor: Cars, the % age establishmert and

Work out what pricc the co., should quote for a Motor Car, which is estimated. will require an expenditure of Rs.11,000 in Raw matcrials and Rs.8,000 Wages so that in it would yield profit at 25% on the total and at 20% on Selling Gest Price Prob. No.24 The igures have been obtained from the, cost records of X nanufacturing Company for 1998

Rs.

Cost of matcrials

2,40,000

Wagcs

2,00,000

Factory overheads

1,20,000

Distribution cxpcses

56,000

Administrative expenses Selling expenses

1,34,400

Profit

1,68,000

89,6C0

A Work order was exxecuted in 1999 and tho materials to be inourrod towards Rs.32,00) and Wages Ra.20,000. Assuming that in 1999 the faotory overhead went up by 20% distribution oharges went down by 10% and selling and administrative expenses went up by 12 1/2% at what price should prodiuct ofthe company Be quoted so as earn the same rate of profit ea.

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No.

osting

The direotors of M/S Aswani Co.. Lid.. gre you the tolowiy iniormat relating to the produotion nation of 400 machitnes during the ycar i990.

Rs

Cost of materials Wages

9,60,000

Manufaoturing expenses Depreciation

4,00,000

4,80,000

Rent; Rafes & Insuranco

80,000

Administrative expenses Selling expenses

1,50,000

2.40,000

Sales

36,00,000 The directors plan to manufacture 6,00Rmachines during they request yo to help the ycar 1991 and them in'submitting a statement showirnig the machines would be sold, price at which the so as to.show a profit f20% on selling price. Thex you the following additionnl information. firmish,. a) Price of materials is expeoted to aise by 20%. b) Wage rates are expected to increase by 10% Manufacturing expenses will rise in proportion materials and wages. to the combined cost of Selling exxpenses per unit wil remain ihe same.

Other expenses will remainiupnaffected by the increase output.

Prob. No.26 in

Co

gl

Following are the particulars obtained from the iecords Engineering Works Ltd. of M/S. Saptagiri During the year 1990 the Co, manufactured maohines. Cost details 4,000 sewing are as follóws Cost of materials

Rs

Wages paid

3,20,000

Manuaoturing expenses

4,80,000

Depreciation

2.00,000

Rent, Rates and Taxes

2,40,000

Selling expenscs

40,000

Gcneral expenses

1,20.000

Sales

80,000

36,00,000

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Fivekanandu Degree College

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13

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The Co. intends to manuiaciure s,0II SCviny machinc ir 1991 required to submit a.statene:' sthowng the price at which machines should be se also as to show prefit of 20% on Sales. The Co., gives you the following adlitionm.j information.

1)

The price of materials will

2)

Wages rates will rise by 5%.

3)

Manufacturing expcnses will and wages.

4)

Selling expenses per unit wil increase by 50 P

5)

Other expenses will' remain uneffeoted by rise in output.

tiso

by 20%

rise in

on provious years level.

proportion to the coabined cost of mateials

Prob. N2 A Co., manufactures T.V. sets and sells them at Rs.3,600 per unit.

An increase of 15% in the cost of materials and of 20% in the labour cost is anticipated.

These increased costs in relation to the present sales price would cause a 25% decrease n thé amount of the present gross profit per umit.

At present the cost of Sales consists of Material Cost

50%

Wages

25%

Ovcrheads

20%

Prepare a statement of prost per unit at present and ascertain ilhe new se!line price to produce the same % age of profit to the cost of sales as before..

Prob. No.28 On August 15th, 1988 a manufacturer desired to quote for a contraot for th« supply of 500 radio sets. From-tho following details prepare a statement, showing tho price to be quoted to" giv ie samc % Net Profit un turnover as was

a

months cnding on 30th June

relaisd during Opening geokof mäterils Rs.20,00 Stook ofmaterials Rs.25,000; Purohases Rs.1,50,00m; actér Wages Rs.1,20,000: Indireot charges Rs.25.000 Closing Stook of finished gods 100 units, Sales Rs.3,24,000.

The number of Radio sets manufactured during these six moths was 1450 set inoluding those sold and those stocked at the end of the period. As from 1st Augist the cost ofactory Tabour bas goneup by 10% and materials by 50%. '

Erob No2 From the following clata prepare cost statement of popular stoves manutaotniu Co.. for the year 1988.

7veran(A61da '''

Degree Loilege *''''''*'****

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Ra Stock ot materials on 1-1-88

35.000

Stock of 'materials on 31-12-88 Purchases

oiscct Factory Wages ) Factory expenses

ec

0

Establishment expcinses

4,900 52,500

95,000

17,500 O

Completed Stock on hand 1-1-88 (Completed Stock on band 31-12-88

10,.000

Nil 35,000

Sales

1,89,000 The No. of Stovos produoed during the year was 4,000. The Co., wants to quote for a contract for the supply of 1000 stoves during the year 1989. the Stoves arc of the same quality but cost of the materials has increased by 15% and Jabour by 10%.

Prepare a statement showing the priçe to be quoted to give tho same % age of profit on turnover as was realised during the year 1988, assuming that the cost per unit of overhcad charges will. the same. as in the previous years.

Prob.No.30 Electronios Ltd. turniskes.the following information for 10,000 LV valves produced during the year. 1995.

Materials

Rs.90,000; direct Wages Rs.60,000; Power and consumable stores Rs.12,000; Factory indirect wages Rs.15,000;Jighting of factory Rs.5,500; degsotive.

work (costof reotification) Rs.3,000 (normal). Clerical Salaries Rs.33,500 Selling expenses Rs.5,500 Sale procecds of Scarp Rs.2,000; Plant repairs, depreciation Rs.11,500; Tho Net selling price was Rs.31-60 par ynit sold, all the units were sold.

As from 1st Jan., 1996, the seling price was.reduced to Rs.31 per unit.

Rates for materials and direot wages will inorease by 10%. You are requircd to prepare. a) Cost Sheet for the ycar 1995 showing the various elements of oost and cost per unit.

6)

Estimted cost and profit for 1996 showing the various elements of cost and cost per unit.

Estimated cost and profit for 1996, assuming that 15,000 volves will be produoed and sold during the year. Factory overheads will be recovered as a % age of. direct wages and ofice and selling expenses as a % age of works cost.

inu

College

Degree ivekananda ****'*'. ''**'

Degree Costiny

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Prub. No.31

manufecturing 4000 units. Materials Rs.15.00 The following is the cost of overhcads Rs.14.000: Varralbie LDireot expenses Rs.300. Fixed Rs.2,0000 Wages overheads Rs.3,000.

thc 1000 units (uver and above 4000) manufaoturing for that It is estimted following rate manufacturing cost will increasc in the proportionately.

Materials will increase a) proportionate amount.

Wages will be 10% less than the b)

increase.

Direct expenses vill not proportionate amount. be 10% less than the wil overheads Fixed d) and show by how muoh amount tbis Calculate the cost to produce 7000 units of direct wages. vere oharged at cost ivold diffcr if all factoroverheads

Prob No.32 Refrigerators 'in the year sold:1000 and produced Ltd. Cooling The Navecn A/o is set below summarised Trading &1L ending 31st Dee., 1989. the B Sales 80,000 To Cost of materials 1,20,000 Wages

4,C0,00

"Direot

"

50,000

Manufacturing cost

1.50.000

Gross profit

4,00,000

4,00,c00 60.000 To Management & Stañf salaries

"Rent, Rates, Insurance

10,000

Selling expenses expenses

30,000

"General Net Profit

or a b)

By Gross Profit

20,000 30,000 1,50,000

1,50,000o

is estimated that the year eriding 31st Deo., 1990, il *' units.

Output and Sales will be 1200

Priocs of materials will rise by

20%%

:

on tlie previous years level.

Wages will rise by 5%. d) e)

1.50,000

combnei cst os nmuterin: Manufacturirng cost wiil rise in propotion to the and wages Sclling cost per unit will remain unohagged.

Other expenses vil! remain uneffccted by rise iu the outpui

*'* ivekananda Degree College

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Prepare a cost statemeTil, showing the price nt vuch thc reiregeraiors marked so as te shovv a profít of 10% would en the selling price be

Prob. No.33

From the following information obtained from costing records, caleulate minimum prico at vhich the output of a manufacturing the cornpany cen be sold Production and Sales: 100 unita

Rs.

Materials

Labour .

Rs.

6,500

".3,50o

Direct Expcnses

Scling Overhcatks

500

Works Overheads

The company, désires

Officc Ovetheads

3,500

Profit

a)

are cxpected to táke place: 40% of works overheads directly

b)

70% of selling overheads

d

.

1,600

2,500

Sales

19.500

to produce 500 units.

The following changs'

1,400

flutate withproduction.

directly fluctuate . with prcduction.

Laboir Charges pet unitfo be reduced by 20%

Fixed works on cost is

to be increased by Rs.1,500/

Ofice overheads and fixed

increase of 25%.

No changes are anticipated

Prob. No. 34

selling overheads charges

are expcoted to shou

m

with regard to other oxpcnšes.

From the following particulars you are required to prepare a) Cost of materials consumed a statement showing; b) Prime cost c) Works cost d) Total cost e) % works overbead to produotive wages and ) the % age of general overhead age of cost. to works 1-1-97 Stook of finished goods 1-1-97 Stock of Raw materials 1-1-97 Raw materials beught 1-1-97 Productive wges

314-97 Sale of finished goods 31-12-97 Stook of finished 31-12-97 Stook of Raw

goods

materials

31-12-97 Works overhead

charges

31-12-97 Office and geocral overheads

Rs.

72,800

33,280 7,59,200 5,16,880 15,39,200

78.000 35,360

1,29,20 70,161

'*''''''"

Vkanrasdu Vivekananda **°'**°**°*''*

Degree Colfege iEgre

5.....

Final Degrei

Cvsting

a The crstr: Jupi The company is about tu send a tenkier Jor larg* plal wages to workinen fen estimated that materials required would cost Rs.52.000 and net zprt oi is making the plant would cost Rs.31.200. The tender to be nade at 20% on sclling price.

Show wbat the anount of tender would be if based on the aboro percentages

inal

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D

MATERIAL PRICING.viATERiAL ISSUES Prgb.No 1

Cost

-

From the following clata prepare stores ledger A/o by FF() 1-1-96 Opening stock

200 units

3-1-96 4-1-96 7-1-96

9-1-96 10-1-96

Rs.3

cach

and LIFO methel nods:

Purchased 300 Units @Rs.4 cach Issued 250 units

Purchased 100 units @Rs.2/- caoh Issued 50 units urohased 300

ujits Ri.3 cach

11-1-96

Issued 200 units On Sth January, 1996 stock is vorificd and 10 units of shortage Prob.No.2 is identified.

Show the stores ledger entries as they would appear whon methods: using FIFO and LIFO Ist April, 1989 Balancc300 Units, vaiue Rs.600 2nd April, 1989 Purohases 200 units, value Rs.440 4th April, 1989 Issues 150 units 6th April, 1989 Purchases 200 units; value Rs.460 17th April, 1989 Issues 150 units 19th April, 1989 Issues 200 units 22nd April, 1989 Purchases 200 units, value 27th April, 1989 Rs.480 Issues 250.units Prob.No.3 Prepare Storcs

Date 1-3-89 18-3-89

30-3-89

ledger under

FIFO.&LIFQ methods Receipts

OtvUnitn)..ate.per 200

300 100

anif 20-00.

18-00 16-00

Issues

Date 4-3-89 10-3-89

30-3-89 31-3-89

Qtv(inits 100.

S0

250 100

:vek

aitaa Begree

Coilu''''**'

Prob.No.4

.

Pinat Desr'*

:

Mr. R a textile dealer coinmenced business on 1-1-89. Textile include two rypes M& N. neterials uei During six months ended 30 th June, were as follows 1989 purchase,

4-1-89

6-1-89 18-3-89 16-4-89 26.5.89

S00 mtrs.

of type M@ 20/- per mtr.

800 mtrs. of type N@ 30/-per mtr.

1150 mtrs. of type M@ 24/- per mtr.

1500 mtrs. of type N@ 32/ pet itr.

400 mtrs. of type M @ 19/-per mtr.

Issues were as follows :

7-1-89

350 mtrs of M

12-1-89

600 mtrs of N

28-3-89

710 mtrs of M

22-4-89

1430 mtrs ofN

16-89

790 mtrs of M Prepare stores ledger by FIFO and LIFO methods.

Prob.No.S Fron the following prepare storcs ledger A/eby LIFO metiiod Jan 2nd Purohases 4000units @Rs.4 per

Jan

20thb

init

Pruohased 500lmits @Rs.5 per

uit

Feb 5th

Issued 2000 units

Feb 10th

Feb 12th

Purchased 6000 urnits @Rs.6 per unit Issued 4000 unit

March 2nd

Issued 1000 units

March 5th

Issued 2000 units

March 15th

Purchased 4500 units Rs.5-50 per unit Issued 3000 units

March 20th Prob.No.66

Prepare the stores ledger of XYZ Company for the month of' December, 199

by FIFO & LIFO methods.

01-12-93 05-12-93

Opening balancc 400 units 15/- per unit Purchases 1000 units @ Rs. 16 per unit

10-12-93

Issues 6T0

unitss

ia'cka1anda ''

'*'''*'' 15-12-83

Coller

Degre: '''**'

'

"'

*'**','

5

"

'*'

Purchascs, 1200 units

Re.l6.50 per Vnit 15.50 pei ui

20-12-93

Purchasca 800 units

25-12-93

I9sues 900 units

28-12-93

Issues 500 units

31-12-93

Purchases 600 units (aRa.17 per unit,

31-12-93

Issucs S00 units

nhortage of 10) urits, Stock verifioation on 24th 1December revealed a

Prob.No2 a,factory Pollowing aro the particulars of the reccipts and issues of naterials in during January. 1995. co

Jan 2

hooo K6s. (25 enu Issuod 140

Jan3

Issued 200 Kgs

Jan

Issued 160 Kgs

acs

Kgs.

4

Jan 8

Received 400 Kgs at Rs.35-00 caoh

Jan

Retrun of surplus from work ordcr 30 Kgs @Rs.28 each

13

Jan 16

Issued 300 Kgs

Jan

Received 600 KgsRs.32-00

18

Jan 20

Issued 550 Kgs

Jan 22

Received 400 Kgs @ 34-00

Jan 24

Issued 250 Kgs Retum of surplus from work order 40 Kgs.@32-00, éach

Jan 29

pu

ah

Reccived 200Kgs@Rs36-00 Prepare stores ledger Acoount under FIFO'& LIFO mesthods.

Jan 30

Prob.No.8 The following is the summary of receipta end Isues of materials during the month.

Opening balance 50 units @ Rs.25/- each lst

3rd

Lssues 70 units

3th

Issues 100 units

8th

Issues 80 units

13th

Received 200 units @ Rs.24-50 each

14th

Returned to stores 15 units @ Rs.24 per unit

16th

Issues 80 units

'****

Degrec Colege vekananda '''***" 20th

Reccircd 240 unita

24th

Issues 304 units

25th

Reccived 320 units (

26th

Issues 1 12 units

27th

Retums to stores

28th

Reocived 100 units

i

Deoray- Costün

Rs.24-75 cach

Rs.24-50 per unit

12 units

Rs.24-50 cach

Rs.25 cuch

Work on the basis of FIFO & LFO. Stookverificatiom revealed a loss of unit. on 15th and 8 units on 27th. Prepare stores lecdger Accouut.

Prob.No.9 Propare stores lodgolr under FlFO & LIFO method.

DAte

Units received

1-6-97

Open balancc 500

2-50

4-6-97

600

2-60

Unit rate

Units Issued

2-6-97

700

10-6-97

1000

2-75

12-6-97

1200

2-80

1000

15-6-97

800

20-6-97

900

2-65

2000

25-6-97

600

28-6-97

600

2-70

30-6-97

A00

300 Stock verification on 30-6-97 rovealed a shioriago 100 of units.

Prob No.10 .

From the folløwing data preparo a stores ledger Account

by FIFO & IIPO

aethods

Purchases 3rd January

10,000 units at Rs.100 per 1000 units

15th January

25.000 units at Rs. 110 per 1000 unit 20,000 units at Rs.99 per 1000 units

16th January 5th March 22nd March

13,000 units at Rs.90 per l00 units 3000 units at Rs.105 per 1000 uuts

o

'''*''''Y*''h

''''''''''''''''

''""'****'*''

'

ssues. oth Januuy

-

Costi

10,100 units

25th Janunry

8,000 units

al

15,000 units

23rd Fcbruary

15,000 units

20th Maroh

20,000 uhits

12th

inal Degree

'''''

Pro,No11 Preparc stores lodger ndoount by Base stook inethod when it opcrates in conjunction with FIFO and LlFO methods.

Baso stook in 200 units.

1996 Doo, lst Puchased 500 toncs 2/- per tonne 1996 Dec, 10th Purohased 300 tones 1996 Dec, 15th Issued 600 tonnes

Rs.2-10 cach

1996 Dec, 20th Purohased 400 tonnes

Rs.2-20.eaoh

1996 Dec, 25th Issucd 300 tonnes

1996 Deo, 27th Purchased 500 tonnes @ Rs.2-10 caoh 1996 Deo, 31st Issucd 200 tonncs

Prob.No.12 FIFO and LIRO mocthods, draw stores ledger card recording the following transuctions that took place in the month the foliowing two methoda ist January, 1993 Openingistöck 200 piepes @2-00 ecach Sth January, 1993 Purchases 100 pieces @Rs 2-20 cach 10th January, 1993 Purohases 150 pieoes @Rs.2-40 cach 20th January, 1993 Purchases 180 piecesRs.2-50 each 7th January, 1993 Issues pioees 2450 Piacus.

.

12th Janyáry, 1993

28th

nuary,

1993

Issues 100 piooes Issues 200 picoes

ProbNo The reccipts and Issucs were as folows:

Recoipts 500 articles at Rs. 3 caoh 700 articles at Rs.3-10 each 400 articlcs at Rs.3-20 cach 800 articles at Rs.3-10 each

**

Fiekananda '******''''***

***

******

Final Degree - Lostitng

D¢gree Loucg

Sueccasive issues Yere: B00 1000

and 200 articles

State the pricc per articlé at ench issue and FIFO and 1.IPO methods

Prob.No.14

At

the begíning of Oct, 1994 the Quanlity Brush Company had in stock 10.000 Brushes valued at Rs. 10 ench Further purohases made sluring the month ns folle

ber

7th

4,000 Brushes at Rs. 12-50 cnoh

14th October

16,000 Brušhes at Rs. 15 cach

24th Ootober

8,000 Brushes at Rs. 16-50 cach

Isnes 16th Ootober

16,000 Brushes

28th October

10,000 Brushes

You are reduirod to prepare. stores ledger uñdér FTFO and LiFO methods.

Prob.No.15S

From the following transactions prepare. stores ledger account, pricing material on FIFO & LIFO methods 1995, January 1st Stook on hand 500 units 2/- each 1995, January 2nd 1995,

January 4th

Purchased 200 units @ Rs 3 each Issued 600 units

1995, Janmuary 6th

Purcbased 700 units @Rs4 eaoh

1995, January 8th

Issued 500 units

1995, January 10th

Purchased 300 units @Rs.5 each Issued 550 units

1995, January 12th

th

1995, Jenuary i4th Purchased 400 units Rs.6 cach 1995, January 16th Purchased.300 units R3.7 caoh

1995. January 20th Prob No.16

Issued 400,units

Prepare stores ledger statement from the following partioular adopting "Fist in First Out" and "Weighted Average" mothods of pricing out issues 1994, January 1st

Bulonce 500 units

1994. January 3rd

lssue 250 units

1994. January 10th

Purchases 200 units

1994. Jamuary 12th

Returns from a work order 15 units

(@

Rs.25 each

Rs.26 eaoh

.

Rs.24 eac

'''*** nunda Degre Collere

1h

inl

'''*

1994. Januarn ISth

1994.

Januar

16th

1994, Jamunry 20th 1994, January

Degree

-

lssucd 180 unit:

C

Stock verificatnon reveals loss of 5 unsts Purchaacs 320 units @ 30/- cach

28thStock verification reveals loss of 8

urits

1994, January 30th Issucd 112 units

Ppb No.l7 From the following transzotions, prepáre stores ledger under the fnethods FIFO, LIFO and simpel Average Mcthods. er January Ist

.Opening stook 100 units@

10 each

January 5th

Reccived 500 units @ Rs.12 cach

January 20th

Issued 300 units

February 2nd

Returmed 100 units issuced on 20th

February 8th

Issued 200 units

February 16th Reoeived 500 units 10/eaoh March 10th Issued 300 units

Marçh 12th

Issued 250 ünits

March 31st

Shortage of10 units

Prob.No.18 Prepare stores ledgerpricing the issues at simple Average a) rate and b}Wcighted Average rate.

Date

Purehases Qtr

Rate

2-3-97

200

2-40

10-3-97

300

2-40

15-3-97 18-3-97

Issues O

250

250

2-60

20-3-97

200

Prob Nei

Eleotronic instruments Itd., arc importers. of typewriters and calculators. Thc following were the balanco pn July, 1985S.

lst

400 Typeviters

Rs.12,00,000

100 Calculátors

Rs:15,00,000

Vivekanandu Degrce College

The following.imports

Jenuar

ina Degre

-

CostiaLG

1Were

made during July Decrnl:ei, 198.

200 Typewriters at Rs.3,200

15th

ay,

September 20th

40 Caloulntors nt Rs.16,500

October 12th

100 Typewriters at Rs.3,400

November 21st

eath

600Calculators at Rs.17,500 300 Typewriters at Rs.3,500

o.th

Deccmber 25th December 28th.

200 Calculators at Rs.18,000 The following.sales wore made during July

December

580 Typewriters

Rs.29,00,000

120 Calculators

Rs,45,00,000

Compute the inventory values as on Decembor 31st, 1985 under FIFO and LIFO methods.

Prob.No.20 The Reoeipts' side of the stores ledger account

shows the following partiouiars

January 1st January 5th

Opening Balance-500uib

Jetnuary 12th

Received 150 units @ Rs:4-10 eaoh

January 20th

Received 300 units @ Rs4-50 cach

January 25th

Rcceived 400 units @ Rs.4-00 each

cach

Roccived 250 units @ Rs4-23cth

January 4th

Issues of the materials were as. föllows Issued 200 units

January 10th

Lssued 400 units

January 15th

Issued 100 units

January 19th

Issued 100 units

January 26th

Issued 200 units

January 30th

Issued 250 units

Preparc stores ledger under "Simple Average Price" and "Weighted Averagr Rrice" mcthods.

ProbNo.21 Show the stores ledger A/o using "Weighted Avcrnge" and IFA Purchases Qty Date Unite 1997. April 1st

Balance

300

1997, April 2nd

Purchased

200

4

*

"ods

Aegree

iveazania

97,

April 4th

trese

26'**

ul

egrer

-

Costi

****'**.

Issued

****

1997. April 6th 1997, Apri 11th

Purchased

200

460

Issued

150

**

1997. April 19th

Issued

200

1997, April 22nd

Purchascd

200

1997, April 27th

Issucd

250

480

ProbNo.22 Prepare stores ledger Ale on the basis of Weighted Average Price and Simple Average Price methods.

1997, March Reccived 500 units @Ra.2 cach 1997, March 18

Received 350 units @Rs:2-10 cach

1997, March 19

Issued 600 unitsS.

1997, March 20

Received 600 units @Rs.2-20 each

1997, March 25

Issued 400 units

1997, Maroh 26

Received 500 units @ Rs.2-30 cach

March 28 1997, March 30

Issued 510: units

1997,

Issued 100 units

ProbNo.23 The foliowing is the record ofreceipts and issues of certain material in a factory during a week.

1993, Apri

1

Opening balance 50 tonnes

Rs.10 cach

1993, April 3

Issued 30 tonnes

1993, Apri4

Reccived 60 tonnes @RA0-125 each

1993, April 5

Issued 251tonmes (stook verification revealedda loss of onetonne) Received baok from completed work order 10 tones (Previously

1993, April 6

issued Rs.10 per tonne) 1993, April 7

Issued 40 fopnes

Assuming that the issus of thc materiáls was priccd on Woightçd Avezage Method. Calculate the prioe of 35, 7.of April 1993.

71ekanunda Degree College *****' *****

Calculate

.

37:"*...

Pe-order level

Final Deprer

Costin

2. Mininum level 3. Maximum level

Prob No.16

4. Average stock level

In respect of matcrial MS6, the following datn are available Lead time from supplicrs is estimated as average 3 months: maximum 4 nionths, minimium

Budgcted consuption

2 months.

Muximum 300 units per montlh Minimum 50 units per month Avernge 150 units per month Yearly 1800 units

Storage oosts are 25% p.a.of stock value Order costs are Rs.2 per order Price per. unit of material is. Rs. 0,32 Calenlate 1) Re-order quantity 2) Re-order level Maximum Stock 3) Minimum stock level level 5) Average stock lovel 6) Stores turnover

ProbNo.12

)

From the following calculte

re-order level, reorder maximumn level, quantity, avcrage stock level and danger level.

1. Ordering Cost per

2.

arder Rs.20 Annual consumptíon of material

3. Purchase price per unit Rs:50

minimm lerei.

5000 udits

4. Annual cost of storage Rs.5 per unit

5. Lead time: Average days 10; Maximum 15 days; Minimum 6 days ;and Maximum for emergency purcbase 4 days.

6. Rate of Consumption : Average 15 units per day Maximum 20 units per day Prob.No,18

From the folloiwng inforination you are required to fird tmininum levels and also the maximum and ordcring and danger levels ot materials 1 Average daily eonsunpiion requirement 48 units 2. Usual time to obiain supply 2 wecks i.c., 12 working davs

FinalDegre

: iveeamartdu Degrer Culieg: Maximuun rejuirment in the month 4

of 4 wek

-

Costip

:600 2ait

Minimun requirement in this peTICd not to fell bel Eeonumic order size to : 80 do7ens of units

6. Time sufficient for emergeney supply

-

v

8)

unit

2 days

PrbNo.19

follows In a fnctory nvo componcnis P & Q are used as Normal usage - 900 units enoh per week

Miximum usage 1,350 units cach per weck Minimum usage - 450 units each per weck

Re-order quantity Re-order period-

- P-7200 units; Q9000

units

to 6 iwecks

P-2 to 4 weeks; Q-4

level and MaximuCaloulate for each oompouent, re-order level, Minimum

ierel

METHODS OF WAGE PAYMENT

Prob.No. following particulars arc apply.

M. X works in a factary where the Normal rare per hour Rs.1-50 20% more to time rate

Normal picce rate Expccted output

20 units per hour

Mt. X produces 157 units in a 8 hour day bašis and timc basis.

Calculatc his wages for the day on pieoe

Prob.No2

whom the following data ac suppied.

Caloulate Wages duc to wotker concening Normal hours in aweek 44:hours Actual booked hours

SQ hours

Normal rate per

Rs.1-25

hou

Overtime - 200% of nomal rate

Prob.No.3 find the From the following particulars,

a amount of cash required for wages in

factory tor particular month.

Rs.20,600 Wages for nomal hours workod 1.

Rs.2,2000 2. Wages for overtime

Rs.1,700 3. Leave Wages

:Jvekananda Degrce

Colleg

Finul Degrec Curting -

**'''**''''*'

4. Deduotion of enployec's slure to £SI contribution R» 50

.

Employecs eontribution to PË Rs.1.600

6. Houso Rent to be recovered from 30 employccs

Rs.10

per inonth

Prob.No.4 Irom the particulars given below, calculate tlhe labour cost per man

...

hours. a) Basic Salary

day »1 8

Rs.2per day 0-25ps per every point over

b) Deanness allowance

100, cost :»f living Index current index 700 points

o)Leave Salary

10% of (a) and (b)

d) Employee's oontribution to contribution to )Employec's State Insurance

8% of a +b+c

PE

2.5% of atb

Amenities to Labour

No.

-

ofworking days in a month

be

Rs 20 per head per month -

25 days of 8 hours

Erob.No.5 The following information is obtained írom a small-scale tirm for he moath December, 1991.

Rs Wages.for the normal hours tyorked

20,500

Wages for overtime

2.200

Leave Wages

1,700

Deduction towards ESI

500

Deduction towards P.F

1,600

Deduction towards house rent Rs.15 p.m. per employce Rs.1.220 Avcrage gross wago per employee

Prob.No.6 The standard produotion for particular work order is 20 units per day and piece vat i rate wagcs is 0.60paise per unit if daily production is 20 units or more the 0.50 paise per unit if production is less than 20 units. Cost of material is 0.30 pais per unit. It is proposed to charge factory overheads under one of the folloTr mothods 1.

100% on labour cost

2.

80%%

on prime cost

ekananda

Degrec

Coliei'''**'''*

**'''*''*'*''"

'ral

''***''*'*''*'

.abulat.

the lait dii.t in the

eost per unit. under eneh 20 units 3) 25 units

eim

of the atove

.ic

mmett:cd.

itile:ncni

f the daily

iDegree

nd:¢

prodiuciien is

-

C

the facttory 1) 15 upite

n

is 2

Prb.No.2 Calculate tho normal and orertiinc vages payable to following data.

Dav

i

workmen from

Hours Vorked

Monday

8

Tuesday

10

WednesdaY

Thursday

9 11

Friday Saturday Normal working hvuTS

S

hours per dayS

Nomal rate 0-50 paise per hour Over time rates: Upto

9

hours in a day at singie rate, over 9 hours at double rate Rs.1/- per.hour,

Prob.No.3 Caloulate the total monthlyremuneration of works A, B and C from'the following. a)

Standard Production per worker is 1000 units. Acnual Production daring the month was A= 850 units; B= 750 units and C 950 units.

Piece rate is 0-10 paie per unit

b)

o)Additional Produotjonbusis Rs. 10 for cach percentago af Aotial Pruduotion exceeding 80% of ActiaProduction ovcr standard.

DA fixed Rs.50 per imont

Prob.No.9 Findoutthe remuneration of Mr Xfrom the following: A)

Work started

B)

Work finished on 5-5-98 at 12 noon

C)

Work allotod 1080 units

D)

Work done and approved 1000 units

E) F)

Time and units alloyed: 20 units per hour Wage rate Rs.1-60 per hour

G)

Bonus 340% of time saved.

H)

Mr. X worked for 9 hours a day

on-198 at 8 a.m.

.

tha

..

egree College Fivekananda uekananda Degree ''''*''

'

'''"

Tinal

Degree - (osti

Prob.No.10 Caloulate the average iabour hour

for a cost centre with thc following dan:

1ae

No. of working days, 25 days of

8

hours eac

Absentecism 15% Basio Wages pcr month Rs.27,200

Dearnes allowance 50% Contributions to PF 8%, ESI 5% and, Grativity 7% on total (Ba3ic pay + IDA;

Fiobo11 Erom the following partioulars oalculate theearririgs of a worker under a) Halsey Plan b) Rown Plan Hourly rate of wages (guaranted) Rs.0-75

Standard time: 3 hours oF

1

dozeu units

Actual time taken by the worker to produce 20 dozen units is 48 hours

Prob.No.12 During the st Week of April. 1994, the workcmen Mi. Kalyan manufactured 300 articles. He reoeives wages for a guaranted 48 hours a wock at the ratcof Rs.4 per hour. The estimated time to produce one article is 10 minutes and dundcr incenive scheme the time allowed is increased by 20%.

Calculate his eross wages according to a)

Piece work with a guaranteced weckly wage

b)

Rowan Premium bonus, and Halsey Premium bonus

50% towoikman

Rrob No.13 Mr. Rajesh, a worker in a factory, takes 9 hours to complete a job on daiy payment by result. His day rate is 0-75 paise pe wages and six hours on a scheme of Rs,4. and factory overheads are 150°% on hour. The material cost for the produet is Calculsto the factory. cost of the product under.

direct wages.

1.

Pieoe work plan

2.

Halsey Plan

3.

Rowan Plan

Prob.No.14

product using the sanie nnteriats Two workmen A & B produce the sane are paid according to RWan Premim Pian Their wage rate is also the same. The The stundard time allowei for b»otlh of the-j: The hourly rate of wage is Rs.2. g 'rhai Thc faon B takss 30 hurs and hours 25 in joh the complete hours. A

nO

is

Rs.1/- per hour.

in/slDegFee

Degree Coliye

hunanuia ie

the tactyry const 193-75 a werkei A of th used inaterials br A Calculate the wage rate and tke cost of 8B

factory cosi

Jeb for B is 20

-LoS

ef ihe job fur

nb No.J5

a lay rate of Rs. 1 por worker under he Hnlsey Method of remuneration has wtorkecd per hour 10 He paise weck of 48 hours. plus a cost of living index of gven 8 hour task to perforn, which he conpletes in 6 hours. He is allowed 30, the time saved as premium boius. What would be his total houry rate of eami ing and what differanco would it make if ie were paid under the Rowan Mcthod?

A

Pcob.Nol16 From the following partioulars, caloulate thc carnings of.workers under straight piece basis and Taylors iiffcrential picce rate systemn

Standard time per picce

=

20 minutes

Normal rate per hour= 90 paise

In a 9 hour day Anand produces 25 units and Bose produces 35 units.

Differencial to be applied 80% of piecp rate for bclow standard and 120% of piece rate for the above standard.

Prob.No.17Z

From the following prtióulars work out the eámings for a weck of a worker

under:

1.

Straight pieoc rate

2.. Differencial piece rate 3. Halsey Plan.

4. Rowan Plan

No. of working hours per weck, 48 Wages per hour

Rs.3-75

Rate per Piece

Rs.1-50

Normal time per piece

20 minutes

Normal output per weck

120 picces

Acrual output per weck

150 pieces

Diffcrencial piece rates:

80% of piece rato vhen output is below standard 12 2% of piece rate when above standard

Final Dezrer Custirg

''' ** Pivekannda Dgree ollege '

''*

'

'*''''''''**''''

*

Prob No.L8 Calcvlate the totnl earnings ot tlirce workers A.

1B,

( under Howan Flan.

Standard Time 10 hiours Hourly Rnte Rs.1/-

Time tukcn

by A

- 8

hours; B 6 hours; C -5 hours.

100. The faotory overhcads were absorbed at The material cost ofaproduct was Rs. uost of tho produot produced by A, B end C. 75% on direot wages. Findout the works

ProbNe.12

Mr: Raman produced 300 During the first weck of April, 1989 tho wotkmens hours weck at he rate of Rs.6/- per articles. He receives wago for a guarantced 48 article is 10 minutes and under incentie hour. The essential time to produce onc Caloulate luis gross wage aceording scheme the timc allowed is inoreaged by 20%. to: 1 Piooe-Work with a guaranteed weeklyago.

2) 3)

Rowans Premium Plan

. Halsey Premium bonus 50% to workiiah.

Prob.No.20 chairgable to From the following particulars, calculate the labour cost according to No.:873 in respect of an cmployec who is paid 1)

Je l»

The Rowan sohemc

The Halsey 50% scheme Job No: 873 Time allowed - Shrs 30 minutes Time takern - 4hrs 25 minutess

2

Rate of Pay - Rs,0.60 per hour

Prob.No.21 day and the rates t The standard vork in a factory has beened 80 units per wages are 0-40 paise per unit for votker whottidis or rosses the standard and 6kperformanoe. There arc fou 30 paise per unit wvho fil to aobieve the follows: workers in a departmont of AfHoroty atnd ic pEHOianco is as aind D- 100 units. Calculate the touil A 80 units, B 70 units; C 75 units also compute per unit earnings of cach worker undor Taylor Dfferenoiäl Plun and

labour cost.

Prob.No.22 worker under lialc From the following details compute the total earnings ofa and Rowans Plans.

i

Degre.

Finai'**'*''''**..

vekananda Degree Colleg Raie ser hou

CaAsting

.1-50

Tune allowrd 1or Job - 20 hours

Time taken

15

-

hours

Prob.No.22 A workman take 50 hours to complcic a job on daily wages and 40 hours on scheme of payment of results. His wage rate is 0,75 paise per hour. The material a cos of the product is Rs.40 and the sactory overheads arc recovered at 150% of the tota direot wages.

Caloulate the faotory cost of the produot wages a) The Flalscy Plan b)

kowan's Plan

Prob.No.24 On the basis of the following information, Caloulate the carnings and D under Merrick Differencial Piccé rate systen: Standard Produotion per hour. s 12 hours '.

Normal rafc

icr hour

nus

of A, B.

ls Pam

Rs.0-60

Inan 8 hour day A produoed 64:units B produccd 96 units

Cproduced 84: Lndts D prcduced 100 upits

Prob.No.2 Set a conparative statement showing tlhe effect of paying wages on a) Hasley

b) Rowan Plans:

Standard time

:

Wages rate per

hour:

Time taken

:

10 hours Rs.5-Q00

8 hours

Overhead rate per hour:

Rs.6-00

Prob.No.26 From the following partioulars workout the earninge for the weck of a worker

under: Taylors Differenoial' Piece rate

2) 3)

M

Halsiey Plan .

Rowan Plan

No. of working hours per weck 48 hours Wages per hour

-

Rs.3-75

Piecc Rare -. Rs.1-50

ACRI

Cc

Final Degree

39.

Degree College

vekaanda '°'''''°'*****'***

******" Normal Tunc per jpiece 20

-

Costing

iminute3

Normal output per weck- 120 picces

Actual output per iveck 150

picces

is below standard Differenoial picvc rates80% of picco raté when output above standard. and 120% of thhe picoc ralc when nt md

a

Prob.No.27 picce rate and Taylors Caloulate the earmings of workers X and Y under straight parlioulars :2 KSAKNLK. Differncial Pieco rate system from the following

Normal ate per hour

-

Rs.1-80

Standard time per unit 20 seconds Differenoials to be applied 80% rate at or above sandard

of piecc rate below standard

120% of piece

Worker X produced 1,300.units per day (of 8 hours) & Worker:Y produocd 1,500: units per day (of hours)

Piob No28 rates are as ollows: Standard outputis fixed at 100 units a day. The picoc Output upto 83 units per day - 10 paise per unit

per unit + 10% of 10 paise Output upto 100 units per day 10paisé + 20% of 10 paise 3.

Output above 100 units per day 10 paise per unit Calculato their wages acoording to A,B andC produced 80, 100 and 110 units.

Mcrrick Differencial Picce rate method. *

2.

Prob.No.292 X, Y and Z Following details are available with regard to 3 workers

Normal rate per hour Rs.1-20 Stendard output per hour 3 units

-21 units and Z 25 units In an 8 hours day X producus 16, units; Y Piece rate system.

Calculate their wages under Merrick Differencial

.

.

'"***''*"

..

'*'**'** *'*'

Ce .'CS

CONTRACT COSTINGS

Piob.No.lI On 1-1-92 X

conpany, has undertakcn a contract for the constructi buildings. The coniract price is Rs.75,000. The comptny has incured thie follo lowing expenses Material consumcd Rs.25,000 ; Closing stock of materials Rs. 1.000; Wagea paid Rs.35,000 Direet Expenses Rs.30.000; Purohase of Plant Rs.10,000 Contractwork is comipleted on.June 30th, 1992. Contract price is also duh reocived by the company. .Depreçiato plant by 10% and Indirect expensés should tuken as 20% on wages paid. Preparo contraot Account.

t

Prob.No2

Write

up contraot Aocount from thc following particulars.

Direct materials Wages Peid

Spècial Plant

Contract Price Stores Issued

Rs .16,200

WasEE

10.800H+Uhs 10,800 S RshjT 8,000

40.000

trdeP

P+8P9

2,880

Loose tools

1,500 Expenses on tractör (fuel vvages of driver etc.)

3,420 The contract was completed in 20weeks. Tho special plant was returned subject ta deprecistion at 20%.on,ariginal cost. The vaJue of loose tools and stores returned were Rs.1,000 and Rs.400 respectively.

The cost of the tractor used for the contract was Rs.19,500 and deprcoiation.was to be oharged at 20% p.a provide 7% for administrative expenses on wotks cost.

ProbNo.3 The following information elates to contract No: 125, you are roquired to preparc the contáct Ac and oenpaetees Aeassuming that the amount due from the . contractee was duly received Direct materials Rs.20.250 direot wages Rs.15,500 stores issued Rs.10,500; loose tools Rs.2,400 ; tractor ckPCnsCs Rs.5,300 (rinning înatorials Rs.2,300+wages of drivers Rs.3,000) other dirpetSRenses Rs.2,650 The contraot prioe was Rs.90,000 and the contract tooks 13 weeks for its completion. The vatue of loose tools and stores retuned at the end of the period were Rs. 200 and Rs.3000 respectively. The plent was also returmed to a value of Rs.16,000 at the changing depreoiation at 20%. The valuc of the nactorwas

Rs.20,00

,

ivekananda Degree

College ''***''

''*it''''**'***''*'**

41

*** Finul Degree ';C'ustin*

'***

'''**''

**''

and at the depreciation was ió be chargcu to the contract at 15% p.a administration and ofice cxpenscs are to be provided at It0% on

Tl:

vorks cost.

Prob.No.4 A ficm of building contactor úndertake a contract oa 31-12-89, the positic pertaining. to contract No.51 was as follows :

Materials consumed Rs.3,75,000 ; Mateirials on hand Rs.15,0)0; Wages paid Rs.4,37,500; Wages outstanding Rs.6,250; Proportionate ähare of Indircct expenses Rs.18,750 ; Cost of plant introduced Rs.62,s00 The value of work certified was Rs.9,00,000 of which Rs. 6,75,000 had bcen received în cash. Work oompleted but unoertified amounted to Rs.25,000. The contract price was Rs.15,00,000. The plant on site was valued at Rs.50,000 on 3ist Decembe, 1990.

You are required to prepare conlract A/o No.51

Prob.No.S Kiran Co., Ltd obtained a contraot for building factory for Rs.10.00.000.

Building operation started on 1st April, 1988 and at the end of March, 1989 they received from the ooutraotec a sum of Rs.3,90,000 being 75% of the amount duc surveyor's certificate: The following additional information is given Srom book:: of

Kiran Company.:

Rs Stores issued to conträct

2.00,000

Stores on hand on 1-3-89

10.000

Wagcs paid

1,80,000

Plant purchased for contrayt

2,00,000

Direct Expenses

25,000

Overheads allocated to contract Work finished but not yet certified

12,000

3,900 Tar

ae

1,20,000

Plant to be depreciated at 10% You are required to prepare an A/c showing profit and loss on contracot as cn 31-2-89.

Prob.No.6 Mls Kakatiya Construotion Corporation has taken up construotion of houses a contract price of Rs.10,00,000. The following particulars related to the contrac

Rs

Rs.

Materials issued

3,00,000

Work unuertified

Wages

2,00,000

losing

stook of materials

Final Degree

iegree College ivekatanda *** ''''*'' '*''' '*'''**'**'' ''

alues

Direci Xperists

40.000

Indirect Expenses

Value

f pl.nt iupplied

ot Plant

al

site

st

60.000 10.000

?,50,000

Work certified

The perceutage cash received to work certificd as HO%. Prepare contract ract Alo and vompute the profit to be transfercd to Prolit and Loss A/. '

Poincer Construction Co., obtained a uontract for cntruofion of a bridge at a contriot prioe of Rs.9,00,000. Work srarted on 1st July, 1978. On 30th Junc, j Sn9 cash received was Rs.3,60,000 being 80% of work cértified. The followina ring infomation is given.

Rs Materials issucd to contrao

Materials bn hand at sitë on30-6-79 Wages Paid

1,80,000

7,500

2,46,600

Plant purchased for contract (lise 10 years without any sorap value)

30,000

Direot expcnses incurred

12,900

Overheads allccated to contract Work not oertified

7,600 15.000

You are required to prepare contract A/c and findout the profit to be transfered to P&L Alo for the year ended: 30th June, 1979.

Prob.Ne.8 Naveen under took a contraot for the construotion of houses on- 1st January, 1991. The contract price was Rs.22,50.000. The following detáils are available for.

1991.

Rs Materials purchasedd Materials issued from steres Labour Plant installed at site

Dircot cxpenses

Establishment

expcCTISeS

3,60,000

45,000 1,35,000 1,80,000

90,000 22,500

Rs Materials returned to stores

22,500

Matcrials on hand at tho end

9,000

***"7**

Vvekananda Deyree College Plant in hand at thc cnd Wages outstanding Work unccrtisied

Cash received (80% of work certified)

***

*inal Degree Costin ***

***********

1,35,000

27.09 95 A09

9.09,000

Prepare Contmct Account.

Prob No.9 Mr. Rao is a Civil Contractor. The follovingnortióulors are extracted from hi books of AWes for the year ended 31st December, 1993 pertaining to contract No:1ú1 Commencement contract 1kt January, 1993.

Contract Price

Materials sent to site Direot Wages

Indirect Expenses Plant sent to work sitc Work certified

Materials returned to stores Materials on site on 31-12-93 Value of Plant on 31-12-93 WoTk uncertified

10,00.000

3,00,000 1,00.000

25,000 70,000

6,00,000 40,000 10,000

45,000 50,000

Diring thc year materials costing Rs5,000,re sold for Rs.30,000 work plaoe, Tho contractee paid 90% of work oertried to the contraotor from ti during the vear Prepare Contract Acoount for 1993 and show how much proit is to be transfered to Profit and Loss Account.

Frotn the following partioulars relating to acontraot prepare a) Contraut Acoouni b) Contractees Account and also show tho rolovant ontries in tho B/S.

Rs. Materials sent to the site

85,349

Labour engaged on site

74,375

Plant installed at cost

3,044)

Direot Fxpenditure

Cnt5tied

4.126

9So00

Final Deur' egree

vekunarndu Degree Lolleye ''***

asi

167

Establishnent Chargc Material returned to store Cost of work not certilied

naturints-e-handtLe

1,883

2,400

Wages nccrucd due, Dec 31

240

Direct expenses accrucd duc, Dee 31

11,000

Value of plant Deo 31

aei

s

on

becn received fror s0 000 cash has been The contract prieg îias beendagreed at Ks.2,50,000 the contractec amounting to Rs,1,80,000

o

Prob.No.11 X under took a contract for the construotion of a building pnJanyary Ist, 199 The oontract price bcing Rs.5,00,000. The following details ate ávailable tor us vcar cnded 31st Deocmber, 1995.

R 80,000

Materials purchased Materials supplied trom stores

10,000

Wages

30,000

Plant installed at site

40,000

Direct cxpenses .

20,000

Proportion of establishment charges

5,000

Cash reoeived from contractee (representing 806 ofwork ceitified)

2,00,000

s0,000

Work uncertifiedj

Materials returncdto stores

s,000

Materials at site on 31-12-95

2.000 30,000

Plant at sito on 31-12-95 Wages accrucd

6,000

Direct expenses acorucd

8,000

Prepare contraot Acoount, contractec's Account; Work-in-Progress Acoount and show the relevant entries in the balanoe shoct .

Prob.No.12

a

The following informationis available in respect of cuntract undertaken by a building contractor in 1975. The cotract Price is Rs.4,00,000.

vekr iveka7ianda Degree ********°*

Colleee

...nut Materials issued Wages paid

Rs. 75.

1.10,000

General expenscs Plant installed at site on 1-7-75 Materials on hand on 31-12-75 Wages accured due Work certified

4,000

20,000 4,000

4,000 2,00,000

Wotk uncertified Cash reoeived from Marcrinls tranisfered

6,000

conträctee

1,50,000

to other oonträcts

Materials received from öther contracts

Depreciation on plant Propare contraot Alc

Frob.No13

A:

Degra

to beprovided at 10%

for the year ended

VFAcA S,000 4,000

p.a.

31-12-75

20, D

7

Tata Co., took a contract for erecting a sewerage Munioipal Corporation treatment plant Ltd., for total value for Hyderabad of Rs.24 lakhs. job would be completed It is estimated that by 31-3-95. the You are required to preparo contract A/c for the year following. ending 31-3-94 from the 1.

Materials Rs.3,00,000 2.

Wages Rs.6,00,000

3.

Overhead charges R. 1,20,000 Speoial Plant Rs.2,00,000

4.

5.

6.

7.

Work certified was for Rs:16.00000 #nd

Materials on site on 31-3.94

Ri40,000

80%of the same was received

in cash

Depreciation plant by 10%

3.

5% of thc value of materials issued and 5% of wages been inourred for the protion may be taken to have of the work completed bnt not yet certified. Overheads are charged as a % age of direot wages.

9.

Ignorc depreciation on plant for uncertiticd work.

10. As certain the amount of profít to be transfered to Profit ancd Loss Acoount.

2

.

.

. itDegree ilege

'

'' -

'***:

'***''*'''*****" ProbNo1

***.

comract ror Rs.10,00.000 infornmation rclated to a building The following

Materials issucd Direot wagcs

Supervisors salary Work Certified

1992

1993

Rs

Rs.

4,00.000

50,000

,30;000

1,39,000

28,000

11,400

7,50,000

10,00,000

8,000

Work Uncertified

5.000

7,000

14,000.

2,000

Material at site Plant issucd

10,00.000 6.00,000 Cash received from contractec 1993 vas Rs.7,000 and Rs.3,000 The plant valued at the end of. 1992 and respectively.

Aocount for 1992 and 1993 Prepare Contract Account and Contractee

Prob.No.1E

.

Folowing.wIS tlie expenditure on a

A contraotor began to trade,Torm 1-4-87.

contract for Rs.3,00,000

,

Rs

Materials issued fo:gnraot

51,000

Plant issued for contract,

15,000 81,000

Wages paid

5.000 Othcr expenses being 80°% of the Cash received on A/c on 31-3-88 amounted to Rs. 1,28,000 plant oosting Rs.3,000 work çertified. of tho plant and materials oharged to contraot, March, 1988 plant costing Rs.2,000 and material costing Rs.2.500 were lost. On 31st and materials costing Rs.2,300 was returngdto stores, work incertificd was Rs.1,600 contract Aio and show icns, were onK;charge 15% dcprcyiation on plant Prepare in

thealance Shect.

Prob N the books" of The following Trail balance was exMravted on April 30 from General Contracts I.td.,

,

'

''**° ivekananda Degree College

Share Copital

Finul Degree

*'*''

**'''***''''''

Debit

Credit

Rs.

Rs.

Share of Rs.1

2

Profit&Loss A/o. May

35,180

1st

2.500

Provision of Depreciation on plant and tools Cash recaivod on

AWo,

C"osting

''*'''''*'**'

6,200

oontruot 123

1.28,000

8,120

Creditors Land & Buildings Cost

7,400

Plant &tools cost

5,200

Cash at Bank

4,500

Contraot 123 Material issued

60,000

Direot Labour

833000

Expenses

4000

Plant & tools on site cost

164000 1,80,100

1.80,000

Contract 123 was began on May 1st. Tho.comtract price is Rs.2,40,000 and ihe so far paid Rs.1,28,000 being 80% of the work oertified. The cost f has work done since cortification is cstimated at Rs.1,60 Rs.3,2u0 OnApril 30th, after the above trail balunoe was extracted, plerit costng were valuod at Rs2,700 was returned to store, and materials thom on site depreciation Provision is to be made for direot labour acorued due Rs.600/and of all plant and tools at

12%

You are rcquired to 1)

Write

ip the.contract A/c

Compute the Profit (if any) fowhich credit Prob

No2

may be taken.

199 began to tride on 1st January, 1996. Dursng A" Company of contráctors one contract of which the contrnot prive was the company was engaged on only Rs.5,00,000 to contraot plant costing Rs.5,000 an niter Ofthe plant and materials charged acoident. costing Rs.4,000 vere lost in an custing Rs.5.002 was returned i. the On 31st December, 1996 Plant Rs.2.000 and materals cos;u R, 4 Kn finishcd cost of work uncertified, but in hand site.

*

****

''':."' Degree Fvekananda

''*''''" Coilege

''''*

48

Charge 0% depreciation on plant from thc following.

iuul Deere':.., egre -

annd

compile ceniraC *c and and Balance 1 ge

Debit Rs.

Share Capital

Credit Rs. 1.20.000

Sundry Creditors

Cash received (80% Land & Buildings

10,000

of york certified) 43,000

Bank Balance

Charged to contraot:

2.00,000

25.000 Materials

Plant

90,000

25,000

Wages

1,40,000

Expcnses

7,000

Prob No.18

The KCP undertook contract a for construction of a contraot prioe being buiding on 1-1-90, the Rs.7,00,000. The following details are 1990. availabel for the ycar

R

Materials Purchased Materials issued

1,20,000

Labour Employed

1,50,000

from stores on site

Plant installcd on site

45,000

Dircct expenses

60,000

Establishment.chargcs

30,000

Cash roceived (80% Work unoertified Materials returned

Materials on hand

of work cortified)

to stores,

at end

Plant on hand at end

7,500

3,00,000

75,000 7,500 3,000

Wages outstanding

45,000

Direot expenses acorued

9,000

Prepare

4

*

Coatraot Atopunt.

12,000

7iekananda Degree College

******"inal vegree Costing

49

-

tob No.12 M/s Ujwala Company undertook a contract for TRs. 12,0M.060 en.l-1-193an complcted it on 31-3-1991. You are given the following information relating to vontract.

t

1989

Materials issued Rs.1,60,000: wages Rs.80,000 ther dircct charg Rs.8,000 : On 31-12-89 materials at site Rs.16,000 ; work certtieit Rs.2.80,000

1990

Materials issued Rs.2.80,000; Wages Rs.2,00,000 Other direct charges Rs.20,000; Spcoial Plant Rs.3,20,000 On 31-12-90 materials at site Rs.42,000: Work certified this year Rs.6,20,000: Work Completed bu uncertified Rs.1,00,000

1991

Materials issued Rs.20,000; Wages Rs.50,000 ; Direot Changes Rs.4.50 On 31-3-91 materials returned to stores Rs.4.000: Plant ws rcturned to stores at value as certained after charging 10% depreciation annmually. on the original cost.

every year. of the work certified was received in.cash Prepare annually contract A/c . contracter Ateand Work-in-Progress A/c and show how the WIP would be shown in Balance Shoet prepared at the énd of each 80%%

yea.

Prob.No.20 It is agreel thet Priyanka undertooka vontract on 1-1-88 for Rs.1S0 lakhs. the contractree should be 80% of the value of the work certified by the archifeot of until the completion of. the paid immediately and the remaining 20% be retained contract. The following is the information relating to the contract.

1988

1989

1990

Rs.

Rs.

Rs.

19,20,000

22,00,000

12,60,000

17,00,000

23,00,000

17,00,000

Carriage

70,000

2,50,000

60,000

Sundry expenses Work done but uncertified

70,000

40,000

30,000

Materials Wages

-Nil

2,00,000

Nil

Rs.37,50,000 in 1988 ; Rs.75,00,000 is 1989 Work certified by the architect; Rs.37,50,000 in 1990. the contract account and contractce account in You are required to show thc 190), threc years, 1988, 1989. books of Priyanka during the

'

1ekuanda '''''***'**'*'*

khgree Luiieg

**

Pinäi Degre

''''''''*

.

Cost

Ks. ii9Oi): zpense Rs.4,0),000; Wagus Ps.3.0.000; E*perises certilied Rs.16,00,000 acerued Rs.20,000 ?lant issued Rs.2.00.000. Work 1

Materiai.»

:

Depreciation on Plant received in cash) Muterials at site 31-12-30 Rs.40,000. wages inay be taken to have 10%% of the value of materials issued and 5% of yer certitiCG. Expe penses been iueurred for the poition of the work completed, but not to be charged as a %age to direct wages.

gnore depreoiation on uncertified portion of the work. Asoertain,the

amour

ount

to profit and loss a/c.

to be tranusferred

Pro No26 Contractyrs begon to trade on 1st April 1978. The following was the cxqpenditure on Contraotfor Rs.2,00,000.

Materials issued to'Contraot Rs.25,000. Plant issued to Contract Rs. 10,000, Wages Rs.35,500, Other exponses Rs.5,000.

A fim of building

Casb received on Ale to 31-3-79 anounted to Rs.72,000. Of the Plant and. materials oharged to ContractgPlant which cost Rs.2,000 and materinls.which cost Rs5,004 were lost on 31-3-79 Plant which cost Rs1,500 was returmed to stores.

The cost of work done but unoertifijod Rs.750.arid materiais sosting Rs.1,250 were on hand at site. The work certificd was Rs.90.000 Change/5% depreciation, on piaat and talce 2/3 of profit received to Proft & Loss Account. Prepare Contraot Alc, Contracter's Alc end Balance Sheet.

ProbNo.2 ARailway contractor makes up his Account to 31st March. The costing reoords yield the following information at 31st March, 1995.

Materials charged cat to site Rs.31,540, Labour Rs.75;300, Foreman's salaries Rs.11,700. A machine costing Rs.25,000 has becn on site for 73 days. Its working life is cstimated at S years andits find serap ralue at Rs.1,000.

A supervisor who is paid Rs.18,000 p.a has spend approximately 6 months on All other.expensesand gdministrative oxpenves amount to Rs.17,000. his contraot. A Materials in stores at sitë at tie ernd of the year cost.Rs:2,500.

Tho contraot price is Rs3g0000. ALthe end of the yeai 2/3 ofthe contradt was completed for which/ amojn the. arehitects certiffoate has been íssiued.and Rs.1,60,000 has so far becin reocived on Account It was deoided thet 1/3 ofthe profit should be regarded as a prvision against contingencies and remaining 2/3 to be transfered to Profit and Loss Account.

Prepare Contract A/Jo .

.

ivekananda Degree Coiie

'°'"'*'*°*'*''*** Prob No.28

33'

iunlne.'.''*** Degrcc

'****

-

'***

CostinA

Prepare Contract A/e trom the iollowing: Conlract Price is Ra.10 lákhs 1990-91

Materials Wages

Other Expenses

Certifed Work Materials at end

Cash received

Prob No.29

Ri..

3,0000 2,30,000

33,000 75% 13,000

6,00:000

1991-92 Rs. 84,000 1,05,000

15,400 100% 7,000

10.00,000

A contractor ecsureda contract to supply anderrct a machinery for He was to received payments Rs.7.50,00C on A/s from time to time value of work done. He cqual to 90% of the comnmenced work certified on 1-1-1988 and inoured xpenditure during the year. the following

Plant&tools Rs.70,000 machincry and Sundry expenses Rs.30,000; establishmentstores Rs.2,00,000: Wages-Rs.1.50.000 changes Rs.40,000 The value of plant and tools on 31-12-1988 was Rs.40.000 mächinery and stores then and the value f in hand was Rs.30000He had received payments açcount amounting to o: Rs.4.38,750 on the certitted 31-12-1988. value' of work done upt In order to caleulate the profit made on the cotifract, the following have béen made estimation a). b)

That the contract would be completed

ina further period of monihs 6 The plantand tools vvould have aresidual value of Rs.10,000 upon the completion of the oontract.

That the. cost of machinery and storès.required, in uiditon to those in stock on 31-12-88 would be Rs.1,00,000

d)

That the wages on the contract for the six months would amount t» Rs.80,000

e)

That the establishment would cost the same sum per month as in the previous year.

Prepare the A/c and estiinate the Profit earned.

I7Vekazsandaa dDegree

Pre

toilege

ie of certifies the vaiie been spení arci has Rs.6.000. ft is estima Rs.2.26.0 (n contraot No 234 uncertiticd work is ancd an additiona of work being Rs.3.00.000. The cost conplete the work to further. months act t CXpendiuE on coniraos estimaled ihatthe contraot will takeRs.40,000. total The KS.3,50,000 15 required is

No.30

:

Pricc expenditure Thc contract oontingencie.

5% for provision a estimated Profir icde the Calculate . paid Rs.2.40,000: Lhe contraotce has so far

OVERHEADCOSTS APPORTIONMIENT OF OVERHEADS Prob.No.l

* costs to tlzc four availablc, apportion the information From the tollowing departents:

Dept-A

tems Area (Sq.Mt)

Dept-B

DeptC

Dept-D

1,100

900

500

15

10

5

No. of.cmployecs

20

Wages (Rs)

i26,000

84,000

63,000

42,000

Direct Materials (Rs.). 1240,000

1,70,000

80,000

30,000

Value of Plant (Rs.)1 3,15,000

1,89,000

1,26,000

The cxpenses are as followS: Factory rent. Rs.12,000 Cantecn cxpenses Rs.700

Depreciation;Rs. 10,000 Gcneral Expenses Rs;14500

Lighiing'pensés Rs.600 .

Prob.No.2 Hyderabad Engineering.Works is having hvo departments A and B: actual ovrheads incurred during the year are as follows:

The

Rent Rs.15,000; Repairs to Plant Rs.3,000 Power Rs.10.000 ; Supervision Rs. 10,000 The following infomation is available in réspect

oftwo departrnents.

Vivekananda Degree Col '

'*'*'''°°'*

*'''**"

'''

Dept-A

Dept-

750

250

2.00,000

1,00,00)

HP. of Plant

SO

20

No. of employees

5.

5

tems Area (Sq.mls) Value of Plant (Rs.)

:

Apportion the overhead costs to hvo deportmeits on tie most equitable ta-is Prob No.3

The following data were obtaind from the books of Navatha Engineering Limited.

Production Departments

Items

Service Deparfuneníis

B

X

Y

Direct Materials(Rs.) 7,000

5,000

5,000

1.000

1,000

Direot Labour (Rs.) 3,000

2,500

2,000

1,500

1,000

No.of cmployees

200

150

150

50

50

Electricity (Kwh)

8,000

6,000

6,000

2.110

3,000

10

15

15

50,000

30.000

20,000

10,000

10,000

800

600

Light Points (Nos)

Asset Valuc (Rs.) Arca (Sq.mts)

200

20

The cxpenses incured are as follows

Stores Overheads Power Electric

400 1.500

6,09

Repairs

1,200

200

ight

Labour Welfare

Depreciátion

Gen Oh

10.000

Rent & Taxes

,3,000

600

You arè required to prepare primary overhcads distribution sumuary for the departments.

Prob. No.4 A Company production overteads for tho year ending 30-6-1998 are give belo

;

Rent Rs.12,5o0 Insuranoe Rs.1050 (Depreoiation 156 valuc uf machincr: Power Rs.3,300 ; Lighting Rs.1,250

The further details are as follows.

Items

Production Departments C

A

20.000

25,000

30.000

Mateials (Rs.) 30,000

35,000

45,000

Direct Wages(Rs) a

Di

Servise Departneul onice

Stores

orktss

i

Degrve Coiley irvekaundeu '*'*'***'' n.Di.Materials (Rs.)0C 3,000 In.Di.Wages (Rs.) Area

Value of Mnohinery

3,000

,KH

1.00)

4.000

10,000

I0.000

150

100

200

250

300

30,000

35.000

25,000

15

20

25

20,000

15,000

(Sq.Mts)

Deree .

'''*

H.P. of Machinery

Machine hours worked10,000

, 5.00

15,00

5,000

From the above infdmation yQu are' required to prepare an overhead distribin:

summay showing the bais apportionment"

Prob.No.5 A company, has three Produoticn Departmènts and two servicc

departme

for the year 1996; the departmental distribution summary has the following total,

R

Production Depds Department

6,000

B Department

4,000

C Department

2,000

Serviee Depts

Rs

X Depurtment

1,170

Y Department

1,500

A

The expenses of the survioo departmeats is charged out on à percentage basis

as follows:

Departments Service Dept. X

30%

40%

20%

Service Dept. Y

20%

20%

40%

10%

20% Prepare a statcment showing the pportionment of tivo departments: expehses to production departmegs by "Simoltaneous Eguation Mcthod and "Repeated Distribution Method".

Prob.No.66 A Engineering Company has throe Production Departments nnd two Service Departments. The overhead analysis sheet gives the following overhead costs.

Prodnctio Depts A Rs. 1,380

Serivee Depts

B Rs.2,190

B Rs.510

C Rs.1,290

D. Rs.630o

Theexpensea ot\)

ate aypontioved ne

306 Apportion tho

BoeNe.Z

mler

A0%

20%

20

50%

R0%

servir catres costs on simultaneous

cquation nmethod.

Overhead costs betore distribution of serviepartment

Crhdtetion Deris

costs nre

Serivee Dsds

P, Rs.27,000o

t

S, Rs.26,000

P, Rs.24,000

S, Rs.26,000 Servioc Departnent overiends aro to bo nlloonted to preduotion departmenis As follows

50%

30%

45%

35%

Copputu tho totnl overhends of Prob,No

20% 20%

the two Produotion Depxrtments.

Jagatjit Industrics Ltd., has threo Produotion Deprtmonts P, Q and K: and One Servioo Department i.c.. S. During Mureh, 1995 it has worked for 25 days al 8 bours per day. Tho following infoimation-is availnblp Lxpenseg Amonnt(Rs Units Power 1,100 KWH 240 200 .300 36) Supervisiou 2,000 Attention.

20% 30% 30% 20% Rent 500 Floor Arca(Sq) Welfara Others

56

600

No.of workers

1,200

Service by.S

Caloulate Labour hour rates

690 40

40

50%

30%

20%

Rrob.No.92

Tho

Blank Manufucturing Company consists of four Pruduction Departments and two Servioc Departments. for the nmonth of September the direut Deputmenta Expenses were as follows.

Production Depaurtnents

erviöo

Departmeiits:

A

Rs4.8N0

C

Rs6,800

.

B

Rs.5.600

D Rs.2,400

X Rs.1,800: Y N$2

00

Dg

Fina! Degive

*'**'' Cvllrg»

'*****'''

The costs of Service Desartm ona pereent»ge busis, Vi:.

Prepore

and

X

*

.

0s

ulloeotedto:he ther deartmes Y are

30

20

25

15

20

30

10

25

10 15

Service Depari. artmety otatenent showing the distribution of the

expenses

Pob.No.10

Produgtion rtments Pe Q and three Prod In a faotory there are two Servioe cxpens tho month of Deccmber. 85 the departmental.

Departments A, B and C.

or

were

Rroduction Depts.

A Rs.6,50,000

Service Denis P Rs.1,20,000

BRs.6,00,00

Q Rs.1,00,000

CRs.5,00.000 The servioc departmental

cxpenses are alloted as foiloiwsS:

15%

5%

30%

40%

15%

40%

30%

25%

Prepare a statenent showing the distribution of the two Service Departmeats expenses to the three Production Departments under "Rcpeated Distribution Mcthod

Prob No 11.

The overbead allocaitd tothe thireo Production Departments P, two Service Departmetnis nd Tof a congerni areas follows

Q

and R:;gnd

Over heads P Rs.40,000

S Rs.27,000

Q Rs.48.000

T Rs.19,000

R Rs.72,000 The Service Department oosts are appostioned to Production Depatments are

asfollows: Q

S 45%

55%

25%

35%

15%

10%

5%

Compute the total overhead of the Produotion Department using *Simultancous Equation Method"

:vekananda Degree

Coilege"*******.

****".

S9'**..

*****

'''' Degree ****' **** Final Cosang

Prob.No 12

-

The following particulars relate to a Companv departments A, B, C and which has three Producticn iwo Service Departments X and Y Total overheads as Primary Distribution: A Rs.6,300

X Rs.4,500

B Rs.7,400

Y Rs.2,000

CRs.2,800 The Conpany decided to ohiärge thé'Seriice Departments the following percentages. cost on the basis 40%

30%

30%

30%

Prob.No.13

20%

20%

of

10%

20%

**

The following particulars are taken from the book of a faotory November, 1983. Prepare for the renth of the production overhead distribution summary showing the basis of apportionment.

Production Departments Direct Materine(Rs.) 2,000

Bmiployecs Nos)

100

P 3,000

1,000

150 2009

Electrioity (KWH)

4,000

3,000

Light Points (Nos)

10

16

Direct Ma

Rs)

Asset Value (Rs.)

60,000

P

S

4,000

i,000

150

S0

000 23800

40,000 30,000

a Occupied(Sq).

150 250 The cxpenses for the period were:

Service Departmicnis

50

2,000

1,500

1.500

1.000

3,000

6

4

10,000

10,000

50

5

Power Rs.550 ; Lighting Rs.100 ; Stores overheads Rs.400 : Amenities of employecs Rs.1,500; Depreciation Rs.15,000; Repairs Rs.3,000; Goneral overheads Rs.6.000; Rent Rs.275.

Apportion the expenses of S, proportional to Direc! Wages and thcse of S, in theratio of 5 :2:2:1 to departments P, : P2: P, and S. respectively:

ProbNo.14

You are supplied with the following infomation und required to Frdut :he production hour rate ofrecovery of overheads A, B &C under the repeatei lisuiinit

method

iinal

'''**

7VekunGtdar Dgrre

6

''''

Cullege

"yree-

PrimanOverhead: Production Iepartment

Rs.7.810

A

Produclion Department

Rs.12,543

Produution Department Service Dpartment

P

(

-

Servioe Department Q

PCnses

-

Rs.4,547

Rs.4,000 Rs.2,600

as -under of Scrvive Departmcnts P &.Q are apportioned

Q

30%

40%

20%

10%

20%

50%

10%

20%

Estimated working hours of Poduotion as under Departaent

A

Department

B

-

-

1000 hours

2500 hours

Department C - 1400 hours

Prob.No1 From he following information lookout the production hour rate of recovery of overheads in departments P, P

P

Particalsars

P,

Rent

200

Electrioityy

50

Insurance

80

Plant Depreciation Transport

Service Departments

ProdustionDenartrments

1000

50

Bstimated Working Hrs 1000

i.i

50

100

30

20

20

60

60

40

1000

300

200

100

50

400

160 is00

S

P;

150

50

50

2500

1800

Expenses of Service Departmens S, and S, are apportioned 30%

40%

20%

10%

20%

50%

S 10%

20%

Prob.No.16 You are supplied with the following information and required to workout. the production hour rate of recovcery of overhcad in departments A. B &C

Degree

&ananda

toios

61.**'''*

Rarticulars

Pyoduction

Total Rent

-

Depnrtments

B

12,000

2,400

4,000

00

2.000

6.000

1,200

2,000

Eleotricity Indirect abour Dep on Sachinery

Sundries Estimated Working

1,600

2,143

hours 1,000 2,500 Expenses of Servioec Departments P &Q

Q

Erob

No1Y

Sernicc Department P

4,800

S,000 2,500 4,500 910

Tinal Deuree Cosrin8

2,000

.000

800

500

400

300

1,000

800

1,000

200

500

200

847

300

300

1,400

ore apportioned as under.

30%

40%

C 20%

10%

20%

50%

10%

20%

JOBCOSTING

161

The information given below has been rakon from records works in respeot of Job.No. of an engineering 101" Materials Rs.4,010.

Wages: Dept. A

Dept B-

60 hours @Rs.3 per houe.

40 hoursRs.2 per hour

Dept. C 20 hours Rs.5 per hour Variable overheads as follows Dept. A - Rs.5000 for 5000 labour hours Dept. B Rs.3000 for 15000 labour hours Dept. C

-

Rs.2000 for 500 labour hours

Fixed over heads Rs.20.000 for 10,000 working hours. Calcuiate in cost of Job No.10i and price for the job to give a profit öf 25% on sellings pricc.

Erob.No.2Lchme

V

naky»)

The following indireot costs were incurred on Job No.678 of Mohan Radi Company budgeted for 93-94.

Estimated Factory overheads Rs.1,16,000 Estimatcd direct Labous hours X 2,69,200 Estimated direot Laboür cost Rs.1:95,600

Estinate Machine hours

1,01,000

egree Cvllege

ekunandu '''''''''''

'

Finul Degrec

''''''

PrCpare

Conmparative statement uf cost arplying

i

ihe

ad9VE

trom the following data.

Cost of material consumed Direct Labour Wages

basC;

.. to th.

9

Rs.840 Rs.9,000

Direct Labour Hours Machinc Hours

300

200

Prob.No.3 The budgeted oosts ofmanufacturing business for aiormal year one as tollowg

Rs. Dircct Materials

'

Rs 68,273

Direet Vages: Machine Shop (1,00,000 hours) 27.382 Assembly (80,000. hours) 22,780

50,162

Works Overheads: Maohine Shop

33,490

Assembly Administrative Overheads

Sclling cxpenses

16,237

49,727

12,268

15,481

.

Distribution expenses

13,290

The absoption nmethodote¢ostingis in operation.

rates suitable for practical use in this business.

Prepare a schedule ofoverhead

Computea cost estimate for.aJob, the techniol dalu for which are as follaws Material: 20Kgs A@Rs.0-64 per K.G. i5 Kgi B @ Rs.0-081/2 per K,G. Direet Labour: Machine Shop:

15

hours @ Rs.0-60 per hour

:25 hoursRs.0-70 per hour

Assembly

Prob.No.4 From the costing records of M/s Amulya Company Ltd., the following information is extracted in respeqt of Job No.505.

Materials Rs.12,030

Wages:

Dept. Ajeya 50 Dept.

hours0-40 per hour

Advait 40 hours @ 0-30 per hour

Dopt. Ananta 25 hours

0-32 per hour

vekananla

DeKree College"'

**pn **

Over hend oxpenscs lor these thrce depurlmente

vve

Voriolble Cvoshencda:

Dept.Ajeya Ra.6000

for 6000 1abour

"/inuBegrey Cavting estimaled as tollow

hourm.

Dept. Advaita Ra.3000 for 2,300 Labour houIn Dept. Annnin Rs.3,000 Sor 600 I.abour hourn Eixed Overhenda: Estimated at Rs.40.000 for 10,000 normal working hours.

You are rcquircd to ouloulato the cost of Job 505 and caleulate the profit of 25% on eelling prioo. price to givc

Cs

ProbNo.

Keun Poe 3tPuo 6 12) to two joba ina fhctory

The ooat information rélating

Job No:

1

is given below

JobNo: 2

Materials Rs,40

Materials Rs.20 Wages at 40 paise per hour for 150 hours Wages at 40 paise perfor200 hours In the factory, the overheads are recovered at 100% cost. of prle works cost of both the Jobs Findout and Comment upon the basis of as certaining the job cOst. Prob.No.6

The following are the cxpenditures of different jobs undertakcn by a manuftoturing concern. From the rarticulars preparc tho A/cs of Jobs: of the jobs undertaken 3 are complcte and remaining rwo are still incomplete.,

Direct Wages Job

Materials Purchased

Materials draw from stores

Direct Expenses

1

6,400

1,600

11,200

800

Job2

.8,000

2,000

14,000

1,000

Job.3

4800

8,400

600

Tob 4

8,200

800

9,600

320

Job 5

1.600

400

4,800

120

200

Worcs overheads have to be taken 80% of the direct wages and office overheads 1 and 2 are determined

at the rate of 10% of works cost. Thië kontract prices of Job as Rs.30,000 and Rs.38,000.

is proposed to inelude Job No. 3 in finished stute. Pinished goods are rulcd at Ris.10,000.

Tt

Of the Job NO.3 Rs.14.000 wortlh of' goods were sold.

'

Colluge '*'**

'

'*

'*'*** Finui Degree

'''''

-

Cos

''''

PreDNo e following infomution relates to the activitics of a factory for the month of March 1979.

a prouetlon

il

Materials used

Rs.36,000

Dircct Wages

Rs.50,0U0

12.00)

Labour hours worked

Maohine hours worked Factory overhead olinrgáble to the

aepârtme

ours

20,000 hours departmentRs.24,000

Oh Job 116 camied out in tio departmeit during tho period the rolevant data

vere Materials used

Rs.6,000

Dircot Wages

Rs.4,950

Labour hours worked

1,650 hours

Machine hours worked

1,200 hours

Caloulate the overheads chrgabile to the Job No. 116 under the following cacthods a)

% on direot wageg

b) Labour hour rato c)

Maohine hour rate

Prob.No.8

X

The following figureshave boen cxtracted from thie books of a manufactiring Company. All Jobs pass throuehine cCompany s two.departnents. nsinp:DeptRs) Working Dept. fRs Matcríals

500

6,000

Direct Labour

1,500

3,000

Factory overheads

1,200

1,800

Direot Labour hours

5,000

12,000

Machinc hours

2,000

10,000

The following information relates to Job No. 17: Materials used

Rs.10 Rs.25

Rs.120

Direct Iabour hous

70

265

Machince hours

25

255

Direct Labour

Rs.65

''''''''. You arc

inal ie ennumerate ostin iy two metho the ratea for 1erheads by Sobs of alsorbing cach department state dat ement showing faetr a prepare under the cost reult the methods b) To qurted of Joh Mo. 17 mothods rcferred to. vnder each of the twe rcqujico

lt

u)

hoving

2robNo9 During March. 95 AgfaCompany waa h The following dotails relatingengaged 3 Job1. all ofwhich were started Maroh. on Ist to the

Job Not

101(Ra) Purohase of Matcrials

2,000

Stores issued

240

Wagcs

900

Direct cxpenses

Joba are available

JobNo 201(Ra.) 2,100

Job No: 301(Rs) 1,400 700

700

600

100

Material rcturned to stores

40

Materials valued at Rs.80, were transfered from Job No.101 to Jkb No.301.

Overheads for the month amountod to R O and are to be uboorbed t 120% of was completed during tliemonth and invoiced to the customerat wages. Job No.201 Rs.4,200.

Prepare Job.Cost A/es, WIP

AWcs and as

certain profits.

Prob No.10 The following partioulars relate to Job Nó.323. Materials used Rs.500

Direct Wages Dept X 10 hours

Rs.2-50 por hour

Dept Y 8 hours @Rs.3-00 per hour

Rs.4-00 per hour Varinble verheads.i

Dept 2 5 hours

Dept X7000 Labour hours Rs.7,000

Dept,Y 3000 L4bour hours Rs.6,000 Dept Z 1000 Labour hours Ks.4,000

Fixed

verheads.i

normaf wotking hors. detemmme the Bstimated ut Ro.30,o00 for 7,500 No.323 and adso Job cost of oaloulatc the Xou are required to. the selling price. priee to give profit of 25% on