ere Degres Celles okegr fvekanandu
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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
vekananda Degree ***'*'*'
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College
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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
**
***'***
***'*''***': '''''*
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
' Degrce 'LulPRC Vvekunandu ****'*'**'' '
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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
.'lvkuranda
:': Degree
toilere
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if20%
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'ror:i
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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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Cosisny
it.r tin
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
College''* Fvekananda IDegree *''***'*'*i.
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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.
I00
6
84.61
vkuzanda 2egre"
rob
. : Finai Degr
oliege
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
ial *''**'1?egree {osi3 '' -
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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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Degre ***
- usfin.
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
'*'*'''
.'' 15 '''****
. firalegrze'
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Casi. 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