Sikkim-Manipal University of Health Medical and Technological Sciences (SMUHMTS) 2009 B.B.A BB0012 – Management Accounting - Assignment s for fall session - Question Paper

BBA – III Semester
BB0012 – Management Accounting- four Credits
(Book ID – B0093)
Assignment Set 1- 60 Marks
ans all the ques..
1.Management accounting accumulates cost data but classifies them into relevant costs to aid management decision making. explain (10 Marks)
2.From the subsequent annual statement of Pioneer Ltd, compute the subsequent ratio:
(a)Gross Profit Ratio (b) Current Ratio (c) Liquid Ratio (d) Debt-Equity ratio and (e) Return on capital employed ratio (20 Marks)
Trading and Profit and Loss Account for the Year ended 31st Dec 2008
Materials consumed:

Sales
85,000
Opening Stock 9050

Profit on sale of investment
600
+ Purchases 54525

Interest on Investments
300
Closing stock (14000)



Total
49575


Carriage Inwards
1,425


Office Expenses
15,000


Sales Expenses
3,000


Financial Expenses
1,500


Loss on Sale of Assets
400


Net Profit
15,000


Total
85,900
Total
85,900

3.From the subsequent balance sheet of William & Co. Ltd., you are needed to prepare a Schedule of modifications in Working Capital and Statement of Source and Application of Funds. (20 Marks)
Balance Sheet
Liabilities
2002
2003
Assets
2002
2003
Capital
80,000
85,000
Cash in Hand
4,000
9,000
P&L a/c
14,500
24,500
Sundry Debtors
16,500
19,500
Sundry Creditors
9,000
5,000
Stock
9,000
7,000
Long-term Loans
-
5,000
Machinery
24,000
34,000



Building
50,000
50,000
Total
1,03,500
1,19,500
Total
1,03,500
1,19,500

4.What are the important bases of cost classification? (10 Marks)

BBA – III Semester
BB0012 – Management Accounting- four Credits
(Book ID – B0093)
Assignment Set 2- 60 Marks
ans all the questions:
1.Calculate prime cost, factory cost, cost of production and cost of sales from the subsequent particulars: (20 marks)
Direct materials

40000
Telephone charges

50
Direct wages

10000
Postage and telegrams

100
Direct expenses

2000
Salesmen’s commission and salary

500
Oil and waste

100
Travelling expenses

200
Storekeeper’s wages

1000
Advertising

500
Electric power

500
Warehousing charges

200
Lighting – Factory
Office
Rent - Factory
Office
500
200
2000
1000


700

3000
Carriage outward

150
Repairs and Renewals:
Factory plant
Machinery
Office premises
Depreciation – office premises
Plant and machinery


500
1000
200
500

200





1700


700



Consumable stores

1000



Manager’s salary

2000



Director’s fees

500



Office printing and stationery

200




2.What are Joint Products and By Products? Bring out the difference ranging from them . (10 Marks)
3.What are the advantages of Budgetary Control? (10 Marks)
4.Gensat Chemical industries give the subsequent info from their records: For making 1000 kgs of Gensat fertilizers the standard material needed are:
Material
volume (Kgs)
Rate per Kg (Rs.)
A
800
6.00
B
400
4.00
During May 2008, 1000 kgs of Gensat were produced. The true consumption of materials is as under:
Material
volume (Kgs)
Rate Per Kg (Rs.)
A
750
7.00
B
500
5.00
Calculate:
a.Material Cost Variance
b.Material Price Variance
c.Material Usage Variance
Do the verification. (10 Marks)
5.The finished products of a factory have to pass through 3 processes A,B and C. The normal wastage of every process is 2% in A, 5% in B and 10% in C. The percentage of waste is calculated on the number of units entering every process.
The scrap values of wastages of processes A,B and C are Rs.10, Rs.40 and Rs.20 per 100 units respectively.
The output of every process is transferred to the next process and the finished products are transferred from Process C into stock. The subsequent further info is obtained:

Process A
Process B
Process C
Materials consumed
Rs.12,000
Rs.4,000
Rs.4,000
Direct Labour
Rs.8,000
Rs.6,000
Rs.6,000
Manufacturing expenses
Rs.2,000
Rs.4,000
Rs.2,000
20000 units were put into process A at the cost of Rs.16,000. The output of every process has been A: 19,600 units; B:18,400 units and C: 16,700 units
There was no stock of work-in-progress in any process.
Prepare Process A,B and C account, Normal wastage account, Abnormal wastage /effective account . (10 marks)

Earning:   Approval pending.