University of Mumbai 2006 B.A Economics Auditing
Friday, 12 July 2013 11:00Web
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(3) Normal Loss Account,
(4) Abnormal Loss Account,
(5) Abnormal Gain Account.
Value closing stock at the respective Process Cost.
Q.7 (a) compute material and labour variances from the subsequent data: six
For five units of Product A, the Standard Data are
Material — 40 kg. @ Rs. 25 per kg.
Labour — 100 hours @ Rs. 2.50 per hour.
true data are :
true Production — 1000 Units.
Material — 7,840 kg. @ Rs. 27 per kg.
Labour — 19,800 hours @ Rs. 2.60 per hour.
(b) From the subsequent data calculate nine
P/V Ratio
B.E.P. in Rupees and in Unit.
Number of Units to be sold to earn a profit of Rs. 7,50,000.
Sales Price............................... Rs. 20 per Unit
Direct Material........................... Rs. five per Unit
Direct Wages................................ Rs. six per Unit
Variable Administrative Overheads............Rs. three per Unit
Fixed Factory Overhead.......................Rs. 6,40,000 per year
Fixed Administrative Overheads...............Rs. 1,52,000 per year
Q.8 From the books of accounts of M/s. Avdhoot Enterprises, the subsequent details have been extracted for the Quarter Ending December 31, 2005:- 15
Particulars Rs.
Stock of Materials — Opening 2,70,000
Stock of Materials — Closing 3,00,000
Purchases of Materials 12,48,000
Direct Wages 3,57,600
Direct Expenses 1,20,000
Indirect Wages 24,000
Salaries to Administrative Staff 60,000
Carriage Inwards 48,000
Carriage Outwards 37,500
Manager's Salary 72,000
General Charges 37,200
Legal charges for Criminal Suit 20,000
Commission on sales 28,000
Fuel 96,000
Electricity charges (Factory) 72,000
Directors' Fees 36,000
Repairs to Plant and Machinery 63,000
Rent, Rates and Taxes —Factory 18,000
Rent, Rates and 'Faxes — Office 9,600
Depreciation on Plant and Machinery 45,000
Depreciation on Furniture 3,600
Salesmen's Salaries 50,000
Audit Fees 18,000
The Manager's time is shared ranging from the factory and the office in the ratio of 20:80.
Carriage outwards include Rs. 7,500 being carriage inwards on Plant and Machinery.
Selling Price is the 120% of the cost price.
From the above details prepare detailed cost sheet for the quarter ending 31-12-2005 and ascertain sales.
Q.9 S. V. Construction Ltd. have found a contract for construction of a Building. The value of the contract is Rs. 45,00,000. The work commenced on first July, 2004 and completed on 31st December, 2005. The subsequent info relates to this contract: 15
Particulars 31-12-2005 (RS.) 31-12-2004 (RS.)
Material Issued 13,50,000 3,75,000
Direct Wages 10,35,000 4,70,000
Direct Expenses 1,00,000 45,000
Indirect Expenses 27,000 6,000
Plant Issued ---- 63,000
Sub contract charges 60,000 15,000
Work Certified (cumulative) 45,00,000 10,00,000
Work Uncertified ---- 35,000
The above plant was specially issued for the contract. The residual value of the plant at the end of the project was estimated to be Rs. 3,000.
The contractee has agreed to pay 90% of the work certified. The accounts are closed on 31st December, every year. Prepare —
(1) Contact Account and
(2) contractee Account for 2 years 2004 and 2005.
Show the relevant items in Balance Sheet as on 31-12-2004.
Q.10 (a) discuss the various Overhead Cost Variances. eight
(b) What is Break-Even-Point ? elaborate the advantages and limitations of Break-Even Point ? seven
Earning: Approval pending. |