Assignment No: ONE

Unit I: Differentiate between Management Accounting Vs Financial

Accounting Vs Cost accounting
Unit II: The Sanika Toys company manufacturers of two types of toys X
and Y. Manufacturing cost for the year ended 31st Dec. 2012 were.
Direct Material
Rs.2,00,000
Direct wages
Rs.1,12,000
Production overheads
Rs.48,000
Manufacturing cost
Rs.3,60,000
There is no work in progress at the beginning or at the end of the year. It
is ascertained that:(A) Direct Material in type X, cost twice as much as Direct Material in type
Y. (B) The Direct wages for type Y were 60% of those for type X.
(C) Administration overhead for each grade was 200% of Direct Labour.
(D) Selling cost was 25 paisa per toy for each type of toy. (E) Production
during the year was: - Type X:- 40,000 toys of which 36,000 were sold.
Type Y:-1,20,000 toys of which 1,00,000 were sold. (F) Selling price were
Rs.7 per toy X and Rs.5 per toy Y.
Prepare statement showing the total cost per toy for each type of toy and
the profit made on each type of toy.
Unit III: Following information is related to contract No. 16 is available
from the contract ledger of a contractor for financial year ended on 31 st
March 2012.
Material supplied for contract work Rs. 42,000, Wages Rs. 18,900 Direct
expenses 15,200; Machinery sent to contract Rs. 34,200 sale of scrap Rs.
1,800. Following additional information is available.
1) On 31st March 2012 direct expenses Rs. 1000 were outstanding.
2) Work uncertified on 31st March 2012 Rs. 5100
3) Machinery valued Rs. 2000 & Material costing Rs.3000 were lost due to
fire.
4) Machinery costing Rs. 4000 was sold for Rs. 3000 and material
costing Rs. 5000 was sold for Rs. 6000.
5) Depreciation on machinery upto 31st March 2012 was Rs. 10,000
6) Stock of material at site on 31st March 2012 was Rs. 5000
7) Cash received from contractor was Rs. 60,000, which is 80 % of the
work certified & value of contract is Rs. 1,20,000.
Prepare contract a/c No. 16. W.I.P. account & show al! related items in the
balance sheet.

Assignment No: TWO

Unit IV: The following data relate to the financial statement of Good Luck
Ltd. for the year ended 31st March 1999.
Working capital Current Ratio
2.5. : 1
Working Capital
45,000
Acid Test Ratio
1.40 : 1
Inventory Turnover (Based on Average Stock)
5 times
G.P. Ratio
40%
EPS
.1
Earning for the year as % of Sh. Capital
25%
Debt Collection period
36 days
No. of share allotted
20,000
Nominal or face value of each share
5
Fixed assets : Shareholders fund
0.70 to 1.0
Operating Ratio (operating Exp : Sales)
90%
Creditors Velocity
54 days
Unit V: Indian Plastics make plastic buckets. An analysis of their
accounting reveals
Variable cost per bucket
Rs.20 per
bucket
Fixed cost
50,000 for the year
Capacity
2,000 bucket per year
Selling price per bucket
Rs. 70
Required: (i) Find the break-even point. (ii) Find the number of buckets to be
sold to get a profit of Rs. 30,000. (iii) If the company can manufacture 600
buckets more per year with an additional fixed cost of Rs. 2,000, what
should be the selling price to maintain the profit per bucket as at (ii)
above?
Unit VI: Maharashtra Finance Co. Ltd. Started manufacture on 1st January
1994. The prime cost of a unit is expected to be Rs. 20 out of which Rs. 8
is for material and Rs.12 is For labour. In addition variable expenses per
unit are expected to be Rs. 4 and Fixed expanses per month will be Rs.
15,000. Payment for materials is to be made in the month following the
purchase. One-third of sales will be for cash and rest on credit for
settlement in the following months. Expenses are payable in the month in
which they are incurred. The selling price is fixed at Rs. 40 per unit. The
number of units manufactured and sold are expected to be as under :January
April

900;
2,100;

February

1,200;

March

1,800;

May

2,100;

June

2,400.

Draw up a cash forecast ignoring the question of stock.