This document contains an exam for a Cost Accounting certification. It includes 7 questions related to cost classification, overhead application, contract accounting, and cash flow forecasting. Question 1 asks to classify various expenses as production, administration, selling or distribution costs. Question 2 involves calculating inventory, cost of goods sold, and overhead application for a manufacturing concern. Question 3 requires calculating employee bonuses under an efficiency plan. Question 4 involves determining fixed and variable overhead using two different methods. Question 5 requires preparing a contract account to show the position on a construction project. Question 6 involves calculating product-wise profits for a manufacturer of joint products. Question 7 asks to estimate a company's cash requirements over the next 6 months based on sales forecasts.
This document contains an exam for a Cost Accounting certification. It includes 7 questions related to cost classification, overhead application, contract accounting, and cash flow forecasting. Question 1 asks to classify various expenses as production, administration, selling or distribution costs. Question 2 involves calculating inventory, cost of goods sold, and overhead application for a manufacturing concern. Question 3 requires calculating employee bonuses under an efficiency plan. Question 4 involves determining fixed and variable overhead using two different methods. Question 5 requires preparing a contract account to show the position on a construction project. Question 6 involves calculating product-wise profits for a manufacturer of joint products. Question 7 asks to estimate a company's cash requirements over the next 6 months based on sales forecasts.
This document contains an exam for a Cost Accounting certification. It includes 7 questions related to cost classification, overhead application, contract accounting, and cash flow forecasting. Question 1 asks to classify various expenses as production, administration, selling or distribution costs. Question 2 involves calculating inventory, cost of goods sold, and overhead application for a manufacturing concern. Question 3 requires calculating employee bonuses under an efficiency plan. Question 4 involves determining fixed and variable overhead using two different methods. Question 5 requires preparing a contract account to show the position on a construction project. Question 6 involves calculating product-wise profits for a manufacturer of joint products. Question 7 asks to estimate a company's cash requirements over the next 6 months based on sales forecasts.
This document contains an exam for a Cost Accounting certification. It includes 7 questions related to cost classification, overhead application, contract accounting, and cash flow forecasting. Question 1 asks to classify various expenses as production, administration, selling or distribution costs. Question 2 involves calculating inventory, cost of goods sold, and overhead application for a manufacturing concern. Question 3 requires calculating employee bonuses under an efficiency plan. Question 4 involves determining fixed and variable overhead using two different methods. Question 5 requires preparing a contract account to show the position on a construction project. Question 6 involves calculating product-wise profits for a manufacturer of joint products. Question 7 asks to estimate a company's cash requirements over the next 6 months based on sales forecasts.
Q.1(a) Place each of the following expenses of a manufacturing concern within the classification of Production, Administration and Selling and Distribution: (i) Cost of oil used to lubricate fork lifter employed in finished goods warehouse. (ii) Salary of security guards posted at cash counter located in the Karachi factory. (iii) Commission paid to sales representatives. (iv) Commission paid to company’s purchasing agent. (v) Auditors’ fee (vi) Cost of damaged raw materials. (vii) Insurance expenses on finished goods (viii) Cost of packing cartons. (ix) Cost of protective clothing for machine operators. (x) Cost of stationery used in the Lahore factory. (05)
(b) Classify the following cost as fixed, variable and semi-variable:
(i) Depreciation calculated on straight line method. (ii) Royalty expense (iii) Factory insurance (iv) Supervision and inspection (v) Industrial relations and employees’ welfare expenses (vi) Property tax (vii) Overtime costs (viii) Material handling costs (ix) Machinery repairs charges (x) Generator fuel costs. (05)
Q.2 The following information is available for the month of December 2000 of Khalid Enterprises:
Accounts payable December 01, Rs 6,000
Work in process December 01, Rs 30,000 Finished goods December 01, Rs 50,000 Material December 31, Rs 15,000 Accounts payable December 31, Rs 10,000 Finished goods December 31, Rs 60,000 Actual factory overhead Rs 150,000 Cost of goods sold Rs 300,000 Payment of accounts payable used only for material purchases Rs 35,000
Factory overhead is applied at 200% of direct labour cost. Jobs still in process on December 31, have been charged Rs 6,000 for material and Rs 12,000 for direct labour hours (1,200 hours). Actual direct labour hours 10,000 @ Rs 8.00 per hour. (02)
Required : a) Material purchased
b) Cost of goods manufactured c) Applied factory overhead d) Work in process December 31, e) Material used f) Material as on December 01 g) Over or under applied factory overhead. (14)
Q.3 Emerson efficiency plan establishes a scale of bonus ratio between low task and high task starting with zero bonus at a certain efficiency level increasing by small increments to successively large increments cumulating to a determined bonus at 100% efficiency. Above 100% efficiency, additional bonus is allowed. Khaskhkaily Enterprises adopted the Emerson efficiency plan for their cigarette packing plant which employs four (4) workers. Bonus is paid to workers in addition to basic pay which is fixed by the labour authorities. Brief synopsis of the scheme is as follows:
Efficiency rates Rates of Bonus
Upto 75% efficiency 0 Bonus 76% to 85% efficiency 2.5% bonus 86% to 98% efficiency 7.5% bonus 99% and above efficiency 15% bonus Standard time 3 minutes per carton Minimum Basic pay is Rs 3,375 Information specific for the month of August 2001 is as follows: Actual packing for the month Worker A 3,750 Cartons Worker B 4,625 Cartons Worker C 4,250 Cartons Worker D 3,350 Cartons August 2001 consisted of 25 working days of 9 hours each and there were no absentees during the month. For the purpose of calculating standard per unit labour rate minimum efficiency is considered as normal packing.
Required: Calculate the employee wise payroll cost for the month of August 2001 separately showing the basic pay and bonus payable to each employee. (15)
Q.4 A controller is interested in an analysis of the fixed and variable cost of electricity as related to direct labour hours. The following data has been accumulated. Months Electricity Cost Direct labour hours Rupees Jan 2000 15,480 297 Feb 2000 16,670 350 Mar 2000 14,050 241 Apr 2000 15,340 280 May 2000 16,000 274 June 2000 16,000 266 July 2000 16,130 285 Aug 2000 16,350 301
Required : The amount of fixed overhead and the variable cost using. a) The high and low points method (06) b) The method of least square. (06) (03) Q.5 SS Construction Co. have under taken the construction of a fly over for Road Development Authority. The value of the contract is Rs.12,500,000 subject to a retention of 20% until one year after the certified completion of the contract and final approval of the authorities surveyor. The Company has given the Contract No SS/RDA/786 for reference. The following are the details as shown in the books of account of SS Construction Co. as on June 30, 2001: Amount in Rupees Labour wages paid 4,050,000 Material purchased directly 4,200,000 Material issued from stores 812,000 Plant maintenance 121,000 Other expenses 601,000 Material in hand 63,000 Wages payable 78,000 Other expenses payable 16,000 Work not yet certified 165,000 Work certified 11,000,000 Cash received on account 8,800,000 Required: Prepare the Contract Account to show the position at June 30, 2001, retaining an adequate provision against possible losses before final acceptance of the contract. (10)
Q.6 Shabbir Associates manufactures 3 joint products - Exe, Wye and Zee. A by-product Baye is also produced. During the month of November 2000 the joint cost for direct materials and direct labour were Rs 80,000 and 120,000 respectively. Shabbir Associates have an established practice of absorbing overhead at 50% of direct cost. Production and sales related data for the month of November 2000 is as follows:
The sales value of by-product is deducted from the process cost before apportioning cost to each joint product. Costs of common processing are apportioned between joint product on the basis of sales value of production. Assume that there is no opening inventories.
Required: Calculate profit for the month of November and analyze the profit product-wise. (10)
Q.7 New Vision Trading Company Limited is planning to arrange for a six monthly overdraft facility with a bank. However, before finalization of any arrangement it wants to know the estimated requirements of cash. For this purpose it has hired you as consultant to make an estimate of the foreseeable cash requirements. The following is the basic data regarding various business cycles of the Company I. Sales forecast for the six months are as under: Months Rupees January 800,000 February 950,000 March 600,000 April 900,000 May 1,100,000 June 600,000 (04)
II. Purchases are made as and when required
III. No closing stock is maintained as the supplier has capability to supply any quantities at any time. IV. Gross profit ratio is maintained @ 20% of the sales price V. Various expenses for the six months are as under: Rupees Salaries and 390,000 wages Repairs and 120,000 maintenance Insurance 6,000 Stores and 270,000 spares Duties 360,000 Legal charges 24,000 VI. The recoveries from the debtors are made as follows 50% in the month of sale 30% in the month following the month of sale 20% in the second month after sale VII. Trade creditors are paid as under 40% in the month of purchase 40% in the month following the month of purchase 20% in the second month after purchase VIII. All other business expenses are paid in the month of expense. Expenses are evenly spread throughout the year. IX The Company commenced its business on January 1, 2000 with a cash balance of Rs 50,000.
Required: You are required to prepare a cash budget to facilitate the company’s management in assessing the working capital requirement for the next six months. (15)
Q.8 Sangdil Limited makes two products, SS and TT. The variable cost per unit are as follows: SS TT Direct Material Rs. 6.00 Rs. 18.00 . Direct Labour (Rs 18.00 per hour) Rs. 36.00 Rs. 18.00 Variable overhead Rs. 6.00 Rs. 6.00 _____ _____ Total Variable Cost Rs. 48.00 Rs. 42.00 ===== ===== The selling price per unit is Rs 84.00 for SS and Rs 66.00 for TT. During July 2001 the available direct labour is limited to 48,000 hours. Sales demand in July is expected to be 18,000 units for SS and 30,000 units for TT. Fixed cost is Rs.200,000 per month.
Required: Determine the profit-maximizing production level for the products
Fool for a Client - California Supreme Court - Judge Leondra Kruger, Judge Mariano-Florentino Cuellar, Judge Goodwin Liu, Judge Carol Corrigan, Judge Ming Chin, Judge Kathryn Werdegar, Judge Tani Cantil-Sakauye Supreme Court of California - Pro Per Bias-Prejudice
This Paper Carries Six Questions. 2. Answer Any Four Questions. 3. Each Question Carries 25 Marks. 4. Use of Non-Programmable Calculators Only Is Allowed
Fool for a Client - California Supreme Court - Judge Leondra Kruger, Judge Mariano-Florentino Cuellar, Judge Goodwin Liu, Judge Carol Corrigan, Judge Ming Chin, Judge Kathryn Werdegar, Judge Tani Cantil-Sakauye Supreme Court of California - Pro Per Bias-Prejudice
This Paper Carries Six Questions. 2. Answer Any Four Questions. 3. Each Question Carries 25 Marks. 4. Use of Non-Programmable Calculators Only Is Allowed
