Unit: 1

1. The Neel Kamal Co.Ltd. Received an enquiry for the supply of 1,000 chairs. The cost are
estimated as under :
Raw Material : 10000 kg.@ Rs.10 per kg.
Direct wages :1000 hrs.@ Rs.40 per hour
Variable overhead:
Factory overhead 25 per labour hr. Selling and distribution overhead Rs.14,000
Fixed overhead :
Factory Rs.8,000; Selling and distribution overhead Rs.13,000. Prepare a statement showing the
price to be fixed which will result in profit of 20% on selling price.
2. From the following particulars prepare statement of Cost and find out cost of goods sold
and total cost. Also find number of units sold
Raw material Rs. 1,60,000
Direct labor Rs. 60,000
Factory overhead Rs. 82,500
Office overhead Rs. 27,500
Opening stock of finished goods 500 units @11.20
Closing stock of finished goods1500 unit@ current cost price
Selling & Distribution expenses Rs.20,000
Unit produced 25,000 units..

3. Stock of Material on 1.1.2002 Rs.35,000

Stock of Material on 31.12.2002 Rs.4,900
Purchase Rs.52,500
Factory Wages Rs.95,000
Factory Expenses Rs.17,500
Establishment Expenses Rs.10,000
Completed Stock in hand 1.1.2002 Nil
Completed Stock in hand 31.12.2002 Rs.35,000
Sales Rs.1,89,000
The number of stoves manufactured during the year 2002 was 4,000 unit
The company want to quote for a contract for supply of 1000 electric stoves during the
year 2003. The cost of materials has increased by 15% and cost of factory labour by 10%.
Prepare a statement showing the price to be quoted to give the same percentage of net
profit on turnover as was realized during the year 2002 assuming that the cost per unit of
overhead charges will be same as in the previous year.

4. Find prime cost from the following particulars for a production unit: Cost of Material
Purchased Rs. 30000, Opening Stock of Material Rs. 6000, Closing Stock of Material Rs.
4000, Wages paid Rs. 3000, Rent of machine Rs. 5000
Unit: 2

From the following information calculate Total km

No of Buses 4
Days operated in a month 30
Trips made by each Bus 2
Distance by route 100 km (one side)
Capacity of each bus 40 passenger
Average passenger travelling 75% of capacity

Following are the details regarding transportation of goods by a transport company:

Date Quantity In Quintals Distance In Kms.
10-12-2006 30 50
12-12-2006 15 100
15-12-2006 10 60
20-12-2006 20 70
If the total cost is Rs. 8,000, calculate the cost per quintal-KM. (1 Quintal = 100 Kilograms)

There are two warehouses for storing finished goods produced in a factory. Warehouse ‘A’ is at
a distance of 10 kms. and Warehouse ‘B’ is at a distance of 15 kms from the factory. A fleet of 5
tonne lorries is engaged in transporting the finished goods from the factory. The records show
that the lorries average a speed of 30 kms. per hour when running and regularly take 40 minutes
to load at the factory. At warehouse ‘A’ unloading takes 30 minutes per load while at warehouse
‘B’ it takes 20 minutes per load.
Drivers’ Wages, depreciation, insurance and taxes amount to Rs. 18 per hour operated. Fuel oil,
tyres, repairs and maintenance cost `Rs. 2.40 per kilometer. You are required to draw up a
statement showing the cost per tonne kilometer of carrying the finished goods to the two
warehouses.

From the following information, Construct total km and passenger km:

No. of Buses 5; Days operated in the month 30; Trips made by each bus – 3 round trips; Distance
of route 20 km (one side); Capacity of Bus – 60 passengers, but it runs at 90 percent capacity.

A transport service company is running 4 buses between two towns which are 50 miles apart.
Seating capacity of each bus is 40 passengers. The following particulars were obtained from their
books for April, 2015.
Wages of Drivers, Conductors and Cleaners Rs. 2400
Salaries of Office and Supervisory Staff Rs. 1000
Diesel and oil and other oil Rs. 4000
Repairs and Maintenance Rs. 800
Taxation, Insurance, etc. Rs. 1600
Depreciation Rs.2600
Interest Rs. 2000
Actual passengers carried were 75% of the seating capacity. All the four buses ran on all days of
the month. Each bus made one round trip per day. Identify cost per passenger mile.
Unit: 3

1. Calculate Stock turnover ratio:

Sales 250000
Gross profit 80000
Average stock 90000

2. Discover Gross Profit Ratio from the following: Sales Rs. 500000, Sales Return Rs.
50000, Closing Stock Rs. 35000, Opening Stock 70000, Purchase Rs. 350000
3. A. From the following particulars of Reliance Pvt Ltd prepare comparative statement of
profit & loss.
Particulars 2022 2023
Revenue from operation 10,00,000 6,00,000
Cost of material 60% of revenue 50% of revenue
Indirect Expenses 30% cost of material 20% cost of material
Tax rate 40% 40%

B. Find out (i) Debtors Turnover and ii) Average collection period from the following :-
31-3-2003 31-3-2004
Annual Credit Sales 5,00,000 6,00,000
Debtors in the beginning 80,000 90,000
Debtors at the end 1,00,000 1,10,000
Days to be taken for the year : 360

4. Given data :-
Selling Price ` 8,00,000
Variable cost `6,00,000
Profit volume Ratio--- 25%
Unit sold 40,000
Net profit ` 1,80,000
Find out :
(i) Break Even point in `
(ii) Breakeven point in Units
(i) Margin of safety
(ii) Sales on a desired profit of `50,000
(iii) Profit on the desired sales of ` 6,00,000
(iv) Break Even point if selling price is reduced by 10%

5. From the following data relating to the assets of Balance Sheet of ABC ltd, for the period
ended March 31, 2014, Calculate trend percentage.
Particulars 2010-11 2011-12 2012-13 2013-14
Cash 100 120 80 140
 Debtors 200 250. 325 400
Stock 300 400 350 500
Other Current 50 75 125 150
Assets
Land 400 500 500 500
Building 800 1000 1200 1500
Plant 1000 1000 1200 1500

6. Calculate Operating Profit Ratio from the following figures:

Net sales: Rs. 400000, Cost of Goods Sold: Rs.300000, Office & Administration
Expenses: Rs.20000, Selling & Distribution Expenses: Rs. 15000

7. Analyze the trend percentages from the following figures of sales, stock and profit of X
Ltd in Lakhs, taking 2015 as the base year and interpret them.
Particulars 2015 2016 2017 2018 2019
Sales 1881 2340 2655 3021 3768
Stock 709 781 816 944 1154
Profit Before Tax 321 435 458 527 627

8. A factory produces 20000 units. The budgeted expenses are given below:
Raw material 75 per unit
Direct labour 20
Direct expenses 25
Overheads 15
Fixed overheads (Rs. 400000) 20
Administration overheads (fixed) 10
Selling expenses (10% fixed) 15
Distribution expenses (25% fixed) 20
Total cost per unit 200
You are required to Evaluate a budget for 15000 units and 10000 units.

Unit: 4

1. From the following information of Income and Expenditure, prepare a cash budget for the
months July to September 2023 :
Months Sales Purchase Wages Other
May Credit credit 5,000 expenses
June 50,000 20,000 5,500 4,000
July 60,000 30,000 6,000 5,000
August 50,000 30,000 5,000 6,000
Sept. 60,000 40,000 5,300 6,500
 70,000 35,000 7,000
Additional information is as given below ;

 The customers are allowed a credit of one month and creditors are also allow a credit
period of one month.
 Wages are paid on the first of next month.
 Period of payment of other expenses is of one month
 A dividend of ` 8,000 is paid in the month of September.
 Balance of cash on hand 1st July 2003 is ` 50,000

2. Gajendra Manufacturing Co. prepared its budget for 2023 based on production of
1,00,000 units for their product :-
Particulars `
Raw materials 2,52,000
Direct Labour 75,000
Direct expenses 10,000
Works overhead 2,25,000(60% fixed)
Administration Overhead 40,000 (100% fixed)
Selling overhead 20,000 (50% fixed)
You are required to prepare flexible budget for the production of 60,000 and
1,00,000units.

3. The expenses budgets for production of 100% capacity in a factory are given below:
Particulars 100% Capacity
Materials 600000
Labour 200000
Variable Expenses (Direct) 40000
Variable overheads 200000
Fixed overheads 80000
Administrative Expenses (Fixed) 40000
Selling Expenses (10% Fixed) 120000
Distribution Expenses (20% Fixed) 60000
Determine a budget for the production of 60% and 80% capacity.

4. From the following prepare cash budget from January onwards:

Month Sales Purchase Wages Selling Expenses
Nov 30000 15000 3000 1060
Dec 35000 20000 3200 1040
Jan 25000 15000 2500 1100
Feb 30000 20000 3000 1150
Mar 35000 22500 2400 1220
Apr 40000 25000 2600 1180
Additional Information:
 The customers are allowed a credit period of 2 months & creditors 1 month
 A dividend of Rs. 10000 is payable in April
  Wages are paid 1st of next month
 Cash balance on 1st Jan is Rs. 5000
 Capital expenditure- plant purchased on 1st march and the payment being made in
monthly instalment of Rs. 2000 each.

5. AB Co. wished to arrange overdraft facilities with its bankers during the period April to
June 2004 when it will be manufacturing mostly for stock. Determine cash budget for
the above period from the following data, indicating the extent of the bank facilities the
company will require at the end of each month:
Sales Purchases Wages
February 180000 124800 12000
March 192000 144000 14000
April 108000 243000 11000
May 174000 246000 10000
June 126000 268000 15000
 50% of the credit sales are realized in the month following the sales and the remaining
50% in the second month following. Creditor are paid in the month following of
purchase.
 cash at bank on 1.04.04 (estimated) is Rs. 25000

Unit: 5

1. The standard & Actual figures of product Z are as under.

Material Standard Actual

Material Quantity 50 Unit 45 Unit
Material price per unit Rs.1 Rs.0.80
Calculate material cost variance.

2. The standard quantity and standard price of raw material required for one unit of product A are
given as follows:
Quantity (Kg.) Standard Price (Rs.)
Material X 2 3

Material Y 4 2
The actual product and relevant data are as follows:
Material X: 1100kg @ Rs. 3410
Material Y: 1800 kg @ Rs. 3960. Calculate Variances. Actual Production was 500 units.

3. Discover Material Cost Variance from the following information:

Standard Price of material per kg Rs. 4
Standard Usage of materials 800 kgs
Actual Usage of materials 920 kgs
Actual Price of materials per kg Rs. 3
 Actual Cost of materials Rs. 2,760
Standard cost of material for actual production Rs. 3,200

4. From the following information Examine:

 P/V Ratio,
 Break Even Point,
 Profit when Sales are Rs. 120000
 Sales required to earn a profit of Rs. 60000
Fixed cost Rs. 40000, variable cost Rs. 2 per unit, estimated sales Rs. 200000, selling
price per unit Rs. 10