Prof Parth Chitalia [Type here] Mcom Sem I
Cost and Management Accounting
Assignment
Instruction for Assignment: -
Write assignment in Separate Full scape sheet.
Attached Questions Copy (Printout) with your Solution.
Do Proper Presentation in Solution of Assignment
Mention Proper (Name; Roll No; Semester; Subject) on First Page of assignment
Dear Student,
This is to inform you that the assignment must be submitted by 9th November 2025. Kindly ensure that
your assignment is completed, properly presented, and submitted on time. Late submissions will not be
accepted.
Q.1 The sales turnover and profit of M/s Amit Ltd. during the two year 2011 and 2012 were as follows:
Year Sales Profit
2011 9,00,000 1,20,000
2012 10,20,000 1,50,000
You are required to calculate:
(i) P/V Ratio
(ii) BEP Sales
(iii) Sales required to earn a profit Rs. 2,40,000.
(iv) The profit made when sales are Rs. 15,00,000.
Q.2 Following information is available:
Particulars Product A Product B
(per unit)Rs. (Per unit) Rs.
Direct Materials …………… 160 120
Direct Wages …………… 120 80
Variable Overheads …………… 180 120
Selling Price …………… 500 400
Fixed Overheads Rs. 15,000
From the following alternatives, which sales mixes will bring higher profits.
(a) 250 units of A and 250 units of B
(b) 400 units of A and 100 units of B
(c) 150 units of A and 350 units of B
(d) 400 units of B.
Support the answer with workings.
Q.3 Standard for a unit of production :
Material - 2 kgs @ Rs. 5 per kg
Labour - 4 hours @ Rs. 6 per hour
Actual Production - 4,00,000 units
Actual Material Used – 7,90,000 kgs
Actual Hours Worked – 15,80,000 hours
Actual Rate – For Material - Rs. 5.20 per kg
- For Labour - Rs. 6.40 per hour
Calculate :
(1) Material Cost Variance
(2) Material Usage Variance
(3) Labour Rate Variance
(4) Labour Efficiency Variance.
Prof Parth Chitalia [Type here] Mcom Sem I
Q.4 The following information is extracted from the various functional budgets prepared for a concern
whose financial year starts from 1st April.
Particulars Jan. Feb. Mar. Apr. May June July Aug. Sept.
Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
Sales 30,000 35,000 30,000 25,000 22,500 32,500 35,000 37,500 40,000
Materials 12,500 15,000 15,000 12,500 9,000 15,000 15,000 20,000 15,000
Wages 5,000 5,500 5,500 5,000 4,500 4,500 5,000 5,000 5,500
Overhead:
Manufacturing 4,000 4,500 4,500 4,000 3,500 3,500 4,000 4,000 4,500
Administration 1,500 2,000 2,000 1,500 1,500 1,500 2,000 2,000 2,000
Selling 2,000 2,000 2,000 2,500 2,000 1,500 1,500 1,500 2,000
Distribution 1,500 2,000 2,000 1,500 1,000 1,000 1,500 2,000 2,000
(b) Plant to be purchased for Rs. 30,000. The price is to be paid in six equal instalments, the first instalment
to start in June.
(c) A provision of Rs. 2,500 per month has to be made for machinery purchased in the previous period.
(d) A commission of 10% is required to be paid on sale in the month following the actual sales.
(e) Cash sales would amount to Rs. 2,000 per month on which no commission is payable.
(f) Dividend to shareholders amounting to Rs. 50,000 is to be paid on 1st July.
(g) Interest on investment amounting to Rs. 40,000 will be received on 1st August.
(h) Income tax to be paid in August - Rs. 40,000.
(i) Balance of call on ordinary shares to be received on 1st April - Rs. 20,000.
Prepare a monthly cash budget for six months from April to September assuming suitable figures for
loan and overdraft whenever required.
The periods of credit allowed to debtors and allowed by creditors are 3 months and 2 months
respectively and payment of wages and overhead expenses are made one month in arrears.
The estimated cash balance on 1st April was Rs. 50,000.
Q.5 Mr. A owns a bus which runs between Mumbai and Pune and back for 10 days in a month. The distance
from Mumbai to Pune is 200 Kms. The bus completes the trip from Mumbai to Pune and back on the same
day. The bus goes another 10 days in a month to Ratnagiri and the distance covered being 350 kms. The trip
is also completed on the same day. For the rest of 4 days it runs in the local city. Daily distance covered in
local city is 100 Kms. Calculate the rate Mr. A should charge per trip from passenger when he wants to earn
a profit of 50% on cost.
The other particulars are given below :
Cost of Bus Rs. 9,00,000
Depreciation 20% per annum
Salary of Driver Rs. 6,000 per month
Salary of Conductor Rs. 5,000 per month
Salary of Accountant Rs. 2,000 per month
Diesel Consumption 6 Kms. per litre costing Rs. 8.00 per litre
Tax Rs. 9,600 per annum
Repairs Rs. 3,000 per month
Normal capacity of the bus is 50 passengers
The bus is generally occupied 90% of the capacity when it goes to Pune and 80% when it goes to
Ratnagiri. It is always full when it runs within the city.
Q.6 Write Short Notes
1. Operating Costing of Hospital
2. Application of Operating Costing
3. Log Book under Operating Costing
4. Operating costing of hotel
5. Cost Unit under Operating Costing