We have been working very hard since 2009 to facilitate in your learning Read More. We can't keep up without your support. Donate Now.

www.vustudents.ning.com

 www.bit.ly/vucodes + Link For Assignments, GDBs & Online Quizzes Solution www.bit.ly/papersvu + Link For Past Papers, Solved MCQs, Short Notes & More

Dear Students! Share your Assignments / GDBs / Quizzes files as you receive in your LMS, So it can be discussed/solved timely. Add Discussion

# MGT402 Cost & Management Accounting Solved Exercises ( Chapter No 05, 06, 08 & 11)

MGT402 Cost & Management Accounting Solved Exercises ( Chapter No 05, 06, 08 & 11)

+ http://bit.ly/vucodes (Link for Assignments, GDBs & Online Quizzes Solution)

+ http://bit.ly/papersvu (Link for Past Papers, Solved MCQs, Short Notes & More)

Views: 26

## MGT402 Chapter 6 Excerise Solution

Q. 1

Following is the information pertaining to the production cost of Revolving Chair Company for

the year ending on March                                            31 2006;

Direct material consumed                                           440,000

Direct labor                                                                 290,000

Indirect labor                                                               46,000

Light and power                                                          4,260

Depreciation                                                                4,700

Repairs to machinery                                                   5,800

Other factory expenses                                               29,000

Work in process inventory; April 1, 2005                    41,200

Finished goods inventory; April 1, 2005                     34,300

Work in process inventory; March 31, 2006                42,500

Finished goods inventory; March 31, 2006                 31,500

During the year 18,000 units were completed.

Factory overhead cost is applied @ 30% of the direct labor cost.

Required:

1. Cost of goods manufactured statement

2. Cost of goods sold statement identifying at normal and at actual

3. Cost per unit

4. Amount of over or under applied factory overhead cost

Solution

1)     cost of goods manufactured:

Direct material consumed                                                   440,000

add direct F.O.H cost  (see note 1)                                      89760

total factory cost                                                                 819760

add Work in process inventory; April 1, 2005                      41,200

cost of goods to be manufactured                                        860960

less Work in process inventory; March 31, 2006                    42,500

cost of goods manufactured                                               818460

2. Cost of goods sold statement identifying at normal and at actual

Direct material consumed                                                   440,000

total factory cost                                                             817000

add Work in process inventory; April 1, 2005                    41,200

cost of goods to be manufactured at normal                      858200

less Work in process inventory; March 31, 2006                42,500

cost of goods manufactured   at normal                              815700

add Finished goods inventory; April 1, 2005                        34,300

cost of goods available for sale at normal                          850000

less Finished goods inventory; March 31, 2006                   31,500

cost of goods sold at normal                                           818500

add under applied (see note 3)                                            2760

cost of goods sold at actual                                            821260

3. Cost per unit:

cost per unit=cost of goods manufactured number of units manufactured

=818460/18000

Cost per unit  = 45.47

4. Amount of over or under applied factory overhead cost

under applied                                   2760

Working notes

Note 1        actual direct F.O.H cost :

Indirect labor                                                               46,000

Depreciation                                                                 4700

Repairs to machinery                                                   5,800

Other factory expenses                                               29,000

actual direct F.O.H cost                                             89760

note 2

Factory overhead cost is applied @ 30% of the direct labor cost

=290000@30%

= 87000

note 3

under applied :

under applied                                     2760

## Chapter 8 Excerise Solution

Q.2

 Raw Usage per unit of Re-order Price Delivery Period Re-order  level kg, material Product Quantity Per kg. kg. kg. Min Avg Max A 10 10,000 0.1 1 2 3 8,000 B 4 5,000 0.3 3 4 5 4,750 C 6 10,000 0.15 2 3 4 2,000

Weekly production varies from 175 to 225 units, averaging 200 units.
What would you expect the quantities of the following to be:
(a) Minimum stock of A
(b) Maximum stock of B
(c) Re-order level of C

(d) Danger stock level of A

## MGT402-Chapter- 11-Excerise-Solution

The following figures have been extracted from a trader's records in respect of wages and salaries

for July. Rupees

(i) Wages and salaries (gross) 6,300

(ii) Income tax 1,600

(iii) Employees' pension contributions 600

(iv) Employer's pension contributions 700

1 What is the total amount the trader will have to pay for wages and salaries for July?

A 4,100

B 4,800

C 6,300

D 7,000

2 What is the net pay received by employees?

A 4,100

B 4,200

C 4,800

D 5,600

Net salary = Gross salary - income tax - employees' pension contributions

3  Which of the following does not appear on a payslip?

A. Gross weekly wage for the employee

B. Tax paid to date by the employee in the tax year

C. Deductions paid by the employee

D. Details of the employee's expected pension.

4 Which is the most convenient way for a large employer to pay salaries electronically?

A. BACS

B. Bank transfer

C. By cash

D. By cheque.

## Latest Activity

shan joined +M.Tariq Malik's group

### MGT101 Financial Accounting

11 minutes ago
shan joined +M.Tariq Malik's group

### PAK301 Pakistan Studies

11 minutes ago
shan joined +M.Tariq Malik's group

### MTH302 Business Mathematics & Statistics

13 minutes ago
shan joined +M.Tariq Malik's group

### ISL201 Islamic Studies

14 minutes ago
shan joined +M.Tariq Malik's group

### ENG101 English Comprehension

16 minutes ago
shan, Qasim Khan (BS IT-1) and 3 other members joined +M.Tariq Malik's group

18 minutes ago
22 minutes ago
24 minutes ago
26 minutes ago
28 minutes ago
29 minutes ago
37 minutes ago

1

2

3