1. BATCH COSTING ASSIGNMENT:
Batch No.247 incurred the following costs:
Dept. A 420 labour hours at N3.50
Dept. B 686 labour hours at N3.00
Factory overheads are absorbed on labour hours and the rates are N8 per
hour for Dept. A and N5 per hour for Dept.B.
The firm uses a cost plus system for setting prices and expected a 15% gross
profit (sales minus total cost). Administration overheads are absorbed at
20% selling price. Assuming that 1,000 units were produced in Batch 247.
Calculate:
(a) The selling price per unit
(b) The total amount of administrative overheads
(c) The profit per unit
2. PROCESS COSTING ASSIGNMENT:
A product passes through two processes (X, Y) to completion. The following information
were obtained from the company`s record.
Process X Process Y
N N
Material 125,000 175,000
Labour 100,000 87,500
Overhead 187,500 125,000
The input of material in Process A is 12,500kg while the outputs of the two processes are
7,500kg and 5,000kg respectively. The scrap value of normal loss is N2 per unit. Normal
loss is 10% of input.
Prepared: Prepare
(i) Process X and Process Y Account
(ii) Abnormal Loss/ Abnormal Gain Account
3. FLEXIBLE BUDGET ASSIGNMENT:
Bamidupe Moyege Nigeria Limited is operating a flexible budget control its budget for the year is as follows:
Level of Activities
70% 80% 90% 100%
700units 800units 900units 1,000units
Prime Cost (N) 14,000 16,000 18,000 20,000
Variable Cost (N) 2,100 2,400 2,700 3,000
16,100 18,400 20,700 23,000
Semi-Variable Cost 3,400 3,600 3,800 4,000
Fixed Cost 5,000 5,000 5,000 5,000
24,500 27,000 29,500 32,500
Required:
Separate the Semi-Variable Cost and prepare operational statement to management.
Also include cost of attaining 120% level of activity.
4. JOINT COSTING ASSIGNMENT:
(a) Explain the following terms in the context of joint and By-Product Costing:
i. Joint Costs ii. Joint Products iii. By-Product iv. Net Realisable Value
(b) Banuso Nigeria Limited furnishes you with the following data:
Product Units Selling Price Sales Value
(kg) N N
X 100 1,850 185,000
Y 150 1,700 255,000
250 440,000
The joint cost is N500,000.
Required:
Apportion the joint cost between the two main products on the basis of:
(i) Physical Output Basis
(ii) Sales Value Basis
5. CASH BUDGET ASSIGNMENT:
(a) LCP Water Limited has a cash balance of N200,000 at the beginning of January 2021.
The sales and purchases for the first 5 months are given below:
Month Sales Purchases
N N
Jan. 200,000 50,000
Feb. 300,000 80,000
Mar. 450,000 120,000
Apr. 600,000 170,000
May 750,000 200,000
(b) 70% of sales are realised in the month following sales and the remainder in the following 2 months.
(c) Creditors are settled one month in arrears.
(d) Overhead expenses of N40,000 is incurred on monthly basis.
(e) The company plans to purchase a new generator costing N70,000 in April 2021
(f) Wages of N50, 000 are incurred on monthly basis.
Required:
Prepare cash budget for January to April 2021.
Instruction:To be submitted 10a.m prompt on or before Saturday October 23, 2021.
✍️🕋🇳🇬 Patriot Odunaro Babatunde Jimoh💙💚🖤💜
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