Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Financial Management Expert

Attempt all the problems.

Section-A

problem1) Discuss the various GAAPs that are mandatory to be followed briefly.
problem2) What are the different components of total cost.
problem3) What are the statements of financial information? Discuss two items from each.
problem4) describe statement of changes in financial positions, with the ex.
   
Section-B

Case Study

M/s XYZ Ltd manufactures a product “PLVS” at its plant at Meerut, the maximum capacity of which is 200 units per month. Details of raw materials that go into making of 1 units of “PLVS” are provided to you below:-
Sl.No    Raw material description    Standard Qty per finished unit (No)    Standard purchase price per unit (Rs. 00)
1                     A                                                  1                                                             6
2.                    B                                                  2                                                             5
3.                    C                                                  3                                                             4
4.                    D                                                  4                                                             3
5.                    E                                                  5                                                             2
6.                    F                                                   6                                                            1
    
Standard fixed overheads are Rs. 20,00,000/- per month while the standard variable overhead rate has been estimated as equal to Rs.1,400/- per unit of finished goods.

You are required to compute the:

a) Standard cost of the product.
b) Compute the production volume variance in case the company produces and sells only 100 units of finished goods in the concerned month.
c) Compute the usage and material price variances considering the following actual data (actual production and sale: 100 units)

Raw material description    Actual quantity consumed (Nos)    Actual price (Rs.’00)
A                                                         102                                              7
B                                                         201                                              6
C                                                         310                                              5
D                                                         415                                              4
E                                                         540                                              3
F                                                         610                                              2

d) Assuming no deviation in actual selling price (Rs. 30,000/-) and the actual overheads from what was projected in Standards, you are required to compute actual profits.

Attempt all the problems.

Section-A

problem1)

prepare short notes on:

• P V Ratio
• Margin of Safety
• Material Variances
• Absorption Costing

problem2)

describe the meaning of the term `variance analysis’.  What is its significance in controlling and monitoring costs?

problem3)

a.) What are the pre-requisites of installation of responsibility accounting system?
b.) Distinguish between ‘cost centre’ and ‘profit centre’.

problem4)

a) Distinguish between standard costing and budgetary control.
b) “Calculation of variances in standard costing is not an end in itself, but a means to an end” Discuss.

Section-B

Case Study

Ramesh developed original specification of the product and founded Ramesh Manufacturing Ltd. In 2007 the firm manufactured 980 nos at the average price of Rs.900/- each. In 2008 due to continuous price rise of inputs, he raised his prices at the average of 12%, as he knew he could sell plant’s full capacity of 980 nos per year. In spite of price rise for the product, which sold for over Rs.1000/- for the first time. Ramesh was surprised to learn in late 2008 (as may be seen from the financial statements) that Ramesh Manufacturing Ltd show the decline in earnings and still worse, decline in cash flow.

His accountant has bought the following:

i) We are following FIFO system for purpose of issues.
ii) Costs are going up faster than 12% and they will go up further in 2009.
iii) We are not setting aside enough to replace the machinery; we need to set aside Rs.1,65,000/- not Rs.1,50,000/- so as to be able to buy new machinery.
iv) It is still not late to switch to the LIFO for 2008. This will reduce closing inventory to Rs.3,30,000/- and raise cost of goods sold

1893_manufacturing table.jpg

Required:

a) What is the weighted average inflation factor for the firm using LIFO?
b) If the firm desires a 15 percent profit margin on sales, how much should the firm charge for the product per unit?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M9444

Have any Question? 


Related Questions in Financial Management

You are starting a family pizza parlor and need to buy a

You are starting a family pizza parlor and need to buy a motorcycle for delivery orders. You have two models in mind. Model A costs $9,200 and is expected to run for 7 years; model B is more expensive, with a price of $1 ...

Katie holt is a 72-year-old widow who has recently been

Katie Holt is a 72-year-old widow who has recently been diagnosed with Alzheimer's disease. She has limited financial assets of her own and has been living with her daughter Laurie for 2 years. Her only income is $700 a ...

Whole foods inc paid a quarterly dividend of 052 recently

Whole Foods Inc. paid a quarterly dividend of $0.52 recently. Treasury bills are yielding 4%, and the average stock is returning about 11%. Whole Foods is a stable company. The return on its stock responds to changes in ...

Mcclary tires plans to save 20000 25000 27500 and 30000 at

McClary Tires plans to save $20,000, $25,000, $27,500, and $30,000 at the end of each year for Years 1 to 4, respectively. If it earns 3.3 percent on its savings, how much will the firm have saved at the end of Year 4?

1 a plaintiff files suit in state court the defendant wants

1. A plaintiff files suit in state court. The defendant wants the case tried in federal court. Both courts can properly hear the case. If the case goes to federal court it is based on: a. exclusive jurisdiction b. simult ...

Speedilectrix co has a quick ratio of 200x 28800 in cash

Speedilectrix Co. has a quick ratio of 2.00x, $28,800 in cash, $16,000 in accounts receivable, some inventory, total current assets of $64,000 and total current liabilities of $22,400. The company reported annual sales o ...

1 using only the information below which company likely can

1. Using only the information below, which company likely can produce products more cheaply than its competitors? Company A has Profit Margin of 9%, Current Assets of $300M, Current Liabilities of $280M, and a Debt/Equit ...

Simon fixtures corp is expected to pay 210 per share in

Simon Fixtures Corp. is expected to pay $2.10 per share in dividends at the end of the next 12 months. The growth rate in dividends is expected to be constant at 4% per year. If the stock is selling for $50 per share, wh ...

Suppose two workers earn labor incomes of 20000per year in

Suppose two workers earn labor incomes of $20,000per year in each of three tax accounting periods. One worker saves 20 percent of her labor earnings in each of the first two periods and spends all her savings and accumul ...

Assume you are to receive a 10-year annuity with annual

Assume you are to receive a 10-year annuity with annual payments of $ 380 . The first payment will be received today (that is, at t = 0) and the last payment will be received at the end of Year 9 (that is, at t = 9). You ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro