Ask Question, Ask an Expert

+61-413 786 465

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

Assignment1before the truth in lending act auto dealers

Assignment 1. Before the Truth in Lending Act, auto dealers used to use a trick called add on interest. Suppose you bought a $30,000 car and financed it over 5 years at 6% interest. To calculate your payment, they'd take ...

Assignmentbullthe dual mandate of the federal reservebullis

Assignment • The Dual Mandate of the Federal Reserve • Is Monetizing Government Debt such a good idea? • How the Federal Reserve Controls the Monetary Base • Explain inflation. What are some causes of inflation? • What a ...

Topics to choose frombullfailure of the Topics to choose from • Failure of the

Topics to choose from • Failure of the Originate-to-Distribute Model and the Financial Crisis of 2007-8 • Monoline Insurers and the Subprime Financial Crisis and Problems with Rating Agencies • The Liquidity Crisis and t ...

Question -discuss the role of a central bank in a country

Question - Discuss the role of a central bank in a country, particularly in implementing monetary policy. Comment on any regulatory requirements imposed on the central bank in performing their responsibilities. Comment o ...

Compare and contrast the various forms of business

Compare and contrast the various forms of business organizations. Decide which structure is best suited for your class project (Massage Day Spa (Partnership)) and indicate why. From the e-Activity, infer what the trends ...

Managerial financenbspplease submit a word document

Managerial Finance:  Please submit a Word document including your answers to the 4 questions at the end of the instructions.   Johnson Company The Johnson company and wants to increase its sales and would like to seek ad ...

Nbsppad 6227fall2018nbspassignmenteach problem is worth

PAD 6227 Fall2018   Assignment Each problem is worth one-half of the grade for this assignment. Make sure to carefully edit your work. 1. The Department of Revenue wants to add more people to the unit that attempts to co ...

You have owned and operated a successful brick-and-mortar

You have owned and operated a successful brick-and-mortar business for several years. Due to increased competition from other retailers, you have decided to expand your operations to sell your products via the Internet. ...

Hospitality financial management hfm assignment - cvp

Hospitality Financial Management (HFM) Assignment - CVP Analysis You are assisting management consider different cost and pricing strategies. Consider the following data and report to management your findings. 1. The coc ...

Part 1 trade receivables1 for purposes of answering the

Part 1: Trade Receivables 1. For purposes of answering the questions in this part, only consider "Trade Receivables." a. What is the amount of Trade Receivables that customers owe Coors at the end of fiscal 2002? b. What ...

  • 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

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As