Cost & Management Accounting — DU Bachelor of Business Administration (Financial Investment Analysis) Previous Year Question Papers

5. Any assumptions made by you while attempting a question must be clearly stated. a) From the books of PQR Ltd. the following information is provided for the month of Stock offiilished goods on September 01, 2025 1250 units. Stock of finished goods on September 30, 2025 ? Particulars Amount Ou.) Stock of raw materials on September 01, 2025 21,250 , Work in progress on September 01, 2025 21,250 Stock of raw materials on September 30, 2025 19,300 Work in progress on September 30, 2025 21,400 Raw materials purchased 3,47,500 Carriage inward 18,100 Direct wages I,61,400 Direct expenses 24,300 Factory power and fuel 35,300 Electricity- office 15,840 Selling and Distribution overheads 23,383 Salary and wages for supervisor and foremen 14,000 Additional information: (i) (ii) Opening stock of finished stock is to be valued at Rs.8 per unit. closing stock of finished stock to be valued at the relevant month's cost of production using FIFO method. (iii) During the month 76,000 units were produced and 76,300 units were sold. Prepare Cost sheet for the month ended on September 30, 2025. Also calculate selling price per unit. (12 Marks) b) "Material Mix Variance and Material Yield Variance provide deeper insight into production efficiency than basic usage variance." Comment on the statement with suitable explanation. (6 Marks) AGM Ltd., engaged in manufacturing agricultural machinery, is preparing its annual budget for the coming year. The company has a metal pressing capacity of 20,000 hours, which will be insufficient for manufacture of all requirements of components The company has the following choices: Buy the components entirely from outside suppliers, or Buy from outside suppliers and/or use a partial second shift. The data for the current year are given below: Standard Production Cost per Unit V-ariable Costs : Direct Materials 37 27 25 44 Direct Wages 10 8 22 40 Direct Expenses 10 20 10 60 Fixed Overhead (€) 5 4 11 20 Total Production Costs ({) 62 59 68 164 Requirements (in units) 2,000 3'500 1,500 2,800 Purchase Price (€) 60 59 52 168 Direct expenses relate to the use of metal presses, which cost €10 per hour to operate. Fixed overheads are absorbed as a percentage of direct wages. Supply of all or any part of the total requirements can be obtained at the given prices for each component delivered to the factory. Second shift operations would increase direct wages by 25% over the normal shift and fixed overhead by €500 for each 1,000 (or pafrt thereol? second shift hours worked. Advise the management regarding the optimal production and purchase policy for components A, a, C, and D, considering the limited metal pressing capacity. a) A company provides you the following information with respect to a particularjob for a week: WorkersSkilledISemi-Skilled IUnskilIedI Number of Workers Wage Rate per Hour Qts.) Standard Actual Standard Actual Dunng 40 hours of working week, the gang produced 900 standard labour hours of work