MCO5 EM 2023 SOLVED ASSIGNMENT

Description

TUTOR MARKED ASSIGNMENT
Course Code : MCO – 05
Course Title : Accounting for Managerial
Decisions
Assignment Code : MCO – 05 /TMA/2023
Coverage : All Blocks
Maximum Marks: 100
Attempt all the questions
1) a) Costs may be classified according to their nature and characteristics. Explain.
b) State the conditions under which the income statement prepared with
absorption costing and marginal costing will give different results.
(10+10)
2) Distinguish between the following:
(a) Variable and Fixed costs
(b) Differential costing and Marginal costing
(c) CVP analysis and Breakeven analysis
(d) Cash Budget and Master budget
(4×5)
3) Following in the Trial Balance of a limited Company as at 31st December, 2021
Particulars Debit Credit
Share Capital 4,00,000
Cash in hand 6,200
Rent 5,300
Prepaid Expenses 4,600
Repairs & Maintenance 8,600
Advances from Customers 50,000
General Reserve 3,00,000
Raw Materials at Cost 2,67,000
Sundry Creditors 3,40,000
Plant and Machinery 4,30,000
Power 8,800
Travelling and Conveyance 4,100
Auditors’ Fees 1,500
Cash at Bank 8,000
Land 30,000
Provision for Taxation 2,10,000
Furniture 12,200
Staff advances 5,300
Sundry Debtors 1,40,000
Misc. Income 54,600
Finished Goods at cost 3,10,000
Income-tax Advances 3,00,000
Misc. Expenses 61,400
Raw Materials Consumption 28,60,000
Sales 42,30,000
Development Rebate Reserve 1,00,000
Building 74,100
Salaries, Wages &Bonus 11,60,000
Cash Credit from Bank 12,500
Total 56,97,100 56,97,100
The following additional information is also available:
(20)
i) The authorized capital of the company is 80,000 equity shares of Rs. 10 each
of which 50% has been issued and has been recommended by the directors.
ii) A dividend of 15% on the paid-up capital has been recommended by the
directors.
iii) The closing stock of finished goods at cost is Rs. 5,60,000.
iv) The development rebate reserve is no longer required.
v) Depreciation on plant and machinery amounting to Rs. 43,000 on furniture
amounting to Rs. 1,300 and on building amounting to Rs. 3,800 has been
debited to miscellaneous expenses.
vi) Surplus in profit and loss account after proposed dividends, is to be transferred
to general reserve.
vii) Income-tax assessment for a prior year has been completed, fixing the income
tax liability at Rs. 1,55,000 (against which a provision of Rs. 80,000 and
advances of income tax of Rs. 70,000 exists in the books).
You are required to prepare:
i. Profit and loss account for the year ended 31st December, 2004; and
ii. Balance sheet in the prescribed form as on that date.
4) The Standard Cost of Chemical mixture ‘PQ’ is as follows:
40% of material P @ Rs.400 per kg. 60% of material Q @ Rs.600 per kg.
A standard loss of 10% is normally anticipated in production.
The following particulars are available for the month of March, 2004.
180 kgs of material P have been used @ Rs.680 per kg
220 kgs of material Q have been used @ Rs.360 per kg.
The actual of production of ‘PQ’ was 369 kgs.
Calculate the following variances:
a) Material Price Variance
b) Material Usage Variance
c) Material Mix Variance
d) Material Yield Variance
(20)
5) a) Explain how the variance analysis relating to overheads differ from that
relating to material and labour.
b) In what ways can we analyse sales variances. Explain in detail.