Essay about Account

AEREN FOUNDATION'S

Maharashtra Government. Reg. No .: F-11724

A GREAT ISO 9001: 2000 CERTIFIED INTERNATIONAL B-SCHOOL

SUBJECT: ACCOUNTING

Total Represents: 80

N. B.: 1) All questions are compulsory

Q1) ABC Limited. Produces place coolers. The business is considering whether it should continue to make air circulating fans by itself or obtain them by outside. The annual need is 25000 units. An outsider merchant is willing to supply supporters for Rs 285 every. In addition , FONEM Ltd will need to incur costs of Rs 1 . 60 per product for gets and Rs 10, 500 per year to get quality inspection, storing and many others of the merchandise.

25 Marks

Inside the most recent 12 months ABC Limited. Produced 25000 fans in the following total cost: Material

Labour

Oversight & different indirect time

Power and lightweight

Depreciation

Manufacturer Rent

Products

Rs. 55, 00, 500

Rs. 20, 00, 1000

Rs. two, 00, 500

Rs.

40, 000

Rs.

20, 000

Rs.

5, 000

Rs.

75, 1000

Power and lightweight includes Rs 20, 1000 for general heating and lighting, which can be an allocation based on the sunshine points. Roundabout labour is usually attributed generally to the developing of supporters. About 74% of it can be dispensed with along with direct time if manufacturing is stopped. However , the supervisor who have receives total annual salary of Rs 75, 000 must be retained. The machines intended for manufacturing supporters which have a book value of Rs several, 00, 500 can be sold for Rs 1, twenty-five, 000 as well as the amount recognized can be invested at 15% return. Factory rent is definitely allocated based on area, plus the company is not able to see an alternative solution use pertaining to the space which will would be released. Should FONEM Ltd. Manufacture the enthusiasts or purchase them?

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Q2) Usha Company produces three consumer products: G, Q and R. The management in the company really wants to determine the most profitable mix. The cost scrivener has supplied the following info.

30 Marks

Usha Company: Sales and Expense Data

Description

P

Materials Cost every unit

Quantity (Kg)

Rate per Kilogram (Rs)

Cost per unit (Rs)

Labour Cost per unit

Varying Overheads every unit

Fixed Overheads (Rs. 000)

Current Sales (Units, 000)

Expected Sales (Units, 000)

Value per product (Rs)

Merchandise

Q

Total

R

1 ) 0

40

50

30

15

1 . 2

50

60

85

10

1 . 4

60

70

80

25

90

109

one hundred and fifty

50

55

200

60

125

270

9, a hundred seventy five

210

289

Raw material used by the organization is in short supply and the firm can get a maximum supply of 350 lakh kilogram for the coming year. Is the business projected revenue mix many profitable or can it be transformed for the better?

Q3) DSQ Company Ltd, a diversified business, has three divisions, cement, fertilizers and textiles. The summary from the company's revenue is given below: 25 Marks

Product sales

Less: Variable Cost

Contribution

Less: Fixed Cost (allocated to

divisions in proportion to

volumes of Sales)

Profit (Loss)

Concrete

20. zero

8. zero

12. 0

8. 0

Fertilizer

doze. 0

9. 6

2 . 4

some. 8

four. 0

(2. 4)

(Rs/Crore)

Textiles

Total

18. zero

50. 0

5. four

23. zero

12. six

27. zero

7. 2

20. 0

5. 4

7. zero

After allocating the company's fixed overheads to products the Fertilizers, split incurs a loss of Rs 2 . some crore. If the company drop this division?

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