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MANAGEMENT ACCOUNTING Contents Solution 1: Statement of Cost

   

Added on  2021-06-16

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MANAGEMENT ACCOUNTING
MANAGEMENT ACCOUNTING Contents Solution 1: Statement of Cost_1
ContentsSolution 1:..................................................................................................................................3Solution 2:..................................................................................................................................4Solution 3:..................................................................................................................................5Solution 4:..................................................................................................................................7Solution 5:..................................................................................................................................9Bibliography.............................................................................................................................11
MANAGEMENT ACCOUNTING Contents Solution 1: Statement of Cost_2
Solution 1:Statement of Cost- Traditional ApproachParticulars Basic Model Advance Model Units produced and sold 1,600 1,500 Direct Material cost per unit 325 560 Direct Labour cost per unit 150 260 Total Material Cost 5,20,000 8,40,000 Total Labour cost 2,40,000 3,90,000 Total Allocated Overhead cost 1,43,750 1,06,250 Total Cost 9,03,750 13,36,250 Cost Price Per unit 565 891 Allocation of Overhead-Traditional approachParticulars Amount Inspection 20,000Assembly 90,000Production Scheduling 1,05,000Machine set-up 35,000Total Overhead to be allocated 2,50,000Total Machine Hours consumed 8,000Overhead per Machine Hour 31 - Overhead Allocted to Basic Model 1,43,750 - Overhead Allocted to AdvanceModel 1,06,250
MANAGEMENT ACCOUNTING Contents Solution 1: Statement of Cost_3
Solution 2:Statement of Cost- ABC approachParticulars Basic Model Advance Model Units produced and sold 1,600 1,500 Direct Material cost per unit 325 560 Direct Labour cost per unit 150 260 Total Material Cost 5,20,000 8,40,000 Total Labour cost 2,40,000 3,90,000 Total Allocated Overhead cost 75,506 1,74,494 Total Cost 8,35,506 14,04,494 Cost Price Per unit 522 936 Allocation of Overhead-ABC ApproachParticularsInspectionAssemblyProductionSchedulingMachineset-upTotalCostCost 20,000 90,000 1,05,000 35,000 2,50,000 Units950 8,000 550 350 Cost per unit21 11 191 100 Units for Basic Model200 4,600 50 100 Units for Advance Model750 3,400 500 250 Total Overhead for BasicModel 4,211 51,750 9,545 10,000 75,506 Total Overhead forAdvance Model 15,789 38,250 95,455 25,000 1,74,494 Solution 3:Statement of Profit and Loss- Tradition Approach
MANAGEMENT ACCOUNTING Contents Solution 1: Statement of Cost_4

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