MGT402 Cost & Management Accounting Assignment No.1 Solution Fall Semester 2013

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MGT402 Cost & Management Accounting Assignment No.1 Solution Fall Semester 2013


SEMESTER
FALL
2013
COST ANDMANAGEMENT ACCOUNTING
(MGT402) ASSIGNMENT NO.01
(NON GRADED)
DUE DATE :25TH NOVEMBER 2013 MARKS:20
Learning objectives:
To enable the students to:
•
Prepare Cost of goods manufactured and sold statement;
•
Understand
the calculation of units manufactured and cost of ending inventory;
•
Prepare income statement.
Assignment:
Macro Manufacturing Ltd. (MML)
-
a famous footwear brand in Karachi has 40 stores across the city.
The company has gained reputation because of stylish and well
-
designed footwear for ladies and men.
At the end of financial year 2012
-
13 company’s owner is
desirous to know the amount of profit earned
during the year. The records of MML show following information for the financial year 2012
-
13:
i.
During the year, direct material of Rs. 20,000 was purchased; direct labor cost incurred is Rs.
24,000.
ii.
Other expe
nses incurred are:
Details
Rs.
Insurance expired
–
building
3,500
Indirect labor
23
,000
Power, heat and light
35
,
0
00
Repair & Maintenance
of machinery
1
5,000
Salaries of
marketing
staff
1,200
Depreciation
of
Factory
2
5,000
Other manufacturing expenses
22,000
Rent of building
4,500
Distribution expenses
5,000
iii.
Sales during the financial year were of Rs. 874,500 (800 units)
.
iv.
As on June 30, 2013, the company has cash of Rs. 66,000, debtors Rs. 12,000, plant and
machinery Rs. 99,000, account payables Rs. 3,500 and current liabilities are of Rs. 250.
v.
Position of inventories is as follows;
1
st
July 2012
30
th
June 2013
Raw materials Rs. 34,000 Rs. 15,500
Work in process
Rs. 22,000 Rs. 13,000
Finished goods Rs. 33,000 (40 units) ? (30 units)
Required:
a)
Cost of goods manufactured and sold statement for the year ended Ju
ne 30, 2013
Marks: 15
b)
Income statement for the year ended June 30
, 2013.
Marks: 05
I
MPORTANT
:
24 hours extra / grace period after the due date are usually available to overcome uploading
difficulties. This extra time should only be used to meet the
emergencies and above mentioned
due dates should always be treated as f
inal to avoid any inconvenience.
O
THER
I
MPORTANT
I
NSTRUCTIONS
:
D
EADLINE
:
•
Make sure to upload the solution file before the due date on VULMS.
•
Any submission made via email after the du
e date will not be accepted.
F
ORMATTING GUIDELINES
:
•
Use the font style “Times New Roman” or “Arial” and font size “12”.
•
It is advised to compose your document in MS
-
Word format.
•
You may also compose your assignment in Open Office format.
•
Use black and blue font colors only.
R
EFERENCING
G
UIDELINES
:
•
Use APA style for referencing and citation. For guidance search “APA reference
style” in Google and read various website containing information for better understanding or
visit
APA REFERENCE STYLE: Table of Contents
R
ULES FOR
M
ARKING
Please note that your assignment will not be graded or graded as Zero (0), if:
•
It is submitted after the due da
te.
•
The file you uploaded does not open or is corrupt.
•
It is in any format other than MS
-
Word or Open Office; e.g. PowerPoint, PDF etc.
•
It is cheated or copied from other students, internet, books, journals etc.
•
Please also note that assignment in this course is non
-
graded and don’t have
weightage in total marks of the subject.
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