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ASSIGNMENT
DRIVE SPRING 2017
PROGRAM MBA
SEMESTER I
SSUBJECT CODE & MBA104
NAME FINANCIAL AND MANAGEMENT ACCOUNTING
BK ID B1624
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CREDIT 4
MARKS 60

Note The Assignment is divided into 2 sets. You have to answer all questions in both sets
and submit as one document. Average of both assignments marks scored by you will be
considered as your IA marks. Kindly note that answers for 10 marks questions should be
approximately of 400 words. Each question is followed by evaluation scheme.

Q.No Assignment Set -1 Marks Total Marks

Questions
Rainbow Ltd. sold goods for Rs. 30,00,000 in a year. In that year, the variable costs
1 were Rs. 6,00,000 and fixed costs were Rs. 8,00,000.
Find out:
i) MCSR or P/V Ratio
ii) Break-even sales
iii) Break-even sales, if the selling price was reduced by 10 % and fixed costs
were increased by Rs. 1,00,000.

From the above find: 10

i) MCSR or P/V Ratio 2
ii) Break-even sales 3
iii) Break-even sales, if the selling price 5
was reduced by 10 % and Fixed Costs
were increased by Rs. 1,00,000.

The method of costing depends on the nature of the product, production method
2 and specific business conditions. Enumerate giving examples.

The different methods of costing and examples 5+5 10

A company making for stock in the first quarter of the year 2017 is assisted by its
bankers with overdraft accommodation. The following are the relevant budget
3 figures:
Sale (Cr.) Purchases (Cr.) Wages &Expenses
Rs. Rs. (Cr.) Rs.
November 2016 1,20,000 83,000 10,000
December 2016 1,28,000 96,000 10,000
January 2017 72,000 1,62,000 11,000
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February 2017 1,16,000 1,64,000 10,000

March 2017 84,000 40,000 12,000

Given the following further information you are required to prepare a Cash
Budget for the quarter January to March 2017, showing the budgeted amount of
bank facilities required, if any, in each month end:

a) Budgeted cash at bank on 1st January 2017 Rs. 20,000

b) Credit terms of sales are payment by the end of the month following the
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month of supply. On average one half of sale are paid on due date, while the
other half are paid during the next month. Creditors are paid during the
month following the month of supply.
c) Wages and expenses are paid twice a month on 1st and 16th respectively.

From the above information prepare a Cash 10 10

Budget for the quarter January to March 2017,
showing the budgeted amount of bank facilities
required, if any, in each month end.

Q.No Assignment Set -2 Marks Total Marks

Questions
1 ton of material input yields standard output of 1,00,000 units. The standard price
1 of material is Rs. 20 per kg. The actual quantity of material use is 10 tons and the
actual price paid is Rs. 21 per kg. Actual output obtained is 9,00,000 units.
Compute Material Variances.

From the above find: 10

i) Material Cost Variance 4
ii) Material Price Variance 3
iii) Material Usage Variance 3

There are errors which do not affect the Trial Balance and it is difficult to locate
2 them. Do you agree ? justify your agreement/ disagreement.

Errors not disclosed by Trial Balance 10 10

From the following data prepare a Cost Sheet.

3 Rs.
Opening cost of Raw materials 30,000
Closing stock of Raw materials 20,000
Purchase of Raw materials 1,90,000
Sales 6,50,000
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Prime Cost 4,10,000

Factory Overhead 1,20,000
Administration Overhead 90,000
10 % of the output remained unsold. There was no Direct Expenses
From the above information prepare a Cost Sheet 10 10
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