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Management Accounting (In English ) Chapter-3

Management Accounting (In English )
Chapter-3

 

 management accounting pdf, what is management accounting and its functions, management accounting notes, management accounting examples, what are the functions of management accounting, management accounting vs financial accounting, objectives of management accounting pdf, management accounting jobs,

management accounting pdf,
what is management accounting and its functions,
management accounting notes,
management accounting examples,
what are the functions of management accounting,
management accounting vs financial accounting,
objectives of management accounting pdf,
management accounting jobs,

Absorption and Variable Costing
(cwi‡kvlY I cwieZ©bkxj e¨q )
m~G :
01. Calculation of Opening, Closing, Production unit, and Sales unit.
Opening + Production = Sales + Closing.
Opening = Sales + Closing – Production.
Production = Sales + Closing – Opening.
Sales = Opening + Production –Closing.
Closing = Opening + Production – Sales.
02. Manufacturing cost per unit.
Particular Absorption Variable
Direct Material
Direct Labor
Variable overhead
Fixed factory overhead (
Cost per unit.

Management Accounting (In English )
Chapter-3

03. Forma for Income Statement under absorption Costing :
Name of Company
Income Statement under Absorption Costing
For the period ended………………
Particulars Taka Taka
Sales (
(-) Cost of goods sold:
Beginning / Opening Investment (
+) Production Cost/Cost of goods manufactured (
Cost of goods available for sales ——-
(-) Closing /Ending Inventory –
Gross Margin/Gross Profit ——–
(-) Operating / Periodic Cost:
Variable marketing and administrative expenses –
Fixed Marketing/Selling/Administrative expenses –
Net profit –

 management accounting pdf, what is management accounting and its functions, management accounting notes, management accounting examples, what are the functions of management accounting, management accounting vs financial accounting, objectives of management accounting pdf, management accounting jobs,

management accounting pdf,
what is management accounting and its functions,
management accounting notes,
management accounting examples,
what are the functions of management accounting,
management accounting vs financial accounting,
objectives of management accounting pdf,
management accounting jobs,

Management Accounting (In English )
Chapter-3

05. Forma for Income Statement under Variable Costing:
Name of the Company
Income Statement under Variable Costing
For the period ended………………
Particulars Taka Taka
Sales ( ***×*** ) ——————————–
(-) Variable Cost of goods sold:
Beginning/Opening Investment ( ***×*** ) ———————-
(+) Production Cost/Cost of goods manufactured ( ***×*** ) ——
Variable Cost of goods available for sales ———
(-) Closing /Ending Inventory ( ***×*** ) ————-
Gross Contribution Margin ———
(-) Variable Marketing/Selling/ Commercial /Administrative expenses-
Net Contribution Margin ———

Net profit ——————

Management Accounting (In English )
Chapter-3

 management accounting pdf, what is management accounting and its functions, management accounting notes, management accounting examples, what are the functions of management accounting, management accounting vs financial accounting, objectives of management accounting pdf, management accounting jobs,

management accounting pdf,
what is management accounting and its functions,
management accounting notes,
management accounting examples,
what are the functions of management accounting,
management accounting vs financial accounting,
objectives of management accounting pdf,
management accounting jobs,

04. Reconciliation statement
Particular Tk Tk
Change in Profit :
Profit under Absorption
Profit under Variable
Change in Inventory ( Closing – Opening )
Inventory under Absorption (
Inventory under Variable (

Management Accounting (In English )
Chapter-3

Absorption and Variable Costing (cwi‡kvaY I cwieZ©bkxj e¨q )
Ex-01. Navana Company Ltd. produces a single product. Data for last year,s operations are as follows :
Units produced 20,000
Variable cost per unit :
Tk
Direct Materials 5.00
Direct Labor 8.00
Variable manufacturing overhead 2.00
Variable selling and administrative expense 1.00
16.00

Fixed selling & administrative expense 40,000
1,20,000
Required :
Compute the unit product cost under variable costing. [ Ans:- 15 ]
Compute the unit product cost under absorption costing. [ Ans:- 19 ]

Management Accounting (In English )
Chapter-3

Ex-02. Navana Company Ltd. produces a single product. Data for last year,s operations are as follows :
Units produced 30,000
Variable cost per unit :
Tk
Direct Materials 50
Direct Labor 80
Variable manufacturing overhead 20
Variable selling and administrative expense 10
160

Fixed selling & administrative expense 80,000
2,60,000
Required :
Compute the unit product cost under variable costing. [ Ans:- 150 ]
Compute the unit product cost under absorption costing. [ Ans:- 156 ]

Management Accounting (In English )
Chapter-3

Ex-03. During 2015, Shahin company produced 2,40,000 units (100% of normal capacity ) of a product and sold 2,00,000 of this unit. Production cost consisted of :
Tk
Direct materials 6,00,000
Direct labour 6,00,000
Variable factory overhead 4,80,000
Fined factory overhead 9,60,000
Required : Compute the per unit cost of production and Ending inventory cost under Direct / Variable costing & Absorption costing. [ Ans :- Req :- (i) Tk 7 and Tk 2,80,000; Req :-(ii) Tk 11 and Tk4,40,000]

Ex-04. During 2015, Shahin company produced 24,000 units (100% of normal capacity ) of a product and sold 20,000 of this unit. Production cost consisted of :
Tk
Direct materials 60,000
Direct labor 60,000
Variable factory overhead 48,000
Fined factory overhead 96,000
Required: Compute the per-unit cost of production and Ending inventory cost under Direct / Variable costing & Absorption costing. [ Ans :- Req :- (i) Tk 11 and Tk 44,000; Req :-(ii) Tk 7 and Tk18,000]

Ex-05. The following data is available for the month of April :

Beginning Inventory Nil
Sales units 6,000
Production Units 9,000
Selling Price (Per unit) Tk 25
Direct Manufacturing expenses (per unit) Tk 12
Fixed Factory Overhead (per unit) Tk 4
Fixed Factory Overhead (Total) Tk 30,000
Commercial expenses (Fixed) Tk 12,000
Required:-
Find the cost per unit applying direct costing and Absorption costing.
Find the value of ending inventory.
The variance of fixed factory overhead.
[ Ans :- Req :- (i) Tk 12 and 16; Req :(ii) Direct costing Tk 36,000 and in absorption costing Tk 48,000 ; Req :- (iii) Favourable variance Tk 6,000 ]

 

 

Management Accounting (In English )
Chapter-3

Ex-06. The following data is available for the month of April :
Beginning Inventory Nil
Sales units 5,000
Production Units 8,000
Selling Price (Per unit) Tk 50
Direct Manufacturing expenses (per unit) Tk 24
Fixed Factory Overhead (per unit) Tk 8
Fixed Factory Overhead (Total) Tk 60,000
Commercial expenses (Fixed) Tk 24,000
Required:-
Find the cost per unit applying direct costing and Absorption costing.
Find the value of ending inventory.
The variance of fixed factory overhead.
[ Ans :- Req :- (i) Tk 24 and 32; Req :(ii) Direct costing tK 74,000 and in absorption costing Tk 96,000 ; Req :- (iii) Favourable variance Tk 4,000 ]

Ex-07. During last year M Company produced 1,50,000 units (100% of normal capacity) of a product and sold 1,20,000 of these units. Production cost consisted of Tk 3,00,000 direct materials Tk 3,75,000 direct labour,Tk 1,50.,000 variable factory overhead and 1,87,500 fixed factory overhead.
Required :
1. Using direct costing compute (a) the per unit cost of production and (b) the year-end inventory cost. [ Ans :- (a) Tk 5.50; (b) Tk 1,65,000 ]
2. Using absorption costing compute (a) the per unit cost of production and (b) the year-end inventory cos. [ Ans :- (a) Tk 6.75 (b) Tk 2,02,500 ]

Ex-08. During last year M Company produced 1,00,000 units (100% of normal capacity) of a product and sold 80,000 of these units. Production cost consisted of Tk 2,00,000 direct materials Tk 3,00,000 direct labour,Tk 1,50,000 variable factory overhead and 2,50,000 fixed factory overhead.
Required :
1. Using direct costing compute (a) the per unit cost of production and (b) the year-end inventory cost. [ Ans :- (a) Tk 6.50; (b) Tk 1,30,000 ]
2. Using absorption costing compute (a) the per unit cost of production and (b) the year-end inventory cos. [ Ans :- (a) Tk 9 (b) Tk 1,80,000 ]

Management Accounting (In English )
Chapter-3

Ex-09. Mamun enterprise produced 24,000 units ( normal capacity ) of a product, during the year 2017. 20,000 units were sold @ Tk 22 per unit. Cost production was as follows :
Materials 60,000, Direct labour 60,000, Variable Factory overhead 1,20,000, Fixed Factory overhead 96,000. Marketing & administrative expense for the year 70,000 you are required to prepare :
An income statement using Absorption costing. [ Ans :- 90,000 ]
An income statement using variable costing. [ Ans :- 74,000 ]

Management Accounting (In English )
Chapter-3

Ex- 10. Rakib enterprise produced 25,000 units ( normal capacity ) of a product, during the year 2017. 22,000 units were sold @ Tk 24 per unit. Cost production was as follows :
Materials 50,000, Direct labour 75,000, Variable Factory overhead 1,25,000, Fixed Factory overhead 1,00,000. Marketing & administrative expense for the year 90,000 you are required to prepare :
An income statement using absorption costing. [ Ans :- 1,30,000 ]
An income statement using variable costing. [ Ans :- 1,18,000]

Ex-11. Prepare a variable costing income statement for Y Company from the following data :
production 5,00,000 units of which 4,00,000 units were sold at Tk 35 each.
Direct materials per unit Tk 6
Direct labor per unit Tk 8
Variable factory overhead per unit Tk 1
Fixed factory overhead was Tk 20,00,000 variable selling and the administrative cost was Tk 1 per unit sold. Fixed selling and the administrative cost was Tk 25,00,000. [ Ans :- 31,00,000 ]

Management Accounting (In English )
Chapter-3

Ex-12. Prepare a variable costing income statement for Y Company from the following data :
production 10,00,000 units of which 8,00,000 units were sold at Tk 70 each.
Direct materials per unit Tk 12
Direct labor per unit Tk 16
Variable factory overhead per unit Tk 2
Fixed factory overhead was Tk 40,00,000 Variable selling and the administrative cost was Tk 1 per unit sold. Fixed selling and the administrative cost was Tk 50,00,000. [ Ans :- 2,22,00,00,000

Management Accounting (In English )
Chapter-3

Ex-13. Delta Ltd planned and manufacture 2,00,000 units of is’s single product in 2012 its first year of operations. Variable manufacturing costs were Tk 30 per unit of product. Fixed factory overhead Tk 6,00,000 planned and selling and administrative costs totaled Tk 4,00,000 in 2012. Delta Ltd sold 1,20,000 units of products in 2012 at a selling price of 40 per unit. Prepare an income statement using absorption costing. [Ans :- 4,40,000 ]

Management Accounting (In English )
Chapter-3

Ex-14. Delta Ltd planned and manufacture 1,00,000 units of is’s single product in 2012 its first year of operations. Variable manufacturing costs were Tk 15 per unit of product. Fixed factory overhead Tk 3,00,000 planned and selling and administrative costs totaled Tk 1,00,000 in 2012. Delta Ltd sold 60,000 units of products in 2012 at a selling price of Tk 20 per unit. Prepare an income statement using absorption costing. [Ans :- 20,000 ]

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