Cost and management accounting April 2024


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Assignment Sample Solution: Cost and management accounting April 2024

NMIM$ Global Access

School for Continuing Education (NGA-SCE)

Course:  Cost and management accounting April 2024

Internal Assignment Applicable for April 2024 Examination

Q1. In a particular month, 1,000 units were introduced in Process A. The normal loss is estimated at 5% of input. At the end of the month, 700 units were produced and transferred to Process B, 230 were incomplete units and 70 units were scrapped at the end of the process. The incomplete units had the following degree of completion: materials 75%,labor 50%, overheads 50%.
Additional details of process A are as follows:
Cost of 1000 units introduced 29000
Additional materials consumed 7200
Direct Labour 16700
Allocated overheads 8350
The scrapped units were sold at Rs. 10 per unit.
1. Statement of Equivalent Production
2. Statement of Cost
3. Statement of Evaluation
4. Process A account (10 Marks)
Q2. The following information in respect of a production process is available for the
month of April 2023.
Budgeted Actual
Output Units 120000 130000
Hours 120000 132000
Fixed Overheads 180000 200000
Variable Overheads 240000 272000
Working Days 100 104
Compute the relevant overheads variances. (10 Marks)

Q3. In the course of developing the global accounting standards, the International Financial Reporting Standards are widely recognized over 100 countries. Therefore, more and more companies are presenting their financial information in the International Financial Reporting Standards to their internal and external users. As one of the largest retailers in the world, Mil Ltd. has its business over 10 countries and employed almost 3,20,000 people. It is very interesting to see how its accounting information supports its operations. To show how the business is running, the accounting information are provided to all users as managers, customers, suppliers, associations and government. As a retailer, it is very important for Mil Ltd. to provide a positive financial statement to its accounting information users.
a. In the context of the above case study, identify and explain the relevance of Management Accounting Information to the employees. (5 Marks)
b. Explain in what way management accounting practices in global perspective are relevant to shareholders? (5 Marks)

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