MGT402 GDB Idea Solution

Dear Students....


here its idea solution.....please comment am right or wrong....

Part 1)

BEP Sales = Fixed/Contribution margin ratio

150000 = Fixed /84%

150000 = Fixed /0.84

Fixed = 150000 x 0.84

Fixed = 126000

Part 2)

Target contribution = Target profit + Fixed cost

Target contribution = 42000 + 126000

Target contribution = 168000

Part 3)

Contribution margin ration = Contribution margin / sales

0.84 = 168000/sales

Sales = 168000/0.84

Sales = 200000

Sales 200000

Less: Variable (3200)

Contribution margin 168000

Less: Fixed Cost (126000)

Profit 42000

MGT402

MGT402 Cost and Management Accounting

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MGT402

MGT402 Cost & Management Accountion Assignment Solution:
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MGT402

MGT402 Cost&Management Accountiong Assignment Solution

Question:
Prepare cost of Goods Sold Statement of General Tyres for the year ended on 31st December, 1995 from the following information:-Raw Material Inventory(1-1-1995) 42,000Purchases 180,000Returns & Allowances 2,000Raw Material Inventory(31-12-1995) 39,500Direct Labour Cost 75,000Carriage in 2,500Factory Overhead Cost 20,200W.I.P Inventory(1-1-1995) 12,000W.I.P Inventory(31-12-1995) 16,000Finished Goods Inventory(1-1-1995) 58,000Finished Goods Inventory (31-12-1995) 56,500

SOLUTION;

Particles RUPEES RUPEES

DIRECT MATERIAL CONSUMED

Opening material inventory 42,000

ADD: Net Purchases 180,000

Material available for use 2,22,000

LESS: Closing inventory 39,500

Direct material used 1,82,500

ADD: Direct labour 75,000

PRIME COST 2,57,500

ADD: FOH cost 20200 Returns & Allowances 2500

Carriage in 2000 24,700

TOTAL FACTORY COST 2,82,200

ADD: Opening WIP 12,000

Cost of good to be manufactured 2,94,200

LESS: Closing WIP 16,000

Cost of good manufactured 2,78,200

ADD: Opening FG 58,000

Cost of good to be sold 3,36,200

LESS: Opening FG 56,500

Cost of good sold 2,79,700