1. The following information is obtained from the books of Ram Ltd. for the month of April, 2008. Prepare Cost Sheet from the following:


Direct Material RS 8,20,000
Direct Wages RS 2,40,000
Direct Expenses RS 20,000
Office overheads RS 1·50 per unit
Selling overheads of Sales
Opening stock of finished goods (15,000 units)­ RS 2,13,000
Closing stock of finished goods (10,000 units)
Sales (1,25,000 units) RS 20 per unit

2. Following particulars for the Last Process are given:

Units Price(RS)
Transfer from the Last Process 4,000 9,000,
Transfer to the Finished Stock from the Process 3,240
Direct wages 2,000
Direct material used 3,000
The factory overheads in the Process are absorbed 400% of Direct material. Normal loss is 20% of the units worked and the scrap value is RS 5 per unit.

Prepare the following:

Process A/c

Normal wastage (loss) A/c

Abnormal loss A/c

Explain the Cost Sheet. Explain the main difference between Cost Account and Financial Account.

Define the Break-even Point. Mention the assumption with regards to Break-even Point and its benefits to the entrepreneur.

4. A factory is currently running at 50% of its capacity and produces 5,000 units at a cost of RS 90 per unit as per the details given below:

Material RS 50
Labour RS 15
Factory overhead RS 15 (RS 7·50 fixed)
Office overhead RS 10 (RS 5 fixed)

The current selling price is 100 per unit.

At 60% working material cost per unit increases by and selling price per unit falls by 2%. At 80% working material cost per unit increases by and selling price per unit falls by 5%.

Estimate the Profits of the factory at 60% and 80% working.

5. Define Financial Management. What are the objectives of financial management? Explain the concept of Profit Maximisation and Welfare Maximisation.

6. You are given the following details

Fixed Expenses RS 4,000

Break-even Point RS 10,000

Calculate

PN Ratio

Profits, when Sales are RS 20,000

New Break-even Point, if Selling Price is reduced by 20%.