Question 1:

i) Discuss the branch of Accountancy which assists the management in ascertainment and control of cost of product and services?

(, Word Limit 50)

ii) In which technique, fixed manufacturing costs are not charged to products but are considered as periodic costs and transferred to costing profit and loss Account. Explain how it is different from the technique where cost of the product is ascertained based on aggregate cost.

(, Word Limit 250-300)

Question 2:

Assume, Mr. Ali, one of your friends completed his graduation in Engineering and wanted to start a small manufacturing company near Salalah, and he intends to get some idea on the cost enunciated hereunder:

i) Classification of cost on the basis of Controllability, and

ii) Classification of cost on the basis of Variability.

Being the accounting specialization student how will you explain him about classification of cost? Explain along with suitable examples.

(, Word Limit 250-350

Question 3:

The production department of Xavier Pharmaceuticals L.L.C supplies you the following data for the year ending 31st December 2019.

Cost of Material used OMR. 27, 000

Direct wages paid OMR 22, 500

Labour hours worked 18, 000

Hours of machine operation 15,000

Overhead cost OMR. 18,000

You are required to ascertain overheads absorption rate by using the following methods:

a) Percentage of Direct material cost

b) Percentage of Direct wages cost

c) Direct labour hour rate

d) Machine hour rate )send like pictures)

Question 4:

The following information pertains to raw material A used in production process of Part Pearl Inc., (10 Marks)

Normal usage 50 tons per week

Maximum usage 75 tons per week

Minimum usage 25 tons per week

Re-ordering Quantity30 unit

Re-order period (Lead Time) 4 to 6 weeks

You are required to calculate for Raw material A:

(a) Re-order Stock Level

(b) Minimum Stock Level

(c) Average stock level; and

(d) Maximum stock level. (send like pictures )

Question 5:

(a) Monza Industry Company L.L.C used OMR 85,000 of materials in its production process for the month of May, 2019. Direct wages paid by the company are OMR 50,000 and overhead expenses of the company are OMR 45,000.

Ascertain the Percentage of Factory Overheads on the basis of Prime cost of Monza Industry.