answer the questions

352 What is the number of units required to be produced to meet the demand? (A) 8,900 units; (B) 9,900 units; (C) 10,900 units; (D) 11,000 units. [Guj. Uni., T.Y., Nov. 2013] [Ans. : (D) 11,000 units; Budgeted sales 10,000 units + closing stock 500 units - Opening stock 600 units = Net production (good units) 9,900 units; After taking in to account rejected units the total production would be 9,900 100/90=11,000.] 7. A company has the following budget for the next month : Sales 7,000 units; Production 7,200 units; Opening Stock of Materials 400kgs., Closing Stock of Materials 500kgs., Usage 3kg. per unit. What is the material purchase budget for the next month ? (A) 20,900kgs. (B) 21,100kgs. (C) 21,500 kgs. (D) 21,700 kgs. [Guj. Uni., T.Y., April, 2011] [Ans. : (D) 21,700 kgs.; consumption of materials 7,200 units 3kg. =21,600kgs. + closing stock 500kgs. =22,100kgs. - opening stock 400kgs.=21,700kgs.] 8. P Ltd. is currently preparing a materials usage budget for 10,000 units of a product (each unit requires 4kgs. of this material). Budgeted opening stock of materials is 3,000kgs. which is to be reduced by 25% by the end of the budgeted period. What is the usage for the material ? (A) 34,750kgs. (B) 39,250kgs. (C) 40,000kgs. (D) 40,750kgs. [Ans. : (C) Total use of materials =10,000 finished units 4 kgs. per unit =40,000 kgs., figures of opening and closing stock of materials are useless for material usage budget.] 9. A company has a budget for products A and B as follows Sales (units) Production (units) Skilled Labour (Rs, 10 per hour) Product A Un-skilled Labour (Rs. 7 per hour) 2 hrs / unit What is the budgeted cost for skilled hrs / unit (A) Rs. 1,05,000 (C) Rs, 1,76,750 (B) Rs. 1,35,000 [Ans. : (B) Rs. 1,35,000; Wages of skilled workers : Productior units 2 hours =3,500 hours + For B Rs. 5,000 units 2 hours =10, = Total hours 3,500+10,000=13,500 hours Rs. 10= Rs. 1,35,0, he payment of which will be made 80% against delivery anu the remaining in the subsequent month. (7) Income-tax of Rs. 14,000 will be paid in April, 2022. (8) Total overheads include monthly fixed overheads of Rs. 6,000, which is paid in the same month and variable overheads are paid in the subsequent month. 5. Select the correct option and show necessary calculations (any Seven) : (1) Management Accounting depends on - (A) Financial Accounting (B) Cost Accounting (C) Financial and Cost Accounting both (D) None of these (2) is not used in Management Accounting. (A) Marginal Costing (C) Unit Costing (B) Budgetary Control (D) Standard Costing (3) A company has cash on hand Rs. 20,000, Bank balance Rs. 45,000. Marketable Securities Rs. 35,000, Stock Rs. 1,00,000 and Current Liabilities Rs. 1,20,000. Find out Acid-test Ratio. (A) 0.67:1 (B) 1.67:1 (C) 0.83:1 (D) 0.54:1 (4) Sales of Maan Ltd. during the year is Rs. 8,50,000, Gross Profit is Rs. 40,000 , Closing Stock is Rs. 2,10,000, Opening Stock is Rs. 1,30,000. Calculate Stock Turnover. (A) 5 times (B) 6.53 times (C) 4.76 times (D) 5.23 times (5) is not a Profitability Ratio. (A) Operating Ratio (B) Expenses Ratio (C) Stock Turnover (D) Rate of Return on Capital Employed (6) Which of the following is a cashflow arising from Investing Activities ? - (A) Sale proceeds of machinery (B) Payment of income-tax (C) Payment of dividend (D) Redemption of debentures following is the information regarding it : sales 30,000 units, Opening stock 13,500 units. Closing stock 20% of the budgeted sales. 25% of the finished product units are rejected due to faulty method of production. Find out the number of finished product units to cater the narket demand. (A) 20,000 units (B) 30,000 units (C) 35,000 units (D) 25,000 units [Guj. Uni., T.Y., Nov. 2014] [Ans. : (B) 30,000 units (Sales 30,000 units + Closing stock 6,000 units =36,000-Op. Stock units 13,500=22,500, If 25% of the finished product units are rejected then number of finished product =22,500 100/75=30,000 ).] 18. Shiv Ltd. wants to prepare Materials Utilization Budget for the next term, for which the target production is 60,000 units. 2kg. of raw material is used per unit. Opening stock of raw material is 8,000kgs. which is to be reduced by 1632% at the end of the budget period. Find out the Materials Utilization : (A) 1,20,000kgs. (B) 1,12,000kgs. (C) 68,000kgs. (D) 1,28,000kgs. [Guj. Uni., T.Y., Nov. 2014, 2019] [Ans. : (A) 1,20,000kgs. (60,000 units 2kgs.=1,20,000kgs.).] 19. X Ltd. has prepared production budget for item P and Q : Item P Item Q Skilled workers (Rs. 50 per hour) \begin{tabular}{cc} 2 hrs. per unit & 2 hrs. per unit \\ 3 hrs. per unit & 4 hrs. per unit \\ 6,000 & 20,000 \\ 8,000 & 16,000 \end{tabular} Unskilled workers (Rs. 20 per hour) Production units Sales units Find out the Labour Cost of unskilled workers : (A) Rs. 18,50,000 (B) Rs. 19,60,000 (C) Rs. 16,80,000 (D) Rs. 20,25,000 [Guj. Uni., T.Y., Nov. 2014] [Ans. : (B) Rs. 19,60,000 (Total hours of unskilled workers P 6,0003 =18,000+Q20,0004=80,000 hours =98,000 Rs. 20 per hour = 19,60,000).]