Assignment Question(s) (Allotted Marks: 15/15) Question: 1. (This question addresses CLOI) Task 1: "Cost Accounting has become an essential tool of management for enhancing its operational efficiency". Give your comments on this statement. Describe also, what practical difficulties management might face in implementing an effective costing system. [3.5 Marks) Task 2: Ibri traders furnishes the following data relating to the manufacture of a standard product during the month of January 2021. Raw materials consumed-------OMR 15000 Direct labour charges--- ---OMR 9000 Factory Overhead ---- OMR 4500 Administrative overheads 20% on works cost Selling and distribution expenses OMR.0.500 per unit sold Units Produced -------- 17,100 Units Units Sold 16,000 at OMR 4.000 per unit You are required to prepare a cost sheet from the above, showing: (a) The cost of production per unit. (b) Profit per unit sold and profit for the period. [4 Marks [3.5+4= 7.5 Marks) Question: 2. (This Question addresses CLO2) Task 1 The following information is available in respect of material No. 001 Re-order quantity = 1500 units Re-order period = 4 to 6 weeks Maximum consumption=400 units per week Normal consumption=300 units per week Minimum consumption=250 units per week Calculate: 1. Re-order level 2. Minimum level 3. Maximum level and; 4. Average stock level. [2 marks] Task 2: Calculate Economic Order Quantity from the following information: Annual consumption 100,000 units Ordering cost OMR 50 per order Carrying cost 8% of average stock Cost per unit OMR.20 [1.5 Marks Task 3 Prepare a Stores Ledger Account for the month of January2021 under: 1. LIFO Method. 2. FIFO 3. Simple' Average Price Method. Receipts dated Quantity Price Issues dated Quantity 1-1-2021 800 units 25 per unit 3-1-2021 1,000 units 19-1-2021 1,000 units 23 per unit 11-1-2021 800 units 31-1-2021 400 units 21 per unit 23-1-2021 600 units 25-1-2021 200 units 31-1-2021 200 units On 1st January, 2021, opening stock was 1,250 units at OMR 27 per unit