Derny has been in a business since 1^st of January 2016. The following is a list of her transactions for month of January 2016.

Jan 01 - Started the business by contributing Rs.200000.

Jan 04 - Deposited Rs.150000 in the bank.

Jan 08 - Bought following assets by cheques.

BuildingsRs.60000

VehicleRs.55000

Jan 10 - Purchases on cash Rs.43000.

Jan 13 - Sales on cash Rs.60000

Jan 14 - Deposited Rs.50000 in the bank.

Jan 18 - Purchases on credit.

AntonRs.40000

BernardRs.30000

Jan 21 - Sales on credit.

FernandoRs.39000

RomeshRs.17000

Jan 22 - Paid following expenses in cash.

StationaryRs.670

Carriage InwardsRs.3000

Jan 25 - Received cheques from following debtors and deposited into bank for collection immediately.

FernandoRs.17000

RomeshRs.8000

Jan 27 - Issued cheques to following creditors.

AntonRs.13000

BernardRs.10000

Jan 30 - Paid following expenses by cheques.

AdvertisingRs.8000

SalaryRs.14000

I. Record above transactions in relevant subsidiary books.

II. Prepare the general ledger.

III. Prepare the trial balance as at 31^st January 2016.

2.Following data relate to the budget and actual result of a "Cosmo" firm that makes and sell a single product and that employs standard marginal costing

BudgetActual

Production8,000unitsProduction8,500units

Sales8,000unitsSales8,500units

$$

Sales120,000Sales127,500

(Less)

Standard Marginal CostActual Marginal Cost

-Materials8,000-Materials8,600

-Labor32,000-Labor40,000

-Var. Overhead48,00088,000-Var. Overhead56,000104,600

=Contribution32,000=Contribution22,900

(Less)

Fixed Costs12,000Fixed Costs12,900

Budgeted Profit20,000Actual Profit10,000

The standard cost card for the product is as follows

$

Material 5Kgs at 20cnt/Kg1.00

Labor 4hrs at $1.00/hour4.00

Var. Overhead 4hrs at $1.5/hour6.00

=Standard Marginal Cost11.00

Standard contribution4.00

Standard Selling price15.00

During the period material usage was 40,000kgs and 26,000 labor hours were needed to finish the product

Calculate

1. Operating Profit Variance
2. Direct Material Variance, Direct Labor Variance, Variable Overhead Variance, Fixed Overhead Variance
3. Prepare summery of cost variance
4. Calculate sales variance and overall variance by using cost and sales variance

1. Deliver a statement to show the change from budgeted to actual Profit by using variances
2. How this organization can improve their performance for next year