Question 1 The following details have been obtained from the cost records of ABC Ltd. Particulars OMR Stock of raw materials on 1.12.2019 75,000 Stock of raw materials on 31.12.2019 Direct Wages 91 500 52,500 Sales Work-in-progress 1.12.2019 Work-in-progress 31.12.2019 Purchases of raw materials Factory rent, rates and power Depreciation of plant and machinery Expenses on purchases Carriage outwards Advertising 2,750 211,000 28,000 35,000 66,000 15,000 3,500 1,500 2.500 3,500 2,500 office rent and taxes Travellers wages and commission 6,500 $4,000 Stock of finished goods (1.12.2019) Stock of finished goods (31.12.2019) 31,000 Prepare a Cost sheet and ascertain (1) Cost of raw materials used (ii) Prime cost (iii) Gross Factory cost (iv) Factory cost(v) Cost of Production (vi) Cost of goods sold (vii) Cost of sales and (viii) Profit. (4 marks) b) The following data relate to the manufacture of product during the month of April 2019. Raw materials purchased OMR 48,000 Sale of raw material scrap OMR 8,000 OMR 24,000 4000 Direct wages Machine hours worked Machine hour rate Non-productive wages Administrative overheads Selling Overheads Units produced and sold Selling price per unit OMR 2 OMR 2,000 5% of works cost OMR 0.75 per unit 3,000 OMR 40 Prepare a Cost sheet and ascertain (i) Cost of raw materials used (ii) Prime cost(iii) Factory overheads(iv) Factory cost(v)Cost of Production(vi) Cost of sales and (vii) Profit and (viii)Sales. (4 marks) c) A factory requires 2000 units of certain material for a year. Cost of carrying one unit of this material is OMR I per annum and it is estimated that the expenses of placing an order and receiving would be OMR 10. Calculate (i) Economic Order Quantity and (ii) Number of orders per year. (2 marks) Question 2 a) You are required to compute (i) Economic ordering quantity and (ii) Frequency of the orders in terms of days, from the data given below: Consumption of Material per annum Ordering costs per order OMR 8000 OMR 25 Storage and carrying cost per annum 10% of inventory value. (4 marks) b) The following information is available in respect of component D20: Maximum stock level Budgeted consumption units per month units per month Estimated delivery period: You are required to calculate: i. Re-order level ii. Re-order quantity Normal usage Maximum usage Minimum usage Reorder quantity: X 4,800 units Y 7,200 units