Question 1:- The following information has been gathered for a company doing jobbing work only for 2013: a) Materials Consumed Rs. 4,00,000/- b) Direct Labour Rs. 3,00,000/- c) Factory Overheads Rs. 2,40,000 d) Office and Administrative Expenses Rs. 94,000 e) Sales Rs. 12,40,800. The company has to quote for a job to be undertaken in February, 2014. It is estimated that the job will require materials costing Rs. 30,000 and direct wages for it will be Rs.45,000. What should be the quotation?

a) Rs. 146520/-

b) Rs. 150000/-

c) Rs, 120200/-

d) Rs, 165400/-

Question 2:- A company makes and sells a single product. At the beginning of period 1, there is no opening stock of the product, for which the variable production cost is Rs.4 and the sale price is Rs.6 per unit. Fixed costs are Rs.2,000 per period of which Rs.1,500 are fixed production costs. The following details are available: The Sales & Production for Period 1 were 1,200 units & 1,500 units and that for period 2 were 1,800 units & 1,500 units respectively.

What would be the profit in each period using -

(a) Absorption costing. (Assume normal output is 1,500 units per period); and (b) Marginal costing?

a) Absorption Costing Rs. 500 & Rs 1500. Marginal Costing Rs. 600 & Rs. 1400

b) Absorption Costing Rs. 800 & Rs 1200. Marginal Costing Rs. 700 & Rs. 1300

c) Absorption Costing Rs. 700 & Rs 1300. Marginal Costing Rs. 400 & Rs. 1600

d) Absorption Costing Rs. 800 & Rs 1200. Marginal Costing Rs. 600 & Rs. 1400