11.

The standard material required to manufacture one unit of product X is 10 kg and the
standard price per kg of material is Rs.2.50.The cost accountant records, however, reveals
that 11,500 kg of materials costing Rs.27, 600 were used for Manufacturing 1,000 units of
product X. Calculate the material variances.

12. From the following data calculate the:

1. Break-even point expressed in terms of sale amount/revenue

2. Number of units that must be sold to earn a profit of Rs.60,000 per year

Sales price (per unit) Rs.20

Variable manufacturing cost per Rs.11

unit

Variable selling cost per unit Rs.3

Fixed factory overheads (per 5,40,00

year) 0

Fixed selling cost (per year) 2,52,00

0

6. A fresh MBA student joined as trainee was asked to prepare Trial balance. He was
unable to submit a correct trial balance. You, as a senior accountant find out the errors and
rectify them. After redrafting the trial balance prepare trading and Profit and loss account.

Particulars Debit Credit

Capital 7,670

Cash in Hand 30

Purchases 8,990

Sales 11,060

Cash at bank 885

Fixtures and Fittings 225

Freehold premises 1.500

Lighting and Heating 65

Bills Receivable 825

Return Inwards 30

Salaries 1.075
Creditors 1890

Debtors 5,700

Stock at 1st April 2007 3,000

Printing 225

Bills Payable 1,875

Rates, taxes and insurance 190

Discount received 445

Discount allowed 200

21,175 21,705

Adjustments:

1) Stock on hand on 31st March 2008 was valued at Rs.1800

2) Depreciate fixtures and fittings by Rs.25
3) Rs.35 was due and unpaid in respect of salaries
4) Rates and insurance had been paid in advance to the extent of Rs.40