Course: Cost & Management Accounting June 2025 Solved Assignments

Description

Course: Cost & Management Accounting

NMIMS Centre for Distance and Online Education (NCDOE)

Internal Assignment Applicable for Jun 2025 Examination

Q1 ABC Manufacturing Ltd. produces a single product and operates a factory where both direct labor costs and overhead costs are incurred. The company provides thefollowing data for February:

Labour Costing Data: Total direct wages paid: Rs. 50,000

Number of direct labor hours worked: 10,000 hours Overtime premium included in wages:
$2,000

Employer’s contribution to benefits (social security, insurance, etc.): 10% of direct wages

-Overhead Costing Data: Total factory overhead costs: $40,000 Overheads are absorbed based on direct labor hours
–
Required:
1. Calculate the total direct labor cost, considering the employer’s contribution.
2. Compute the direct labor cost per hour.
3. Determine the overhead absorption rate per labor hour.
If a job requires 50 labor hours, calculate the total labor and overhead costassigned to the job.

(10 Marks)

Q2 (A) Elaborate on the implementation of a Just-in-Time (JIT) inventory system impact the material cost control process in a manufacturing company and explain its importance.
(5 Marks)
Q2 (B) Analyze how the method of valuing work-in-progress (prime cost vs. works cost) influences the final cost of goods sold and the financial reporting of a manufacturing
company.
(5 Marks)