Solution:

Bell Computers, LTD.,

Cost of Production Report

For the Month of Jan

1. Quantity Schedule

Units of open work in process 10,000

Units put into the process 58,000

68,000

Units of closing work in process 8,000

Units completed and transferred 60,000

68,000


2. Cost Accumulated in the process

Material Cost (18,000+114,000) 132,000

Conversion Cost (8,800+61,600) 70,400

Total Cost 202,400

3. Equivalent unit Produced

Material Cost (60,000+8000*75%) 66,000

Conversion Cost (60,000+8000*50%) 64,000

4. Per Unit Cost

Material Cost (132,000/66,000) = 2

Conversion Cost (70,400/64,000) = 1.1

Total per Unit Cost 3.1

5. Cost Apportionment

Units completed and transferred

(60,000*3.1) 186,000

Closing work in process

Material Cost (6,000*2) 12,000

Conversion Cost (4000*1.1) 4,400 16,400

202,400


Required:

1. How many units were started and completed during January?

Answer:

Unit Started in Jan. = 68,000

Unit Completed in Jan. = 60,000

2. What were the equivalent units for January for material and conversion costs?

Answer:

Equivalent units for January for material costs = 66,000

Equivalent units for January for conversion costs = 64,000


3. What were the costs per equivalent unit for January?

Answer:

Material Cost (132,000/66,000) = 2

Conversion Cost (70,400/64,000) = 1.1

Total per Unit Cost 3.1


4. Verify the accountant’s ending work in process inventory figure (£16,400) given in the report.

Answer:

Closing work in process

Material Cost (6,000*2) 12,000

Conversion Cost (4000*1.1) 4,400 16,400

5. What criticism can be made of the unit costs that have been computed weighted –Average Method by the company and which method is superior computing unit cost under process costing based on your criticism?

Answer:

Comparison of Both methods is under as equivalent production and per unit costs.

Weighed Average Method FIFO Method

Equivalent production per unit costs Equivalent production per unit costs

Material Cost (60,000+8000*50%)

66,000 (132,000/66,000)

2 (1000+50,000+6000)

57,000 (114,000/57,000)

2

Conversion Cost (60,000+8000*75%)

64,000 (70,400/64,000)

1.1 (2000+50,000+4000)

56,000 (61,600/56,000)

1.1

Total 130,000 3.1 113,000 3.1

In comparison we see that the equivalent unit in both methods is different but per unit cost has same. FIFO method is complex than Weighted Average method, so Average method is superior because of less complexity and due to:

1. There are fewer chances to complete the unit which produced first it means first in first, because Authorities prefer to complete the open units and there may be delay in new units to put into the process.

2. Accountants will refer to Average method due to less time consuming and complexity.

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SOURCE:-
MGT 301 Handouts and web search.

EXCLUSIVE DISTRIBUTION:-
Exclusive distribution means giving a limited number of dealers the exclusive
right to distribute the company’s products in their territories.

FMCG s:-
FMCGs (Fast Moving Consumer Goods) are inexpensive products that people
usually buy on a regular basis, such as supermarket foods or toiletries.

RECOMMENDATION AS EXCLUSIVE DISTRIBUTION FOR FMCGs OR NOT:-
I will not recommend exclusive distribution for FMCGs because they are
required on regular basis and should be available in every market on most number of
shops and people should have an easy approach towards these products.

EXCLUSIVELY DISTRIBUTED PRODUCTS:-

1. HONDA MOTORCYCLE
REASON: - It is exclusively distributed because its distribution requires financially
strong dealers and dealers whose reputation is well in the market as well as in the society.
And dealers must be able to hold the complex and unexpected environment of the market.
Dealers are required to have a knowledge that why HONDA MOTORCYCLE is better
than others.

2. PEL REFRIGERATOR
REASON: - It is exclusively distributed because there are only a few no of dealers which
are present in the market to sale and service the electric appliances and the distributors
are required to be financially strong and distributors should have knowledge about
electric equipments and inner composition of equipments. They must have well
reputation in the market as appliance dealers.

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[[NOTE:- We always try our best to upload 100% correct solution BUT it is requested that you kindly review it before submission, please.]] Hyper Star Traders
Income Statement
As of Dec 31, 2009
				Amount in Rs.
	Sales		924,000
	Return Inwards		8,000
	Net Sales			916,000
	Cost of Sales
	Opening Stock		120,000
	Purchases	680,000
	Return Outwards	4,800
	Net Purchases	675,200	675,200
	Total Stock available for sale		795,200
	Closing Stock		200,000
	Net Cost of Sales			595,200
	Gross Profit			320,800
	Operating Expenses
	Salaries			48,000
	Wages			45,200
	Carriage out			3,600
	Commission			2,000
	Insurance Paid			2,800
	House Rent			5,000
	Bank Charges			150
	Interest on Loan			500
	Bad Debts on Sundary Debtors			5,000
	Written off Plant Value - wear& Tear			40,000
	Total Operating Expenses			152,250
	Operating Income
	Interest Received			(800)
	Dividend Income			(2,000)
	Total Operating Income			(2,800)
	Net of Total Operating Income/Expense			149,450
	Net Profit Transferred to Balance Sheet			171,350

....................................................

Hyper Star Traders
Balance Sheet
As of Dec 31, 2009
Liabilities & Owner's Equity				Assets
Current Liabilities		Amount in Rs.		Current Assets		Amount in Rs.
Bills Payable		20,000		Cash in Hand		4,000
Sundary Creditors		160,000		Bank Balance		36,000
Bank Charges/Interest Due		650		Sundary Debtors	100,000
				Bad Debts	5,000
				Net Sundary Debtors	95,000	95,000
				Bills Receivables		44,000
				Dividend Receivable recorded		(2,000)
				Closing Stock		200,000
Total current Liabilities		180,650		Total current Assets		377,000
Owners Equity				Fixed & Long Term Assets
				Long Term Investment		60,000
Capital	280,000			Furniture		40,000
Drawing (Credited)	5,000			Plant	200,000
Net Capital	285,000	285,000		Wear & Tear of plant	40,000
				Net Plant Value	160,000	160,000
Net Retained Earning from P&L		171,350
Total Capital & Retained Earning		456,350		Total Fixed & Long Term Assets		260,000
Total Liabilities & Owners Equity		637,000		Total Assets		637,000

.....................................

Hyper Star Traders
Adjustment Entries
As of Dec 31, 2009
	Amount in Rs.
Adjustment Entry # 1
Account	Dr	Cr
Bad Debts on Sundary Debtors	5,000
Sundary Debtors		5,000
Recording the bad debts on sundary debtors (100,000 x 5 % = 5,000)
Adjustment Entry # 2
Account	Dr	Cr
House Rent Expense	5,000
Capital		5,000
Adjustment Entry for recording the House rent paid from Owners personal Account
Adjustment Entry # 3
Account	Dr	Cr
Writen Off Value - Plant	40,000
Plant		40,000
Adjustment Entry for the Written off the plant value
Adjustment Entry # 4
Account	Dr	Cr
Bank Charges	150
Interest on Loan	500
Due Bank Charges		150
Due Interest on loan		500
	650	650
Adjustment Entry to record the due payment not yet recorded in the bank books
Adjustment Entry # 5
Account	Dr	Cr
Accrued dividend Receivable	2,000
Dividend Income		2,000
Adjustment Entry for the dividened accured receivable on Dec 31,09

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LONDON: A man hurled a shoe towards former president Gen. (Retd.) Pervez Musharraf when the latter was addressing a gathering here on Sunday

The shoe fell in the front rows and failed to reach the stage. On this security men present there sprung to action and took the man out of the place.

The man, when being taken out, chanted slogans in favour of Dr. Afia Siddiqui, who is presently in US detention.

The shoe-hurling began with an Iraqi journalist who threw two shoes at former US president bush during his farewell visit to Iraq.

This started a trend which saw tossing of shoes on different leaders including Indian Home Minister P. Chidambaram, President Asif Ali Zardari and Chinese premier Wen Jiabao. However, in all these cases no shoe reached the target.

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Musharraf Shoe Attack - Live Video News

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Scenario 01 : legitimate power

Scenario 02 : charismatic power

Explanation:

Legitimate power

Legitimate power is that which is invested in a role. Kings, policemen and managers all have legitimate power. The legitimacy may come from a higher power, often one with coercive power. Legitimate power can often thus be the acceptable face of raw power.

A common trap that people in such roles can fall into is to forget that people are obeying the position, not them. When they either fall from power or move onto other things, it can be a puzzling surprise that people who used to fawn at your feet no long do so.

Coercive power

This is the power to force someone to do something against their will. It is often physical although other threats may be used. It is the power of dictators, despots and bullies. Coercion can result in physical harm, although its principal goal is compliance. Demonstrations of harm are often used to illustrate what will happen if compliance is not gained.

Coercion is also the ultimate power of all governments. Although it is often seen as negative, it is also used to keep the peace. Parents coerce young children who know no better. A person holds back their friend who is about to step out in front of a car.

Other forms of power can also be used in coercive ways, such as when a reward or expertise is withheld or referent power is used to threaten social exclusion.

Charismatic authority

as "resting on devotion to the exceptional sanctity, heroism or exemplary character of an individual person, and of the normative patterns or order revealed or ordained by him." Charismatic authority is one of three forms of authority laid out in Weber'stripartite classification of authority, the other two being traditional authority and rational-legal authority. The concept has acquired wide usage among sociologists

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