MGT402
Mostly MCQS from Old Papers 52
Question
IF 5 Mrks
Company’s sales forecast for 3rd quarter, ending September 30, was 54,300 units.
The beginning inventory was 13,000 units.
Ending inventory was 12,200 units.
Then:
Prepare production budget for 3rd quarter?
Question
5 Mrks
Liberty Pizzas delivers their product to the housing societies near Gulberg. The company's annual fixed costs are Rs. 400,000. The sales price of a normal size pizza is Rs. 100 and the cost to make and deliver each pizza is Rs. 60.
You are required to calculate the following:
1. Break even sales per unit.
How many Pizzas the company must be sold in order to earn a profit of Rs. 650,000
Question
3 Mrks
The following data of an electronic company for the month of August is given:
Required: Break Even point in Units and Rs
Question 5 Mrks
The Regal, Inc. makes 35,000 motors to be used in the production of its sewing machines. The cost per motor at this level of activity would be:
An outside supplier recently began producing a comparable motor for the sewing machine. The price to Regal for this motor is Rs. 15. If Regal decided not to make the motors, there would be no other use for the production facilities.
Required: If Regal decides to continue making the motor, how much higher or lower would net income be than if the motors are purchased from the outside supplier?
Question
Bazar Company is a small family business that produces wooden plaques and
Trophies: 5 Marks
In producing the items the primary bottleneck is due to the fact the company only has one machine, a sander, to sand the wood that is used for the plaques or the trophies. Generally, the wood required for each plaque takes 0.25 hour to sand, while the word required for each trophy takes 0.50 hour to sand. Based on the constraint related to the machine time, which product should be emphasized if only limited machine time is available?
Question
3 Marks
Suppose a trader of an agriculture product has fifty thousand to invest. Different avenues of investment are available to him are as under:
Alternative # 1
Investment in the purchase seeds, expected return is Rs. 150,000.
Alternative # 2
Investment in purchase of fertilizers, expected return is Rs. 100,000
Alternative # 3
Lend out money to a friend; expected return is Rs.50, 000
Required:
Keep in view the given data calculate/identify the following:
Opportunity cost
Opportunity loss
Question
The following detail is related to Bloch Company. 3
Required:
Find out the numbers of completed units and equivalent production units as to material and conversion cost using weighted average method.
Question
The Carter Manufacturing Company estimates its production requirements to be 30,000 units for October, 38,000 units for November and 41,000 units for December. It takes 3 direct labor hours at a rate of Rs. 3 per hour to complete one unit.
Prepare direct Labor budget cost for the last quarter of the year
Dear friends todays mgt402 paper
total questions 60
54 mcqs mostly new and very tricky ones
3 questions of 3 marks each and 3 questions of 5 marks
subjective questions are as follows
Q:-Prepare labor cost budget for the month of jan, feb and march budgeted units for jan 900, feb 2100 and march 3350. it takes 3 hrs to complete one unit and labor rate is Rs.3.1/hr
Q: Prepare administrative budget ( data was given)
Q: Sales 600,000 markup 20% of cost of goods sold find cogs and profit margin
Q: Find eq units using fifo method and unit cost ( data was given)
Q: Bazar Company is a small family business that produces wooden plaques and
Trophies:
In producing the items the primary bottleneck is due to the fact the company only has one machine, a sander, to sand the wood that is used for the plaques or the trophies. Generally, the wood required for each plaque takes 0.25 hour to sand, while the word required for each trophy takes 0.50 hour to sand. Based on the constraint related to the machine time, which product should be emphasized if only limited machine time is available?
Q: Liberty Pizzas delivers their product to the housing societies near Gulberg. The company's annual fixed costs are Rs. 400,000. The sales price of a normal size pizza is Rs. 100 and the cost to make and deliver each pizza is Rs. 60.
You are required to calculate the following:
1. Break even sales per unit.
How many Pizzas the company must be sold in order to earn a profit of Rs. 650,000
MGT402 Final Term Paper Attempted by Hijaab Mehar
24-02-2013
Total 60 Questions. 52 Mcqz and 8 were descriptive questions.
1- Differentiate between incremental cost and avoidable cost. (M - 3)
2- Margin of safety Rs. 75000
Budgeted sales Rs. 650000
Calculate Margin of safety Ratio. ----- (M - 3)
3- Give the formulas of the following:
Production budget
Sales budget ----- (M - 3)
4- Hussain Corporation annually produces 10,000 units of assembly part number 206. An outside supplier has offered to manufacture the part at Rs. 9 per unit. If Hussain Corporation decides to buy the part, they will be able to rent the existing area for Rs. 8,000 per year. Listed below are Hussain’s total costs to produce part 206:
Assuming that no additional costs are incurred in purchasing the part, what should be the opportunity cost for Hussain Corporation if it will buy? Support your answer with computations. (M - 5)
5- Following cost were incurred during a period.
Direct material cost Rs. 4000000
Direct labor and FOH Rs. 3000000
Beginning inventory cost Rs. 1000000
Ending inventory cost Rs. 2000000
Ending inventory decreased by Rs. 75000
How much was the sales for that period? (M - 5)
6- One question was about calculating profit under absorption costing method. (M - 5)
(You will find full question in uzair hussain’s mgt402 solved subjective file)
7- T & M Wild Corporation anticipates sales of Rs. 9, 00,000 for the current year. The percentage of gross profit from sales has been 40% in past years. Operating expenses are expected to be Rs. 2, 00,000, of which 45% is administrative expenses and 55% is selling expenses. Assuming 40% tax rate. Prepare a Budgeted income statement for the for the T & M Wild Corporation year 2009. (M - 5)
8- There are two approaches of accounting treatment of ‘’By-Product’’ define it. (M - 5)
Mostly MCQS from Old Papers 52
Question
IF 5 Mrks
Company’s sales forecast for 3rd quarter, ending September 30, was 54,300 units.
The beginning inventory was 13,000 units.
Ending inventory was 12,200 units.
Then:
Prepare production budget for 3rd quarter?
Question
5 Mrks
Liberty Pizzas delivers their product to the housing societies near Gulberg. The company's annual fixed costs are Rs. 400,000. The sales price of a normal size pizza is Rs. 100 and the cost to make and deliver each pizza is Rs. 60.
You are required to calculate the following:
1. Break even sales per unit.
How many Pizzas the company must be sold in order to earn a profit of Rs. 650,000
Question
3 Mrks
The following data of an electronic company for the month of August is given:
| Plant capacity | 4,000 units per month |
| Fixed Cost | Rs. 5,000 |
| Variable cost | Rs. 3.00 / unit |
| Sales price | Rs. 5.00 / unit |
Required: Break Even point in Units and Rs
Question 5 Mrks
The Regal, Inc. makes 35,000 motors to be used in the production of its sewing machines. The cost per motor at this level of activity would be:
| Particular | Rs. |
| Direct materials | 4.50 |
| Direct labor | 4.60 |
| Variable factory overhead | 3.75 |
| Fixed factory overhead | 3.45 |
An outside supplier recently began producing a comparable motor for the sewing machine. The price to Regal for this motor is Rs. 15. If Regal decided not to make the motors, there would be no other use for the production facilities.
Required: If Regal decides to continue making the motor, how much higher or lower would net income be than if the motors are purchased from the outside supplier?
Question
Bazar Company is a small family business that produces wooden plaques and
Trophies: 5 Marks
| Plaques (Rs.) | Trophies (Rs.) | |
| Selling price per unit | 18 | 15 |
| Les: Variable cost per unit | 12 | 8 |
| Contribution margin per unit | 6 | 7 |
| Contribution margin ratio | 33% | 47% |
In producing the items the primary bottleneck is due to the fact the company only has one machine, a sander, to sand the wood that is used for the plaques or the trophies. Generally, the wood required for each plaque takes 0.25 hour to sand, while the word required for each trophy takes 0.50 hour to sand. Based on the constraint related to the machine time, which product should be emphasized if only limited machine time is available?
Question
3 Marks
Suppose a trader of an agriculture product has fifty thousand to invest. Different avenues of investment are available to him are as under:
Alternative # 1
Investment in the purchase seeds, expected return is Rs. 150,000.
Alternative # 2
Investment in purchase of fertilizers, expected return is Rs. 100,000
Alternative # 3
Lend out money to a friend; expected return is Rs.50, 000
Required:
Keep in view the given data calculate/identify the following:
Opportunity cost
Opportunity loss
Question
The following detail is related to Bloch Company. 3
| Opening work-in-process | 2,000 liters (100% completed to material and 40% as to conversion cost) |
| Units put into process | 24,000 liters |
| Closing work-in-process | 3,000 liters (100% completed to material and 45% as to conversion cost) |
Required:
Find out the numbers of completed units and equivalent production units as to material and conversion cost using weighted average method.
Question
The Carter Manufacturing Company estimates its production requirements to be 30,000 units for October, 38,000 units for November and 41,000 units for December. It takes 3 direct labor hours at a rate of Rs. 3 per hour to complete one unit.
Prepare direct Labor budget cost for the last quarter of the year
Dear friends todays mgt402 paper
total questions 60
54 mcqs mostly new and very tricky ones
3 questions of 3 marks each and 3 questions of 5 marks
subjective questions are as follows
Q:-Prepare labor cost budget for the month of jan, feb and march budgeted units for jan 900, feb 2100 and march 3350. it takes 3 hrs to complete one unit and labor rate is Rs.3.1/hr
Q: Prepare administrative budget ( data was given)
Q: Sales 600,000 markup 20% of cost of goods sold find cogs and profit margin
Q: Find eq units using fifo method and unit cost ( data was given)
Q: Bazar Company is a small family business that produces wooden plaques and
Trophies:
| Plaques (Rs.) | Trophies (Rs.) | |
| Selling price per unit | 18 | 15 |
| Les: Variable cost per unit | 12 | 8 |
| Contribution margin per unit | 6 | 7 |
| Contribution margin ratio | 33% | 47% |
In producing the items the primary bottleneck is due to the fact the company only has one machine, a sander, to sand the wood that is used for the plaques or the trophies. Generally, the wood required for each plaque takes 0.25 hour to sand, while the word required for each trophy takes 0.50 hour to sand. Based on the constraint related to the machine time, which product should be emphasized if only limited machine time is available?
Q: Liberty Pizzas delivers their product to the housing societies near Gulberg. The company's annual fixed costs are Rs. 400,000. The sales price of a normal size pizza is Rs. 100 and the cost to make and deliver each pizza is Rs. 60.
You are required to calculate the following:
1. Break even sales per unit.
How many Pizzas the company must be sold in order to earn a profit of Rs. 650,000
MGT402 Final Term Paper Attempted by Hijaab Mehar
24-02-2013
Total 60 Questions. 52 Mcqz and 8 were descriptive questions.
1- Differentiate between incremental cost and avoidable cost. (M - 3)
2- Margin of safety Rs. 75000
Budgeted sales Rs. 650000
Calculate Margin of safety Ratio. ----- (M - 3)
3- Give the formulas of the following:
Production budget
Sales budget ----- (M - 3)
4- Hussain Corporation annually produces 10,000 units of assembly part number 206. An outside supplier has offered to manufacture the part at Rs. 9 per unit. If Hussain Corporation decides to buy the part, they will be able to rent the existing area for Rs. 8,000 per year. Listed below are Hussain’s total costs to produce part 206:
| Rs. | Total (Rs.) | |
| Direct material | 2.50 | 25,000 |
| Direct Labor | 4.00 | 40,000 |
| Variable overhead | 2.25 | 22,500 |
| Fixed Overhead | 0.75 | 7,500 |
| Total | 9.50 | 95,000 |
5- Following cost were incurred during a period.
Direct material cost Rs. 4000000
Direct labor and FOH Rs. 3000000
Beginning inventory cost Rs. 1000000
Ending inventory cost Rs. 2000000
Ending inventory decreased by Rs. 75000
How much was the sales for that period? (M - 5)
6- One question was about calculating profit under absorption costing method. (M - 5)
(You will find full question in uzair hussain’s mgt402 solved subjective file)
7- T & M Wild Corporation anticipates sales of Rs. 9, 00,000 for the current year. The percentage of gross profit from sales has been 40% in past years. Operating expenses are expected to be Rs. 2, 00,000, of which 45% is administrative expenses and 55% is selling expenses. Assuming 40% tax rate. Prepare a Budgeted income statement for the for the T & M Wild Corporation year 2009. (M - 5)
8- There are two approaches of accounting treatment of ‘’By-Product’’ define it. (M - 5)
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