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illustration 6
Costing
answered on 13-Feb-25 16:49
why are we taking contribution rather than taking actual selling price like we did in the previous question?
latest answer
Contribution is a % of sales. So if you take sales and reduce variable costs, you would reach the same contribution.
Abhaya Pillai
CA Inter
★ 0
1
33
Illus 5 - Lesson; Overheads
Costing
answered on 13-Feb-25 16:50
in illus 5 ,they have asked to calculate machine hour rate for each product a,b,c. Why have we not added the direct material and wages for calculating the hourly rate?
latest answer
The Machine Hour Rate is used to absorb factory overheads based on the number of machine hours worked. Since direct material and direct wages are not part of overheads, it is not included.
Rania D'souza
CA Inter
★ 650
1
62
Break even point
Costing
answered on 20-Jan-25 13:47
Mefttal Ltd. is currently operating at 60% of its total capacity which is 1.5 times than the previous year. The total capacity of the company is 2,00,000 units. Other information relating to the production is provided below: (i) The total cost of production for the current year is ` 59,28,000, and for the previous year, it was ` 44,72,000. (iii) No changes are anticipated in the cost structure for the upcoming years. Selling price is ` 52 per unit and is expected to remain the same in the coming years You are required to CALCULATE Break-Even Point (in units). (a) 1,20,000 units (b) 40,000 units (c) 80,000 units (d) 1,00,000 units
latest answer
Answer is D i.e 1,00,000 units. Use the concept of Semi-Variable cost to solve the problem. Variable cost per unit = Difference in total cost / Difference in level of Sales. From the above formula, you will get to know Variable cost per unit and Fixed Cost. that is Variable cost is ₹36.4 and FC is 15,60,000. Sales - Variable cost = Contribution Margin, i.e 52- 36.4 = 15.6 BEP (units) = Fixed Cost / Contribution Margin per unit, i.e 15,60,000/₹15.6 = 1,00,000 units.
Preethi S
CA Inter
★ 2K+
1
108
Process costing
Costing
answered on 20-Jan-25 15:50
Explain how 4 has arrived on this answer We have to find normal loss % of Y
latest answer
Thank you for sharing it presentably
Anitha V K
CA Inter
★ 4K+
3
99
Costing MCQ - doubt
Costing
answered on 06-Jan-25 12:46
Is the answer A or B? Last in first out or First in first out??
latest answer
FIFO
Nidhi S
CA Inter
★ 4K+
2
689
Marginal costing
Costing
answered on 03-Jan-25 14:51
Give me details calculation of how should I calculate minimum price on the additional units on profit of 167300
latest answer
First compute profit for current capcacity and costs. After that find out how much more profit is required. Minimum price = Variable cost + balance profit/no of units.
nikil mahajan
CA Inter
★ 0
1
816
Exam
Costing
answered on 24-Dec-24 17:01
Can anyone suggest any tips and tricks to pass with decent marks in costing like what are the priority chapters and what kind of preparation would help me ? please
latest answer
Costing is about practice. As you revise a chapter, mark questions which you found difficult and redo them. In examination, the questions can be worded quite differently and every attempt sees a new variety of questions. If you are able to solve past 3-4 attempts question paper comfortably, you will be able to manage. Also costing paper generally tends to be lengthy. So need to increase speed.
Divinne Fiona
CA Inter
★ 9K+
2
398
Ca inter - group 2
Costing
answered on 24-Dec-24 17:09
Did icai remove contract costing chapter from the syllabus ?
latest answer
our notes cover those questions. You can refer.
vinodhene lakshmipathy
CA Inter
★ 11K+
3
453
Doubt
Costing
answered on 30-Dec-24 15:56
I'm confused with the answer of worker C at 18:45 where it doesn't get matched with the icai answers. Can I know why?
latest answer
The question has been solved with the assumption That 4 hours extra worked on Saturday is entitled to OT. 4 x 43 = 172. That is the only difference.
Aniruddhan .G
CA Inter
★ 925
1
399
Illustration 16
Costing
answered on 11-Dec-24 10:35
The question says that there is an issue of 12 units for an amount of 5.75 rupees. So the rate per unit should be 0.115. Right? But while doing the solution, the rate is taken as 5.75 per unit. So there is a mismatch. Please do clarify this.
latest answer
The question says to use FIFO method , So the issue of 12 units will be done at Rs.6.5
SHAMIL SHAMSUDDHEEN
CA Inter
★ 0
1
41
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