Management Accounting for Engineers Lecture 2

Particulars	Amount	Amount
Opening stocks of raw material	3000	3000
Raw Material Purchase	28000	28000
CI Stock of raw material	4500	4500
Raw Materials Consumed		26500
Manufacturing Wages	7000
Prime Cost		33500
Factory Asset Depreciation ( Plant )	1500
Factory Rent	3000	4500
Offfice Overheads		38000
Office rent	500
General Expense	400
	900	38900
+Opening Stock	2800
-Closing Stock	5187
	CACLCULATED	36513
Cost of goods sold
Sales Overhead
Advertisement Expense	600
Sales Cost	37113
Sales 15 per unit	42000
	42000	4887
Profit	6387

how we calculated Closing stock & Opening stock

The number of units produced August, 2021 was 3,000. The stock of finished goods was 200units (₹ 2800) and 400 units on 1.8.2021 and 31.8.2021 respectively.

so Production cost was $38900/3000$ = $12.96$ and closing stock was $400$ so $12.96\times 400$ will be our loss

Calculating Sales of units

2800 units multiplied 15

Opening Stock	200 units
Add : Production	3000 Units
Less : Closing Stock	400 Units
Sales	2800 Units

Question 2

Particulars	Amount	Amount
Opening stock	1,88,000
+Freight Inward	32000
+Material Purchase	8,32,000
-Closing Stock	2,00,000
Direct Wages	238400
Prime Cost		1090400
Factory overheads
Indirect Wages	16000
Repairs to plant & Machinery	42400
Rent Rate Taxes	12000
Electricity	48000
Fuel for boiler	64000
Manager Salary ( 48,000 $\times$ 20% )	9600
Depreciation	28400
		2,20,400
Office Overheads	6400
Furniture	2400
General Charges	24800
Directors	24000
Managers Salary (48000 $\times$ 80%)	38400
Salary to administrative	40,000
		1,36,000
Cost of Productions		14,46,800
Cost of sales
Freight Outwards	20,000
Salesman Salaries	33600
Travelling Expenses	12,400	66,000
		15,12,800

Question 3

Particulars	Amount	Amount
Direct Material
Material Used in Manufacturing	5500
Materials used in Manufacturing	1000
Freight on material	500
	7000	7000
Labour Required in production	1000
Direct Expenses	500
Prime Cost	1500	8500
Factory Overheads
Indirect Expenses	100
Depreciation	175
Factory Materials	75
Supervision of the management for factory	200
	475	9050
Office Overheads
Office Expenses	125
Materials office	125
Depreciation	75
	325	9375
Sales Charges
Selling Expenses	350
Materials used in selling	150
Advertising	125	625
		10,000
		3,333
		13,333
$x-1000=125x$
$0.75x=1000$
$x=13,333$

Here’s the detailed table you requested, formatted for clarity:

Particulars	Amount (₹)	Total (₹)
Prime Cost
Direct Raw Material	33,000
Direct Wages	35,000
Direct Expenses	3,000
	71,000	71,000
Factory Overheads
Factory Rent and Rates	7,500
Indirect Wages (Factory)	10,500
Factory Lighting	2,050
Factory Heating	1,500
Power (Factory)	4,400
Director’s Remuneration (Factory)	2,000
Factory Clearing	1,000
Factory Stationary	750
Water Supply (Factory)	1,300
Factory Insurance	1,100
Depreciation (Plant & Machinery)	2,000
Loose tools	600
	34,100	1,05,700
Office Overheads
Office Stationery	900
Sundry Office Expenses	200
Depreciation (Office Building)	1,000
Rent and Rates (Office)	500
Director’s Remuneration (Office)	4,000
Office Insurance	500
Legal Expenses (Office)	400
	7,500	1,13,200
Selling and Distribution Overheads
Salaries of Salesmen	1,500
Commission on Sale	1,500
Advertisement	300
Upkeeping of Delivery Van	700
Depreciation (Delivery Van)	200
Rent of Warehouse	300
	4,500	1,17,700
Total Sales Revenue and Profit
Total Sales Revenue	2,00,000
Cost of Sales	1,17,100
Profit	82,900

References

Information

• date: 2025.01.21
• time: 10:12