Management Accounting – Spring 2025 – Midterm

1. (a) Show the key activities of Management Accounting. (b) Write short note (i) Conversion cost (ii) Fixed and variable cost (iii) Prime cost (iv) Period cost. [CLO-1: L-2] 3 + 4 = 7 marks 2. Information relating to sales and carriage outwards for six months in Khan Corporation Ltd. in 2024, are given below: | Month | Sales (Units) | Carriage out words (Taka) | | :------ | :------------ | :------------------------ | | January | 34 | 1579 | | February| 32 | 1521 | | March | 36 | 1637 | | April | 40 | 1753 | | May | 33 | 1550 | | June | 35 | 1608 | Required: a. Ascertain variable cost per unit and total fixed cost under the Least-squares Method. b. Express fixed and variable cost in the formula of Y= a + bX c. What would be the carriage outwards for 38 units of sales in July? [CLO-2: L-3] 5 + 2 + 2 = 9 marks 3. The following cost and inventory data for the just completed year are taken from the accounting records of Jamuna Company Ltd. in the accounting year 2024: Costs incurred: Advertising expense Tk.1,00,000; Direct Labor cost Tk.80,000;Purchase of raw materials Tk.1,30,000; Rent, factory building Tk.70,000; Indirect Labor Tk.50,000; Sales Commissions Tk.35,000; Utilities, factory Tk.9,000; Maintenance, factory equipment Tk.24,000; Supplies, factory Tk.800;Depreciation, office equipment Tk.9,000; Depreciation, factory equipment Tk.40,000; Insurance, office Tk.5,000; Bad debt Tk.1,000; Power and fuel Tk.2,000; Selling & administration Expense Tk.20,000; Total sales for the year Tk.6,50,000 Inventories: | | Beginning of year | Ending of year | | :----------------- | :---------------- | :------------- | | Raw materials. | .Tk.8,000 | Tk.7,000 | | Work-in-process. | .Tk.6,000 | Tk.10,000 | | Finished goods. | .Tk.30,000 | Tk.15,000 | Required: Prepare a schedule of cost of goods manufactured and income statement for the year. [CLO-2: L-3] 5 + 4 = 9 marks