Management Accounting Midterm Spring 2025 Question Paper

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