Description
Cost & Management Accounting
NMIMS Internal Assignment
June 2025 Examination
Question 1 ABC Manufacturing Ltd. produces a single product and operates a factory where both direct labor costs and overhead costs are incurred. The company provides the following data for February:
- Labour Costing Data:Total direct wages paid: Rs. 50,000 Number of direct labor hours worked: 10,000 hours. Overtime premium included in wages: $2,000Employer’s contribution to benefits (social security, insurance, etc.): 10% of direct wages
- Overhead Costing Data:Total factory overhead costs: $40,000Overheads are absorbed based on direct labor hours
Required:
- Calculate the total direct labor cost, considering the employer’s contribution.
- Compute the direct labor cost per hour.
- Determine the overhead absorption rate per labor hour.
- If a job requires 50 labor hours, calculate the total labor and overhead cost assigned to the job.
(10 Marks)
Question 2 (A) Elaborate on the implementation of a Just-in-Time (JIT) inventory system impact the material cost control process in a manufacturing company and explain its importance.
(5 Marks)
Question 2 (B) Analyze how the method of valuing work-in-progress (prime cost vs. works cost) influences the final cost of goods sold and the financial reporting of a manufacturing company.
(5 Marks)
Assignment Marks: 20
