Costing

Page no : 2

Punit Tibrewal (student ) (1684 Points)
Replied 20 October 2009

read carefully the question again..!!

the annual demand shud be for the finished product not the raw materials..! we compute EOQ for raw materials.. so u can only use weekly usage not monthly demand..!

regards

Pratik (service) (42 Points)
Replied 21 October 2009

the answer given by punit tibrewal is perfect. u should interpret question properly.

Deeps (Article Assisstant) (2485 Points)
Replied 21 October 2009

Thank You Mr. Punit

Aashish Dinanath Tripathi (Articled Assistant and NCFM(CMDM)) (233 Points)
Replied 21 October 2009

Normal usage be taken as it is the qty which is decided to be used,

any deviation from Normal usage, is a variance and not be regarded for EOQ calculations.

Insti seconds my opinion, forge Padukas, refer module, Bible for CA students (Difficult to nderstand but fruitfull)

Deeps (Article Assisstant) (2485 Points)
Replied 22 October 2009

Thank you Mr. Aashish

GURMEET (STUDENT) (91 Points)
Replied 22 October 2009

NORMAL LENGA...ASHISH KALRA KE BOOK MEIN MATERIAL CHAPTER MEIN QUE NO-61

Deeps (Article Assisstant) (2485 Points)
Replied 22 October 2009

hi pl be clear yaar. dint understand

Nitin Grover (CS) (1228 Points)
Replied 24 October 2009

Dear Friends

go with monthly consumption * 12 because its more then near with figure comparision of Weekly normal consumption * 52 and monthly consumption is more reliable then normal weekly consumption

Thanks

Nitin Grover

ca student (student) (49 Points)
Replied 28 October 2009

hi.. am a final student appearing for Nov 09.. i have a doubt in costing.. culd sum1 help me out..

Super Computers manufactures and sells three related PC Models:

(1) PC – Sold mostly to college students

(2) Portable PC – Smaller version of PC positioned as home computer

(3) Super PC – Sold mostly to business executives.

Budgeted and actual data for 2003 as follows:

Budget for 2003

Selling price p.u..(Rs) Variable Cost p.u.(Rs) Contributionp.u.(Rs) Sales unit

PC 24,000 14,000 10,000 7,000

Portable PC 16,000 10,000 6,000 1,000

Super PC 1,00,000 60,000 40,000 2,000

Actual for 2003 .

Selling price Variable Cost Contribution Margin Sales

Rs./unit Rs. /unit Rs./unit Units.

PC 22,000 10,000 12,000 8,250

Portable PC 13,000 8,000 5,000 1,650

Super PC 70,000 50,000 20,000 1,100

Super computer derived its total unit sales budget for 2003 from the internal management estimate of a20% market share and an industry sales forecast by computer manufacturers association of 50,000 units. At the end of the year the association reported actual industry sales of 68,750 units.

Required:

(i) Compute the individual product and total sales volume variance.

(ii) Compute total sales quantity variance .

(iii) Compute the market size and market share variances.

(iv) Compute individual product and total sales mix variances.

(v) Comment on your results.

my doubt was how will i compute sales variance? i get a different ans if i use the formula given in padhuka