Mgt402 GDB No. 1 solution

Semester “Fall 2010”
“Cost & Management Accounting (MGT402)”
This is to inform that Graded Discussion Board (GDB)Has been opened according to the following schedule

Schedule
Opening Date and Time
November 03, 2010 At 12:01 A.M. (Mid-Night)
Closing Date and Time
November 05, 2010 At 11:59 P.M. (Mid-Night)

Discussion Question
An automobile industry received an order for the production of 1,000 units of particular spare part. Following cost is incurred for the production of 1,000 units.
Direct material
Rs.20.00 per unit
Direct labour
Rs. 25.50 per unit

Predetermined Factory overhead Applied rate 200% of direct labour cost
It was reported by quality check department that 60 spoiled units were detected which can be sold as scrap for Rs.15.00 each and cost of spoiled output was Rs. 5,790.
Required: With the help of given data answer the following. 1.

In case of Spoiled output, what will be total cost of completed units under Normal Loss? 2.

In case of Spoiled output, what will be total cost of completed units under Abnormal Loss? 3.

In case of Spoiled output, what will be cost per unit under Normal Loss? 4.

In case of Spoiled output, what will be cost per unit under Abnormal Loss? NOTE: Working or calculations are not required for this particular GDB. Just provide your answer (Resulting Figures) according to requirement of question. Although calculations consider reasonable marks in assignments and papers but here in this GDB, calculations are not required so they would carry NO marks. Your answer should simply look like this:

1. Total cost of completed units under Normal Loss Rs. XXX
2. Total cost of completed units under Abnormal Loss Rs. XXX
3. Cost per unit under Normal Loss Rs. XXX
4. Cost per unit under Abnormal Loss Rs. XXX

Guidelines for Preparation: For acquiring the relevant knowledge, do not rely only on handouts but watch the course video lectures, which can be downloaded free from Online VU Lectures,

and also use other reference books. Important Instructions: Read the following instructions carefully before attempting the GDB. 1.

The GDB will remain open for hours 2.

The GDB will open and close at above specified date and time. Please note that no grace day and extra time will be given for posting comments on GDB. 3.

Use the font style “Times New Roman” and font size “12”. 4.

You are advised to follow given instructions and format strictly otherwise your marks will be deducted or graded as zero (0). 5.

Your answer should be relevant to the asked question. Avoid posting irrelevant data. 6.

Do not copy or exchange your answer with other students. Two identical / copied comments will be marked
Zero (0)

and may damage your grade in the course. 7.

Books, websites and other reading material may be consulted before posting your comments but copying or reproducing the text from books, websites and other reading materials is strictly prohibited. Such comments will be marked as
Zero (0). 8.

You should post your answer on the Graded Discussion Board (GDB), not on the Moderated Discussion Board (MDB). Both will run parallel to each other during the time specified above. Therefore, due care will be needed. 9.

Obnoxious or ignoble answer should be strictly avoided. 10.

You cannot participate in the discussion after the due date. 11.

Questions / queries related to the content of the GDB, which may be posted by the students on MDB or via e-mail, will not be replied till the due date of the GDB is over. 12.

For planning your semester activities in an organized manner, you are advised to view schedule of upcoming Assignments, Quizzes and GDBs in the overview tab of the course website on VU-LMS.
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Solution: