# CWA ICWA Inter Stage I : Cost and Management Accounting - June 2008

 1–5(CMA)Revised Syllabus Time Allowed : 3 Hours Full Marks : 100
The figures in the margin on the right side indicate full marks
Answer Question No. 1 which is compulsory and any five from the rest.
Marks
1.(a)State if each of the following statements is T(true) or F(false):1x5
(i)   (0)
(ii)   (0)
(iii)   (0)
(iv)   (0)
(v)   (0)
(b)For each of the following industries, indicate whether a job order, process cost system or operating costing will be used:1x5
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(c)Select the correct answer with a brief reasoning:2x5
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2.(a)4 (0)
(b)12 (0)
3.(a)6 (0)
(b)2x5 (0)
4.4x4 (0)
5.16 (0)
6.12+4 (0)
7. Sterling Industries Ltd. manufactures a product Z by making and assembling three components A, B and C. The components are made in a machine shop using three identical machines each of which can make any of the three components. However the total capacity of the three machines is only 12,000 machine hours per month and is just sufficient to meet the current demand. Labour for assembling is available according to requirements. Further details are given below:
 Components Machine hoursrequired per unit Variable costper unit Market price atwhich the componentcan be purchased ifrequired ABCAssembling 456— Rs.48608030 (per unit of Z) Rs.6475110—

Fixed costs per month amount to Rs. 50,000. Product Z is sold at Rs. 300 per unit.

From the next month on wards the company expects the demand for Z to rise by 25%. As the machine capacity is limited, the company wants to meet the increase in demand by buying such numbers of A, B or C which is most profitable.
You are asked to find out the following:

(a)4 (0)
(b)8 (0)
(c)4 (0)
8.Write short notes on any four of the following: 4x4
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