The expenses budgeted for production of 10,000 units in a factory are furnished below:

Per unit cost
Rs
Material 70
Labour 25
Fixed overhead Rs 1,00,000) 10
Variable overhead 20
Variable expenses (Direct) 05
Selling expenses 00% Fixed) 13
Distribution expenses Fixed) 07
Administration expenses Rs 50,000) 05
Total Cost Per Unit (to make sell) 155

Due to the low demand of the product, the company has decided to reduce its production from 10,000 units. Prepare the budget for production at the following levels of output:

10,000 units

8,000 units

6,000 units

It may be assumed that the administration expenses are rigid for all levels of production.

The following is the Balance Sheet of M/S ABC Ltd.

<img src='./qimages/14225-1b1.jpg'>

<img src='./qimages/14225-1b2.jpg'>

You are required to prepare:

Schedule of changes in working capital

Funds flow statement

Funds from operations

2. What do you mean by Accounting Discuss its functions. Also state the role of an Accountant.

3. What is meant by Inventory Management? State the reasons for holding inventory. Briefly discuss the techniques of inventory control.

What are the accounting concepts? Explain any two of them with examples.

Two components are used as follows:

Normal usage 50 units per week each
Minimum usage 25 units per week each
Maximum usage 75 units per week each
Re-order quantity 300 units
500 units
Re-order period A 4 to 6 weeks
B to4weeks
Calculate the following for each component:

Re-order level

Minimum level

Maximum level

Average stock

5. Write short notes on the following:

Profit maximization and Wealth maximization

Sources of working capital

Solvency ratios and Liquidity ratios

Contingent liabilities and Estimated liabilities