Numerical Questions on cost sheets:
Question 1:
A company has the following information for the year ended 31st December 2023:
● Direct materials consumed: Rs. 500,000
● Direct labor: Rs. 300,000
● Factory overhead: Rs. 200,000
● Office and administrative overhead: Rs. 100,000
● Selling and distribution overhead: Rs. 50,000
● Units produced: 10,000 units
Calculate:
● Prime cost per unit
● Works cost per unit
● Cost of production per unit
● Total cost per unit
Question 2:
A company manufactures a product X. The following information is available for the year
ended 31st December 2023:
● Direct materials: Rs. 20 per unit
● Direct labor: Rs. 15 per unit
● Factory overhead: 50% of direct labor cost
● Office and administrative overhead: 10% of works cost
● Selling and distribution overhead: Rs. 5 per unit
● Units produced and sold: 10,000 units
Calculate:
● Selling price per unit to earn a profit of 20% on cost of production.
Question 3:
A company has the following information for the year ended 31st December 2023:
● Opening stock of finished goods: Rs. 10,000
● Cost of production: Rs. 500,000
● Closing stock of finished goods: Rs. 20,000
● Sales: Rs. 600,000
Calculate:
● Cost of goods sold
● Gross profit
Question 4:
A company manufactures a product X. The following information is available for the year
ended 31st December 2023:
● Direct materials consumed: Rs. 1,000,000
● Direct labor: Rs. 600,000
● Factory overhead: 20% of direct labor cost
● Office and administrative overhead: 10% of works cost
● Selling and distribution overhead: Rs. 10 per unit
● Units produced and sold: 20,000 units
Calculate:
● Profit or loss for the year.
Question 5:
A company has the following information for the year ended 31st December 2023:
● Direct materials consumed: Rs. 200,000
● Direct labor: Rs. 150,000
● Factory overhead: 25% of direct labor cost
● Office and administrative overhead: 10% of works cost
● Selling and distribution overhead: Rs. 5 per unit
● Units produced and sold: 10,000 units
● Selling price per unit: Rs. 40
Calculate:
● Profit or loss for the year.
Balance Sheet Numerical questions
Numerical Questions to practice preparing balance sheets:
Basic Level:
1. Simple Balance Sheet:
○
Prepare a balance sheet for a business with the following information:
■ Cash: Rs. 10,000
■ Accounts Receivable: Rs. 20,000
■ Inventory: Rs. 30,000
■ Equipment: Rs. 50,000
■ Accounts Payable: Rs. 15,000
■ Owner's Equity: Rs. 95,000
2. Adjustments to Balance Sheet:
○ A company has the following balances:
■ Cash: Rs. 50,000
■ Accounts Receivable: Rs. 80,000
■ Inventory: Rs. 120,000
■ Equipment: Rs. 200,000
■ Accounts Payable: Rs. 60,000
■ Owner's Equity: Rs. 390,000
○ Make the following adjustments:
■ Depreciate equipment by Rs. 10,000.
■ Write off bad debts of Rs. 5,000.
■ Accrue interest expense of Rs. 2,000.
○ Prepare the adjusted balance sheet.
Intermediate Level:
3. Balance Sheet with Accruals and Prepayments:
○ A company has the following balances:
■ Cash: Rs. 25,000
■ Accounts Receivable: Rs. 40,000
■ Prepaid Rent: Rs. 3,000
■ Supplies: Rs. 2,000
■ Equipment: Rs. 80,000
■ Accumulated Depreciation: Rs. 20,000
■ Accounts Payable: Rs. 15,000
■ Unearned Revenue: Rs. 5,000
■ Owner's Equity: Rs. 110,000
○ Prepare the balance sheet after making necessary adjustments for accruals
and prepayments.
Remember to follow the basic accounting equation:
Assets = Liabilities + Owner's Equity
Numerical Questions on Break-Even Analysis:
Question 1:
A company has fixed costs of Rs. 100,000, a selling price of Rs. 20 per unit, and a
variable cost of Rs. 12 per unit.
a) Calculate the break-even point in units. b) Calculate the break-even point in sales
revenue. c) If the company wants to earn a profit of Rs. 50,000, how many units must
it sell?
Question 2:
A company sells a product for Rs. 50 per unit. The variable cost per unit is Rs. 30, and
the fixed costs are Rs. 200,000.
a) Calculate the contribution margin per unit. b) Calculate the break-even point in
units. c) Calculate the break-even point in sales revenue.
Question 3:
A company has a P/V ratio of 40%. Its fixed costs are Rs. 120,000.
a) Calculate the break-even point in sales revenue. b) If the company wants to earn a
profit of Rs. 60,000, what should be its sales revenue?
Question 4:
A company's sales are Rs. 500,000, its variable costs are Rs. 300,000, and its fixed
costs are Rs. 150,000.
a) Calculate the P/V ratio. b) Calculate the break-even point in sales revenue. c)
Calculate the margin of safety.
Question 5:
A company's break-even point is 10,000 units. Its selling price per unit is Rs. 20, and
its variable cost per unit is Rs. 15.
a) Calculate the fixed costs. b) If the company wants to earn a profit of Rs. 50,000,
how many units must it sell?
Remember:
● Break-even point in units = Fixed Costs / (Selling Price per unit - Variable Cost
per unit)
● Break-even point in sales revenue = Fixed Costs / P/V Ratio
● P/V Ratio = (Contribution Margin / Sales) * 100
● Margin of Safety = (Actual Sales - Break-even Sales) / Actual Sales
Gemini was just updated. See update
Numerical Questions on the graphical presentation of Break-Even Analysis:
Question 1:
A company has fixed costs of $100,000, a selling price of $20 per unit, and variable
costs of $10 per unit.
a) Calculate the break-even point in units. b) Draw a break-even chart. c) If the
company wants to earn a profit of $50,000, how many units must it sell?
Question 2:
A firm has fixed costs of $20,000, a contribution margin of $5 per unit, and a break-
even point of 4,000 units.
a) Calculate the selling price per unit. b) Draw a break-even chart. c) If the firm sells
5,000 units, calculate the profit.
Question 3:
A company has fixed costs of $30,000, a variable cost per unit of $6, and a selling
price per unit of $10.
a) Calculate the break-even point in units and in sales revenue. b) Draw a break-even
chart. c) If the company wants to earn a profit of $20,000, how many units must it sell?
