Cost and Management Accounting NCDOE June 2025 Assignment

Cost & Management Accounting

Q1 ABC Manufacturing Ltd. produces a single product and operates a factory where both direct labor costs and overhead costs are incurred. The company provides the following data for February:
- Labour Costing Data: Total direct wages paid: Rs. 50,000Number of direct labor hours worked: 10,000 hoursOvertime premium included in wages:
$2,000Employer s contribution to benefits (social security, insurance, etc.): 10% of direct wages
- Overhead Costing Data: Total factory overhead costs: $40,000Overheads are absorbed based on direct labor hours
Required:
1. Calculate the total direct labor cost, considering the employer s contribution.
2. Compute the direct labor cost per hour.
3. Determine the overhead absorption rate per labor hour.
4. If a job requires 50 labor hours, calculate the total labor and overhead cost assigned to the job.
(10 Marks)

Q2 (A) Elaborate on the implementation of a Just-in-Time (JIT) inventory system impact the material cost control process in a manufacturing company and explain its importance.
(5 Marks)

Q2 (B) Analyze how the method of valuing work-in-progress (prime cost vs. works cost) influences the final cost of goods sold and the financial reporting of a manufacturing company.
(5 Marks)

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