CAFCINTER CAFINAL CA

FINAL CA
MAY '19
REVISION NOTES
Costing

Part - VIII

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J. K. SHAH CLASSES FINAL C.A. - COSTING

ASSIGNMENT
Q.1. An automobile dealer wishes to put five repairmen to five different jobs. The repairmen have
some what different kind of skills and they exhibit different levels of efficiency from one job
to another. The dealer has estimated the number of man-hours that would be required for
each job-man combination. This is given in the matrix form as follows :
JOB
Man P Q R S T
A 11 17 8 16 20
B 9 7 12 6 15
C 13 16 15 12 16
D 21 24 17 28 26
E 14 10 12 11 15
Find the optimum assignment that will result in minimum man – hours needed.

Q.2. CIDCO have decided to carry out repairs of five main roads in the city before the onset of
the monsoon. Five contractors have submitted quotations as under. It is the policy of
CIDCO to award no more than one contract to one contractor. If the objective of the CIDCO
is to minimise the total cost, how should they award the contracts? (NQ = No Quotation).
How much expenditure should be budgeted?
ROADWAYS
Contractor A1 A2 A3 A4 A5
X1 18 19 14 25 NQ
X2 17 18 13 22 24
X3 19 21 18 20 26
X4 17 22 15 24 27
X5 14 21 10 NQ 25

Q.3. Five salesmen are to be assigned to five districts. Estimates of sales revenue in thousands
of rupees for each salesman are given below :

DISTRICTS
Sales man A B C D E
1 32 38 40 28 40
2 40 24 28 21 36
3 41 27 33 30 37
4 22 38 41 36 36
5 29 33 40 35 39

Find the assignment pattern that maximizes the sales revenue.

:1: REVISION NOTES – MAY ‘19

J. K. SHAH CLASSES FINAL C.A. - COSTING

TRANSPORTATION

Q. 1. Solve the following transportation problem for the optimum cost.

To Destination Availability
A B C D
From 1 1 3 4 2 50
Origin 2 5 3 6 1 70
3 8 7 1 2 180
Requirement 50 70 80 100

Q.2. Solve the following transportation Problem :

Godowns
1 2 3 4 5 6 Stock Available
1 7 5 7 7 5 3 60
2 9 11 6 11 - 5 20
3 11 10 6 2 2 8 90
4 9 10 9 6 9 12 50
Demand 60 20 40 20 40 40

There is no route from factory 2 to godown 5.

Q. 3.
Factory Destination
(1) (2) (3) Supply to be exhausted
A 5 1 7 10
B 6 4 6 80
C 3 2 5 15
Demand 75 20 50

Since there is not enough supply, some of the demands at the three destinations may not
be satisfied. For the unsatisfied demands, let the penalty cost be rupees 1, 2 and 3 for
destinations (1), (2) and (3) respectively.
Find the optimal allocation that minimizes the transportation and penalty cost.

Q.4. The following matrix is a minimization problem for transportation cost. The unit
transportation costs are given at the right hand corners of the cells and the ∆ij values are
encircled.

Find the optimum solution (s) and the minimum cost.

:2: REVISION NOTES – MAY ‘19

J. K. SHAH CLASSES FINAL C.A. - COSTING

SIMULATION
Q. 1. A bakery shop keeps stock of a popular brand of cake. Previous experience indicates the
daily demand as given here :

Daily demand 0 10 20 30 40 50
Probability 0.01 0.20 0.15 0.50 0.12 0.02

Consider the following sequence of random numbers :

R. No. 48, 78, 19, 51, 56, 77, 15, 14, 68, 09.

Using this sequence, simulate the demand for the next 10 days. Find out the stock situation
if the owner of the bakery decides to make 30 cakes every day. Also, estimate the daily
average demand for the cakes on the basis of simulated data.

Q.2. Dr. STRONG is a dentist who schedules all her patients for 30 minutes appointments. Some
of the patients take more or less than 30 minutes depending on the type of dental work to
be done. The following summary shows the various categories of work, their probabilities
and the time actually needed to complete the work :

Category Time required Probability of category

Filling 45 minutes 0.40
Crown 60 minutes 0.15
Cleaning 15 minutes 0.15
Extraction 45 minutes 0.10
Checkup 15 minutes 0.20

Simulate the dentist's clinic for four hours and determine the average waiting time for the
patients as well as the idleness of the doctor. Assume that all the patients show up at the
clinic at exactly their scheduled arrival time starting at 8.00 a.m. Use the following random
numbers for handling the above problem :
40, 82, 11, 34, 25, 66, 17, 79.

Q.3. A bakery sells a popular brand of bread. Cost price per bread is ` 16 and selling price per
bread is ` 20. Shelf life of the bread is 2 days and if it is not sold within two days, then it has
no sale value at the end of second day. Daily demand based on past experience is as
under:
Daily Demand 0 20 25 35 40 45
Probability .01 .15 .30 .40 .10 .04
Consider the following sequence of random numbers :
58, 80, 51, 09, 47, 26, 64, 43, 86, 35
Using the sequence, simulate the demand for the next 10 days and find out the total profit or
loss for 10 days assuming 35 breads are purchased every day in the morning and there is
an opening stock of 5 breads (purchased the previous day) on the 1st day morning. Assume
LIFO basis (Last In First Out basis -where the fresh bread is sold first).

:3: REVISION NOTES – MAY ‘19