Managerial Accounting

Daffodil International University Faculty of Science & Information Technology Department of Information Technology & Management Midterm Examination, Fall 2026 Course Code: ITM201, Course Title: Managerial Accounting Level: 2 Term: 1 Section: A Instructor; DAR Duration: 1 Hour and 30 minutes Marks: 25 Exam instructions: A) Answer all the Questions. [at right side the allocated marks and corresponding course outcomes are indicated] B) During the exam you are not allowed to leave the exam hall to have water or restroom, but if you finish early, you may leave the hall submitting the script. C) Do not keep your mobile phone or digital watch in your bag during the exam and keep all your belongings in a secure place. D) Be respectful to the Exam ethics. Use own Stationary. 1. a) Outline the examples of each of the three basic manufacturing cost categories. (2.5 marks, CLO-1 L-1) b) How the managerial accounting is different from traditional accounting? (2.5 marks) 2. Febrilife Company has the following cost and expense data for the year ending December 31, 2025. (10 marks, CLO-2 L-3) Raw materials, 1/1/25 | Tk 30,000 | Insurance, factory | Tk14,000 Raw materials, 12/31/25 | Tk20,000 | Contractual labour for delivery | Tk6,000 Depreciation on delivery equipment | Tk 5000 | Utilities expense | TK 45000 Cost of raw materials purchases | Tk205,000 | Revenue from sales | Tk20,00,000 Indirect materials | Tk15,000 | Delivery expenses | Tk100,000 Work in process, 1/1/25 | Tk80,000 | Sales commissions | Tk150,000 Work in process, 12/31/25 | Tk50,000 | Supplies expense for office | Tk9,000 Finished goods, 1/1/25 | Tk110,000 | Factory machinery rent | Tk30,000 Finished goods, 12/31/25 | Tk120,000 | Office utilities | Tk45,000 Direct labour | Tk350,000 | Miscellaneous costs | Tk24,000 Production line maintenance salaries | Tk35,000 | Promotional expenses | Tk30000 Instructions: a) Determine the cost of goods sold for Febrilife Company for 2025. b) Construct an income statement for Febrilife for 2025. 3. Mexico Company Limited produces a product selling at Tk. 20 per unit. Variable cost per unit is Tk. 10. Annual fixed cost is Tk. 1,50,000. Estimated sales for the period are 25,000 units. (10 marks, CLO-2 L3) Calculate: (a) The break-even point in units and Taka. (b) The contribution margin and contribution margin ratio. (c) The margin of safety and margin of safety ratio. (d) The estimated profit for the period. (e) The new break-even point if fixed cost is increased by 20%. (f) The new break-even point if variable cost is increased by 12.5%. (g) The new break-even point and margin of safety ratio if the selling price is decreased by 8%. (h) The sales volume in units if the company wants to earn a profit of Tk. 1,50,000 before tax.