Page 21 - DCOM206_COST_ACCOUNTING_II

(A) Earnings:

Income received (5,850 × 200)
11,70,000
11,70,000
(B) Fixed Charges: Particulars Total Amount (`)
Staff salaries : (4 × 800) + (6 × 500) + (4 × 300) × 12 88,800
Rent ( 30,000 × 12) 3,60,000
Repairs 16,000
Cost Accounting – II
Administration expenses 50,000
Cost of Oxygen, X-ray 65,000
Total 5,79,800
Notes (C) Variable Costs:
Food to patients 65,000
Expenses of generator 24,000
Laundry charge 41,600
Medicines 50,000
Doctor’s Fee (6,000 × 12) 72,000
Hire Charges for Extra Beds 5,000
Total 2,57,600
(D) Total Cost of Hospital ( B+C) 8,37,400
(E) Profit (A - D) i.e. 11,70,000–8,37,4000 3,32,600
3,32,600 59.00
(F) Profit per patient day = = 56.854 or ` 59 (approx.)
5,850

Working note:
(1) Calculation of Total Patient Days:
25 Beds × 120 days = 3,000
20 Beds × 80 days = 1,600

Extra bed days = ` 5,000 ÷ 4 = 1,250
Total Patient Days 5,850

1.4.5 Cinema Costing

Cinema houses are one of the operating service rendering undertakings. This method is also
important method of service costing.

Objectives of Cinema Costing

Following are the main objectives of Cinema Costing:
(i) To calculate rate for each show and each class,
(ii) Cost analysis of cinema house for management decision-making,
(iii) Inter comparison between two or more cinema house, and

(iv) Collection of cost data for cost control of cinema house.
Problem 7:
The following information’s are relates to Kazal Cinema for the year ending 31st March, 2008:
Salary to 1 manager ` 5,000 p.m.

Salary to 10 gate keepers ` 800 p.m. each
Salary to 4 operators ` 1,200 p. m. each
Salary to 6 clerks ` 1,500 p.m. each
Power ` 20,000

Stationery ` 5,000
Advertisement ` 30,000

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