JMS Limited, a soft drink company, is intending to introduce a new product viz. 'Herbs Infused Mineral Water to the market. Annual sales of this new…
CA Intermediate · Cost and Management Accounting · PYQS · September 2025
JMS Limited, a soft drink company, is intending to introduce a new product viz. 'Herbs Infused Mineral Water to the market. Annual sales of this new product is estimated at 36,000 units with a selling price of 75 per unit. The cost estimates for this new product are as follows: Elements of Cost Amount (₹) Direct material consumed 9,50,000 Direct labour cost 5,93,750 Manufacturing overheads (variable) 2,85,000 Manufacturing overheads (fixed) 1,90,000 General & Administration overheads (variable) 1,42,500 General & Administration overheads (fixed) 2,13,750 Selling and distribution overheads (variable) 80,750 Selling and distribution overheads (fixed) 64,250 There will be no closing stock of 'Herbs Infused Mineral Water'. On the basis of above Case Scenario, you are required to answer the following MCQs 6 to 10:
Suggested Answer and Working Notes:
Correct Answer: Option (C)
₹ 20,18,750 and - 25,20,000
Topics: Employee Cost & Direct Expenses, Overheads - Absorption Costing Method, Cost Sheet
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