THE OPEN UNIVERSITY OF SRI LANKA BACHELOR OF TECHNOLOGY - LEVEL 5 MEM 5336 MANAGEMENT FOR ENGINEERS ACADEMIC YEAR

R 2013/14 ASSIGNMENT 02

INSTRUCTIONS: 1. This assignment is based on course materials in Book 02. 2. Answer all questions. 3. Write your registration number clearly on your answer script. Write your address at the back of your answer script. 4. Send your answer script under registered cover to the address given below or put it into the Assignment box available at the Research Lab of the Department of Mechanical Engineering (S & T Building) Nawala, Nugegoda. THE COURSE COORDINATOR IN MEM 5336, DEPARTMENT OF MECHANICAL ENGINEERING, THE OPEN UNIVERSITY OF SRI LANKA, P.O.BOX 21, NAWALA, NUGEGODA. 5. Last date of submission is 04.04.2014. 6. No late submissions will be accepted. 1. (a) List the types of prime entry books that are in common use. (b) Record the following transactions in a set of prime entry books. Date 2012 January 1 2012 January 2 2012 January 3 2012 January 4 2012 January 5 2012 January 8 2012 January 10 2012 January 12 2012 January 14 2012 January 15 2012 January 16 2012 January 18 2012 January 20 Activity Purchase from Robert Purchase from Jinadasa Sales to Dias Sales to Gunasena Sales to Romanis Sales to Nimal Purchase from Albert Purchase from Gamini Goods returned to Robert Goods returned to Jinadas Goods returned by Gunasena Goods returned by Romanis Goods returned to Albert Goods returned by Nimal Value in Rs. 20,000 10,000 40,000 30,000 4,000 10,000 6,000 2,500 2,100 1,300 2,000 300 1,000 2,100

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(c) Record the following transactions in the ledger and balance the accounts as at 31st January 2012. Purchased goods worth Rs. 10,000 from Siripala (on credit) Purchased goods worth Rs. 2,450 from Susiripala (on credit) Sold goods worth Rs. 8250 to Jayapala (on credit) Returned goods with Rs. 200 to Siripala (on credit) Sold goods worth Rs. 3,200 to Sumanapala (on credit) Sumanapala returned goods worth Rs. 320 Sold goods worth Rs. 12,450 to Rusiripala (on credit) Purchased furniture worth Rs 18,000 (on credit) from Lakmini & Co Purchased Motor vehicle for Rs. 40,000 from Lanka Motor Co. Ltd. (on credit) Purchased goods worth Rs. 12,250 from Simon (on credit)

2. Trial balance of XYZ Trading Company Ltd. as at 31st March 2012 is given below. Debit Credit (Rs00) (Rs00) 1,200 33,000 300 6,000 2,000 15,000 5,000 2,000 500 55,000 25,000 100,000 10,000 4,000 20,000 139,500 139,500

Bank Capital Cash Drawings Insurance Office expenses Office furniture at cost Office furniture; accumulated depreciation at 1st April 2011 Provision for bad and doubtful debts at 1st April 2011 Purchases Salaries Sales Stocks at 1st April 2011 Trade creditors Trade debtors

Notes: The following additional information is to be taken into account. 1. Stock at 31st March 2012 was valued at Rs. 1,500,000. 2. The insurance included Rs. 50,000 worth of cover which related to the year 31st March 2012. 3. Depreciation is charged on office furniture at 10% per annum of its original cost (it is assumed not to have any residual value). 4. A bad debt of Rs. 100,000 included in the trade debtors balance of Rs. 2,000,000 is to be written off. Page 2 of 4

5. The provision for bad and doubtful debts is to be maintained at a level of 5% of outstanding trade debtors as at 31st March 2012. ie. After excluding the bad debt referred in note 4 above. 6. At 31st March 2012 there was an amount owing for salaries of Rs. 100,000. Prepare the following. (i) XYZ company Trading and Profit and Loss account for the year ended 31st March 2012. (ii) Balance sheet as at 31st March 2012.

3. (a) Explain the methods used for evaluating a capital project. (b) A machine used for making steel nails cost Rs 100,000/- (inclusive of installation). Cash flow during lifetime of the machine is as follows. Year 1 2 3 4 5 6 7 8 Net cash flow (Rs.) 5,000 10,000 30,000 40,000 40,000 25,000 20,000 15,000

Scrap value of the machine is Rs. 10,000/-. Capital required for the project was raised at discount factor of 15%. Evaluate the feasibility of the project. (c) Apart from evaluating techniques, what are the other factors that one should consider in deciding the location of a project, prior to its implementation?

4. (a) Explain the following. Variable cost Contribution Break-even point Margin of safety (b) Selling price of a product is marked as Rs. 10.00 per unit. Variable cost is Rs. 6.00 per unit. Monthly fixed cost is Rs. 20,000/-. Monthly production capacity is 15,000. Draw graphs of total variable cost, total cost and total sales revenue for various volumes of output of the product. Page 3 of 4

Answer the following using the above graphs. (i) Mark the break-even point and find out its value. (ii) Mark the regions of profit and contribution. (iii) If the number of products sold is 8,000, find out the margin of safety in terms of volume and sales (in rupees).

5. (a) Briefly describe the functions of a human resource manager in an organization. (b) Discuss the different methods of recruitment and their merits and demerits. (c) State what is meant by Job analysis and indicate information derived from job analysis. (d) Briefly discuss the two approaches of job analysis, Functional Job Analysis and the Position Analysis Questionnaire.

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