CA Inter Costing Sept 2025 Suggested Answers

This suggested answer key is prepared purely based on my own understanding of the subject and the September 2025 CA Intermediate Cost & Management Accounting paper. The approach and working may slightly differ from ICAI’s official suggested answers. However, I have taken utmost care to ensure accuracy and clarity.

Disclaimer: The answers given here are not ICAI’s official suggested answers. Students are advised to compare them with ICAI’s published version once released.

If you notice any mistake or have a different perspective on any solution, feel free to share your views in the comments. Your feedback helps improve the discussion and benefits other students preparing for the exam.

Exam Review

Difficulty Level: 3/10
Overall Review: The paper was comparatively easy. Standard Costing required careful attention and may have been slightly tricky, but the rest of the questions were straightforward and scoring.

MCQ Solutions

Case Scenario I

1. Direct Employee Cost = Rs. 15,21,000
2. Prime Cost = Rs. 75,82,600 
3. Factory Cost = Rs. 79,55,120 
4. Cost of Goods Sold (COGS) = Rs. 69,62,920
5. Profit = Rs. 11,20,580

Case Scenario II

6. Cost of Production = Rs. 20,18,750
   Total Cost = Rs. 25,20,000
7. Total Variable Cost (VC) = Rs. 20,52,000
8. Contribution per Unit = Rs. 18
9. Break-Even Sales (BES) = Rs. 19,50,000
10. Profit = Rs. 1,15,200

Individual MCQs

11. Material Price Variance (MPV) = Rs. 22,760 (Favourable)
    Material Mix Variance (MMV) = Rs. 26,930 (Adverse)
12. Apportionment of Fixed Cost (FC) = 3:2
13. Average Inventory Holding Period (Raw Materials) = 24 days
14. Value of Units Transferred = Rs. 2,76,000
15. Under-Absorption to be Charged to Cost of Sales = Rs. 81,000

❯❯ SMART PICK FOR YOU: CA Inter Costing Chapter-wise Must Work-Out Sums

Final Thoughts

The September 2025 CA Inter Costing paper was student-friendly, with ample scope for scoring. Students who had practiced RTPs, MTPs and previous attempts would have found it manageable.

If you attempted this paper, do share your experience and your expected score in the comments below. Let’s build a discussion that helps future aspirants understand the exam trend better.