LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034
|
B.Com. DEGREE EXAMINATION – CORPORATE SECRETARYSHIP
FIFTH SEMESTER – April 2009
BC 5501 – COST ACCOUNTING
Date & Time: 17/04/2009 / 9:00 – 12:00 Dept. No. Max. : 100 Marks
PART A
Answer ALL questions (10 x 2 = 20 marks)
- ABC stock control.
- Distinguish between ‘Fixed’ and ‘Variable’ cost.
- Labour Turnover
- Rowen plan
- Machine Hour Rate
- ‘Joint products’ and ‘By products’
- Economic batch quantity
- From the following calculate Reorder Level and Minimum Level:
Usage 200 to 300 units per day; reorder period 8 to 10 days
- Standard time allowed for a job is 20 hours. X completes the job in 15 hours. Rate per hour is Rs.10. Calculate his earnings under Rowan Plan.
- Find out the economic ordering quantity (E.O.Q) from the following particulars.
Annual usage : 6,000 units
Cost of material per unit : Rs.20
Cost of placing and receiving one order : Rs.60
Carrying cost 10% per unit per annum
PART B
Answer ANY FIVE questions (5 x 8 = 40 marks)
- Distinguish between:
- Bin card and Stores Ledger
- Allocation, Apportionment and Absorption of overheads
- Distinguish between ‘idle time’ and ‘overtime’. Explain their treatment in Cost Accounts.
- From the following particulars, calculate the earnings of workers, A,B and C, under Taylors differential piece rate system:
Standard time per unit 6 minutes
Normal rate Rs.5 per hour
Differential piece rates:
80% of piece rate below the standard
120% of piece rate at or above the standard
In a day of 8 hours, A produced 70 units, B produced 80 units and C produced 100 units.
- A purchased and issued materials in the following order:
March 1st – purchased 300 units at Rs.3 per unit
5th purchased 500 units at Rs.4 per unit
10th issued 500 units
12th purchased 700 units at Rs.4.50 per unit
15th issued 700 units
20th purchased 300 units at Rs.5 per unit
21st issued 200 units
On 31st a stock shortage of 20 units was noticed.
Prepare stores ledger under Weighted Average Method
- From the following data prepare a reconciliation statement:
Rs.
Profit as per financial accounts 2,40,500
Works overhead over-recovered 9,500
Administrative overheads under-recovered 20,000
Selling overheads over-recovered 19,500
Under-valuation of opening stock in cost accounts 15,000
Overvaluation of closing stock in cost accounts 7,000
Dividend received during the year 5,750
Goodwill written off during the year 9,000
Notional interest charged in Cost Accounts 18,000
- From the following data calculate the cost per km. of running a vehicle:
Value of vehicles Rs.25,000
Road licence fee per year Rs. 750
Supervisor’s salary per annum Rs. 1,800
Insurance charges per year Rs. 1,200
Garage rent per year Rs. 3,200
Driver’s wages per hour Rs. 4
Cost of petrol per litre Rs. 6.50
Km. per litre 6
Tyre allocation per km Re. 2.00
Repairs and maintenance per annum Rs.18,000
Estimated life 1,00,000 kms
Estimated annual kilometers 12,000
The vehicle runs for 20 km per hour on an average.
- Factory uses job costing. The following cost data are available for the year ending 31st December 2008:
Direct material Rs.9,00,000
Direct wages Rs.7,50,000
Factory overhead Rs.4,50,000
Administration overheads Rs.4,20,000
Selling overheads Rs.5,25,000
Sales Rs.36,54,000 Prepare: a) A cost sheet and ascertain the profit for the year.
- b) In the year 2009 the company received an order for a job which would required direct material
Rs.12,000 and direct labor Rs.7,500. What price should the company charge for this job, if the
factory intends to earn the same rate of profit on sales as earned in 2007/2008, assuming selling
overheads have increased by 15%. The factory recovers, factory overheads as a percentage on
wages and administration and selling overheads as a percentage of works cost.
- A by-product B is derived in the course of manufacture of product A. From the following data calculate the profit made on Product A:
The total expenses incurred upto the split off point is Rs.19,500. Separate expenses incurred for A and B are Rs.12,500 and Rs.3,100 resp. 100 kgs of A and 50 kgs of B were produced. B was sold at Rs.120 per kg on which the profit earned was 30%.
Selling price of Product A is Rs.400 per kg.
PART C
Answer ANY TWO questions (2 x 20 = 40 marks)
. 19. A company manufacturing two products A and B gives you the following data:
Product A B
Production in units 6000 4000
Raw material per unit (Rs.) 50 30
Labour cost per unit (Rs.) 20 10
Labour hours per unit 4 2
Number of set ups 10 20
Number of deliveries 24 14
The Overhead expenses were Rs.128,000 consisting of Set up costs Rs.90000; Delivery expenses Rs.38000.
Compute the production cost, per unit, of the two products A and B, if overheads are recovered using:
- Rate per labor hour b)Activity based costing
- From the following prepare a Contract Account and Contractee’s account for the three years 2007, 2008 and 2009:
2007(Rs.) 2008(Rs.) Rs.2009(Rs.)
Material issued 1,10,000 1,20,000 80,000
Wages 2,30,000 68,000 2,20,000
Machinery issued 50,000 – –
Value of machinery at the end 45,000 40,000 36,000
Materials returned to stores 1,000 500 –
Material at site 3,000 4,000 2,000
Work uncertified 2,000 6,000 –
Work certified 4,00,000 10,00,000 12,00,000
The contract price was for Rs.12,00,000. Cash received was 80% of the works certified.
- A company produces a product which passes through three processes A, B and C. 1000 units are introduced at Rs.5 each in process 1. Other details are as follows:
A B C
Materials consumed (Rs.) 2,000 3,020 3,462
Direct wages 3,000 4,000 5,000
Direct expenses 500 226 –
Normal loss (%age on input) 10% 5% 10%
Sale value of normal loss per unit (Rs) 3 5 6
Output in units 940 870 810
Production overheads amounted to Rs.6,000, which is to be allocated to each process in the ratio of direct labor.
Prepare Process Accounts, Normal Loss account, Abnormal Gain account and Abnormal Loss account.
Latest Govt Job & Exam Updates: