# Loyola College B.Com Corporate & Secretaryship April 2012 Cost Accounting Question Paper PDF Download

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.Com. DEGREE EXAMINATION – CORPORATE SEC.

FIFTH SEMESTER – APRIL 2012

# BC 5501 – COST ACCOUNTING

Date : 27-04-2012              Dept. No.                                        Max. : 100 Marks

Time : 9:00 – 12:00

SECTION – A

Answer ALL the questions:                                                                                     (10×2=20marks)

• Define cost accounting.
• Prime cost includes direct material, direct——-and direct——–.
• Say true or false with reason

ABC analysis gives equal importance to all materials

• The time card of a worker reveals that in a normal week of 48 hours, he worked for 52 hours at the rate of Rs.15 per hour. Taking over time premium at 100% of the time rate calculate the gross wages
• Find out the amount of rent apportioned to each department.

Rent-Rs.8000

Space occupied by departments:

A-100 sq.feet

B-200 sq.feet

C-300 sq.feet

D-400 sq.feet

6)  Write a note on job costing and the industries which adopt job costing.

7)  What is work certified?

8)  Cost of tyres and tubes is a——-charge in operating costing.

9)  Pankajam travels employs 5 buses which run over a route of 140 kms(one way),

making one round trip a day. The buses run 360 day per year and 10% of them on

average are laid out for repairs. Ascertain the total running kilometers per year.

10) What are joint products?

SECTION – B

Answer any FIVE questions:                                                                                               (5×8=40marks)

11) Discuss the objectives and functions of cost accounting.

12) Explain ABC method of inventory control.

13) What are the causes for labour turn over?

14) The following details have been extracted from the cost records of Rajasekhar Ltd.

 Particulars Rupees Stock of raw materials on 1st December 2010 75,000 Stock of raw materials on 31st December 2010 91,500 Direct wages 52,500 Indirect wages 2,750 Sales 2,11,000 Work-in-progress 1st December 2010 28,000 Work-in-progress 31st December 2010 35,000 Purchase of raw materials 66,000 Factory rent, rates and power 15,000 Depreciation of plant and machinery 3,500 Expenses on purchases 1,500 Carriage out wards 2,500 Advertising 3,500 Office rent and taxes 2,500 Traveling salesmen wages and commission 6,500 Stock of finished goods 1st December 2010 54,000 Stock of finished goods 31st December 2010 31,000

Prepare a cost sheet with maximum possible information.

15) From the following information calculate:

1. i) Economic order quantity
2. ii) Reorder level

iii) Maximum level

1. iv) minimum level

Normal usage 150 units per day. Minimum usage 100 units per day. Maximum usage 200 units per day. Reorder period 50 to 60 days. The annual usage is 50,000 units. The cost of purchase is Rs.100 per order. Cost per unit is Rs.1. Carrying cost is 10% per annum.

16) From the following particulars, calculate earnings of a worker under:

1. i) Time rate system
2. ii) Piece wage rate

iii) Halsey plan

1. iv) Rowan plan

Wage rate-Rs.2 per hour

Production per hour-4 units

Dearness allowance-Rs.1 per hour

Standard time fixed-80 hours

Actual time taken-50 hours

Production-250 units

17) From the following information of Swetha Construction Company prepare the contract account for

1. Also show what part of the profit on the contract should be taken credit of in 2009. The contract

was for Rs.8, 00,000.

 Particulars Rupees Materials issued from stores 1,50,000 Wages paid 2,20,000 General charges 8,000 Plant installed at site on 1st july 2009 40,000 Materials on hand at close 8,000 Wages accrued due 8,000 Work certified 4,00,000 Work completed but not certified 12,000 Cash received 3,00,000 Materials transferred to other contracts 8,000 Depreciation on plant is to provided at 10% per annum 2,000

18) In manufacturing the main product A, a company processes the resulting waste material into two by-

products-B and C. During one period of production the following data was compiled

 Particulars A B C Sales 8,00,000 64,000 96,000 Cost before separation (Rs) 3,10,400 — — Cost after separation (Rs) 80,000 12,800 14,400 Estimated net profit percentage to sales value — 20% 30% Estimated selling expenses as percentage of sales value 20% 10% 15%

There is no beginning or ending inventories. Prepare an income statement concerning the period described using reversal cost method for by-products.

SECTION – C

Answer any TWO questions:                                                                                           (2×20=40marks)

19) The following information is available in respect of process I for the month of January 2011

Opening work in progress-5000units

Materials 100% complete-Rs.18,750

Labour 60% complete-Rs.7,500

Units introduced into the process-20,000

Closing work-in-progress-7,000 units

Materials 100% complete

Labour 50% complete

18,000 units are transferred to next process. The process costs for the month were as follows:

Materials-Rs.2, 31,250;Labour-Rs.1,64,500 and Overheads-Rs.82,250.

Prepare statement of equivalent production, statement of cost, statement of evaluation and process

account by following average cost method

20) Modern Manufacturers Ltd have three production departments A,B,C and two service departments S1

and S2, the details pertaining to which are as under

 Particulars A B C S1 S2 Direct wages (Rs) 30,000 20,000 30,000 15,000 5,000 Working hours 3,070 4,475 2,419 — — Value of machines(Rs) 6,00,000 8,00,000 10,00,000 50,000 50,000 H.P of machines 60 30 50 10 — Light points 100 150 200 100 50 Floor space (Sq.feet) 20,000 25,000 30,000 20,000 5,000

The following figures extracted from the accounting records are relevant.

Rent-Rs.15,000; General lighting-Rs.6,600;Indirect wages-20,000;Power-Rs.15,000;Depreciation on machines-Rs.1,00,000 and sundries-Rs.10,000

The expenses of service departments are allocated as under:

 Departments A B C S1 S2 S1 20% 30% 40% — 10% S2 40% 20% 30% 10% —

Find out the works cost of product X which is processed for manufacture in departments A,B,C for

4,5,3 hours respectively, given that its direct material is Rs.500 and direct labour cost is Rs.430.

21) A person owns a bus which runs from Delhi to Chandigargh and back for 10 days in a month. The

distance between Delhi and Chandigarh is 150 miles. The trip between these places is completed the

same day. The bus goes another 10 days to Agra which is 120 miles away from Delhi and completed

on the same day. For the rest of the 4 days in a month the bus makes local trips distance covered in

this being 40 miles. Calculate the rate the person should charge a passenger when he wants to earn a

profit of 33 1/3 % on his takings. The other information is given below:

 Cost of the bus Rs 60,000 Lubricant oil Rs 10 per 100 miles Depreciation 20% Repairs and maintanance Rs 500 pm Salary of Driver Rs 350 pm Permit fees Rs 284 pm Salary of Conductor Rs 350 pm Normal capacity of the bus 50 passengers Salary of accountant Rs 160 pm Token tax Rs 600 p.a Insurance Rs 1680 p.a Diesel Consumption 4 miles per litre costing Rs 1 per litre.

The bus is generally occupied 90% of the capacity when it goes to Chandigharh and 80% when it goes to Agra and is full in local trips. Passenger tax 20% of his net takings.

Go To Main page

Latest Govt Job & Exam Updates:

# View Full List ...

© Copyright Entrance India - Engineering and Medical Entrance Exams in India | Website Maintained by Firewall Firm - IT Monteur