St. Joseph’s College of Commerce Cost Accounting Question Paper PDF Download

by
REG NO:

ST. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)
END SEMESTER EXAMINATION – MARCH/APRIL 2016
B.COM (T.T) – IV SEMESTER
C2 12 401: COST ACCOUNTING
Duration: 3 Hours                                                                                             Max. Marks: 100
SECTION – A
I) Answer ALL the questions.  Each carries 2 marks.                                        (10×2=20)
  1. Which method of costing is applicable to the following industries;

a)      Biscuit Manufacturing

b)     Paper Manufacturing
  2. Give an example for:

a)      Semi – Variable Cost

b)     Abnormal Loss
  3. What is a bin card and stores ledger?
  4. Give an example each for preventive and replacement cost of labor turnover?
  5. What is Job evaluation?
  6. Differentiate between allocation and apportionment of overheads.
  7. What is meant by margin of safety?
  8. What are composite units? Give two examples.
  9. Name two resources required to plan an itinerary.
  10. Give two differences between cost accounting and financial accounting.
SECTION – B
II) Answer any FOUR questions.  Each carries 5 marks.                                      (4×5=20)
  11. Cost accounting has come to be an essential tool of the management. Comment.
  12. Calculate the earnings of A and B under straight piece basis and Taylors differential piece rate system, from the following information;

  • Standard production:  7units per hour
  • Factory day: 8hours
  • Normal time rate: 2.80 per hour
  • Mr. A produces 50units a day

Mr. B produces 60units a day
  13. A machine is purchased for cash at Rs.9200. its working life is 18000 hours after which its scrap value is estimated at Rs.200. it is assumed from past experience that;

  • The machine will work for 1800hours annually
  • The repair charges will be Rs.1080 during the whole period of life of the machine
  • The power consumption will be 5units per hour at 0.06Rs per unit
  •  Other annual standing charges are estimated to be;
    1. Rent of department (machine occupies 1/5th of the total space) Rs.780

 

 

    1. Light (12points in the department – 2points engaged in the machine) Rs.288
    2. Foremen’s Salary (1/4th of his time is occupied in the machine) Rs.6000
    3. Insurance premium(fire) for machinery Rs.36
    4. Miscellaneous Expense Rs.60

 

Find out the machine hour rate for allocation of works expense to all jobs for which the machine is used.
  14. The sales turnover and cost during the first half and second half of the year 2014-15 were as follows;

Particulars First Half Second Half
Sales 24,00,000 30,00,000
Total Costs 21,80,000 26,00,000

 

You are asked to determine;

  1. P/V Ratio
  2. Annual Fixed Cost
  3. Break-Even Point
  4. Margin of safety
  15. A truck starts its journey from Delhi to Ajmer with a load of 12tonnes. 3tonnes were unloaded at Jaipur and a further load of 2tonnes at Kishangarh. At Dudu a fresh load of 5 tonnes were loaded. It was fully unloaded at Ajmer.

 

On its return journey it started with 8tonnes from Ajmer which was fully unloaded at Jaipur. A fresh load to 11 tonnes was taken from Jaipur which was unloaded at Delhi.

 

Distances From Jaipur are: Delhi 200kms, Dudu 70kms, Kishangarh 115kms and Ajmer 140kms (via Dudu and Kishangarh). Calculate absolute tonne kms.

 
  16. A manufacturing company uses Rs.50000 materials per year. The ordering cost per purchase is Rs.50, cost of inventory per unit is Rs.1 and carrying cost is 20% of the average inventory. The company currently has an optimum purchasing policy but has been offered a 0.4% discount if they purchase five times per year. Should the offer be accepted?
SECTION – C
III) Answer any THREE questions.  Each carries 15 marks.                                (3×15=45)                                                                                                
  17. Following data has been extracted from the books of Sunshine industries Ltd., for the year 2013;

Particulars Amount
Opening stock of raw material 25000
Purchase of raw material 85000
Closing stock of raw material 40000
Carriage inward 5000
Wages – Direct 90000
Wages – Indirect 10000
Rent and Rates – Factory 5000
Rent and Rates – Office 500
Depreciation Plant and Machinery 1500
Depreciation Office Furniture 100
Cash Discount 5000
Indirect Consumption of Material 500
Salary – Office 2500
Salary – Salesman 2000
Other Factory Expenses 5700
Other Office Expenses 900
Managers Remuneration 12000
Bad Debts Written Off 1000
Advertisement Expense 2000
Travelling Expense Of Salesmen 1100
Carriage and Freight Outward 1000
Sales 250000
Advance Income Tax Paid 15000

 

The Manager has the overall charge of the company and his remuneration is to be allocated as Rs.4000 to the factory, Rs.2000 to the office and Rs.6000 to the selling operations.

 

From the above prepare a statement showing

a)      Prime cost

b)     Factory cost

c)      Cost of production

d)     Cost of sales and

e)      Net profit
  18. PH Ltd., is a manufacturing company having three production departments P1, P2 and P3 and two service departments S1 and S2. Following is the information for December, 2013.

 

Factory Rent – Rs.4000

Power – Rs.2500

Depreciation – Rs.1000

Other Overheads – Rs.9000

 

Additional Information

Particulars Total P1 P2 P3 S1 S2
Direct Material (in Rs.) 10000 1000 2000 4000 2000 1000
Direct Wages (in Rs.)

 

 18000 5000 2000 8000 1000 2000
Area (sq. ft.) 2000 500 250 500 250 500
Value of Asset (rupees in lakhs) 100 20 40 20 10 10
Horse Power of Machines 250 50 80 80 15 25

 

Apportionment of expenses of service departments is as under;

  P1 P2 P3 S1 S2
S1 45% 15% 30% – 10%
S2 60% 35% – 5% –

 

Prepare;

  • A statement showing distribution of overheads to various departments
  • A statement showing redistribution of service department expenses to production departments according to simultaneous equation method.
  19. You are given the following data for a costing year for a factory;

  • Budgeted output 2,00,000units
  • Fixed Expenses Rs.10,00,000
  • Variable Expenses per unit Rs.20
  • Selling price per unit Rs.40

Draw a break even chart showing the break-even point.
  20. The Union transport company has been given a 20kms long route to run a bus. The bus costs the company Rs.100000. it has been insured at 3%p.a. the annual road tax amounts to Rs.2000. Garage rent is Rs.400pm. Annual repair is estimated to cost Rs.2360 and the bus is likely to last for 5years.

 

The salary of the driver and the conductor is Rs.600pm and Rs.200pm respectively in addition to 10% of takings as commission to be shared equally by them. The manager’s salary is Rs.1400pm and the stationary will cost Rs.100pm. Petrol and oil will cost Rs.50 per 100kms. The bus will make three round trips per day carrying on an average 40 passengers in each trip. Assuming 15% profit on takings and that the bus will run on an average 25days in a month, Prepare operating cost statement on a full year basis and also calculate the bus fare to be charged from each passenger per km.
  21. Following is the extract of purchase and issues of materials during March 2005;

March 1st – Opening balance – 300units at Rs.20 per unit

March 3rd – Issued – 150units

March 4th – Issued 100units

March 10th – Received 200units at Rs.19 per unit

March 16th – Issued 65units

March 20th – Received 240units at Rs.22 per unit

March 22nd – Transferred from one department to another production department – 10units previously issued at Rs.20per unit

March 24th – Returned to supplier 20units out of the purchases of 20th march

March 25th – Purchased 100units at Rs.24 each.

March 26th – Issued 180units

March 28th – Received back from production department to stores – 15units

 

Stock verification on 18th March revealed a shortage of 10units and on 31st march showed an excess of 5units. You are required to prepare stores ledger under LIFO.

 
SECTION – D
IV) Case Study – Compulsory question.                                                                (1×15=15)                                                                                          
  22. Mr. and Mrs. Arun have approached Frontier travels to organize a golden triangle tour along with their friends who are two couples and a child of 12years. The requirements of the trip are as follows;

·         Three double rooms with an extra bed in one of the rooms.

·         A non-a/c quails or tempo traveller for sightseeing and transfers

·         The package should include provisions for breakfast, lunch and dinner

·         Guide service in places of historic importance

·         Trip would include train fare but entrance fee and airfare would be supplement costs.

·         The tour would follow this route

Bombay – By Air – Delhi(2days) – By Train – Agra(1 day) – By Road – Jaipur(2 days) – By Air – Bombay

 

The details regarding cost are as follows;

  • Hotel
Place Days Double Bed Room Tariff Extra Bed Tariff
Delhi 2 5000 1250
Agra 1 3000 750
Jaipur 2 6000 1500

 

  • Airfare

BOM – DEL – Rs.5705per person

JAI – BOM – Rs.4667per person

  • Train fare from Delhi to Agra 600per person

 

  • Food would cost Rs.1500 per person per day

 

  • Travel
Place Qualis Tempo
  A/C Non A/C A/C Non A/C
Delhi 3800 3500 4800 4300
Agra 8250 6950 9500 7900
Jaipur 3750 3000 4000 4250

 

  • Guide Charges
Places Amount Paid
Jantar Mantar 100
Qutub Minar and Red Fort 250
Lotus temple 100
India Gate 100
Taj Mahal and Agra Fort 200
Hawa Mahal 150
Amber Fort 500
Other Places 200

 

  • Entrance fees in Delhi totaled up to Rs.500per person, at Agra the fee was about Rs.300 per person and at Jaipur Rs.300 was paid per person.

 

  • Markup on each person – Rs.3500

 

You are required to prepare a

  • Detailed tour itinerary for the families                 (5Marks)
  • Tour cost sheet to ascertain cost per person and (7Marks)
  • Present it to him in the form of a tour proposal  (3Marks)

 

 

&&&&&&&&&&&&&&&&&&&&&&

 

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