LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034
B.B.A. DEGREE EXAMINATION – BUSINESS ADMINISTRATION
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FIFTH SEMESTER – November 2008
BU 5504 – COST ACCOUNTING
Date : 07-11-08 Dept. No. Max. : 100 Marks
Time : 9:00 – 12:00
SECTION –A (10X2=20 MARKS)
Answer all the questions:
- What is cost sheet?
- What do you mean by Defectives?
- Define inventory control?
- How do you classify overheads?
- What is process costing?
- Calculate the total earnings of a worker under Halsey plan
Standard time – 30 hours
Time taken – 20 hours
Hourly rate of wages is Re 1 per hour plus D.A @ 50 paise per hour worked.
- Find out the economic order of quantity with the help of following details :-
Monthly usage : 500 units
Cost of materials per unit : Rs 20
Cost of placing and receiving one order : Rs 60
Annual carrying cost : Rs 2 per unit
- Compute the depreciation chargeable to each department:
Depreciation Rs 27500
Machinery value in the departments:
X- Rs 200,000, Y- Rs 400,000, Z- Rs 500,000.
- Calculate profits as per financial accounts
Profit as per cost accounts Rs. 60,000
Overheads recovered in costing Rs. 3,500
Under absorption of expenses in costing Rs. 6,000
Income tax debited in financial Rs. 4000
- Calculate the materials purchased during the year
Rs
Direct wages 60,000
Prime cost 110.000
Opening stock of raw materials 20,000
Closing stock of raw materials 25,000
Expenses on purchase 15,000
SECTION- B (5×8=40 marks)
Answer any 5 questions:-
- What are the effects of labour turn over?
- What are the limitations of cost accounting?
- Explain ABC analysis? What are its advantages?
- From the following, prepare stores ledger under FIFO method:
JAN 1 opening balance at Rs 5 each
2 received 500 units of Rs 4each
10 issued 300 units
15 issued 200 units
26 received 500 units of Rs 5.50 each
27 issued 300 units
31 issued 250 units
- From the following information, calculate kilometers and total passenger kilometers:
No . Of buses : 4
Days operated in a month : 30
Round trips made by each bus : 4
Distance of route :30 km long (one way)
Capacity of bus : 60 passengers
Normal passengers traveling : 80% of the capacity
- Calculate re-ordering level, minimum stock level , maximum stock level and average stock level:
Maximum consumption – 150 units per day
Minimum consumption – 100 units per day
Normal consumption – 120 units per day
Re-order period – 10-15 days
Re- order quantity – 1500 units
Normal re- order period – 12 days
- Work out the normal and over time wages payable to a worker from the following:
Days Hours worked
Monday 8
Tuesday 10
Wednesday 9
Thurs day 11
Friday 9
Saturday 4
Normal working hours – 8 hours per day
Normal rate – Rs 2 per hour
Over time rate – double the usual rate
- Compute the machine hour rate from the following :
Cost of machine : Rs 10,000
Scrap value after 10 years : Rs 2,000
Rent for a quarter for the department : RS 300
General lighting : Rs 240 p.a
Department supervisor’s salary : Rs 600 per quarter
Insurance premium for machine : R s 60 p.a
Repairs : Rs 100 p.a
Power 2 units per hour at Rs 5 per 100 units
Estimated working hours p.a 2000
Machine occupies 1/4th of the total area in the department .The supervisor devotes 1/6th time for this machine.
SECTION- C (2X20= 40 MARKS)
Answer any two questions:
- From the following, prepare a cost sheet.
Materials – Rs 80,000
Direct wages – Rs 48,000
Machine hours worked – 8,000
Machine hour rate – Rs 4
Office overheads – 10% on work cost
Selling overheads – Rs 1.50 per unit
Units produced – 4000
Units sold – 3,600 units @ Rs 50 each
- A product passes through 3 stages from the following prepare process accounts and abnormal gains and abnormal loss a/c
| Particulars | Process | ||
| I (Rs) | II (Rs) | III (Rs) | |
| Raw material | 2600 | 1980 | 2962 |
| Direct wages | 2000 | 3000 | 4000 |
| Selling price of scrap
(Per Unit) |
2 | 4 | 5 |
| Normal loss | 5% | 10% | 15% |
| production | 950units | 840 units | 750 units |
General expenses Rs 9,000 which absorbed on the basis of wages . 1000 units at Rs 3 each introduced into process I.
- A company’s informations related to a contract are given below. Prepare a contract account and also show how entries appear in balance sheet of the company:
Particulars Rs
Materials sent to site 85,349
Labour engaged on site 74,375
Plant installed at site 15,000
Direct expenditure 3,167
Establishment charges 4,126
Materials returned to stores 549
Work certified 195,000
Cost of work not certified 4,500
Material in hand at the end of year 1,883
Wages accrued for the year 2,400
Direct expenses accrued 240
Value of plant at the end of the year 11,000
Contract price agreed 250,000
Cash received 180,000
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