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

October 23, 2017 by 01 prakash

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 1^st December 2010	75,000
Stock of raw materials on 31^st December 2010	91,500
Direct wages	52,500
Indirect wages	2,750
Sales	2,11,000
Work-in-progress 1^st December 2010	28,000
Work-in-progress 31^st 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 1^st December 2010	54,000
Stock of finished goods 31^st December 2010	31,000

Prepare a cost sheet with maximum possible information.

15) From the following information calculate:

i) Economic order quantity
ii) Reorder level

iii) Maximum level

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:

i) Time rate system
ii) Piece wage rate

iii) Halsey plan

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

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 1^st 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

Overheads 60% complete-Rs.3,750

Units introduced into the process-20,000

Closing work-in-progress-7,000 units

Materials 100% complete

Labour 50% complete

Overheads 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.

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

October 23, 2017 by 01 prakash

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.Com. DEGREE EXAMINATION – CORPORATE SEC.

FIFTH SEMESTER – NOVEMBER 2012

BC 5501 – COST ACCOUNTING

Date : 16/11/2012 Dept. No. Max. : 100 Marks

Time : 9:00 – 12:00

PART – A

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

Define cost centre.
Works cost includes Prime cost and ——————. Works cost is also referred to as ———— ————.
Say true or false with reason

VED analysis refers to Vital, Equivalent, Desirable.

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.
Apportion the cost of Power to the user departments:

Cost of power-Rs 10,000

Kilowatt hours (KWH) of power consumed.

Department A 620 KWH

Department B 380 KWH

Department C 1000 KWH

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

7) What is work uncertified?

8) Garage rent is a——-charge in operating costing.

9) Calculate the passenger kilometers covered by a fleet of 4 taxisrun by CNN

travels from Hyderabad To Bhuvanagiri (45 kms apart) and back 4 trips each day

with 5 passengers on an average on each vehicle for the month of April, 1992.

10) What are joint products?

PART – B

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

11) Discuss the necessity to prepare cost sheets and give the reasons which calls for a reconciliation

of cost and financial profits.

12) Explain the process and significance of ABC method of inventory control.

13) What are the causes for labour turnover and what are the methods used to measure labour

turnover?

14) From the following particulars, prepare a cost sheet showing the selling price per unit.

Particulars

Raw material

9,100

Labour and other direct expenses

Factory expenses 80% of the labour and other direct expenses.

Office overheads 10% of works cost.

Selling and distribution expenses Rs. 2 per unit sold.

Units produced and sold – Rs. 10,000.

Percentage of profit – 20% on selling price.

4,000

15) Calculate a) EOQ b) maximum level c) minimum level d) reordering level from the following data:

Reorder period- 4 to 6 weeks

Maximum consumption- 100 units per week

Minimum consumption- 50 units per week

Normal consumption- 75 units per week

Annual consumption- 36000 units

Cost per unit- Re.1

Ordering cost- Rs.25

Inventory carrying cost is 20% of unit value

16) From the following particulars, workout the total amount payable to three workmen and the rate

earned per hour by them under:

Halsey and
Rowan premium bonus systems

Standard time allowed : 12 hours

Actual time taken by : A = 8 hours

: B = 6 hours

: C = 4 hours

17) From the following information of Swetha Construction Company prepare the contract account for 2009. 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 1^st 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.

PART – C

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

19) The product of a company passes through 3 distinct processes to completion. They are known as A,

B, C. From past experience it is ascertained that loss is incurred in each process as follows:

Process-A-2%, Process-B-5%, Process-C-10%

In each case the % of loss is computed on the number of units entering the process concerned. The

loss each process possesses a scrap value. The loss of process A and B is sold at Rs 5 per 100 units

and that of Process C at Rs 20 per 100 units.

Particulars	Process A(Rs)	Process B(Rs)	ProcessC(Rs)
Materials consumed	6000	4000	2000
Direct Labour	8000	6000	3000
Manufacturing Expenses	1000	1000	1500

20, 000 units have been issued to Process A at a cost of Rs 10,000. The output of each process has

been as under:

Process A-19,500 units,Process-B-18,800 units, process-C-16,000 units. There is no work-in-progress

in any process.

Prepare process accounts. Calculate to the nearest rupee.

20) Tamilnadu Co.,ltd. Is a manufacturing company having three production departments A,B and C and

two service departments X and Y. The following is the budget for December,1985.

Particulars	Total	A	B	C	X	Y
Particulars	Rs.	Rs.	Rs.	Rs.	Rs.	Rs.
Direct material	_	1,000	2,000	4,000	2,000	1,000
Direct wages	_	5,000	2,000	8,000	1,000	2,000
Factory rent	4,000	_	_	_	_	_
Power	2,500	_	_	_	_	_
Depreciation	1,000	_	_	–	_	_
other overheads	9,000	_	_	–	_	–
Additional Information
Area(sq.ft)	_	500	250	500	250	500
Capital value of assets	_	20	40	20	10	10
Machine hours	_	1,000	2,000	4,000	1,000	1,000
H.P of machines	_	50	40	20	15	25

A technical assessment for the apportionment of expenses of service departments is as under:

	A	B	C	X	y
X	45%	15%	30%	_	10%
Y	60%	35%	_	5%	_

You are required to prepare:

a) Statement showing distribution of overheads to various departments.
b) Statement showing distribution of service departments expenses to production departments