Cost Accounting

St. Joseph’s College of Commerce B.Com. 2013 IV Sem Cost Accounting Question Paper PDF Download

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  1. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

END SEMESTER EXAMINATION – APRIL 2013

B.COM – IV SEMESTER

COST ACCOUNTING

Duration::3 HOURS                                                                                      Max. Marks:100

 

SECTION –A

 

  1. Answer ALL the following questions.                                               (10×2=20)

 

  1. Define the term Cost. How does it differ from expense?
  2. Explain the following costs: a) sunk cost,          b) opportunity cost.
  3. What is the difference between Abnormal Idle Time and Normal Idle Time?
  4. What is the meant by ABC Analysis?
  5. Calculate economic order quantity from the following :

Annual consumption – 12,000 units.

Cost of ordering           – Rs.15 per order.

Cost of material            – Rs.1.25 per unit.

Storage cost – 20% of average inventory

  1. What are overheads? How do they differ from Prime Cost?
  2. Explain the term Escalation Clause?
  3. What is meant by Inter-Process Profits?
  4. What is the objective of Reconciliation of Cost and Financial Accounts?
  5. What is meant by Profit on incomplete contracts?

 

SECTION-B

 

  1. Answer any FOUR out of the following six questions.                   (4×5=20)

 

  1. In a manufacturing company, a material is used as follows :

Maximum comsumption-12.000 units per week

Minimum comsumption-4,000 units per week

Normal consumption – 8.000 unit per week

Reorder quantity-48.000 units

Time required for delivery

Minimum : 4 weeks

Maximum : 6 weeks.

Calculate: a,  Re-order Level; b,   Minimum Level ; c,   Maximum level ; d, Danger level ; e, Average stock level.

 

  1. In a factory, the standard time allowed for producing 25 units of a product is 1 hour. The hourly rate is Rs.11. Workers A, B and C produced 275 units, 200 units and 325 units respectively in a day.

Calculate (i) wages for each worker on that day (ii) Effective rate of earnings per hour for each worker under (a) Halsey premium Bonus (bonus @ 50% of time saved) Plan (b) Rowan premium method (c) Straight piece rate method.

 

  1. A manufacturing unit has added a new machine to its fleet of five existing machines. The total cost of purchase and installation of the machine is Rs.7,50,000. The machine has an estimated life of 15 years and is expected to realize Rs.30,000 as scrap at the end of its working life.

Other relevant data are as under:-

  • Budgeted working hours are 2,400 based on 8 hours per day for 300 days. This includes 400 hours for plant maintenance.
  • Electricity used by the machine is 15 units per hour at a cost of Rs.2 per unit. No current is drawn during maintenance.
  • The machine requires special oil for heating, which is replaced once every month at the cost of Rs.2,500 on each occasion.

(iv)       Estimated cost of machine maintenance is Rs.500 per week of 6

working days

  • Three operators control the operations of the entire battery of six machines and the average wages per person are Rs.450 per week plus 40% fringe benefits.
  • Departmental and general works overheads allocated to the operation during the last year was Rs.60,000. During the current year, it is estimated that there will be an increase of 12.5 % of this amount. No incremental overhead is envisaged of the installation of the new machine.

You are required to compute the machine hour rate of recovery of the running cost of the machine.

 

 

  1. Write short notes on:
  2. a) Kaizen costing                     (b)  Balance Score Card

 

  1. What are the practical difficulties in installing the Costing System in an organization ?

 

  1. From the following information, Prepare a Process Account, Abnormal Gain Account .

 

Input of raw material                    840 units @ Rs.40 per unit.

Direct Material                              Rs. 5,924

Direct Wages                                 Rs. 8,000

Overheads                                      Rs. 8,000

Actual Output                                 750 units

Normal loss                                    15%

Value of scrap per unit                   Rs.10 per unit

                                                            SECTION – C

 

  • Answer any THREE out of the following questions.                        (3×15=45)

 

  1. The following is the summarized Trading and Profit and Loss account for the year ending 31st 2008 in which year 800 waterproofs were sold by the said company.-

 

Trading and Profit and Loss Account

 

To cost of materials 32,000 By sales 1,60,000

 
To Direct wages 48,000

 

    
To Manufacturing charges 20,000    
To Gross profit c/d 60,000    
  1,60,000   1,60,000
To Office salaries 24,000 By gross profit b/d 60,000

 
To Rent and taxes 4,000    
To Selling expenses 8,000    
To General expenses 12,000    
To Net profit 12,000    
  60,000   60,000

 

Following estimates were made by the costing department of the company of the year ending 31st March 2009 :

  1. The output and the sales will be 1,000 waterproofs.
  2. The price of materials will rise by 25% on the previous year’s level.
  3. Wages during the year will rise by 12.5%.
  4. Manufacturing cost will rise in proportion to the combined cost of materials and wages
  5. Selling cost per unit will remain unchanged
  6. Other expenses will remain unaffected by the rise in output.

From the above information, prepare a cost statement showing the price at which the waterproofs would be marketed so as to show a profit of 10% on the selling price.

 

  1. Enter the following transactions in the stores ledger of Y material for the month of July, 2011 using (1) the FIFO method and (2) the LIFO method.

 

1st July Balance 200 units @ Re. 1 per unit.
3rd July Issued 50 units
6th July Received 800 units @ Rs.1.10 per unit
7th July Issued 300 units
8th July Returned to stores 20 units issued on 3rd July
12th July Received 300 units @ Rs.1.20 per unit
15th July Issued 320 units
18th July Received 100 units @ Rs.1.20 per unit
20rd July Issued 120 units
23rd July Returned to vendors 40 units received on 18th July
26th July Received 200 units @ Re1 per unit
28th July Freight paid on purchase Rs.50
30th July Issued 250 units

 

  1. Indian Manufacturing Company has 3 products A, B and C and 2 Service Departments X and Y. The following is the budget for Feb 2004:

 

Particulars     Total A B C X Y
Direct Materials –

 

 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 Overhead 9,000          

 

Additional information is given as under:-

 

       Particulars A B C X Y
Area sq. ft. 500 250 500 250 500
Capital value of

Assets (Rs.lakhs)

 20 40 20 10 10
Machine hours 1,000 2,000 4,000 1,000 1,000
HP of machines 50 40 20 15 25

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

A              B             C           X          Y

Service Department   X            45%        15%         30%         –          10%

Service Department   Y            60%         35%         –              5%        –

 

You are required to distribute overheads to various departments and re-distribute service department costs to production department.

 

  1. AKP Builders Ltd. Commenced a contract on April 1, 2010. The total contract was for Rs. 5,00,000. Actual expenditure for the period April 1, 2010 to March 31, 2011 and estimated expenditure for April 1,2011 to December 31,2011 are given below :

 

Particulars                                                 2010-11            2011-12

(actual)            (9 months

Estimated)

 

Materials issued                                                                 90,000                  85,750

Labour  : Paid                                                                      75,000                 87,325

Outstanding at the end                                                        6,250                  8,300

Plant                                                                                      25,000                      –

Sundry expenses: Paid                                                          7,250                  6,875

Pre-paid at the end                                                                   625                      –

Establishment charges                                                         14,625                     –

A part of the material was unsuitable and was sold for Rs. 18,125 (cost being Rs. 15,000) and a part of plant was scrapped and disposed of for Rs. 2,875. The value of plant at site on 31st March, 2011 was Rs.7,750 and the value of material at site was Rs. 4,250. Cash received on account to date was Rs.1,75,000, representing 80% of the work certified. The cost of work uncertified was valued at Rs.27,375.

The contractor estimated further expenditure that would be incurred in completion of the contract:-

  1. The contract would be completed by 31st December, 2012
  2. A further sum of Rs. 31,250 would have to be spent on the plant and the residual value of the plant on the completion of the contract would be Rs.3,750.
  3. Establishment charges would cost the same amount per month as in the previous year.
  4. 10,800 would be sufficient to provide for contingencies.

 

You are required to prepare Contract Account and calculate estimated total profit on this contract. Profit transferable to Profit and Loss Account is to be calculated by reducing estimated profit in proportion of work certified and contract price.

 

  1. A transistor manufacturer who commenced his business on 01.04.2011 supplies you with the following information and asks you to prepare a statement showing the profit per transistor sold.

Wages and materials are to be charged at actual cost, works overheads at 75% of wages and office overhead at 30% of works cost. Number of transistors manufactured and sold during the year was 540.

Other particulars are: materials per set Rs.240, Wages per set Rs.80, Selling price per set Rs.600.

 

If the actual Works Expenses were Rs.32,160 and Office Expenses were Rs. 61,800,        Prepare a Reconciliation Statement.

 

 

 

                                                     SECTION-D

 

  1. Answer the following compulsory question.             (1×15=15)

 

  1. A product passes through three processes A, B and C. 10,000 units at a cost of Re. 1 were issued to process A. The other direct expenses were:

 

  Process A Process B Process C
Sundry materials 1,000 1,500 1,480
Direct Labour 5,000 8,000 6,500
Direct Expenses 1,050 1,188 1,605

 

The wastage of Process A was 5% and Process B was 4%. The wastage of Process A was sold at Rs.0.25 per unit and that of B at Rs.0.50 per unit and that of C at Rs.1.00 per unit. The overhead charges were 168% of direct  labour. The final product was sold at Rs.10 per unit fetching a profit of 20% on sales. Find the percentage of wastage in Process C.

 

 

St. Joseph’s College of Commerce B.B.M. 2013 IV Sem Cost Accounting Question Paper PDF Download

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St. Joseph’s College of Commerce (Autonomous)

 

End Semester Examination – March/April 2013

B.B.M. – IV Semester

COST ACCOUNTING

Duration: 3 hours                                                                                      Max. Marks: 100

SECTION – A

  1. Answer ALL the following questions.                                   (10×2=20)

 

  1. What is target costing?
  2. What is a cost centre?
  3. State any 4 items which are excluded from the cost sheet.
  4. What is Bill of Material?
  5. What is EOQ? Give its utility?
  6. What are the methods of time keeping?
  7. What are fringe benefits? Give examples.
  8. Differentiate between normal and abnormal process loss.
  9. What is meant by uncertified work in contract?
  10. What is ‘operating costing? In which industry do you apply?  Give 2 examples.

 

SECTION – B

  1. Answer any FOUR questions. Each carries 5 marks.                           (4×5=20)

 

  1. Sagar Private Limited has three production departments A, B, C and two service departments D.E.  The expenses incurred for the year ended 31-3-2004 are as follows:
  Rs.
Rent 50000
Repairs to plant 7000
Supervisor’s salary 28000
Insurance on machinery 17500
Power 18000
Lighting 4000
Staff welfare 21000
General Expenses 12000

The following additional information is also supplied.

  Dept.

A

 Dept.

B

 Dept.

C

 Dept.

D

 Dept.

E
Area in sq.mts. 140 120 110 90 40
Value of plant (Rs) 40000 36000 32000 20000 12000
No. of workers 30 20 10 5 5
H.P. Machines 30 25 25 10 –
Light points 8 6 3 2 1
Total wages 20000 16000 10000 10000 4000

Apportion the costs to the various departments on the most equitable basis.

 

 

  1. From the following details compute total wages, labour cost per hour and labour cost per unit:
  2. Name: Abdul Carrim
  3. Ticket No: 786
  • Job commenced : Monday, 23rd February, 8 A.M.
  1. Job finished: Saturday, 28th February, 12 noon.
  2. Quantity produced and approved: 400 units.
  3. Wage rate: Rs.2 per hour.
  • Time allowed: 8 units per hour.
  • Bonus: 50% of time saved.
  1. Shift timings: 8 A.M. to 4 P.M.
  2. Overtime worked: Nil.

 

  1. A company has three production departments and two service departments, and for a period the departmental distribution summary has the following totals:

Rs.

Production Departments:

P1 —Rs.800;   P2 —700 and P3—Rs.500                                        2,000

Service Departments:

S1 —Rs.234  and S2 —Rs.300                                                              534

2,534

The expenses of the service departments are charged out on  percentage basis as follows:

P1        P2        P3        S1         S2

Service Department S1                                 20%     40%     30%     –          10%

Service Department S2                                 40%     20%     20%     20%        –

Prepare a statement showing the apportionment of two service departments expenses to Production Departments by Simultaneous Equation Method.

 

  1. A company manufactures a standard product. From the following data, prepare a statement of Cost and Profit:

Raw materials consumed —–Rs.45,000

Direct labour                      —–Rs.27,000

Machine hours worked    —–          900.

Machine hour rate  ——-          Rs.15

Administration overhead—20%on works cost.

Selling cost —Rs.1.50 per unit

Units produced  —–Rs.15,000

Units sold   —14,000 at Rs.12 per unit.

 

  1. Explain in detail the various techniques of costing?

 

  1. Differentiate between job costing and process costing.

SECTION – C

 

  • Answer any THREE questions. Each carries 15 marks.                             (3×15=45)

 

  1. Following are the particulars of production of 1,500 machines of ABC Company Ltd. for the year 2009:

Rs.

Cost of materials                                                      ..          1,20,000

Salaries                                                                      ..             90,000

Wages                                                                                    ..          1,80,000

Factory expenses                                                      ..               75,000

Rent, rates and insurance                                       ..                15,000

Sales expenses                                                          ..               45,000

General expenses                                                     ..                30,000

Sales revenue                                                            ..             6,00,000

 

The Sales Manger of the company estimates that the sales during 2010 will be 2,000 machines.  Prepare a statement showing the estimated cost for 2,000 machines and the price per machine to earn 20% profit on selling price.

 

The following changes have been anticipated:

  • Rise in price of raw materials by 20%:
  • Wages will be up by 5%.
  • Factory expenses will rise in proportion to the combined cost of materials and wages.
  • Selling expenses per unit will remain the same.
  • Other expenses will remain unaffected by the rise in output.

 

  1. A) The following were the receipts and issues of material ‘A’ during April 2012.

Apr.    1          Opening balance 2200 units @Rs.6/unit.

2          Issued 280 units

3          Issued 500 units

7          Issued 420 units

10        Received 800 units @ Rs.5/unit

14        Return of surplus from work order 60 units @ Rs.6.00/unit

18        Issued 700 units

22        Received 960 units @ Rs.5.50/unit

24        Issued  1000 units

27        Received 200 units @ Rs.6/unit

29        Return of surplus from work order 24 units (Issued on 2nd April                                                                                                                               2012)

30        Received 300 units Rs.6.50 / unit.

 

From the above write up stores Ledger Account on Simple Average Basis.  The stock verification on 30th April revelaed a shortage of 20 units.    (12 marks)

 

  1. B) Calculate the Economic Order Quantity from the following information. Also state the number of orders to be placed in a year.

Consumption of materials per annum     :           10,000 kgs.

Order placing cost per order                     :           Rs. 50

Cost per kg. of raw materials                     :           Rs.2

Storage costs                                                 :           8% on average inventory

(3 marks)

 

  1. Shankar has been provided a contract to run a tourist car on 20km. long route for the chief executive of a multinational firm.  He buys a car costing Rs.3,50,000.  The annual cost of insurance & taxes are Rs.4,500 & Rs.1,000 respectively.  He has to pay Rs.500 per month for a garage where he keeps the car when it is not in use.  The annual repair cost is estimated to be Rs.4,000.  The car is estimated to have a life of 10 years at the end of which the scrap value is likely to be Rs.50,000.

He hires a driver who is to be paid Rs.3,000 per month plus 10% of the taking as commission.  Other incidental expenses are estimated at Rs.200 per month.

Petrol & oil will cost Rs.200 per 100kms.  The car will make 4 round trips each day.  Assuming that a profit of 15% on takings is desired, & that the car will be on the road for 25 days on an average per month, what should be charged per round trip?

 

  1. M/s Bansala Construction Ltd. took a contract for Rs.60,00,000 expected to be completed in three years.  The following particulars relating to the contract are available:

 

  2003

Rs.

 2004

Rs.

 2005

Rs.
Materials 6,75,000 10,50,000 9,00,000
Wages 6,20,000 9,00,000 7,50,000
Cartage 30,000 90,000 75,000
Other expenses 30,000 75,000 24,000
Cumulative work certified 13,50,000 45,00,000 60,00,000
Cumulative work uncertified 15,000 75,000 –

 

Plant costing Rs.3,00,000 was bought at the commencement of the contract.  Depreciation was to be charged at 25% per annum, on the written down value method.  The contractee pays 75% of the value of work certified as and when certified, and makes the final payment on completion of the contract.

 

You are required to make a contract account and contractee account as they would appear in each of the three years.

 

  1. A) What is meant by idle time? What are the causes of idle time?  Explain how is it treated and how is it controlled?                                                  (8 marks)

 

  1. B) Using Taylor’s differential piece rate system, find the earnings of the Amar, Akbar and Ali from the following particulars;

Standard time per piece      :           20 minutes

Normal rate per hour          :           Rs.9.00

In a 8 hour day

Amar produced                    :           23 units

Akbar Produced                   :           24 units

Ali produced                                    :           30 units.

(7 marks)

 

Section – D

  1. Compulsory question (15 marks)

 

22)  Product A is obtained after it passes through three distinct processes, I, II and III.  The following information is obtained from the accounts for the month of March 2012.

 

Items

  

Total

Rs.

 Process

I

 Process

II

 Process

III
  Rs. Rs. Rs.
Direct material 15,084 5,200 3,960 5,924
Direct wages 18,000 4,000 6,000 8,000
Production overhead 18,000      

 

1,000 units at Rs.6 each were introduced into process I.  There was no stock of material or work-in-progress at the beginning or at the end.  The output of each process passes directly to the next process and finally to the finished stock.  Production overhead is recovered at 100% of direct wages.  The following additional data are obtained.

 

Output  during                     Percentage of                        Value of

Process                          the Month                           Normal Loss to         Scrap per

Units                                    Input                            Unit

I                                       950                                          5%                               4

II                                        840                                         10%                              8

III                                       750                                         15%                             10

 

Prepare Process Accounts and Abnormal Loss or Gain Accounts.

                                                                                 

St. Joseph’s College of Commerce B.Com. 2014 IV Sem Cost Accounting Question Paper PDF Download

by

St. Joseph’s College of Commerce (Autonomous) 

End Semester Examination – March /April 2014

B.Com (Travel & Tourism) – IV Semester

COST ACCOUNTING 

Time: 3 hrs                                                                                               Max. Marks: 100

Section – A

 

  1. Answer all the questions; each carries two marks: (10×2 =20)

 

  1. A transport service company is running four buses between two towns which are 50 kms apart. Seating capacity of each bus is 40 passengers. Actual passengers carried were 75 per cent of the seating capacity. All the four buses ran on all the days of April 2013. Each bus made one round trip per day. Calculate total kms and total passenger kms for the month.
  2. From the following information calculate the Breakeven Point
  3. a) in units and b) in sales value:
  • Output – 3000 units
  • Selling price per unit – Rs 30
  • Variable cost per unit – Rs 20
  • Total fixed cost – Rs 20,000
  1. Differentiate between marginal costing and absorption costing?
  2. What is target costing?
  3. Define a ‘cost center’.
  4. How do you treat opening and closing stock of finished goods in a Cost Sheet?
  5. What is E.O.Q.? Give its utility.
  6. What is labour turnover? What are the causes of labour turnover?
  7. What is idle time? What are the causes of idle time?
  8. Distinguish between allocation and apportionment of overhead.

 

Section – B

 

  1. Answer any four question; each carries five marks:                    (4 x 5 =20)

 

  1. Guestline Resorts operates a lodging house with attached facilities of a shopping arcade and restaurant on a National Highway.  The following details are available.
  • The lodging house has 40 twin – bedded rooms, which are to be rented for Rs.200 per night on double occupancy basis. The occupancy ratio is expected at 85% and always both the beds in the room will be occupied.  The lodging facilities are operated, for 200 days in the year during foreign tourists season time only.
  • As per past record the spending pattern of each tourist staying in the lodge will be as under: Rs.50 per day in the shopping arcade and Rs.80 per day in the restaurant.
  • Ratios of variable cost to respective sales volume are: Shops 50%, Restaurant 60%
  • For the lodging house the variable cost on house – keeping and electricity will amount to Rs.30 per day per occupied room.
  • Annual fixed overhead for the entire resort is estimated at Rs.10,00,000

 

Required:

  • Prepare an income statement for the
  • The Lodging House Manager suggests a proposal of reducing room rent to Rs.150 per day on double occupancy basis, which will increase occupancy level to 95%. Should the proposal be accepted or not?

 

  1. In a manufacturing Co., a material is used as follows:

Maximum consumption – 12,000 units per week

Minimum consumption – 4,000 units per week

Normal consumption – 8,000 units per week

Re-order quantity – 48,000 units

Time required for delivery – Minimum: 4 weeks

Maximum: 6 weeks.  Emergency purchases: 2 weeks

Calculate: a) Re-order level (b) Minimum level (c) Maximum level (d) Danger level and (e) Average Stock level.

 

  1. A machine costing Rs.10,000 is expected to run for 10 years.  At the end of this period its scrap value is likely to be Rs.900/-.  Repairs during the whole life of the machine are expected to be Rs.18,000/- and the machine is expected to run 4,380 hours per year on the average.  Its electricity consumption is 15 units per hour, the rate per unit being 5 paise.  The machine occupies one – fourth of the area of the department and has two points out of a total of ten for lighting.  The foreman has to devote about one sixth of his time to the machine.  The monthly rent of the department is Rs.300/- and the lighting charges amount to Rs.80/- per month.  The foreman is paid a monthly salary of Rs.960/-.  Find out the machine hour rate, assuming insurance is @ 1% p.a. and the expenses on oil, etc., are Rs.9 per month.

 

  1. A manufacturing company has three production departments and two service departments.   In January 2014 the departmental expenses were as under:

 

Production Departments:

  Rs. Rs.
A 8,000  
B 6,500  
C 7,000  21,500

Service Departments :

  Rs. Rs.
E 2,340  
F 3,000 5,340
Total   26,840

 

The Service Department expenses are charged out on a percentage basis viz.,

 

 

 

Service Department Production Department Service Department
A B C E F
E 20 25 35 – 20
F 25 25 40 10 –

 

Prepare a statement showing the apportionment of the two service department’s expenses to the production departments by Simultaneous Equation Method.

 

  1. There are two warehouses for storing finished goods produced in a factory. Warehouse ‘A’ is at a distance of 10 kms., and warehouse ‘B’ is at a distance of 15 kms., from the factory. A fleet of 5 tonne Lorries is engaged in transporting the finished good from the factory. The records show that the Lorries average a speed of 30 kms. per hour when running and regularly take 40 minutes to load at the factory. At warehouse ‘A’ unloading takes 30 minutes per load while at warehouse ‘B’, it takes 20 minutes per load.

 

Drivers’ wages, depreciation, insurance and taxes amount to Rs 18 per hour operated. Fuel, oil, tyres, repairs and maintenance cost Rs 2.40 per km. Draw up a statement showing the cost per tonne km. of carrying the finished goods to the warehouses.

 

  1. The Complete Gardener is deciding on the economic order quantity for two brands of lawn fertilizer: Super Grow and Nature’s Own.  Following information is collected:
Particulars Fertilizer
  Super Grow Nature’s Own
Annual Demand 2,000 Bags 1,280 Bags
Relevant ordering cost per purchase order Rs.1,200 Rs.1,400
Annual relevant carrying cost per bag Rs.480 Rs.560
Cost per bag Rs.1,000 Rs.1,200

 

Required:

  • Compute EOQ for Super Grow and Nature’s Own.

 

  • For the EOQ, compute the number of deliveries per year for Super Grow and Nature’s Own.

 

  • For the EOQ, what is the sum of the total annual relevant ordering costs and total annual relevant carrying costs for Super Grow and Nature’s Own?

 

  • What will be the Total annual cost that Complete Gardener will incur for each of the fertilizers?

 

 

 

 

 

Section – C

 

  • Answer any three;  each carries fifteen marks:                             (3 x 15 = 45)

 

  1. Melroy Co. Ltd., has three production departments X, Y Z and two Service departments A and B.

The following estimated figures for a certain period have been made available:

  Rs.
Rent and Rates 10,000
Lighting and Electricity 1,200
Indirect wages 3,000
Power 3,000
Depreciation on Machinery 20,000
Other Expenses and sundries 20,000

 

Following are further details which are also available

 

  Total X Y Z A B
Floor space (Sqr.mts) 10,000 2,000 2,500 3,000 2,000 500
Light points (No.) 1,200 200 300 400 200 100
Direct wages (Rs.) 20,000 6,000 4,000 6,000 3,000 1,000
Horse power of Machinery 3,000 1,200 600 1,000 200 –
Cost of Machinery 1,00,000 24,000 32,000 40,000 2,000 2,000
Working hours – 4,670 3,020 3,050 – –

The expenses of the service department A and B are to be allocated by Repeated Distribution Method as follows:

 

  X Y Z A B
A 20% 30% 40% – 10%
B 40% 20% 30% 10% –

 

You are required to calculate the Overhead absorption rate per hour in respect of the three production departments.

 

  1. The following particulars have been extracted in respect of a material.  Prepare the stores ledger account showing the receipts and issues, pricing the materials issued on the basis of (a) Simple average (b) Weighted average.
2014 Quantity (Kg) Rate per Kg (Rs.)
Jan 2 Received 2,000 10
6 Received 300 12
9 Issued 1,200 –
10 Received 200 14
11 Issued 1,000 –
22 Received 300 11
31 Issued 200 –

 

  1. Disney Amusement Park charges Rs.4 each for all rides in the park.  Variable costs amount to Rs.0.80 per ride and fixed costs are Rs.32,00,000.  Last year’s net income was Rs.6,40,000 on sales of Rs.48,00,000.  Rising costs have cut sharply into net income for Disney for the last 2 years.  This year the management again expects a cost increase of 25% in variable costs and 10% in fixed costs.  To help offset these increases, the management is considering raising the price of a ride to Rs.5.
  • How many rides did the Disney Amusement Park sell last year?
  • If the price increase is not implemented, what is the expected net income for this year assuming the same volume of activity?
  • Compute the price indifference point for the new – ride price.
  • Compute the break – even point for this year using the old price and the new price
  • Should the management raise the price of a ride, if the price increase will reduce ride volume 10% from the last year’s level? In that situation, what will be the expected net income?

 

  1. (a) From the following particulars, draw a Break – even chart and find out the Break-even point:
  Rs.
Variable cost per unit 30
Fixed Expenses 1,00,000
Selling price per unit 50

(b) What should be the selling price per unit, if the break-even point should be brought down to 4,000 units?

(c) If the present value of sales is Rs.4,00,000, what is the margin of safety on the basis of data given in (a) above?

 

  1. Mr. Subramanyam runs a tempo service in the city and has two vehicles.  He furnishes to you the following data and wants you to Compute i) The cost per running km & ii) The cost per running tone km:
  Vehicle A Vehicle B
  Rs. Rs.
Cost of vehicle 25,000 15,000
Road licence per year 750 750
Supervision and Salaries (yearly) 4,300 2,650
Driver’s wages per hour 4 4
Cost of fuel per litre 1.50 1.50
Repairs and Maintenance per km 1.50 2.00
Tyre cost per km 1.00 0.80
Insurance premium (yearly) 850 500
Garage rent per year 3,600 3,600
Kms. Run per litre 6 5
Kms. Run during the year 15,000 6,000
Estimated life of vehicle (kms.) 1,00,000 75,000
Tonnes per km. (average) 6 5

 

 

Charge interest at 10 percent per annum on the cost of the vehicle.  The vehicles run 20 kms., per hour on an average.

 

 

Section – D

 

  1. Compulsory question:                   (15 marks)

 

  1. i) From the following particulars you are required to prepare a statement showing (a) The cost of materials consumed, (b) Prime cost, (c) Works cost, (d) Total cost, (e) The percentage of works overheads to productive wages, and (f) The percentage of general overheads to works cost:

 

  Rs.   Rs.
Stock of finished goods on 1.1.2013 72,800 Stock of finished goods on 31.12.2013 78,000
Stock on Raw Materials on 1.1.2013 33,280 Stock on Raw Materials on 31.12.2013 35,360
Purchases of Raw Materials 7,59,200 Works overhead charges 1,29,220
Productive Wages 5,16,880 Office and general expenses 70,161
Sales of Finished Goods 15,39,200    

 

  1. ii) The company is about to send a tender for a large plant. The Costing Department estimated that the materials required would cost Rs.52,000 and the wages to workmen for making the plant would cost Rs.31,200. The tender is to be made at a net profit of 20% on the selling price.  Show what the amount of tender would be if based on the above percentages.

 

 

 

 

St. Joseph’s College of Commerce B.B.M. 2014 IV Sem Cost Accounting Question Paper PDF Download

by
  1. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

END SEMESTER EXAMINATIONS –APRIL 2014

BBM – IV SEMESTER

 COST ACCOUNTING

Duration: 3 Hrs                                                                                                 Max. Marks: 100 

Section – A

  1. Answer ALL the Each carries 2 marks.                            (10×2=20)
  • Define the term ‘cost center’.
  • What is single output or unit costing?
  • Distinguish between allocation and apportionment of overhead?
  • State what is meant by ‘Uncertified’ work?
  • What is ‘Retention money’? Why is it retained?
  • What is inter-process profit?
  • Explain what is meant by abnormal process loss? Give examples.
  • Calculate the total earnings and the effective wage rate per hour of a worker under Halsey plan:

Time allowed: 50 hours

Time taken    : 40 hours

Rate per hour: Rs 10

 

  • A transport company maintains a fleet of Lorries for carrying goods from Bangalore to Mysore, 100 kms off. Each lorry which operates 25 days on an average in a month, starts every day from Bangalore with a load of 4 tons and returns from Mysore with a load of 2 tons

 

  • (a) Compute the total commercial ton kms.
  • (b) What would be the cost per commercial ton –km when the total monthly charges for a lorry are Rs 27,000?

 

  • From the following particulars ascertain the labour cost per day of 8 hours:
  1. Basic pay – Rs 200 per month
  2. Leave pay – 5%
  • Employers contribution to provident fund – 10.5% of (a) and (b)
  1. Other amenities – Rs 17.95 per head per month.
  2. Working hours in a month – 200

 

 

 

Section – B

 

  1. II) Answer any FOUR Each carries 5 marks. (4×5=20)

 

11) A Company manufactures a special product which requires a component ‘Alpha’.

The following particulars are collected for the year 2013:

 

  1. Annual demand of Alpha       8,000 units
  2. Cost of placing an order Rs 200 per order
  • Cost per unit of Alpha Rs 400
  1. Carrying cost % p.a 20 %

 

The company has been offered a quantity discount of 4% on the purchase of Alpha provided the order size is 4,000 components at a time

You are required to :

  1. Compute the EOQ.
  2. Advise whether the quantity discount offered can be accepted.

 

12) A machine is purchased for cash at Rs. 9,200. Its working life is estimated to be

18,000 hours after which its scrap value is estimated at Rs. 200. It is assumed from

past experience that :

(a) The machine will work for 1,800 hours annually.

(b) The repair charges will be Rs. 1,080 during the whole period of life of the machine.

(c) The power consumption will be 5 units per hour at 6 paisa per unit.

(d) Other annual standing charges are estimated to be:

Rs.

  1. Rent of department (machine occupies 1/5th of total space)    780
  2. Lighting (12 points in the department – 2 points engaged in the machine) 288
  • Foreman’s salary (1/4th of his time is occupied in the Machine)              6,000
  1. Insurance premium (fire) for machinery                36
  2. Cotton waste          60

 

Find out the machine hour rate on the basis of above data for allocation of the work expenses to  all the jobs for which the machine is used

 

13) A manufacturing company runs its boiler on furnace oil obtained from X oil      company and Y oil company whose depots are situated at a distance of 24 kms and 16 kms  from the factory site respectively.

 

Transportation of furnace oil is made by company’s own tank lorries of 8 ton capacity each. Onward trips are made only with full load and the lorries return empty. The filling time takes an average of 40 minutes for X Oil Company and 30 minutes for Y oil company. The empty time in the factory is only 40 minutes for each. The average speed of the lorries is 24 kms per hour. The varying operating charges average 80 paise per km covered and fixed charges gives an incidence of Rs 7.50 per hour of operation.

 

Calculate the transportation cost per ton km for each source of furnace oil.

 

14)  Using Taylor’s differential piece rate system, find the earnings of Amar, Akbar and Ali from the following particulars

 

Normal rate per hour                                 Rs. 9.00

Standard time per unit                               20 minutes

Output per day is as follows:

Amar              :           23 units

Akbar             :           24 units

Ali                   :           30 units

Working hours per day are 8.

Differentials to be applied : 83% of piece rate below standard

: 125% of piece rate above standard

 

15)       Two components, A and B, are used as follows:

 

Normal Usage: 350 units per week each

Minimum Usage: 175 units per week each

Maximum Usage: 525 units per week each

Re-Order Quantity: A- 2100 units

B- 3500 units

Re-Order Period: A- 6 to 8 weeks

B- 3 to 5 weeks

 

Calculate for each component:

(a) Order level             (b) Minimum Level

(c) Maximum Level     (d) Average Stock level

 

 

16)          XYZ Co. employs its workers for a single shift of 8 hours per day for 25 days

In a month. The company has recently fixed the standard output of 40 units per day per worker for a mass production item and introduced an incentive scheme to boost output. Details of wages payable to the worker are as follows :

 

  • Basic wages : Rs 3 per unit subject to a guaranteed minimum wages of

Rs 80 per day worked

  • Dearness allowance : Rs 40 per day worked

Incentive Bonus:

  • For efficiency upto 80%  : Nil
  • For efficiency above 80% : Rs. 50 for every 1% increase above 80%

The details of performance of 2 workers for a particular month are as follows:

Workers                           No of days worked                          Output (units)

A                                                25                                                        820

B                                                 18                                                        500

Calculate the total earnings of both the workers for the month.

Section – C

 

III) Answer any THREE   questions. Each carries 15 marks.                               (3×15=45)

 

17) In respect of a factory the following particulars have been extracted for the year 2013:

Rs.

Cost of materials                                                            3,00,000

Wages                                                                              2,50,000

Factory overheads                                                         1,50,000

Administration charges                                                1,68,000

Selling charges                                                               1,12,000

Distribution charges                                                        70,000

Profit                                                                                2,10,000

 

A work order has to be executed in 2014 and the estimated expenses are :

Materials Rs 16,000, Wages Rs 10,000.

 

Assuming that in 2014, the rate of the factory overheads has gone up by 20%, distribution charges have gone down by 10% and the selling and administration charges have  each gone up by 12 ½  %, at what price should the product be sold so as to earn the same rate of profit on the selling price as in 2013?

Factory overheads are based on wages and all other overheads are based  on factory cost.

 

18) Prepare the Stores Ledger Account for the month of December from the following transactions relating to the receipts and supplies of the material on the basis of:

(a) Simple Average price                                           (b) Weighted average price

 

RECEIPTS:

Date                      Quantity                     Rate

2 Dec                     2000 kgs                   Rs. 10 per kg

6 Dec                      300 kgs                    Rs. 12 per kg

10 Dec                    200 kgs                   Rs. 14 per kg

22 Dec                    300 kgs                    Rs. 11 per kg

 

ISSUES:

Date                       Quantity                                                 

9 Dec                      1200 kgs

11 Dec                    1000 kgs

31 Dec                    200 kgs

 

19) Prestige construction Ltd. With a paid share capital of Rs. 50,00,000 undertook a contract to construct Joseph apartments. The work commenced on the contract on 1st April 2013. The contract price was Rs. 60,00,000. Cash received on account of the contract upto 31st March 2014 was Rs. 18,00,000 (being 90% of the work certified). Work completed but not certified was estimated at Rs. 1,00,000. As on 31st march, 2014 materials at site was estimated at Rs.30,000, machinery at site costing Rs. 2,00,000 was returned to the stores and wages outstanding were Rs.5,000. Plant and machinery at site is to be depreciated at 5%. The following were the ledger balances (Dr.) as per trial balance as on 31st march, 2013.

Land and building 23,00,000
Plant and machinery (60% at site) 25,00,000
Furniture 60,000
Materials 14,00,000

 
Fuel and power 1,25,000
Site expenses 5,000
Office expenses 12,000
Rates and taxes 15,000
Cash at bank 1,33,000
Wages 2,50,000

Prepare a contract account and the  balance sheet at the end of the year.

20) A product passes through three processes- A ,B  and C .The details of expenses incurred on the three processes during the year 2013 were as under:

 

A                     B                      C

Units Issued                                                20,000

Rs.                   Rs.                   Rs.

Cost per unit                                                 0.50

Materials consumed                                   6,000               4,000               2,000

Direct Labour                                              8,000               6,000               3,000

Manufacturing expenses                            1,000               1,000               1,500

 

Actual output of the three processes was: Process A-19,500 units; Process B-18,800 units; Process C-16,000 units. There is no work in progress in any process.

The normal loss of the three processes, calculated on the input of every process was: Process A-2%, Process B-5%, Process C-10%.

The loss of Process A and B  was sold at Rs.5  per 100 units and that of Process C at Rs.20 per 100 units.

Prepare:

  • Process A,B and C accounts
  • Abnormal loss account
  • Normal loss account
  • Abnormal gain account.

Calculations should be made to the nearest rupee.

21) Mr Furqan has been promised a contract to run a tourist car on a  20 km long route for the chief executive of a multinational firm. He buys a car costing Rs. 1,50,000. It has been insured at 3%p.a and the annual tax will amount to Rs. 900. He has to pay Rs 500 per month for a garage where he keeps the car when not in use. The annual repair costs are estimated at Rs 4,000. The car is estimated to have a life of 10 years at the end of which the sale value is likely to be Rs 50,000.

He hires a driver who is to be paid  Rs 300 p.m in addition to 10% of the takings as commission. Other incidential expenses are estimated at Rs 200 p.m.

Petrol and oil will be Rs.100 per 100 kms. The car will make 4 round trips each day. Assuming 15% profit on takings is desired and that the car will be on the road  on an average of 25 days in a month ,what should be the charge per round trip? Show all working clearly.

 

 

Section – D

 

  1. IV) Compulsory question                             (1×15=15)

 

22) Modern Manufactures Ltd have three Production Departments P1 ,P2, P3 and two Service Departments S1 and S2 details pertaining to which are as under:

 

  P1 P2 P3 S1 S2
Direct wages (Rs) 3,000 2,000 3,000 1,500 195
Working hours 3,070 4,475 2,419 – –
Value of machines (Rs) 60,000 80,000 1,00,000 5,000 5,000
H.P. of machines 60 30 50 10 –
Light points 10 15 20 10 5
Floor space (sq.ft) 2,000 2,500 3,000 2,000 500

 

The following figures extracted from the Accounting records are relevant:

 

Rent and Rates 5,000
General Lighting 600
Indirect Wages 1,939
Power 1,500
Depreciation on Machines 10,000
Sundries 9,695

 

The expenses of the Service Departments are allocated as under

 

Particulars P1 P2 P3 S1 S2
S1 20% 30% 40%       – 10%
S2 40% 20% 30% 10% –

 

Find out the total cost of product X which is processed for manufacture in Departments P1 ,P2, P3 for 4,5 and 3 hours respectively, given that its Direct Material Cost is Rs. 50 and Direct Labour Cost is Rs. 30.

 

 

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

by
  1. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)
                                  END SEMESTER examination –MARCH /april 2015

                                                           bbm –iv semester
M1 11 401: COST ACCOUNTING
Duration: 3 Hours                                                                                             Max. Marks: 100
SECTION – A
I) Answer ALL the questions.  Each carries 2 marks.                                        (10×2=20)
  1. What is ‘Opportunity Cost’?
  2. Mention any four techniques of costing.
  3. Define a cost center.
  4. How will you treat normal loss of material in cost accounts?
  5. The output of worker A is 64 units in a 40 hours week. Guaranteed time rate is Rs. 5 per hour. Ordinary piece rate is Rs. 2 per unit. Show the earnings of worker A under piece rate and time rate systems.
  6. A Company purchases the goods required by it in two lots

500 Units @Rs.1.50 per unit

500 Units @ Rs.2.00 per unit

During the year ,the company sold 500 units.

How will you show the inventory in the Balance Sheet, using Simple Average Price method and under LIFO Method?
  7. How do you calculate Bonus under Halsey Premium Plan and Rowan Plan.
  8. State the reasonable basis for apportionment of following overheads of service departments over production departments :

1.Store keeping Department

2.Welfare Department

3.Purchase Department

4.Pay roll Department
  9.  What is meant by Escalation Clause?
  10. State the Causes of Labour Turnover.

 
SECTION – B
II) Answer any FOUR questions.  Each carries 5 marks.                                      (4×5=20)
  11. A company buys its annual requirement of 36,000 units in 6 installments. Each unit costs Re. 1 and the ordering cost is Rs. 25.The inventory carrying cost is estimated at 20% of unit value. Find out the total annual cost under existing inventory policy .How much money can be saved by Economic Order Quantity ?

 
  12. Calculate the total monthly remuneration of three workers A,B and C from the following data:

a) Standard Production  per month per worker :1,000 units

b) Actual production during the month:

A – 850 units,    B-750 Units,    C-950 Units

c) Piece Work Rate is 10 paise per unit of production

 

d) Additional production bonus is Rs.10/- for each percentage of actual production exceeding 80% of standard production.

e) Dearness Allowance fixed @Rs.50 p.m.

 
  13. Two components A and B are used as follows:

Normal usage:   50 units per week each

Minimum Usage:  25 units per week each

Maximum Usage:   75 units per week each

Reorder  Quantity:  A: 300 Units

B: 500 Units

Re-Order Period      A: 4 to 6 weeks

B: 2 to 4 Weeks

Calculate for each component:

a)      Re-order Level

b)     Minimum Level

c)      Maximum Level

d)     Average Stock Level

 
  14. Calculate the earnings of workers A,B and C under Merrick’s Multiple Piece Rate System from the following particulars:

Normal rate per hour   Rs.18

Standard Time per unit   1 Minute

Output per day is as follows :

Worker A : 384 Units

Worker B :450 Units

Worker C: 552 Units

Working hours per day are 8.

 
  15.  A company manufactures a standard product . From the following data, prepare a statement of Cost and Profit:

 

Raw materials consumed     Rs. 45,000

Direct labour                          Rs. 27,000

Machine hours worked        900

Machine hour rate                 Rs.  15

Administration overhead    20% on works cost.

Selling cost                             Rs. 1.50 per unit

Units produced                      15,000

Units sold                                14,000 at Rs. 12 per unit.

 

 

 

 

 

 

 
  16. Work out the machine hour rate for the following machine for the month of January:

 

Particulars Amount (Rs)
Cost of machines Rs. 90,000
Other charges, (Freight and installation) Rs. 10,000
Working life 10 years
Working hours 2,000 per year
Repair charges 50% of depreciation

 

Power – 10 units per hour @ 10 paise per unit

Lubricating oil @ Rs. 2 per day of 8 hours

Consumable stores @ Rs. 10 per day of 8 hours

Wages of operator @ Rs. 4 per day of 8 hours.

 
 

SECTION – C
III) Answer any THREE questions.  Each carries 15 marks.                                (3×15=45)                                                                                                
  17. Prashant Cooling Ltd., Harihar manufactured and sold 500 refrigerators in the year ending 31/12/2013 . The summarized Trading and Profit & Loss Account is set below:

Particulars Amount(Rs) Particulars Amount(Rs)
To Cost of Materials 80,000 By Sales 4,00,000
To Direct Wages 1,20,000    
To Other Manufacturing Cost 50,000    
To Gross Profit 1,50,000    
  4,00,000   4,00,000
To Management and Staff Salaries  

60,000

 By Gross Profit 1,50,000
To office Rent, Rates & Insurance 10,000    
To General Expenses 20,000    
To Selling Expenses 30,000    
To Net Profit 30,000    
  1,50,000   1,50,000

 

For the year ending 31/12/2014  it is estimated that:

(i)                   Output and sales will be 600 refrigerators.

(ii)                Price of materials will go up by 20% on the level of previous year.

(iii)        Wages will rise by 5%.

(iv)         Manufacturing cost will rise in proportion to the combined cost of materials and wages.

(v)          Selling cost per unit will remain unaffected.

(vi)        Other expenses will also remain constant.

 

  You are required to submit a statement to the board of Directors showing the price at which the refrigerators should be marketed so as to show a profit of 25% on selling price.

 
  18. Construction Ltd is engaged on two contracts A and B during the year. The following particulars are obtained at the end of the year (31st Dec)

Contract A            Contract B

Date of commencement                                            April 1                 September 1

Rs.                           Rs.

Contract Price                                                             6,00,000               5,00,000

Materials issued                                                         1,60,000                 60,000

Materials at site (31st Dec)                                           22,000                    8,000

Direct Labour                                                             1,50,000                  42,000

Direct Expenses                                                            66,000                  35,000

Establishment Expenses                                              25,000                   7,000

Plant Installed at site                                                   80,000                  70,000

Value of plant (31st Dec)                                              65,000                  64,000

Cost of contract not yet certified                                23,000                  10,000

Value of contract certified                                        4,20,000               1,35,000

Cash received from contractee                                3,78,000               1,25,000

Architects fees                                                                 2,000                    1,000

 

During the period materials amounting to Rs. 9,000 have been transferred from contract A to Contract B. You are required to show :

a)      Contract Account       b) Contractee’s Account  and

c)      Extract of Balance Sheet clearly showing the calculation of  work in progress.

 
  19. A Company manufactures its product by passing the units of raw material through three distinct processes A,B and C during the month of July 2013 ,1000 units of raw material costing Rs. 12 per unit were introduced in process A. Further details regarding production and costs are given below :

Process Output Normal Loss Cost incurred (Rs.)
  (Units) (% of input) Material Labour Overheads
A 900 10 8,000 4,000 3,200
B 800 8 7,416 3,600 3,600
C 780 5 1,800 2,000 2,000

There was no work in progress at the beginning or end of the month. The scraps of three processes were sold at Rs. 2 p.u., Rs.3 p.u. and Rs.5 p.u. respectively. Prepare the process accounts and the accounts relating to abnormal gain/loss, if any for the month.

 
  20. Arun runs a tempo service at Vizag. He furnishes you with the following data and wants you to compute the: i) cost of running per km. and ii)  Cost of running per ton(km)

 

 

Particulars Amount (Rs)
Cost of vehicle 15,000
Road licence p.a. 750
Supervisor’s salary p.a. 2,650
Driver’s wages per hour 4
Cost of fuel per litre 3.60
Repairs and maintenance per  km. 2.00
Tyre cost per km 0.80
Garage rent p.a. 3,600
Insurance p.a. 500
Kms running per litre 5
Kms run during the year 6,000
Estimated life of the vehicle 75,000 Kms
Tonnes per km. (average) 5

 

Charge Interest @ 10% p.a. on cost of vehicle.

The vehicle runs 20kms. Per hour on an average

 
  21. Record the following transactions in the Stores Ledger  Account .

15.1.2014       Receipt       250 Units        costing      Rs. 312.50

21.2.2014        Receipt      100 Units        costing      Rs.130.00

24.3.2014       Receipt        50 Units        costing      Rs.67.50

5.4.2014         Issue            55 Units

19.4. 2014       Receipt        50 Units        costing      Rs.70.00

25.4.2014        Issue           300Units

3.5.2014          Issue            90 Units

The issues on 5.4 2014 and 25.4.2014 were priced at LIFO and FIFO respectively. From 1.5.2014 it was decided to price the issues at Weighted Average Price.

 
SECTION – D
IV) Compulsory question                                                                                       (1×15=15)                                                                                           
  22. A Company has three production departments and two service departments. The departmental distribution summary shows the following;

Rs.

Production Departments:

P1: Rs.800; P2: Rs.700 and P3: Rs.500                                       2,000

Service Departments:

S 1:Rs.234 and S 2: Rs. 300                                                            534

——–

2,534

The estimated working hours of production departments are as follows:

P1 : 900 Hrs

P2: 800 Hrs.

P3: 600 Hrs

The expenses of   the service departments are charged out on a percentage basis as follows :

P1        P2       P3          S1       S2

Service Department S1                20%       40%   30%       _         10%

Service Department S2               40%       20%   20%      20%       –

 

Prepare a statement showing  the apportionment of the two service departments expenses to production departments by

a)       Simultaneous Equation Method

b)     Repeated Distribution Method.

c)      Calculate the overhead absorption rate per hour in respect of production departments.

 

 

 

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

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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)

 

 

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St. Joseph’s College of Commerce 2016 II Sem Cost Accounting Question Paper PDF Download

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REG NO:
  1. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

END SEMESTER EXAMINATION – MARCH/APRIL 2016

B.Com (BPM) –II Semester

C3 15MC202: COST ACCOUNTING

Duration: 3 Hours                                                                                         Max. Marks: 100

 

SECTION – A

 

  1. Answer the following questions. Each carries 2 marks.                           (10×2=20)

 

  1. Differentiate ‘Apportionment of overheads ‘with ‘Absorption of overheads’.
  2. Mention the reasons for difference between ‘Cost Accounting and ‘Financial Accounting’ profits.
  3. How do you differentiate ‘Cost’ from an ‘Expense’?
  4. Explain ‘Overhead recovery rates’.
  5. What do you understand by Fixed cost, Variable cost and Semi-Variable Costs?
  6. Give the meaning of ‘Carrying Costs’ and ‘Ordering Costs’?
  7. What do you understand by ‘Differential Piece Rate system’ of remuneration?
  8. Suggest suitable costing methods for following industries

(a) Transport company (b) Cotton  textiles (c) Hospital (d) Pharmaceuticals

  1. Explain the meaning of ‘Imputed Costs’.
  2. What is a ‘Goods Received Note’ and ‘Material Requisition Slip’?

 

SECTION –  B

 

  1. Answer any FOUR questions. Each carries 5 marks.                          (4×5=20)

 

  1. On the basis of the following information calculate the earnings of two workers Shiva and Rama  under the straight piece rate system and Taylor’s Differential piece Rate system.

Standard Production: 10 units per hour

Normal time rate      :   Rs.50 per hour

Differential Piece rate to be applied

80% of piece rate for below standard performance

120% of piece rate for performance at or above the standard

Actual performance

Shiva  produced 75 units in a day of 10 hours

Rama  produced 115 units in a day of 10 hours

 

  1. From the following particulars, prepare a statement of cost of manufacture for the year 2014 and show what percentage each individual item of cost bears to the total cost. Calculate factory on cost at 20% on prime cost and office on cost at 80% on factory cost.
  Rs.
Opening stock of raw material 1,44,000
Purchase of raw materials 8,64,000
Stock of raw materials at end 2,16,000
Wages 3,60,000

 

  1. Prime enterprises have separate cost and financial records. The profit as per financial records arrived at Rs.1,60,000. The following information is available:
  2. The firm received Rs.40,000 as dividend and paid Rs.30,000 as Bank interest during the year.
  3. A plant with a book value of Rs.80,000 was sold for Rs.40,000
  • Cash discount allowed Rs.70,000
  1. The firm made a notional rent charge of Rs.24,000 in cost Accounts in respect of its own premises.
  2. The actual factory overheads incurred amounted to Rs.5,60,000 but only Rs.5,00,000 were recovered in cost accounts on the basis of percentage of direct wages.
  3. Stock values

 

  Financial a/c ‘s Cost a/c’s
Opening stock of raw materials 44,000 48,000
Opening stock of finished goods 86,000 82,000
Closing stock of raw materials 70,000 80,000
Closing stock of finished goods 80,000 88,000

 

Prepare the statement of reconciliation and ascertain the cost accounting profit.

 

  1. Prepare stores ledger a/c showing the receipts and issues, pricing materials issued on the basis of: Simple average method

Receipts

 

1-1-2014          opening stock 800 units at              Rs.7.00 per unit

3-1-2014          purchased 1200 units at                  Rs.8.00 per unit

13-1-2014        purchased 3600 units at                  Rs.8.60 per unit

23-1-2014        purchased 2400 units at                  Rs.7.60 per unit

 

 

Issues

5-1-2014          issued                        1600 units

15-1-2014        issued                        2400 units

  • issued 2400 units

 

 

  1. A manufacturing concern has 2 production departments A and B and three service departments – time keeping, stores and maintenance. The departmental summary showed the following expenses for December
  Rs. Rs.
Production Departments

A

B

  

32,000

20,000

  

 

52,000
Service Departments    
Time Keeping 8,000  
Stores 10,000  
Maintenance 6,000 24,000
    76,000

Other Information

  A B Time keeping Stores Maintenance
No of employees 20 15 10 16 5
Stores requisition 24 20     6
Machine hours 2400 1600      

Prepare secondary distribution summary using STEP LADDER METHOD

 

 

  1. What are the essentials of a good wage system?

 

SECTION – C

  • Answer any THREE questions. Each carries 15 marks.                                     (3×15=45)

 

  1. From details furnished below you are required to compute the machine hour rate ( work is done in the factory by means of 5 similar machines)
  Rs.
Rent and rates ( proportional to the floor space occupied) for the shop 4,800
Depreciation on each machine 500
Repairs and maintenance for the five machines 1,000
Power consumed @ 5p. per unit for the shop 3,000
Electric charges for lighting in the shop 540
There are 2 attendants for the five machines and  they are paid Rs. 60 per month  
For 5 machines in the shop there is one supervisor whose emoluments are Rs.250 pm  
Sundry supplies such as lubricants for the shop 450
Hire purchase installment payable for the machine

(including Rs.300 as interest)

  

1,200

The machine uses 10 units of power per hour

 

  1. International Motors manufacture crankshafts for Jeeps and Trucks. They have furnished the following particulars for the quarter ended 31st March 2007.

Materials Rs.2,98,000; Direct wages Rs.42,000; Stores Expenses Rs.20,000; Machinery Maintenance Rs.4,600; Depreciation Rs.22,300; Staff Welfare Rs.12,000; General expenses Rs.30,000; Administration and Selling expenses Rs.27,000

Additional information provided by them

  Jeep Truck
Production (nos) 300 400
Material Cost ratio per vehicle 1 2
Direct Labour hour ratio 2 3
Machine hour ratio 1 2

Calculate the cost per crankshaft of each vehicle indicating the basis of apportionment adopted.

 

  1. The following are the details of a company, prepare the cost sheet for the year ended

31-12-2010

                         Particulars    Amount (Rs)
Direct materials    3,40,000
Direct wages    2,00,000
Works overheads    1,20,000
Profit    2,10,000
Administrative overheads    1,34,400
Selling overheads       89,600
Distributions overheads       56,000

 

 

A work order had been executed for  2011 and the following expenses have been incurred.

 

Direct Materials                    Rs.4000

Direct Wages                                    Rs.2000

 

Assuming that the rate of factory overheads has gone up by 20%, distribution overheads has gone down by 10% and selling and administrative overheads has gone up by 12.5%, at what price should the product be sold so as to earn the same rate of profit on the selling price.

 

 

  1. In a factory there are two service departments S1 and S2 and three production departments P1, P2 & P3. In July 2014, the departmental expenses were
Departments P1 P2 P3 S1 S2
Rs. 13,00,000 12,00,000 10,00,000 2,40,000 2,00,000

 

The Service departments expenses were allotted on percentage basis as follows :

Service Departments P1 P2 P3 S1 S2
S1 30 40 15 — 15
S2 40 30 25 5 —

Prepare a statement showing the distribution of the two service departments expenses to the three departments by (a) Simultaneous Equation method

(b) Repeated distribution Method.

 

 

  1. The standard time to complete a product is 12 hours at Rs.2.50 per hour.

Time wages are allowed to workers taking more than the time allowed. But workers who complete the job in standard time or less receive the piece work rate plus 10% bonus. Calculate the wages earned by A, B, C and D who complete the job in 15, 12, 10 and 8 hours respectively. What will be effective hourly rate?

If the overhead rate chargeable production is Re.0.50 per hour, what will be the cost of conversion ( labor and overheads) per piece produced by each worker.

 

SECTION – D

 

  1. Compulsory question                                    (15 marks)

 

  1. The cost structure of an article, the selling price of which is Rs.500, is as follows

Direct Material       :       50% of total cost

Direct Labour         :       30% of total cost

Overheads               :       Balance amount

Due to anticipated increase in existing material price by 20% and in the existing labour by 10% the existing profit would come down by 30%, if the selling price remains unchanged.

 

Prepare a comparative statement showing the cost, profit and sale price under the present conditions and with the increase expected for future assuming the same percentage of profit on cost as at present had to be earned. (Calculations to be made to the nearest rupee).

 

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St. Joseph’s College of Commerce B.B.A. 2016 Iv Sem Cost Accounting Question Paper PDF Download

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REG NO:

 

ST. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)
END SEMESTER EXAMINATION – MARCH /APRIL 2016
B.B.M. – IV SEMESTER
M1 11 401: COST ACCOUNTING
Duration: 3 Hours                                                                                             Max. Marks: 100
SECTION – A
I) Answer ALL the questions.  Each carries 2 marks.                                        (10×2=20)
  1. Find EOQ from the following:

Annual usage: 6,000 units

Cost of Material per unit: Rs. 20

Cost of Placing and receiving an order: Rs. 60

Annual carrying cost: 10% of inventory value.
  2. Give any two functions of Purchase Department.
  3. What is the appropriate Cost Unit for the following industries

  1. Textile industry
  2. Steel industry
  4. What type of costing would you adopt for:

  1. Soft drink manufacturer
  2. Car repair and services
  5. What is Abnormal Gain?
  6. What is ABC Analysis?
  7. How is Job Analysis different from Job evaluation?
  8. What is the difference between allocation and absorption?
  9. Give 2 examples each for the following

  1. Fixed cost
  2. Variable cost
  10. Mention appropriate basis of apportionment for:

  1. Material handling expenses
  2. Indirect wages
SECTION – B
II) Answer any FOUR questions.  Each carries 5 marks.                                      (4×5=20)
  11. A machine is purchased for cash at ` 9,200.  Its working life is estimated to be 18,000 hours after which its scrap value is estimated at  `200.  It is assumed from past experience that:

i)                   The machine will work for 1,800 hours annually.

ii)                 The repair charges will be  `1,080 during the whole period of life of the machine.

iii)              The power consumption will be 5 units per hour at 6 paise per unit.

iv)               Other annual standing charges are estimated to be:

`

a)                              Rent of department (machine occupies 1/5th of total space)               780

b)                              Light (12 points in the department -2 points engaged in the machine)

288

c)                               Foreman’s salary (1/4th of his time is occupied in the machine)        6,000

d)                             Insurance premium (fire) for machinery                                                    36

e)                              Cotton waste                                                                                                   60

Find out the machine hour rate on the basis of the above data for allocation of the works expenses to all jobs for which the machine is used.
  12. The information given below has been taken from the cost records of a factory in respect of Job No 808

Direct Material Rs 4,010

Wages:

Department A: 60 hrs @Rs. 3 per hr

B: 40  hrs @ Rs. 2 per hr

C: 20  hrs @ 5 per hr

The variable overheads are as follows:

Department A: Rs. 5000 for 5000 hrs

B: Rs. 3000 for 1500hrs

C: Rs. 2000 for 500 hrs

Fixed expenses estimated at Rs. 20, 000 for 10,000 working hrs.

Calculate the cost of Job and the price to be quoted is a profit of 25% on the selling price is expected.
  13. A worker completes a job in a certain number of hours.  The standard time allowed for the job is 10 hours, and the hourly rate of wages is  ` 1.  The worker earns at the 50% rate a bonus of  ` 2 under Halsey Plan.

Ascertain his total wages under the Rowan Premium Plan.

 
  14. The following transactions took place in respect of an item of material:

 

  Receipts

Quantity

 Rate

Rs.

 Issue

Quantity
 

02-3-2016

10-3-2016

15-3-2016

18-3-2016

20-3-2016

  

200

300

 

250

  

2.00

2.40

 

2.60

  

 

 

250

 

200

 

Record the above transactions in the Stores Ledger, pricing the issues at Weighted Average Rate

 
  15. The cost accountant of  Y Ltd. has computed labour turnover rates for the quarter ended 31st March, 2010 as 10%, 5% and 3% respectively under Flux Method, Replacement method and Separation Method.  If the number of workers replaced during the quarter is 30, find out the number of (1) workers recruited and joined and (2) workers left and discharged.

 
  16. Explain in detail the steps involved in overhead accounting.
 

 

SECTION – C
III) Answer any THREE questions.  Each carries 15 marks.                                (3×15=45)                                                                                                 
  17. Strongman Ltd. has three production departments P1, P2 and P3 and two service departments S1 and S2.

Following particulars are available for the month of March, 2010 concerning the organization:

Rent 15,000; Municipal Taxes 5,000; Electricity 2,400; Indirect Wages 6,000; Power 6,000; Depreciation on Machinery 40,000; Canteen Expenses 30,000; Other Labour Related Costs 10,000.

Following further details are also available:

  Total P1 P2 P3 S1 S2
Floor Space (sq.mts.) 5,000 1,000 1,250 1,500 1,000 250
Light Points (Nos.) 240 40 60 80 40 20
Direct Wages (`) 40,000 12,000 8,000 12,000 6,000 2,000
Horse Power of Machines (Nos.) 150 60 30 50 10 –
Cost of Machines (`) 2,00,000 48,000 64,000 80,000 4,000 4,000
Working Hours   2,335 1,510 1,525    

The expenses of service departments are to be allocated in the following manner:

  P1 P2 P3 S1 S2
S1 20% 30% 40% – 10%
S2 40% 20% 30% 10% –

You are requested to calculate the overhead absorption rate per hour in respect of the three production departments.
  18. Prestige ltd Is engaged in 2 contracts. A and B during the year. The following particulars are obtained at the year end (31st December)

PARTICULARS CONTRACT A CONTRACT

B
Date of commencement 1st April 1st September
Contract price 6,00,000 5,00,000
Material issued 1,60,000 60,000
Materials returned 4,000 2,000
Materials at site (31st Dec) 22,000 8,000
Direct labor 1,50,000 42,000
Site expenses 66,000 35,000
Establishment expenses 25,000 7,000
Plant installed at site 80,000` 70,000
Value of plant (31st Dec) 65,000 64,000
Cost of contract not yet certified 23,000 10,000
Value of contract certified 4,20,000 1,35,000
Cash received from contractee 3,78,000 1,25,000
Architect’s fee 2,000 1,000

 

During the period, materials amounting to Rs.9,000 have been transferred from Contract A to B.

You are required to calculate the amount of profit transferred to the Profit and Loss account after preparing:

a)      Contract  A account

b)     Contract  B  account
  19. A product passes through three processes A, B and C.  the normal loss of each process is as follows:

Process A – 3%, Process B-5%, and Process C – 8%.

Loss of Process A was sold at 25 paise per unit, that of B at 50 paise per unit and that of C at ` 1.00 per unit.  10,000 units were introduced to Process A at

` 1.00 per unit.  The other expenses were as follows:

  Process
  A B C
  ` ` `
Materials 2,050 2,688 2,509
Labour 5,000 8,000 6,500
Actual Output (in units) 9,500 9,100 8,100

Prepare the Process Accounts, assuming that there were no opening or closing stocks.
  20. A person owns a bus which runs from Delhi to Chandigarh and back for 10 days in a month.  The distance from Delhi to Chandigarh is 150miles.  The bus completes a trip from Delhi to Chandigarh and back on the same day.  The bus goes another 10 days in a month towards Agra.  The distance from Delhi to Agra is 120 miles.  The trip is also completed in the same day.  For the rest 4 days of its operation in a month it runs on the local city.  The daily distance covered in the local city is 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 bus  ` 60,000 Token tax `   600 p.a.
Depreciation rate 20% p.a. Lubricant oil  ` 10 per 100 miles
Salary of driver `350p.m. Repairs & maintenance ` 500 p.m.
Salary of conductor `350p.m. Permit fees  `284 p.m.
Salary of part-time accountant `160p.m. Normal capacity 50 persons
Insurance `1680p.a.    
Diesel consumption, 4 miles

Per litre costing

  

 

` 1 per litre

    

The bus is generally occupied 90% of the capacity when it goes to Chandigarh and 80% when it goes to Agra.  It is always full when it runs within the city.  Passenger tax is 20% of his net takings.

 

 

 

 
  21. Bring out in detail the differences between:

  1. Cost accounting and Financial accounting
  2. Cost accounting and Management accounting.
 

SECTION – D
IV) Case Study – Compulsory question.                                                                (1×15=15)                                                                                           
  22. Calculate Prime Cost, Factory Cost, Cost of Production, Cost of Sales and Profit from the following particulars:

  `   `
Direct materials 1,00,0000 Depreciation:  
Direct wages 30,000    Factory Plant 500
Wages of foreman 2,500     Office Premises 1,250
Electric power 500 Consumable stores 2,500
Lighting: Factory 1,500 Manager’s salary 5,000
                 Office 500 Directors’ fees 1,250
Storekeeper’s wages 1,000 Office stationery 500
Oil and water 500 Telephone charges 125
Rent:   Factory 5,000 Postage and Telegrams 250
            Office 2,500 Salesmen’s salaries 1,250
Repairs and Renewals:   Travelling expenses 500
           Factory Plant 3,500 Advertising 1,250
          Office Premises 500 Warehouse charges 500
Transfer to Reserves 1,000 Sales 1,89,500
Discount on shares written off 500 Carriage outward 375
Dividend 2,000 Income-tax 10,000

 

 

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