Loyola College B.Com Corporate & Secretaryship Nov 2009 Cost Accounting Question Paper PDF Download

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Loyola College B.Com Corporate & Secretaryship Nov 2006 Cost Accounting Question Paper PDF Download


AV 07


         CR 5501 – COST ACCOUNTING

(Also equivalent to COS 507)



Date & Time : 27-10-2006/9.00-12.00         Dept. No.                                                       Max. : 100 Marks




Section: A

Answer all questions:                                                                                    10 x 2 = 20


  • Define ‘Cost centre’ and ‘Cost unit’.


  • State whether the following statements are true or false:


  1. Bad Debts are excluded from cost accounts.
  2. Sale of factory scrap is reduced from works cost.


  • What is VED Analysis?


  • Calculate Economic Ordering quantity: annual usage; 6000 units, Cost of Materials per unit Rs.20; Cost placing and receiving one order Rs.60; annual carrying cost Rs.2 per unit.


  • Ascertain the labour turnover under separation method;


Employees on 1-1-2003:14,000

Employees on 31-12-2003: 16,000

Employees who left during 2003: 750


  • What is meant by “Absorption of overheads”?


  • Fill in the blanks:
  1. a) A cost is ———- if it does not change with change in activity level.
  2. b) Power cost is apportioned on the basis of ———- hours.
  3. c) ———- rate of absorption is suitable for labour oriented manufacturing.
  4. d) Crèche expenses are apportioned on the basis of —————————-.


  • Write short note on equivalent production units.


  • What is escalation clause?


  • A transport service company is running four buses between two towns which are 50kms. Apart. Seating capacity of each bus is 40 passengers. Actual passengers carried were 75% of the seating capacity. All the four buses ran on all the days and of the month if April 2005. Each bus made one round trip per day. Calculate the total kilometers and total passenger kilometers for the month.



Section – B

Answer any five only:                                                                               5 x 8 = 40


  • Explain the merits and demerits of perpetual inventory system.


  • What is Labour Turnover? Explain its causes and effect. And also suggest the steps to reduce labour turnover.


  • What is Activity Based Costing? Differentiate it from the traditional costing system. Also state the advantages of ABC.


  • The following figures have been obtained from the cost records of  Manufacturing Company for the year 2004:


Cost of Materials                                2, 40, 000

Wages of labour                                  2, 00, 000

Factory Overheads                              1, 20, 000

Distribution Expenses                             56, 000

Administration Expenses                    1, 34, 400

Selling Expenses                                     89. 600

Profit                                                   1, 68, 000


A work order has been executed in 1993 and the following expenses have been incurred: cost of Materials Rs.32, 000 and Wages for Labour Rs.20, 000. Assuming that in 2005 the rate for factory overhead went up by 20%, distribution charges went down by 10% and selling and administration charges went up by 12 ½ %, at what price should the product or the job be quoted so as to earn the same (earlier) rate of profit on the selling price?.  Show the full working. Distribution, Administration and Selling charges are based on the factory cost.


  • From the following particulars work out the earnings for the week of a worker under (A) Straight Piece- rate; (B) Taylor’s Differential piece rate; (C) Halsey Premium System; (D) Rowan System.


Number of working hours per week 48.

Wages per hour – Rs.3.75

Normal time per piece – 20 minutes.

Rate per piece – Rs.1.50

Normal output per week – 120 pieces

Actual output for the week – 150 pieces.


  • (A) Compute the various stock levels from the following data:

Maximum consumption in a month 300 units; Minimum usage in a month 200 units; Average usage in a month 225 units; Time lag for procurement of materials: Maximum 6 months and Minimum 2 months. Reorder quantity 750 units.

(B) From the following particulars, prepare stores ledger by adopting Weighted Average Method of pricing of material issues:


Date                Receipts                                              Issues

01.01.90          300 units at Rs.10 per unit

10.01.90          200 units at Rs.12 per unit

12.01.90          400 units at Rs.11 per unit

15.01.90                                                                      250 units

16.01.90                                                                      150 units

18.01.90          200 units at Rs.14 per unit

20.01.90                                                                      300 units

22.01.90          300 units at Rs.15 per unit

25.01.90          100 units at Rs.16 per unit

27.01.90                                                                      200 units

31.01.90                                                                      100 units.



  • A product passes through three processes, A, B and C. The normal wastage if each process is as follows; Process A- 3%; B- 5%; C- 8%. The wastage of process A was sold at Rs.0.25 per unit, B at Rs.0.50 per unit and C at Re.1 per unit. 10,000 units were introduced in process A at a cost of Re.1 per unit. The other expenses are:

Process-A        Process-B        Process-C

Rs.                   Rs.                   Rs.

Sundry materials                     1,000               1,500                  500

Labour                                     5,000               8,000               6,500

Direct expenses                       1,050               1,188               2,009

Actual output (units)               9,500               9,100               8,100


Prepare the process accounts, assuming that there were not opening or closing stocks. Also give the abnormal loss and abnormal gain account, normal loss account.


  • U construction Ltd. undertook a contract in 1992 for road construction. The contract price was Rs.10, 00,000 and its estimated cost of completion would be Rs.9, 20,000. At the end of 1992 the company received Rs.3, 60,000 representing 90% of work certified. Work not yet certified was Rs.10, 000. Expenditure incurred on the contract during 1992 was as follows:


Materials Rs.50, 000, Labour Rs.3, 00,000, Plant Rs.20, 000, Materials costing Rs.5, 000 were damaged and had to be disposed for Rs.1000. Plant to be depreciated by 25% Prepare contract account for 1992 in the books of U construction Ltd. also show the profit can be reasonable credited to profit and loss account in respect of the contract.



Section – C

Answer any two only.                                                                            2 x 20 = 40


  • The profit as per financial books for the year ended 31st December,2005 is

Rs.2, 98,000. Following details are ascertained on comparison of cost and     financial accounts:

Cost Accounts.           Financial Accounts.

Rs.                              Rs.

Stock on 1-1-2005

Raw Materials                                    1, 00, 000                    1, 20, 000

Work –in-progress                              1, 30, 000                    1, 40, 000

Finished Goods                                      90, 000                    1, 00, 000

Stock on 31.12.2005

Raw Materials                                       86, 000                         80, 000

Work –in-progress                                 74, 000                        60, 000

Finished Goods                                 1, 24, 000                     1. 18, 000

Direct expenses                                                                          60, 000

Purchases                                                                               8, 00, 000

Wages                                                                                                4, 00, 000

Factory Expenses                               4, 00, 000                    4, 00, 000

Sales                                                                                     22, 00, 000

Interest Received                                                                       32, 000

Office Expenses                                     46, 000                        60, 000

Income Tax                                                                                15, 000

Loss on sale if investments                                                        17, 000

Selling expenses                                    90, 000                         80, 000


Prepare a cost sheet showing costing profit and also draw up a reconciliation statement as on 31.12.2005.


  • A factory has three production departments A, B and C and two service departments X and Y. the budgeted expenditure for the month of march 2002 are given below:


Stores overhead                         2, 500

Indirect wages                                    20, 000

Insurance                                    7, 000

Rent                                        10, 500

Power                                      14, 000

Lighting                                     5, 000

Depreciation                         1, 05, 000

Other Overheads                     40, 000





The other details are:

Particulars                           A                 B               C                X                Y

Direct wages (Rs.)          75,000          40,000        60,000          10,000         15,000

Floor Area (sq.mtrs)            400               500             600               300              300

Value of Machine (Rs) 2,00,000        2,50,000    2,00,000          30,000        20,000

Horse Power                          40                 50              40                    5                  5

Direct materials (Rs.)      10,000          20,000       10,000             5,000           5,000

No. of light points                    8                   7                5                    3                  2


Service department overheads are apportioned on the following basis:

A         B         C         X         Y

Service Dept. X:         50        30        10        —          10

Service Dept. Y:         30        40        20        10        —


Assuming that overheads are recovered as percentage on direct wages, calculate the overhead recovery rates.


  • The following data are available in respect of process I for February,2000:

Opening stock of work in progress: 800 units at a cost of Rs.4000.

Degree of completion of opening work in progress:

Materials   100%

Labour         60%

Overheads    60%

Input of materials at a total cost of Rs.36,800 for 9200 units.

Direct wages incurred Rs.16,740

Production overhead Rs.8,370

Units scrapped 1,200 units. The stage of completion of these units was:

Materials         100%

Labour               80%

Overheads         80%

Closing work in progress 900 units. The stage of completion of these units was:

Materials         100%

Labour               70%

Overheads         70%

7,900 units were completed and transferred to the next process.

Normal loss is 8% of the total input (opening stock plus units put in)

Scrap value is Rs.4 per unit.

You are required to:

  1. Compute equivalent production.
  2. Calculate the cost per equivalent unit for each element.
  3. Calculate the cost if abnormal loss or gain, closing work in progress and the units transferred to the next process using the FIFO method, and
  4. Show the process account for February 2000.


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Loyola College B.Com Corporate & Secretaryship Nov 2008 Cost Accounting Question Paper PDF Download



LA 06


FIFTH SEMESTER – November 2008





Date : 05-11-08                     Dept. No.                                        Max. : 100 Marks

Time : 9:00 – 12:00



Answer ALL questions                                                                                               (10 x 2 = 20 marks)


  1. What is perpetual inventory system?
  2. Explain EOQ.
  3. Give reasons as to why it is necessary to reconcile cost accounts and financial


  1. Explain with example ‘first-in- first-out’ (FIFO) method of stock valuation.
  2. Differentiate between job costing and process costing.
  3. How much of profit would you allow to be considered in the following case ?


Cost incurred so far for contract      :    2,80,000

Contract price                                   :    5,00,000

Cash received                                   :    2,70,000

Uncertified work                              :       30,000

Retention money 10%

  1. Mr. X runs a tempo service and has 5 vehicles. Distance traveled by each vehicle per

day – 200 kms.  Normal loading capacity – 100 quintals.  Wastage in loading capacity

–  10%.  Percentage of vehicle laid-up for repairs – 5%.  Effective days in a month –

  1. Calculate quintal kms of the vehicles.
  2. Calculate direct labour hour rate from the following:

Total number of workers-100; Working days in a year-300; No. of hours per day

worked -8; Idle time -5%; Factory overheads-Rs. 11,400.

  1. The records of Anand Company present the following data for the month of

August 2008. Direct labour cost-Rs.16,000(160% of factory overheads); cost

of production-Rs. 56,000;  administration expenses-2,600; opening stock of raw

materials-Rs. 8,000 and closing stock of raw materials-Rs. 8,600; sales for the

month-Rs. 75,000. Prepare statement of cost.

  1. Calculate earnings of Worker ‘A’ under straight piece system and Taylor’s

differential piece rate system.  Normal rate per hour Rs. 2.40;standard time per

unit-30 seconds; Worker ’A’ produced 800 units per day.


                                                             SECTION – B

      Answer any FIVE questions                                                                                             (5 x 8 = 40 marks)

  1. What do you mean by elements of costs? Discuss the various elements of costs.
  2. What is labour turn-over? Explain its causes and effects and also suggest the steps to

reduce labour turn-over.




  1. Production sections of a factory working on the job order system pay their workers

      under the Rowan Premium  Bonus Scheme.  Workers also get a Dearness allowance

of Rs. 12 per week of 55 hours.

A  worker’s basic wage is Rs. 2 per day of 8 hours and his time sheet for a week is

summarised below:

Job No.                  Time allowed                      Time taken

1844                             25 hrs                               20 hrs

1926                             30 hrs                               20 hrs

Idle time(waiting)                                                                 8 hrs

48 hrs

Calculate the gross wages he has earned for the week and indicate the accounts

to which the wages amounts will be debited.


  1. In a factory, there are two service departments S1 and S2 and three production

departments P1, P2, and P3.  In April 1998, the departmental expenses were:

Departments       P1                    P2                  P3                  S1                   S2

Rs.           6.50,000         6,00,000        5,00,000         1,20,000        1,00,000

The service department expenses are allotted on a percentage basis as follows:

Service Departments               Production Deptts.                         Service Deptts.

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.


  1. Utkal Construction Ltd. took a contract in 2007 for road construction. The contract

price was Rs. 10,00,000 and its estimated cost of completion would be Rs. 9,20,000.

at the end of 2007, the Company has received Rs. 3,60,000 representing 90% of

work certified.  Work not yet certified had cost Rs. 10,000.

Expenditure incurred on the contract during 2007 was as follows: Materials

Rs. 50,000; Labour Rs. 3,00,000; Plant Rs. 20,000.

Materials costing Rs. 5,000  were damaged and had to be disposed of for Rs. 1,000

Plant is considered as having depreciated by 25%.

Prepare Contract Account for 2007 in the books of Utkal Construction Ltd.


16.Union Transport Company supplies the following details in respect of a truck of 5

tonne capacity:

Cost of truck                            Rs. 4,50,000

Estimated life                           10 years

Diesel, oil, grease                     Rs. 150 per trip each way

Repairs & maintenance            5,000 per month

Drivers’ wages                         5,000 per month

Cleaners’ wages                       2,500 per month

Insurance                                  4,800 per year

Tax                                           2,400 per year

General supervision charges    4,800 per year

The truck carries goods to and from the city covering a distance of 50 km. each way.

In outward trip, freight is available to the extent of full capacity and on return 20%

of capacity.  Assuming that the truck runs on an average of 25 days a month, work

out: (a) Operating cost per tonne-km (b) Rate per tonne per trip that the company

should charges if a profit of 50% on freight is to be earned.




17.Ace Ltd. manufactures a product and the following particulars are collected for

the year ended March, 2000.

—Monthly demand(units)                 1,000

—Cost of placing an order(Rs.)            100

—Annual carrying cost(Rs. per unit)      15

—Normal usage(units per week)             50

—Minimum usage(units per week)         25

—Maximum usage(units per week)        75

—Re-order period(weeks)                      4-6

Your are required to calcultate (i) Re-order quantity, (ii) Re-order level,

(iii) Minimum level, (iv) Maximum level, (v) Average stock level.


  1. 10,000 units of raw materials are introduced into a process at cost of Rs. 20,000. Wages

and overheads for the process are Rs. 5,100 and Rs. 3,400 respectively.  7,500 units

were completed; of the remaining 2,500 units on the average 40% work has been done

in respect of labour and overheads.  Ascertain the cost of completed units and

work-in-progress at the end. 




Answer any TWO questions                                                                               (2 x 20 = 40 marks)


  1. South Viscose Ltd. has furnished you the following information from the financial

books for the year ended 31st March 2008.

Profit and Loss Account

For the year ended 31st March 2008


Opening Stock

500 units at Rs. 35 each

Materials consumed


Gross Profit c/d


Factory overheads

Administration overhead

Selling expenses

Bad debts

Preliminary expenses

Net Profit


















10,250 units

Closing stock:

250 units @ Rs. 50 each



Gross Profit b/d


Rent Received















The cost sheet shows the cost of materials as Rs. 26 per unit and the labour cost as

Rs. 15 per unit.  The factory overheads are absorbed at 60% of labour cost and

administration overheads at 20% of factory cost.  Selling expenses are charged at

Rs. 6 unit.  The opening stock of finished goods is valued at Rs. 45 per unit.

You are required to prepare:

(i) a statement showing profit as per cost accounts for the year ended 31st March


(ii) a statement showing the reconciliation of profit disclosed in cost accounts

with the profits shown in the financial accounts.






  1. From the following details of stores receipts and issues of materials “EXE” in a

manufacturing unit, prepare the Stock Ledger using Weighted Average Method of

valuing the issues.



       Nov.    1 Opening stock 2,000 units @ Rs. 5.00 each

3  Issued 1,500 units to production

4  Received 4,500 units @ Rs. 6.00 each

8  Issued 1,600 units to production

9  Returned to stores 100 units by Production Department(from the issues

of Nov. 3)

16  Received 2,400 units @ 6.50 each

19  Returned to supplier 200 units out of the quantity receive on Nov. 4

20  Received 1,000 units @ Rs. 7.00 each

24  Issued to production 2,100 units

27  Received 1,200 units @ Rs. 7.50 each

29  Issued to production 2,800 units.

(Use rates upto two decimal places)


  1. Product ‘Z’ is obtained after it passes three distinct processes. The following

information is obtained from the accounts for the month ending March, 2005:


Items                                                   Total               I             II             III

Rs.               Rs.          Rs.           Rs.

Direct material                                    7,542            2,600      1,980        2,962

Direct wages                                       9,000            2,000       3,000        4,000

Production overheads                         9,000               —              —              —

% of Normal Loss to input                                         5%         10%          15%

Output(in units) during the month                              950          840          750

Value of scrap per unit(Rs.)                                          2              4              5

1,000 units at Rs. 3 each were introduced to process I.  There was no stock of

material or work-in-progress at the beginning or end of the period.  The output of

each process passess direct to the next process and finally to finished stores.

Production overhead is recovered on 100 per cent of direct wages.

Prepare process cost accounts and other related accounts. 





Loyola College B.Com Corporate & Secretaryship April 2009 Cost Accounting Question Paper PDF Download


IR 13







Date & Time: 17/04/2009 / 9:00 – 12:00            Dept. No.                                                           Max. : 100 Marks




Answer ALL questions                                                                                    (10 x 2 = 20 marks)

  1. ABC stock control.
  2. Distinguish between ‘Fixed’ and ‘Variable’ cost.
  3. Labour Turnover
  4. Rowen plan
  5. Machine Hour Rate
  6. ‘Joint products’ and ‘By products’
  7. Economic batch quantity
  8. From the following calculate Reorder Level and Minimum Level:

Usage 200 to 300 units per day; reorder period 8 to 10 days

  1. Standard time allowed for a job is 20 hours. X completes the job in 15 hours. Rate per hour is Rs.10. Calculate his earnings under Rowan Plan.
  2. Find out the economic ordering quantity (E.O.Q) from the following particulars.

Annual usage : 6,000 units

Cost of material per unit : Rs.20

Cost of placing and receiving one order : Rs.60

Carrying cost 10% per unit per annum


                                                                                     PART  B

Answer ANY FIVE questions                                                                                                                             (5 x 8 = 40 marks)


  1. Distinguish between:
  2. Bin card and Stores Ledger
  3. Allocation, Apportionment and Absorption of overheads


  1. Distinguish between ‘idle time’ and ‘overtime’. Explain their treatment in Cost Accounts.


  1. From the following particulars, calculate the earnings of workers, A,B and C, under Taylors differential piece rate system:

Standard time per unit 6 minutes

Normal rate Rs.5 per hour

Differential piece rates:

80% of piece rate below the standard

120% of piece rate at or above the standard

In a day of 8 hours, A produced 70 units, B produced 80 units and C produced 100 units.


  1. A purchased and issued materials in the following order:

March 1st – purchased 300 units at Rs.3 per unit

5th  purchased 500 units at Rs.4 per unit

10th issued 500 units

12th purchased 700 units at Rs.4.50 per unit

15th issued 700 units

20th purchased 300 units at Rs.5 per unit

21st issued 200 units

On 31st a stock shortage of 20 units was noticed.

Prepare stores ledger under Weighted Average Method


  1. From the following data prepare a reconciliation statement:


Profit as per financial accounts                                                                                       2,40,500

Works overhead over-recovered                                                                                       9,500

Administrative overheads under-recovered                                                                20,000

Selling overheads  over-recovered                                                                                                  19,500

Under-valuation of opening stock in cost accounts                                                                   15,000

Overvaluation of closing stock in cost accounts                                                             7,000

Dividend received during the year                                                                                                     5,750

Goodwill  written off during the year                                                                                9,000

Notional interest charged in Cost Accounts                                                                  18,000



  1. From the following data calculate the cost per km. of running a vehicle:

Value of vehicles                                                                  Rs.25,000

Road licence fee per year                                                 Rs.      750

Supervisor’s salary per annum                                       Rs.   1,800

Insurance charges per year                                             Rs.   1,200

Garage rent per year                                                          Rs.   3,200

Driver’s wages per hour                                                    Rs.   4

Cost of petrol per litre                                                       Rs.   6.50

Km. per litre                                                                                           6

Tyre allocation per km  Re. 2.00

Repairs and maintenance per annum                         Rs.18,000

Estimated life                                                                        1,00,000 kms

Estimated annual kilometers                                          12,000

The vehicle runs for 20 km per hour on an average.


  1. Factory uses job costing. The following cost data are available for the year ending 31st December 2008:

Direct material Rs.9,00,000

Direct wages Rs.7,50,000

Factory overhead Rs.4,50,000

Administration overheads Rs.4,20,000

Selling overheads Rs.5,25,000

Sales Rs.36,54,000              Prepare:   a)     A cost sheet and ascertain the profit for the year.

  1. b) In the year 2009 the company received an order for a job which would required direct material

Rs.12,000 and direct labor Rs.7,500. What price should the company charge for this job, if the

factory intends to earn the same rate of profit on sales as earned in 2007/2008, assuming selling

overheads have increased by 15%. The factory recovers, factory overheads as a percentage on

wages and administration and selling overheads as a percentage of works cost.


  1. A by-product B is derived in the course of manufacture of product A. From the following data calculate the profit made on Product A:

The total expenses incurred upto the split off point is Rs.19,500. Separate expenses incurred for A and B are Rs.12,500 and Rs.3,100 resp. 100 kgs of A and 50 kgs of B were produced. B was sold at Rs.120 per kg on which the profit earned was 30%.

Selling price of Product A is Rs.400 per kg.



Answer ANY TWO questions                                                                                                           (2 x 20 = 40 marks)


. 19.  A company manufacturing two products A and B gives you the following data:

Product                                                   A                                  B

Production in units                                   6000                             4000

Raw material per unit (Rs.)                           50                                  30

Labour cost per unit (Rs.)                           20                                  10

Labour hours per unit                                    4                                    2

Number of set ups                                      10                                  20

Number of deliveries                                   24                                  14

The Overhead expenses were Rs.128,000 consisting of      Set up costs Rs.90000; Delivery expenses Rs.38000.

Compute the production cost, per unit, of the two products A and B, if overheads are recovered using:

  1. Rate per labor hour         b)Activity based costing


  1. From the following prepare a Contract Account and Contractee’s account for the three years 2007, 2008 and 2009:

2007(Rs.)             2008(Rs.)             Rs.2009(Rs.)

Material issued                                                     1,10,000               1,20,000                   80,000

Wages                                                                      2,30,000                   68,000               2,20,000

Machinery issued                                                                    50,000               –                              –

Value of machinery at the end                           45,000                   40,000                   36,000

Materials returned to stores                                 1,000                        500                –

Material at site                                                            3,000                     4,000                     2,000

Work uncertified                                                        2,000                     6,000               –

Work certified                                                       4,00,000               10,00,000             12,00,000

The contract price was for Rs.12,00,000.          Cash received was 80% of the works certified.


  1. A company produces a product which passes through three processes A, B and C. 1000 units are introduced at Rs.5 each in process 1. Other details are as follows:

A                     B                     C

Materials consumed (Rs.)                                                                2,000                     3,020                     3,462

Direct wages                                                                          3,000                     4,000                     5,000

Direct  expenses                                                                     500                         226                      –

Normal loss (%age on input)                                              10%                         5%                         10%

Sale value of normal loss per unit (Rs)                             3                              5                              6

Output in units                                                                         940                          870                         810

Production overheads amounted to Rs.6,000, which is to be allocated to each process in the ratio of direct labor.

Prepare Process Accounts, Normal Loss account, Abnormal Gain account and Abnormal Loss account.



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Loyola College B.Com Corporate & Secretaryship Nov 2010 Cost Accounting Question Paper PDF Download








Date : 01-11-10                     Dept. No.                                        Max. : 100 Marks

Time : 9:00 – 12:00



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

  1. Define Cost Accounting.
  2. a) The method of costing used in a refinery is —————.
  3. b) Cost Accounting records both monetary and ————– units.
  4. Prepare a chart showing the different elements of cost.
  5. From the following calculate the cost of goods sold:  Cost of production `. 1,83,500;

Opening stock of finished goods `71,500; Closing stock of finished goods `.42,000.


  1.   A publishing house purchases 10,000units of a particular item per year at a unit cost

of ` 40.  The ordering cost per order is Rs.100 and the inventory carrying cost is 25%


  1. The worker completes a job in a certain number of hours. The standard time allowed

for the job is 8 hrs and the hourly rate of wages is` 10. The worker earns at the 50%

rate a bonus of ` 20 under Halsey plan. Ascertain his total wages under the Rowan

Premium Plan.


  1.    What do you mean by a ‘Machine Hour Rate’?
  2. What is Idle time
  3. Mention the bases of apportionment of the following expenses of departments:
  4. a) Plant depreciation b) Lighting  c) Power    d)  Consumable stores
  5.   Record the following transaction in stores ledger, price the issues at weighted average

rate:  200 units received at` 2.00 per unit on 2nd September, 300 units received at

` 2.40 per unit during 15th September and 250 units issued on 20th September.


SECTION B             ANSWER ANY FIVE                                                                                     (5 x 8 =40)

  1. “While Financial Accounting is external, Cost Accounting is internal to the business”-

Explain this statement by bringing out the difference between Cost and Financial



  1. Discuss the Secondary distribution of Overheads with illustrations.
  2. Write short notes on a) Retention money b) Escalation clause c) Work in progress d) Target



  1. A) Compute the (i) re-order level ; (ii) minimum level ; (iii) maximum level ; and (5)

(iv) average stock level for components A and B based on the following data:


A                                B

Maximum consumption per week (in units)                250                              200

Average consumption per week (in units)                   150                              100

Minimum consumption per week (in units)                 100                              50

Re-order period (in weeks)                                          6 to 10                         5 to 9

Re-order quantity (in units)                                         500                              700


  1. B) Discuss the methods of pricing issue of materials.                                      (3)


  1. From the following figures prepare a Reconciliation Statement:


Net loss as per costing records                                                            1,72,400

Works overhead under-recovered in costing                                           3,120

Administrative overhead recovered in excess                                                     1,700

Depreciation charged in financial records                                             11,200

Depreciation recovered in costing                                                         12,500

Interest received not included in costing                                                 8,000

Obsolescence loss charged in financial records                                       5,700

Income-tax provided in financial books                                                40,300

Bank interest credited in financial books                                                   750

Stores adjustments (credit) in financial books                                            475

Value of opening stock in : Cost Accounts                                           52,600

Financial Accounts                                                54,000

Value of closing stock in : Cost Accounts                                             52,000

Financial Accounts                                                49,600

Interest charged in cost accounts but not in financial accounts              6,000

Preliminary expenses written off in financial accounts                              800

Provision for doubtful debts in financial accounts                                     150


  1. Construction Ltd. Is engaged on two contracts A and B during the year.

The following particulars are obtained at the year end (Dec. 31) :

Contract A                             Contract B

Date of Commencement                         April 1                                 September 1

`.                                 `.


Contract price                                     6,00,000                                  5,00,000

Materials issued                                  1,60,000                                     60,000

Materials returned                                     4,000                                     2,000

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

Direct Labour                                      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 (Dec. 31)                        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 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 accounts, (b) Contractees’ accounts, and (c) Extract from Balance Sheet as on December 31, clearly showing the calculation of work- in-progress.

  1. A) From the following details of stores receipts and issues of material in a manufacturing

unit, prepare the Stock ledger using LIFO method.                                                            (5)


April 1 Opening Stock 2000 units @ ` 5.00 each

3   Issued 1,500 units to production

4   Received 4,500 units @ ` 6.00 each

8   Issued 1,600 units to production

  1. Returned to stores 100 units by production department (from the issue of April 3)

16   Received 2,400 units @ ` 6.50 each

19   Returned to supplier 200 units out of the quantity received on April 4th.

20   Received 1,000 units @ ` 7.00 each

24   Issued to production 2,100 units

27   Received 1,200 units @ ` 7.50 each

29   Issued to production 2,800 units


  1. B) Discuss the relative merits and demerits of two of the main methods of remunerating

labour.                                                                                                                                         (3)


  1. Jaidka owns fleet of taxi and the following information is available from the records

maintained by him :


Number of taxis                                                                                 10

Cost of each taxi                                                                     `20,000

Salary of manager                                                                   `600 p.m.

Salary of accountant                                                               ` 500 p.m.

Salary of cleaner                                                                     `. 200 p.m.

Salary of mechanic                                                                  `400 p.m.

Garage rent                                                                             ` 600 p.m.

Insurance premium                                                                  5% per annum

Annual tax                                                                              `600 per taxi

Driver’s salary                                                                         `200 p.m. per taxi

Annual repair                                                                          `1,000 per taxi



Total life of a taxi is about 2,00,00 kms. A taxi runs in all 3,000 kms. in a month of which 30% it runs empty. Petrol consumption is 1 litre for 10 kms. @ `1.80 per litre. Oil and other sundries are ` 5.00 per 100 kms.

Calculate the cost of running a taxi per km.




ANSWER ANY TWO                                                                                                         ( 2 x 20 = 40 marks)

  1. Modern Manufacture Ltd., have three production departments P1, P2, P3 and two Service

Departments S1 and S2, the details pertaining to which are as under :


P1                     P2                     P3                     S1                     S2

Direct wages (`)                    3,000                 2,000              3,000                1,500               195

Working Hours                     3,070                 4,475              2,419                   –                       –

Value of Machines (`)     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 figure 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 and Sundries ` 9,695.

The expenses of the Services Departments are allocated as under :

P1                           P                     P­3                           1                           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 Department P1, P2 and P3 for 4,5 and 3 hours respectively, given that its Direct Material Cost is `50 and Direct Labour Cost ` 30.


20)       Product B passes through three processes before it is transferred to finished stock. The following information is obtained for the month of March :

Details                                                             Process                                   `Finished Stock

I                       II                     III

`                      `                     `                                `

Opening Stock                                      5,000               8,000             10,000                         20,000

Direct Material                        40,000             12,000             15,000                         –

Direct Wages                          35,000             40,000             35,000                         –

Production Overheads                        20,000             24,000             20,000                         –

Closing Stock                          10,000               4,000             15,000                         30,000

Profit % on Transfer price       25%                 20%                 10%                             –

(to next process)

Inter-process Profit for

Opening  Stock           –                         1,395               2,690                         6,534

Stock in process accounts are valued at Prime cost and finished stock has been valued at the price at which it is received from Process III. Sales during the period were Rs. 4,00,000.

Prepare and compute :

  • Process cost accounts showing profit element at each stage ;
  • Actual realized profit ; and
  • Stock valuation for Balance Sheet purpose.


21)       Following information has been obtained from the records of a Manufacturing Company :

1-1-2001                                  31-12-2001

`                                    `

Stock of raw materials                                                  40,000                                      50,000

Stock of finished goods                                              100,000                                   1,50,000

Stock of work- in-progress                                           10,000                                      14,000


Indirect Labour                                               50,000

Lubricants                                                       10,000

Insurance on Plant                                            3,000

Purchase of Raw Materials                          4,00,000

Sales Commission                                           60,000

Salaries of Salesmen                                     100,000

Carriage Outward                                           20,000

Administrative Expenses                              1,00,000

Power                                                              30,000

Direct Labour                                                3,00,000

Depreciation on Machinery                             50,000

Factory Rent                                                   60,000

Property Tax on Factory Building                  11,000

Sales                                                            12,00,000

Prepare a Statement of Cost and Profit showing

  • Cost of Production ;
  • Cost of Goods Sold ;
  • Cost of Sales ; And
  • Profit


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Loyola College B.Com Corporate & Secretaryship April 2011 Cost Accounting Question Paper PDF Download








Date : 18-04-2011              Dept. No.                                                    Max. : 100 Marks

Time : 9:00 – 12:00




Answer ALL questions                                                                                              10×2=20 marks

Explain the following terms: Q.nos.1-4


  1. Opportunity cost


  1. Idle time


  1. Overtime wage


  1. Retention money


  1. State whether the following statements are TRUE or FALSE:
  2.        The cost of normal loss units are borne by the good units produced.
  3. The cost unit for a goods transport service is cost per passenger kilometre.


  1. Stock on 1st January 500 units at Rs.10 per unit.

Purchases on 1st January 14500 units at Rs.12 per unit.

On 31st January the stock was 2000 units.

Compute the value of the stock on that date, if materials are priced under ‘Weighted average’ method.


  1. Annual requirement is 1600 units. Cost per unit Rs.40. Ordering cost per unit is Rs.50; carrying cost 10% of inventory value. Calculate Economic Order quantity.


  1. Time allowed for a job is 48 hours. Time taken by worker X is 40 hours. Time rate is Rs.5 per hour. Calculate the earnings of X under Halsey plan and Rowen plan.


  1. Estimated machine hours per year 2000; estimated factory overheads per year Rs.10000; job 77 requires Rs.500 direct material and Rs.300 direct wages. It takes 10 machine hours to complete the job. Compute the factory cost of job 77.


  1. 500 units are introduced in process I, 300 units are completed and transferred to process II, 200 units 80% complete are in work-in-progress. If the total expenses of the process is Rs.23000, calculate the value of closing work-in-progress.




Answer ANY FIVE questions                                                                                               5×8=40 marks


  1. Discuss the advantages of Cost Accounting.


  1. Define ‘labour turnover’. What are the causes for labour turnover? Explain any two methods for computing labour turnover.


  1. 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:
  2. The machine will work for 1,800 hours annually.
  3. The repair charges will be Rs.1,080 during the whole period of life of the machine.
  • The power consumption will be 5 units per hour at 6 paise per unit.
  1. Other annual standing charges are estimated to be:
  2. Rent of department (machine 1/5th) 780
  3. Light (12 points in the dept – 2 points engaged in the machine) 288
  4. Foreman’s salary (1/4th of his time is occupied in the machine) 6000
  5. Insurance premium (fire) for machinery 36
  6. Cotton waste 60

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


  1. A transport service company is running 4 buses between two towns which are 50 kms apart. Seating capacity of each bus is 40 passengers. The following particulars are obtained from the records for the month of April 2010:


Wages of drivers, conductors and cleaners                                          24,000

Salaries of office and supervisory staff                                                10,000

Repairs and maintenance                                                                        8,000

Taxes, insurance, etc.                                                                            16,000

Depreciation                                                                                          26,000

Interest and other charges                                                                    20,000

The seating capacity utilised was 75%. All the four buses ran on all days of the months. Each bus had made one round trip daily. The bus consumes 1 litre diesel per 20 kms. The cost of diesel is Rs.10 per litre.

Calculate the fare per passenger-km, if the company wants a profit of 50% on cost.


  1. Modern Constructions Ltd. has taken a contract on October 1, 2009. The position of the contract on September 30, 2010 is as follows:


Contract price                                                    27,00,000

Materials                                                              5,80,000

Wages paid                                                           9,64,000

Other expenses                                                        24,000

Plant at site                                                          1,60,000

Unused materials at site                                          40,000

Wages payable                                                        36,000

Other expenses due                                                   4,000

Cash received being 75% of works certified     12,00,000

Work completed but not yet certified                    80,000

The plant at site is to be depreciated at 10%.

Material costing Rs.40000 was returned to stores.

Material costing Rs.10000 was stolen from the site.

Prepare the contracts accounts, showing the notional profit and also profit to be transferred to Profit and Loss account.


  1. From the following information, prepare a cost sheet for the month of December 2010:


Stock on hand – 1st December 2010:

Raw materials                                                 25,000

Finished goods                                                17,300

Stock on hand – 31st December 2010:

Raw materials                                                 26,200

Finished goods                                                15,700

Purchases of raw materials                               21,900

Carriage on purchases                                          1,100

Work-in-progress, 1/12/2010 at works cost         8,200

Work-in-progress, 31/12/2010 at works cost       9,100

Sale of finished goods                                       72,300

Direct wages                                                      17,200

Non-productive wages                                             800

Direct expenses                                                     1,200

Factory overheads                                                 8,300

Administration overheads                                     3,200

Selling and distribution overheads                       4,200






  1. Calculate the earnings of a worker under i) Halsey Plan  (ii) Rowan plan and (iii) Piece rate system from the following particulars:
  2. Hourly rate of wages guaranteed Rs.6 per hour
  3. Standard time for producing one dozen articles – 3 hours
  4. Actual time taken by the worker to produce 20 dozen articles – 48 hours.


  1. From the following data prepare a reconciliation statement:


Profit as per cost account                                               1,45,500

Works overheads under-recovered                                     9,500

Administrative overheads under-recovered                     22,750

Selling overheads over-recovered                                      19,500

Over valuation of opening stock in cost accounts             15,000

Over valuation of closing stock in cost accounts                 7,500

Interest earned during the year                                            3,750

Rent received during the year                                            27,000

Bad debts written off during the year                                 9,000

Preliminary expenses written off during the year              18,000




Answer ANY TWO questions                                                                                   2×20=40 marks


  1. The following information is provided by S.M.Ltd for the fortnight of April 2010:

Material exe:

Stock on 1.4.2010                                 100 units at Rs.5 per unit

Purchases :

5.4.2010                                                   300 units at Rs.6

8.4.2010                                                   500 units at Rs.7

12.4.2010                                                 600 units at Rs.8



6.4.2010                                                   250 units

10.4.2010                                                 400 units

14.4.2010                                                 500 units

On 11/4/2010 100 units were returned to supplier and on 15/4/2010 stock verifier found a shortage of 20 units.

Using FIFO and LIFO methods of pricing issues, prepare the Stores Ledger.



  1. 20,000 units were introduced in Process A, at a cost of Rs.40,000. After processing 18,500 units were transferred to Process B, which produced final output of 18,000 units. Other particulars are given below:

Process A            Process B

Material cost                                                                          Rs.40,000             Rs.  4,000

Labour cost                                                                             Rs.12,000             Rs.10,000

Overheads                                                                              Rs.  8,000             Rs.  9,553

Normal loss % on input                                                      5                              4

Sales value of scrap units                                                  Re.1                       Rs.2

There was no opening or closing work-in-process.

Prepare Process accounts, Normal loss account, Abnormal loss account and Abnormal gain account.









  1. A company has 3 production departments A, B and C and two service departments X and Y. The following data are extracted from the records of the company for a particular given period:


Rent and rates                                      25,000

Power                                                         7,500

General lighting                                      3,000

Depreciation on machinery             50,000

Indirect wages                                        7,500

Sundries                                                  50,000

Additional data, department-wise:

Total           Dept.A         Dept.B       Dept.C      Dept.X     Dept.Y

Direct wages (Rs)                                   50000          15000         10000         15000        7500        2500

HP of machines used                                150                  60               30                50             10        –

Cost of machinery (Rs)                  1250000       300000       400000       500000      25000      25000

Production hours worked                  –                      6226           4028           4066        –               –

Floor space used (sq mt)                  10000             2000           2500           3000        2000          500

Lighting points (nos)                                   60                 10                15               20             10              5

Service department’s expenses allocation:

A                             B                             C                             X                             Y

X                                                 20%                        30%                        40%                        –                              10%

Y                                                  40%                        20%                        30%                        10%                        –

You are required to:

  1. Compute the overhead rate of production departments using the repeated distribution method; and
  2. Hence, determine the total cost of a product whose direct material cost and direct labour cost are respectively Rs.250 and Rs.150 and which would consume 4 hours, 5 hours and 3 hours in departments A, B and C respectively.






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








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

Time : 9:00 – 12:00


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.


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?


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

11) Discuss the objectives and functions of cost accounting.

12) Explain ABC method of inventory control.

13) What are the causes for labour turn over?

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

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

Prepare a cost sheet with maximum possible information.


15) From the following information calculate:

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

iii) Maximum level

  1. iv) minimum level

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

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

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

iii) Halsey plan

  1. iv) Rowan plan

Wage rate-Rs.2 per hour

Production per hour-4 units

Dearness allowance-Rs.1 per hour

Standard time fixed-80 hours

Actual time taken-50 hours

Production-250 units

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

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

was for Rs.8, 00,000.

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


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

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

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


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








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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