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

October 23, 2017 by 01 prakash

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.Com. DEGREE EXAMINATION – CORPORATE SEC.

FIFTH SEMESTER – NOVEMBER 2012

BC 5501 – COST ACCOUNTING

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

Time : 9:00 – 12:00

PART – A

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

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

VED analysis refers to Vital, Equivalent, Desirable.

The time card of a worker reveals that in a normal week of 48 hours, he worked for 52 hours at the rate of Rs.15 per hour. Taking over time premium at 100% of the time rate calculate the gross wages.
Apportion the cost of Power to the user departments:

Cost of power-Rs 10,000

Kilowatt hours (KWH) of power consumed.

Department A 620 KWH

Department B 380 KWH

Department C 1000 KWH

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

7) What is work uncertified?

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

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

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

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

10) What are joint products?

PART – B

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

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

of cost and financial profits.

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

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

turnover?

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

Particulars

Raw material

9,100

Labour and other direct expenses

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

Office overheads 10% of works cost.

Selling and distribution expenses Rs. 2 per unit sold.

Units produced and sold – Rs. 10,000.

Percentage of profit – 20% on selling price.

4,000

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

Reorder period- 4 to 6 weeks

Maximum consumption- 100 units per week

Minimum consumption- 50 units per week

Normal consumption- 75 units per week

Annual consumption- 36000 units

Cost per unit- Re.1

Ordering cost- Rs.25

Inventory carrying cost is 20% of unit value

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

earned per hour by them under:

Halsey and
Rowan premium bonus systems

Standard time allowed : 12 hours

Actual time taken by : A = 8 hours

: B = 6 hours

: C = 4 hours

17) From the following information of Swetha Construction Company prepare the contract account for 2009. Also show what part of the profit on the contract should be taken credit of in 2009. The contract was for Rs.8, 00,000.

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

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

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

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

There is no beginning or ending inventories. Prepare an income statement concerning the period described

using reversal cost method for by-products.

PART – C

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

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

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

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

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

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

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

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

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

been as under:

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

in any process.

Prepare process accounts. Calculate to the nearest rupee.

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

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

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

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

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

You are required to prepare:

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

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 maintenance	Rs 500 pm
Salary of Driver	Rs 350 pm	Permit fees	Rs 284 pm
Salary of Conductor	Rs 350 pm	Normal capacity of the bus	50 passengers
Salary of accountant	Rs 160 pm	Token tax	Rs 600 p.a
Insurance	Rs 1680 p.a	Diesel Consumption 4 miles per litre costing Rs 1 per litre.

The bus is generally occupied 90% of the capacity when it goes to Chandigharh and 80% when it goes to

Agra and is full in local trips. Passenger tax 20% of his net takings.

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Loyola College B.Com Nov 2004 Cost Accounting Question Paper PDF Download

October 20, 2017 by 01 prakash

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI –600 034

B.com., DEGREE EXAMINATION – COMMERCE

FIFTH SEMESTER – APRIL 2004

CO 5501/COM 506 – COST ACCOUNTING

06.04.2004 Max:100 marks

1.00 – 4.00

SECTION – A

Answer ALL questions (10 ´ 2 = 20 marks)

State whether the following statements are true or false.
Cost Accounting is a branch of financial Accounting.
Bin card is the same as stores ledger.
Valuation of closing stock is same under FIFO and LIFO.
Abnormal idle time wages are included in the cost of production.
Distinguish between idle time and idle capacity.
Distinguish between time-keeping and time-booking
What is machine hour rate?
What is the relevance of ‘escalation clauses’ provided in contracts?
What is Economic Batch Quantity.
Distinguish between joint product and by – products.
What is operation costing?
What is just in time of inventory management?
Explain Halsey incentive plan.

SECTION – B

Answer any FIVE questions (5 ´ 8 = 20 marks)

What is labour Turnover? What are its causes and Explain the effects of labour Turnover.
What is ABC Analysis? Describe its advantages.
“Cost Accounting is an unnecessary Luxury for business establishments”. Do you agree with the statement.
A consignment consisted of two chemicals A and B.

The invoice gave the following data:

Rs.

Chemical A 4000 1bs. @ Rs.2.5 per lb 10,000

Chemical B 3200 1bs. @ Rs.3.25 per lb 10,400

Sales Tax 816

Railway freight 384

———

21,600

———

A shortage of 200 lbs in A and 128 lbs. in B was noticed due to breakage’s. What

stock rate would you adopt for pricing issue assuming a provision of 5% toward

further deterioration?

In a factory group Bonus system is in use which is calculate on the basis of earnings under time rate. The following particulars are available for a group of 4 workers P,Q, R, and S.
Output of the Group 16000 units
Price rate per 100 units Rs.2.50
No of hours worked by P-90; Q-70; R-80; S-100
Time rate per hour for P – Re. 0.80, A-Re. 1.00, R- Rs. 1.20, S – Re. 0.80

Calculate total wages and bonus earned by each worker.

The following particulars related to a contract undertaken by Ajit; Material sent to site Rs.85,349; labour engaged on site Rs.74,375; plant installed at cost Rs.15,000; Direct expenditure Rs.3,167; Establishment charges Rs. 4,126; Materials returned to stores Rs.549; work certified Rs.1,95,000; cost of work not certified Rs.4,500; Materials in hand at the end of the year Rs.1,883; wages accrued due at the end Rs.2,400; Direct expenditure accrued due at the end Rs.240; Value of plant at the end of the year Rs.11,000; The contract price has been agreed at Rs.2,50,000; cash received from the contractor was Rs.1,80,000.

You are required to prepare contract A/c showing profit.

Ahuja runs a tempo service in the town and has two vehicle. He furnishes you the following data and want’s you to compute the cost per running mile:

vehicle A Vehicle B

Rs. Rs.

Cost of vehicle 25000 15000

Licensee per year 750 750

Salary p.a 1800 1200

Drivers wages per hour 4 4

Cost of fuel per litre 1.50 1.50

Repair and maintenance per mile 1.50 2.00

Tyre cost per mile 1.00 0.80

Garage rent p.a 1600 550

Insurance premium p.a 850 500

Miles run per litre 6 5

Mileage run during the year 15000 6000

Estimated life of vehicles 100000 miles 75000 miles

Charge interest at 10% p.a on the cost of vehicle. The vehicles run 20 miles per hour

on an average.

Following information to the manufacturing of a component X – 101 is a cost centre:

Cost of materials 6 paise per component

Operator’s wages 72 paise an hour

Machine hour rate Rs.1.50

Setting up time of the machine 2 hours 20 MINUTES

Manufacturing time 10 minutes per component.

Prepare cost sheet showing both products and setting up cost, total and per unit when a batch consist of ; a) 100 components b) 1000 components.

SECTION – C

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

From the following particulars extracted from the books of r ltd for the month of June 1998, prepare the following,
Statement of Equivalent Production
Statement of cost
Process Account

Opening stock as on 1^st June 200 units @ Rs.4.00 per unit.

Degree of completion Materials 100%

Labour and overheads 40%

Inputs introduced during the month 1050 units.
Output transferred to the next process 1100 units
Closing stock 150 units

Degree of completion Materials 100%

Labour and overhead 70%

Other relevant information.

Materials – Rs.3150; Labour – Rs.4500; Over head – Rs.2250.

Sympionic Ltd has three production department XYZ and two service department A and B. The following estimated figures for a certain period have been made available:

Rs. Rs.

Rent and Rates 10,000 Power 3,000

Lighting and electricity 1,200 Depreciation of machinery 20,000

Indirect wages 3,000 other expense 20,000

following are the further details available.

X Y Z A B

Floor space (Sq.fts) 2000 2500 3000 2000 500

light points (Nos) 20 30 40 20 10

Direct wages (Rs) 6000 4000 6000 3000 1000

Hours power of machine 120 60 100 20 –

cost of machinery (Rs.) 24000 32000 40000 2000 2000

working hours 4670 3020 3050 – –

The expense of the service department A and B are to be allocated 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 three production departments. What will be the total cost of an article with material cost of Rs.80 and labour cost of Rs.40 which passes through X, Y and Z for 2,3 and 4 hours respectively?

The following figures have been extracted form the financial accounts of V ltd for the first year of its operation:

Rs.

Direct material consumption 50,000

Productive wages 30,000

Factory overheads 16,000

Administrative overheads 7,000

selling and distribution overhead 9,600

Bad debts written off 800

Preliminary expenses written off 400

legal charges 100

dividend received 1000

interest received on bank deposits 200

Sales (12000 units) 1,20,000

Closing stock:

Finished goods (400 units) 3200

work in progress 2400

The cost accounts for the same period reveal that direct material consumption was Rs.56,000. Factory overhead is recovered at 20% on prime cost. Administration overhead is recovered at 60 paise per unit of production, selling and distribution overheads at 80 paise per units sold.

Prepare profit and loss A/c to find out profit as per financial records and ascertain profit as per cost accounts. Also reconcile the profits as per the two records.

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Loyola College B.Com April 2007 Cost Accounting Question Paper PDF Download

October 20, 2017 by 01 prakash

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.Com.

TH 12

DEGREE EXAMINATION –COMMERCE

FIFTH SEMESTER – APRIL 2007

CO 5501 – COST ACCOUNTING

Date & Time: 28/04/2007 / 1:00 – 4:00 Dept. No. Max. : 100 Marks

Answer all questions: 10 x 2 = 20

State the objectives of Cost Accounting.

State any three essentials of a good wage system.

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.

Calculate the total earnings from the following data under Halsey plan and under Halsey-weir plan. Standard Time: 10 hours; Time taken: 8 hours; Time rate: Rs.2.50 per hour.

What are the bases for apportionment of expenses given below to the different departments? 1) Depreciation, 2) Canteen expense, 3) Factory cleaning, 4) Crèche expenses, 5) Power.

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.

Calculate margin of safety and the amount of actual sales from the following:

Profit Rs.10, 000; P/V ratio – 50%; BEP Sales Rs.20, 000.

A factory consumes 60 units of material per day which is supplied by a vendor in lots of 240 units each at Rs.2, 400 per lot. The factory works for 300 days per annum. Each order involves handling charges of Rs.120 and Freight charges of Rs.380. The storage cost is Re. 0.50 per unit per annum. The interest cost of carry inventory works out at 1.25% per month. Calculate the EOQ.

Section – B

Answer any five only: 5 x 8 = 40

11) Distinguish between Financial accounting and Cost accounting.

Briefly explain various inventory control techniques.

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

A company produces three products A, B and C with standard costs and quantities per unit are as follows:

Particulars A B C

Quantity produced 10, 000 20, 000 30, 000

Direct material per unit (RS) 50 40 30

Direct labour per unit (RS) 30 40 50

Labour hours required per unit 3 4 5

Machine hours required per unit 4 4 7

Number of purchase requisitions 1, 200 1, 800 2, 000

Number of set ups 240 260 300

Production overhead spilt by departments:

Department 1 = Rs.11, 00, 000 and Department 2 = Rs.15, 00,000.

Department 1 is labour intensive and Department 2 is machine intensive.

Total labour hours in department 1 – 1, 83,333 while

Total machine hours in department 2 – 5, 00,000.

Production overhead spilt by activity:

Receiving/inspecting = Rs.14, 00,000

Production scheduling /machine set up = Rs.12, 00,000.

Number of batches received/inspected = 5, 000;

Number of batches for scheduling and set-up = 800. You are required to prepare product cost statement under traditional absorption costing and Activity Based Costing method.

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.

The records of a company show the following:

Period Sales Profit

I Rs.1, 20,000 Rs. 9, 000

II Rs.1, 40,000 Rs. 13, 000

Find out: a) P/V ratio. b) Break even point, c) Fixed cost, d) Profit when sales are

Rs.1, 00, 000, e) Sales required to earn a profit of Rs.20,000, f) Margin of safety,

g) variable cost for period II.

A) From the following information calculate: a) Economic order quantity,

b) Reorder level, c) Maximum level, d) Minimum level.

Normal usage is 150 units per day. Minimum usage is 100 units per day. Maximum usage is 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 Re.1 carrying cost is 10%per annum.

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

Date Receipts Issues

01.01.99 600 units at Rs.20 per unit

10.01.99 400 units at Rs.24 per unit

12.01.99 800 units at Rs.22 per unit

15.01.99 500 units

16.01.99 300 units

18.01.99 400 units at Rs.28 per unit

20.01.99 300 units

22.01.99 600 units at Rs.30 per unit

25.01.99 200 units at Rs.32 per unit

27.01.99 400 units

31.01.99 200 units.

The following details are available from the books of accounts of accounts of a contractor for the year ended 31^st March, 2003 with respect top particular contract No.313. He has undertaken for a manufacturing organization:

Materials sent to site 5, 11,800

Labour engaged in site 4, 66,100

Cost of plant installed at site 1, 00,000

Direct expenses 24,000

Establishment expenses 29,000

Materials returned to stores 2,120

Work certified 10, 70,000

Cost of work not certified 31,000

Materials in hand as on 31^st March, 2003 12,220

Accrued wages as on 31^st March, 2003 11,160

Accrued Direct expenses 1,330

Value of plant as revealed on 31^st March,2003 88,000

The contractor price agreed upon with the Contractee is Rs.13, 00,000 payment of Rs.9,90,000 has been received from the Contractee. You are required to prepare the contract account, computing and incorporating the said account the profit to be taken to the profit and loss account for the year ended 31^st March, 2003.

Section – C

Answer any two only. 2 x 20 = 40

19) The following figures are available from financial accounts for the year 2005.

Direct Material consumed Rs. 2, 00,000

Direct Wages 1, 00,000

Factory Overheads 75, 000

Administrative Overheads 2, 25,000

Selling and distribution overheads 2, 40,000

Bad debts 30,000

Preliminary expenses written off 40,000

Legal charges 20,000

Dividend received 50,000

Interest on bank deposit received 20,000

Sales (1, 20,000 units) 18, 00,000

Closing stock (30,000 units) 1, 60,000

The cost accounts reveal the following:

Direct material consumed Rs.2, 20,000. Direct wages Rs.80, 000. Factory Overheads at 20% on prime cost. Administration overheads at Rs.2 per unit produced and selling overheads at Rs.2 per unit sold.

Prepare: (1) Statement showing cost and profit; (2) Financial profit and loss account; (3) Reconciliation statement.

Electronics Ltd., furnish the following information. It has three production departments A,B and C and two service departments D and E. The following figures are extracted from the records of the company:

Rent and Rates. Rs.10, 000. Power Rs. 3, 000

General lighting Rs. 1,200 Depreciation on Machinery Rs.20, 000

Indirect wages Rs. 3,000 Sundries Rs.20, 000

The following further details are available:

Particulars A B C D E

Floor Area (Sq.mts.) 2000 2500 3000 2000 500

Light points 10 15 20 10 5

Direct wages (Rs) 6000 4000 6000 3000 1000

H.P.of Machine 60 30 50 10 —-

Value of Machine.Rs.60000 80000 100000 5000 5000

Working hours 6226 4208 4066

The expenses of D and E are allocated as follows:

A B C D E

D 20% 30% 40% — 10%

E 40% 20% 30% 10% —

What is the total cost of an article if its raw material cost is Rs.60. Labour cost Rs.40, and it passes through departments A, B and C for 4, 5 and 3 hours respectively?

The following data are available in respect of process I for the month of October:

Opening work in progress: 2250 units at Rs.11, 250

Degree of Completion Materials – 100%; Labour – 60%; Overheads – 60%

Input of materials: 22,750 units at Rs.88, 500

Direct wages: Rs.20, 500

Production overheads: Rs.41, 000

Units scrapped: 3,000 units.

Degree of Completion: Materials – 1005; Labour – 70%; Overheads – 70%

Closing work in progress: 2, 500 units.

Degree of Completion: Materials – 100%; Labour – 80%; Overheads – 80%.

Units transferred to the next process: 19,500 units.

Normal process loss in 10% of total input (opening stock plus units put in). Scrap value is Rs.3.00 per unit. The company follows FIFO method of inventory valuation.

You are required to: 1) Prepare statement of equivalent production; 2) Statement of cost per equivalent unit for each element and cost of abnormal loss, closing work in progress and units transferred to next process; and Prepare process I account.

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

October 20, 2017 by 01 prakash

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.Com. DEGREE EXAMINATION – COMMERCE

QB 09

FIFTH SEMESTER – November 2008

CO 5501 – COST ACCOUNTING

Date : 07-11-08 Dept. No. Max. : 100 Marks

Time : 9:00 – 12:00

SECTION-A (10 X 2 = 20 marks)

Answer all questions.

What is cost accounting?
What is a cost sheet?
Write a note on ‘ABC’ analysis.
Define ‘overheads’.
How do you treat normal scrap realised?
What are the objectives of joint product costing?
What are ‘running charges’, in transport costing? Give example
Give the meaning of ‘work certified’ and ‘work uncertified’.
A manufacturer buys a certain equipment from outside suppliers at Rs. 30 per unit.

Total annual needs are 80,000 units. The following further data are available.

Annual return on investment 10% Rent, insurance, taxes per unit per year Rs.13

Cost of placing an order Rs. 100. Determine the economic order quantity.

From the following particulars supplied by the personnel department of a firm,

Calculate labour turnover:

Total number of employees at the beginning of the month 2010

Number of employees who are recruited during the month 30

Number of employees who left during the month 50

Total number of employees at the end of the month 1990

SECTION- B (5 x 8 = 40 marks)

Answer any five questions.

What is material control? What are its advantages?
Distinguish between allocation and apportionment of overheads?
From the following prepare a stores ledger under weighted average method of pricing

Out issues. 2005 August

1 Opening balance 50 units @ Rs. 3 per unit

5 Issued to production 2 units

7 Purchased 48 units @ Rs.4 per unit

August 9 Issued 20 units to production

August 19 Purchased 76 units @ Rs.3 per unit

August 24 Received back into stores 19 units out of 20 units issued

on 9^th August 2005.

August 27 Issued to production 10 units.

During first week of October 2004, Mr. R produced 300 articles. He received wages for a guaranteed 48 hours week @ the rate of Rs.4 per hour. The estimated time to produce one article is 10minutes and under the incentive scheme the time allowed is increased by 20%. Calculate his gross wages according to

(a) Piece-work with a guaranteed weekly wage and

(b) Rowan premium bonus.

Profit disclosed by a company’s cost accounts for a year was Rs.50,000 whereas the net profit as

disclosed by the financial accounts was Rs.29,750. Following information is available:

overheads as per cost accounts were estimated at Rs.8,500. The charge

for the year shown by the financial accounts was Rs.7,000.

(b) Director’s fees shown in the financial accounts only for Rs.2000.

(d) Work was commenced during the year on a new factory and expenditure of Rs.30,000 was made. Depreciation at 5% per annum was provided for in the financial accounts for 6 months.

(e) Share transfer fees received during the year was Rs.1000

(f) Provision for income tax was Rs.15000.

From the above, prepare a statement reconciling the figures shown by the cost and financial accounts.

From the following particulars, compute the machine hour rate.

Cost of the machine Rs.11000

Scrap value Rs. 680

Repairs for the effective working life Rs.1500

Standing charges for 4 weekly period Rs.40

Effective working life 10000 hours.

Power used: 6 units per hour at 5paise per unit

Hours worked in 4 weekly period: 120 hours.

The following information is extracted from a Job ledger, in respect of Job 101:

Materials Rs.3400

Wages:

Dept A: 80 hours at Rs.2.50 per hour

B: 60 hours at Rs.4 per hour

Variable overheads:

Dept A: Rs.5,000 for 4,000 direct hours

B: Rs.6,000 for 3,000 direct hours

Fixed overheads: Rs.7,500 for 10,000 hours of normal working time of the factory. Calculate the cost of Job No.101 and estimate the percentage of profit if the price quoted is Rs.4,750.

In the manufacture of a product B, 1000 kgs of material at Rs.8 per kg was supplied to the first process. Labour cost amounted to Rs.2000 and production overhead incurred was Rs.1,000. The normal loss has been estimated at 10% which could be sold at Rs.2 per kg. The actual production of the process was 880 kgs. Show the process 1 account.

SECTION-C (2×20=40 marks)

Answer any two questions.

Prepare the cost sheet to show the total cost of production and cost per unit of goods manufactured

by a company for the month of July, 2007. Also find the cost of sales and profit.

Rs. Rs.

Stock of Raw Materials, 1-7-2007 3,000 Office Rent 500

Raw Materials purchased 28,000 General expenses 400

Stock of Raw materials, 31-7-2007 4,500 Discount on sales 300

Manufacturing wages 7,000 Advertisement expenses to be

Depreciation on plant 1,500 charged fully 600

Loss on the sale of a plant 300 Income tax paid 2,000

Factory rent and rates 3,000

The number of units produced during July 2007 was 3,000.

The stock of finished goods was 200 and 400 units on 1-7-2007 and 31-7-2007 respectively. The total cost of the units on hand on 1-7-2007 was Rs.2,800. All these had been sold during the month.

The following particulars relate to a manufacturing company which has 3 production department

X,Y,and Z and two service departments A and B.

Departments

X Y Z A B

Total departmental

Overheads as per primary

Distribution Rs.6,300 7,400 2,800 4,500 2,000

The company decided to charge the service department cost on the basis of the following percentages:

Service departments Production Dept. Service Dept.

X Y Z A B

A 40% 30% 20% — 10%

B 30% 30% 20% 20% —

Prepare secondary distribution summary charging the costing the overheads of the service departments to the production departments under repeated distribution method.

S.V. Construction Ltd. have obtained a contract for the construction of a bridge. The value of the

contract is Rs.12,00,000 and the work commenced on 1^st October 2005. The following details are

shown in their books for the year ended 30^th September 2006.

Plant purchases Rs.60,000, wages paid Rs.3,40,000, Material issued to site Rs.3,36,000, Site

expenses Rs.8,000, General overheads apportioned Rs.32,000, Wages accrued as on 30-09-2006

Rs.2,800. Materials at site as on 30-09-2006 Rs.4,000. Direct expenses accrued as on 30-09-2006

Rs.1,200. Work not yet certified at cost Rs.14,000. Cash received being 80% of the work certified

Rs.6,00,000. Life of the plant purchased is 5 years and the scrap value is nil.

prepare the contract account for the year ended 30-09-2006.
Show the amount of the profit which you consider might be fairly taken on the contract and how you have calculated it.

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

October 20, 2017 by 01 prakash

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

KP 25

B.Com. DEGREE EXAMINATION – COMMERCE

FIFTH SEMESTER – April 2009

CO 5501 – COST ACCOUNTING

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

PART – A

Answer ALL questions (10 x 2 = 20 marks)

List out the different methods of costing.
Explain the meaning of prime cost.
What is Inventory Turnover Ratio?
Write a note on ‘Idle Time’.
What is ‘Over Absorption’ of overheads?
Explain the meaning of ‘work certified’.
What do you understand by ‘Normal Loss’?
Find out the selling price: Prime cost per unit Rs.720; works overhead 20% of works cost office overhead: 10% of cost of production; selling over head 20% on sales.
Indicate the basis of apportionment for the overhead expenses mentioned below:-

Rent, Rates and taxes 2) power 3) Factory cleaning 4) Creche expenses.

Ascertain Bonus under Halsey plan:-

Standard time: 15 Hrs; Actual time 10 Hrs; Time rate Rs.2 per Hour.

PART – B

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

Explain the scope and objectives of Cost Accounting?

The accounts of a machine manufacturing company disclose the following information of six months ending 31^st December 2007. Materials used 1,50,00 Direct wages Rs.1,20,000; Factory overheads Rs.30,000 Administrative expenses Rs.15,000

Prepare cost sheet for the half year and calculate the price which the company should quote for the manufacture of a machine requiring materials valued at Rs.1,250 and expenditure in productive wages Rs.750, so that the price might yield a profit of 20% on the selling price.

a) Two components A and B are used as follows:-

Normal usuage : 3,000 units per week each.

Minimum usuage : 1,500 units per week each.

Maximum usuage : 4,500 units per week each.

Re order quantity A: 13,000 units ; B: 14,000 units

Reorder period : A – 4 to 6 weeks ; B – 2 to 4 weeks.

Calculate for each component a) Reorder level b) Minimum level c) Maximum level d) Average stock level.

b) X Y Ltd. Purchased and issued the materials in the following Order.

2005 march 1. Purchased 300 units at Rs.3 per unit.

purchased 500 units at Rs.4 per unit.
Issued 500 units.

12 purchased 700 units at Rs.4.50 per unit

15 Issued 700 units

20 Purchsed 300 units at Rs.5 per unit

30 Issued 150 units

Ascertain the quantity of closing stock as on 31^st march and state its value under ‘weighted average cost’ method.

The following is the data relating to materials received from a supplier as per the invoice.

Material X – 10,000 kgs at Rs.5 per kg 50,000

Material Y – 5,000 kgs at Rs.8 per kg 40,000

Freight 9,000

Excise duty (at 4%) 3,600

———–

1,02,600

————

Shortage due to breakage, considered as normal – Material X 50 kgs. Material Y 40 kgs.

Ascertain the effective cost of the materials per kg. If provision has to be made for a further wastage due to handling in stores of 50 kgs and 60 kgs. Respectively for material X and Y.

Calculate the earning of workders X and Y under (A) Straight piece rate system and (B) Taylor’s differential piece rate system form the following details:

Standard time per unit = 12 minutes, Standard rate per hour = Rs.60, Differentials to be used 80% and 120%.

In a particular day 8 hours, workder ‘X’ produced 30 units and worker ‘Y’ produced 50 units.

Compute Machine hour rate form the information given below:-

Cost of Machine X Rs.13,500

Life of the Machine 10 years

Estimated Scrap value after 10 year Rs.1,980

Working hours 1,800

Insurance (per annum) Rs.45

Cotton wastes (per annum) Rs.75

Rent for dept (per annum) Rs.975

Foreman’s Salary (per annum) Rs.7,500

Lighting for dept (per annum) Rs.360

Repairs for entire life Rs.1,440

Power : 10 units @ 7.5 paise per unit.

Machine X occupies 1/5 of the area and foreman devotes 1/4 th of his time to the machine. The machine has two light points out of the total 12 for lighting in the department.

The following is the information relating to contract No.123.

Contract price Rs.6,00,000 Wages Rs. 1,64,000

General expenses Rs. 8,600 Raw Materials Rs.1,20,000 Plant Rs.20,000

As on date, cash received was Rs.2,40,000 being 80% of work certified. The value of materials remaining at site was Rs.10,000. Depreciate plant by 10%. Prepare contract Account showing profit to be credited to P&L A/C.

Lakshmi Travels, a transport company is running a fleet of six buses between two towns 75 kms apart. The seating capacity of each bus if 40 passengers. The following particulars are available for the month of April, 2005.

Wages of Drivers, Conductors, etc Rs. 3,600

Salaries of office and supervisory staff Rs. 1,500

Diesel oil etc Rs.10,320

Repairs and maintance Rs. 1,200

Taxes and Insurance Rs. 2,400

Depreciation Rs. 3,900

Interest and other charges Rs. 3,000

The actual passengers carried were 80% of the capacity. All the buses run all the days in the month. Each bus made one round trip per day. Find out the cost per passenger kilometre.

PART – C

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

The profit &Loss account of oil India Pvt.ltd. for the year ended 31.3.2007 is as follows:-

To Materials 4,80,000 By Sales 9,60,000

To wages 3,60,000 By Closing stock 1,80,000

To Direct Expenses 2,40,00 0 By work-in-progress

To Gross profit 1,20,000 Materials 30,000

Wages 18,000

Direct Exp 12,000 60,000

————- ————- ————–

12,00,000 12,00,000

To Administrative —————

Expenses 60,000 By Gross profit 1,20,000

To Net Profit 60,000

————- —————

1,20,000 1,20,000 ———– —————-

As per the cost records the direct expenses have been estimated at a cost of Rs.30 per kg and administrative expenses at Rs.15 per kg. The profit as per costing records is Rs.1,10,400. During the year 6,000 kgs. Were manufactured and 4,800 kgs were sold.

Prepare a statement of costing profit & loss account and reconcile the profit with financial records.

In a factory, there are two service departments I & II and three production departments A,B and C. In April 2002, the departmental expenses were:

Departments A B C I II

Rs. Rs. Rs. Rs. Rs.

6,50,000 6,00,000 5,00,000 1,20,000 1,00,000

The expenses of the service departments are allotted on a percentage basis as follows:-

A B C I II

I 30 40 15 – 15

II 40 30 25 5 –

Prepare a statement showing distribution of the expenses of the two services department on a percentage

basis by repeated distribution method.

The product of a company passes through two processes to completion known as A and B. from the past experience its is ascertained that Loss is incurred in each process as:

Process A 2% Process B 5%

In each case the percentage of loss is computed on the number of units entering the processs concerned.

The lossof each process possess scrap value. The loss of processes A and B is sold at Rs.5 per 100 units.

The out put ofeach process passes immediately to the next process and the finished units are passed into stock.

Process A Process B

Materials consumed Rs.6,000 Rs.4,000

Direct Labour Rs.8,000 Rs.6,000

Manufacturing expenses Rs.1,000 Rs.1,000

20,000 units have been issued to process A at a cost of Rs.10,000. The out put of each process has been as under: Process A 19,500; Process B 18,800.

Prepare Process Accounts.

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

October 19, 2017 by 01 prakash

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.Com. DEGREE EXAMINATION – COMMERCE

FIFTH SEMESTER – NOVEMBER 2010

CO 5501 – COST ACCOUNTING

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

Time : 9:00 – 12:00

PART – A

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

Explain the following terms: Questions 1 – 4.

`By products’ and `Joint products’
Cost unit and Unit cost
Absorption of overheads
Cost plus contract
State whether the following statements are True OR False:
a) Abnormal idle time cost is recovered from the customer.
b) During periods of rising material prices, FIFO method results in inflating the profit.
A contract commenced on 1/7/2010. Details relating to the contract upto 31/12/2010 was as follows:

Material issued Rs.42,000

Wages paid Rs.30,000

Overheads Rs.15,000

Material at site on 31/12/2010 Rs.2000

20% of the material used and 10% of the wages paid are incurred for the work done but not certified.

Overheads are charged to the uncertified work as a %age on direct wages.

Calculate the cost of work uncertified as on 31/12/2010.

From the following data, calculate re-order level and maximum level.

Rate of consumption – 10 to 20 units per day

Lead time – 6 to 10 days

Reorder quantity – 200 units

From the following data, prepare Process 1 account

Materials introduced 4700 units at Rs.28,200

Labour Rs.14,910

Overheads Rs.10,000

Normal loss 10% of input

Scarp realized Rs.5 per unit

Output 4,300 units.

From the following data calculate Labour turnover rate using Flux method:

No of workers at the beginning of the month – 500

No of workers at the end of the month – 600

During the month 5 workers left, 20 workers were discharged and 75 workers were recruited. Of these 10 workers were recruited for the vacancies of those leaving, while the rest were engaged for an expansion scheme.

From the following data, calculate the Economic Batch Quantity:

Annual usage of a component – 6000 units

Set up cost per batch – Rs.20

Cost of production per unit – Rs.100

Carrying cost – 6% p.a. on inventory cost.

PART B

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

Define overheads. Distinguish between `allocation’, `apportionment’ and `absorption of overheads.

What are the objectives of Cost Accounting? Explain any 4 differences between Cost Accounting and Financial Accounting.

The financial records of AB Ltd reveal the following data for the year ended 31^st March 2010:

Sales (50,000 units) Rs.10,00,000

Direct material Rs.5,00,000

Direct wages Rs.2,50,000

Factory expenses were Rs.1,50,000

Administration expenses Rs.1,45,000

Interest and dividend received Rs.15,000

Closing stock of finished goods was 5,000 units valued at Rs. 1,00,000

In cost accounts, factory expenses are charged at 70% of direct wages and administration expenses are charged at 20% of works cost. Ascertain the costing and financial profit and prepare a statement reconciling the two profits.

From the following data, you are required to work out the earnings of a worker for a week under:
a) Straight Piece Rate
b) Taylors Differential Piece Rate
c) Halsey Plan
d) Rowan Plan

Weekly working hours – 48

Hourly wage rate – Rs.7.50

Piece rate – Rs.3 per piece

Normal time taken per piece – 20 minutes

Normal output per week – 120 pieces

Actual output for the week – 150 pieces

Differential piece rate – 80% of piece rate when output is below normal and 120% of piece rate when output is above normal.

From the following data prepare Stores Ledger under FIFO method:

1^st October opening stock 600 units at Rs.14 per unit

Receipts during the month:

3^rd 300 units at Rs.15 per unit

7^th 900 units at Rs.16 per unit

23^rd 400 units at Rs.18 per unit

Issues during the month:

5^th 500 units

8^th 800 units

27^th 500 units

On 31^st October a shortage of 10 units were noticed.

The information given below is taken from the cost records of the factory in respect of job no. 707.

Direct material Rs.6,060

Wages – Dept A 80 hours at Rs.4 per hour

Dept B 60 hours at Rs.3 per hour

Dept C 20 hours at Rs.5 per hour

Variable overheads are as follows:

Dept A Rs.7,500 for 5,000 hours

Dept B Rs.3,000 for 1,500 hours

Dept C Rs.2,000 for 500 hours

Fixed overheads of the factory are estimated at Rs.30,000 for 10,000 working hours.

Calculate the cost of the job 707 and the price to be quoted to give a profit of 20% on cost price.

A contractor obtained a contract for Rs.8,00,000 on 1^st Jan.2009. The expenses incurred during

the year ended 31^st Dec.2009 were as under:

Rs.

Materials 2,20,000

Wages paid 2,00,000

Wages accrued 10,000

Other expenses 20,000

Plant costing Rs.40,000 having a life of 5 years was used on the contract for 73 days. Material costing Rs.3,000 were stolen from the site. Material at site on 31.12.2009 were valued at Rs.24,600. The contractor had received Rs.4,00,000 in cash upto 31.12.2009 representing 80% of the work certified. Work uncertified was estimated at Rs.14,000.

Prepare the contract account.

X owns a truck, which cost Rs.1,20,000. The life of the truck is 2,00,00 kms and has a scrap value of

Rs.20,000 at the end of its life. The truck runs 5000 kms per month of which 20% is run empty. From

the following data, calculate the cost per km.

Manager’s salary – Rs.3000 p.m.

Driver’s salary – Rs.2500 p m

Cleaner’s salary – Rs.1500 p m

Garage rent – Rs.1000 p m

Insurance – 2% p a on the cost of the vehicle

Road tax – Rs.1200 p a

Repairs – Rs.1800 p m

The truck uses 1 litre of petrol for every 10 kms. Cost of petrol Rs.48 per litre.

PART – C

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

R Ltd gives you the following information for the year 2009, during which 10,000 units were produced and sold.

Material Rs.90,000

Power Rs.12,000

Cost of rectifying defective work Rs.3,000

Direct wages Rs.60,000

Factory indirect wages Rs.20,500

Clerical salaries Rs.39,000

Selling expenses Rs.19,500

Plant repairs Rs.11,500

Sale proceeds of factory scrap Rs.2,000

The net selling price was Rs.31.60 per unit

Prepare a cost sheet and ascertain profit made in 2009.

From January 1, 2010 selling price is reduced to Rs.31 per unit. It is estimated that 15,000 units will be produced and sold. The rates for material and direct labour is expected to increase by 10%. Assuming factory overheads are recovered as a percentage of direct wages, and office and selling expenses as a percentage of works cost, prepare a cost sheet for the year 2010 showing the estimated cost and profit.

20000 units were introduced in a process at a cost of Rs.2 lakhs. Other expenses incurred were:

Material Rs.1,04,000; Labour Rs.1,71,000; Factory overheads Rs.68,400. Normal loss is expected to be 10% of input.

16,000 units were completed and transferred to the next process.

2500 units were scrapped when they were completely processed.

1500 units remained as closing work in progress, the degree of completion being:

Material 75%; Labour and overheads 40%.

Scrap was sold at Rs.11 per unit.

Prepare a statement showing the Process Account, Abnormal Loss Account, Equivalent production, Cost per equivalent unit and a Apportionment of cost.

In a manufacturing concern there are 2 Production departments, A and B and 2 Service Depts. C and D. C renders service worth Rs.12000 to D and the balance to A and B in the ratio of 3:2. D renders service to A and B in the ratio of 9:1.

The overhead expenses incurred for the year are as follows:

Depreciation – Rs.95000

Rent – Rs.18000

Power – Rs.10000

Canteen expenses – Rs.5400

Sundry expenses – Rs.4500

The following further information are given regarding the departments:

A B C D

Direct material (Rs.) 6000 5000 3000 2000

Direct labour (Rs.) 20000 10000 10000 5000

Floor space (sq mt) 5000 4000 1000 2000

Value of machinery (in lakhs) 10 5 3 1

Horse power of machines 1000 500 400 100

No of workers 100 50 50 25

Department A recovers overheads at a rate per labour hour. The labour hours in department

A is Rs.8000.

Department B recovers overheads at a rate per machine hour. Machine hours in department

B are 5000.

Calculate the cost of a job which requires Rs.2000 in material, Rs.1500 in wages.

The labour hours for the job in Department A is 20 and the machine hours for the job in Department

B is 10.

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

October 19, 2017 by 01 prakash

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.Com. DEGREE EXAMINATION – COMMERCE

FIFTH SEMESTER – APRIL 2011

CO 5501 – COST ACCOUNTING

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

Time : 9:00 – 12:00

PART A

Answer ALL questions Marks:10×2=20

Explain the following

ABC stock analysis

Normal and Abnormal loss

Taylor’s differential piece rate system

State whether the following statements are TRUE or FALSE:
In cost plus contracts, the contractor runs no risk of incurring losses.
Warehouse rent is treated as a factory overhead.

Fill in the blanks:
Apportioning service department overheads to production departments is known as ———- —distribution.
Factory overheads are normally charged as a percentage of ———when preparing

A 5 tonne lorry operates between 2 towns 100 kms apart. It makes one round trip per day. On the outward journey it carries full capacity but on the return journey it carries only 60% of capacity. It operates for 30 days in a month. If the expenses per month is Rs.120000, calculate the cost per tonne kilometre.

Minimum consumption per day 100 – 160 units. Reorder period 10 – 14 days. Reorder quantity 1500 units. Calculate maximum level and minimum level.

Estimated labour hours per year is 104000; estimated factory overheads per year Rs.52000; job X requires material Rs.150, direct wages Rs.100 and takes 30 labour hours to produce. Calculate the overheads to be charged to job X.

Annual consumption 6000 kgs; ordering cost Rs.120 per order; carrying cost 20% of inventory value; cost per kg Rs.20. Calculate economic order quantity.

Profit as per financial accounts Rs.2000; administration overheads over- recovered in cost Rs.8000; bank interest and transfer fees in financial accounts Rs.1500. Calculate profit or loss as per Cost Accounts.

PART B

Answer ANY FIVE questions Marks:5×8=40

State the reasons why the profit as per cost account and financial accounts differ.
Explain the following terms in the context of a Contract Account: a) works certified (b) work uncertified (c) retention money (d) escalation clause.

The following particulars relate to the production department of a factory for the month of June, 2010:

(Rs.)

Materials used 80,000

Direct wages 72,000

Direct labour hours worked 20,000

Hours of machine operation 25,000

Overhead charges allocated to the department 90,000

Cost data of a particular work order carried out in the above department during June, 2010 are given below:

(Rs.)

Material used 8,000 Labour hours booked 3,300

Direct wages 6,250 Machine hours booked 2,400

What would be the factory cost of the work order under the following methods of charging overheads:

Direct labour cost rate; (ii) Machine hour rate; and (iii) Direct labour hour rate.

From the following data compute the cost per running kilometer:

Items Vehicle A

Kilometers run (annual) 15,000

Cost of vehicles Rs.25,000

Road licence (annual) Rs. 750

Insurance (annual) Rs. 700

Garage rent (annual) Rs. 600

Supervision and salaries (annual) Rs. 1,200

Driver’s wage per hour Rs. 3

Cost of fuel per gallon Rs. 3

Kilometers run per gallon (kms) 20

Repairs and maintenance per km (Rs.) 1.65

Tyre allocation per km (Rs) 0.80

Estimated life of vehicles (kms) 1,00,000

Charge interest at 5% on cost of vehicle. The vehicle runs 20 kms per hour on an average.

M/s Indu Industries Ltd., are the manufacturers of moon-light torches. The following data relate to manufacture of torches during the month of March 2011:

Raw materials consumed Rs.20,000

Direct wages Rs.12,000

Machine-hour worked 9,500 hours

Machine-hour rate Rs.2

Office overheads 20% of works cost

Selling overheads Rs.0.50 per unit

Units produced 20,000

Units sold 18,000 @ Rs.5 per unit

Prepare Cost Sheet showing the cost and the profit per unit and the total profit earned.

The following are the details supplied by AB Ltd., in respect of its raw materials for the month of November 1990.

Date

01.11.2010 Opening balance 1,000 units @ Rs.6 per unit –

10.11.2010 Received 500 units at Rs.7 per unit –

15.11.2010 Issued 1200 units

20.11.2010 Received 1,000 units at Rs.8 per unit –

30.11.2010 Issued 1,100 units

0n 30^th November a shortage of 50 units was found.

Prepare the Stores Ledger under, Weighted Average method.

A, B and C on a particular day produced 200, 250 and 300 pieces respectively of a Product ‘P’. The time allowed for production of 25 units of ‘P’ is 1 hour and the hourly rate of wage payment is Rs.8.

Calculate for each of the three workers their earnings for a day (8 Hours per day), and the Effective Rate of Earnings per hour under Halsey Premium Bonus Plan and Rowan Premium Bonus Plan.

The following data relate to process 1.

Opening Work in progress 900 units valued at Rs.4500 (material 100%, labour and overheads 60%)

Input of materials 9100 units at Rs.27300.

Direct wages Rs.8200

Production overheads Rs.16400

Units scraped 1200 (material 100%, labour and overheads 70%)

Closing work in progress 1000 units (material 100%, labour and overheads 80%)

Units transferred to Process 2 – 7800

Normal process loss 10% of total input

Scrap value Rs.3 per unit

Compute equivalent production and cost per equivalent unit of each element and the value of the closing Work in Progress.

PART C

Answer ANY TWO questions Marks:2×20=40

The Profit and Loss Account of Oil India (Pvt) Ltd., for the year ended 31^st March, 2011 is as follows:

Materials

Wages

Direct expenses

Gross profit

Administration expenses

Income tax

Net Profit

(Rs)

4,80,000

3,60,000

2,40,000

1,20,000

12,00,000

60,000

10,000

58,000

1,28,000

Sales

Closing stock

Work in progress:

Materials 30,000

Wages 18,000

Direct expenses 12,000

Gross Profit

Interest received

(Rs)

9,60,000

1,80,000

60,000

12,00,000

1,20,000

8,000

1,28,000

As per the cost records, the direct expenses have been estimated at a cost of Rs.30 per kg and administration expenses at Rs.15 per kg. During the year 6000 kgs were manufactured and 4800 kgs were sold. Prepare a statement of costing profit and loss account and reconcile the profit with financial records.

A product is finally obtained after it passes through three distinct processes. The following information is available from the cost records.

Process I Process II Process III Total

Rs. Rs. Rs. Rs.

Materials 2,600 2,000 1,025 5,625

Direct wages 2,250 3,680 1,400 7,330

Production overheads – – – 7,330

500 units @ Rs.4 per unit were introduced in Process I. Production overheads are absorbed as a percentage of direct wages.

The actual output and normal loss of the respective processes are given below:

Output Normal loss as a Value of scrap

(units) %age of input (per unit)

Process I 450 10% Rs.2

Process II 340 20% Rs.4

Process III 270 25% Rs.5

Prepare the process accounts, Normal loss account, Abnormal loss accounts and Abnormal Gain account.

M/s Contractor and Engineer undertook a contract for Rs.2,50,000 for constructing a college building. The following is the information concerning the contract during the year 2010:

(Rs.)

Materials sent to site 85,349

Labour engaged on site 74,375

Plant installed at site at cost 15,000

Direct expenditure 3,167

Establishment charges 4,126

Materials returned to store 549

Work certified 1,95,000

Cost of work not certified 4,500

Materials at site on 31.12.2010 1,883

Wages accrued on 31.12.2010 2,400

Direct expenditure accrued on 31.12.2010 240

Value of plant on 31.12.2010 11,000

Cash received from contractee 1,80,000

Prepare the Contract Account, the Contractee’s Account and show how the work-in-progress will appear in the Balance Sheet of M/s. Contractor and Engineer as on 31^st December, 2010.

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

October 19, 2017 by 01 prakash

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.Com. DEGREE EXAMINATION – COMMERCE

FIFTH SEMESTER – APRIL 2012

CO 5501 – COST ACCOUNTING

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

Time : 9:00 – 12:00

PART – A

Answer ALL Questions: (10×2=20 Marks)

What is Reorder Level?
What is Batch Costing?
Write a short note on Escalation clause.
What is By – Products.
State whether True or False
Unit costing is applied in those industries where different products are produced simultaneously
In the cement industries the unit of cost is per tonne.

Calculate the re-order quantity from the following particulars:

Annual usage …30,000 units

Buying cost per order …Rs.15

Cost per Unit …Rs.100

Cost of carrying inventory …10% of cost

The firm employs 5 workers at an hourly rate of Rs.25/- During the week they worked for 4 days for a total period of 40 hrs each and completed a job for which the standard time was 48 hrs for each worker. Calculate the labour cost, under Rowan method.

What is machine hour rate?
A transport service company is running five buses between two towns which are 60 Kms.

apart. Seating capacity of each bus is 35 passengeres. Actual passengers carried were 80% of

the seating capacity. The company operates for 25 days a month. Each bus made two round

trips per day. Calculate the total passengers kms for the month.

What are the bases for apportionment of expenses given below to the different departments?
i) Rent & Rates ii) Supervisory wages iii) Depreciation iv) General lighting.

PART – B

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

From the following particulars, prepare a Cost Statement showing the components of Total Cost and

Profit for the year ended 31^st December 2006.

	*1-1-2006*	*31-12-2006*
	Rs.	Rs.
Stock of finished goods	6,000	15,000
Stock of raw materials	40,000	50,000
Work-in-progress	15,000	10,000

	Rs.		Rs.
Purchase of raw materials	4,75,000	Sales for the year	8,60,000
Carriage inward	12,500	Income tax	500
Wages	1,75,000	Dividend	1,000
Works Manager’s salary	30,000	Debenture interest	5,000
Factory employees’ salaries	60,000	Transfer to Sinking Fund for replacement of machinery	10,000
Factory rent, taxes and insurance	7,250
Power expenses	9,500	Goodwill written off	10,000
Other production expenses	43,000	Payment of sales tax	16,000
General expenses	32,500	Selling expenses	9,250

P Ltd. Uses three types of materials A,B and C for production of ‘X’ the final product. The relevant monthly data for the components are as given below:

			A	B
Normal usage	(units)		250	175
Minimum usage	(units)		100	100
Maximum usage	(units)		300	250
Reorder quantity	(units)		750	900
Reorder period (months)			2 to 3	3 to 4
Calculate for each component:-
a) Reorder level;		b) Minimum level;
c) Maximum level and		d) Average stock level

Distinguish between Taylor’s Differential Rate and Emerson Efficiency Plan.

The following particulars relate to a new machine purchased:

Rs.

Purchase price of the machine	4,00,000
Installation expenses	1,00,000
Rent per quarter	15,000
General lighting for the total area	1,000	Per month
Foreman’s salary	30,000	Per annum
Insurance premium for the machine	3,000	Per annum
Estimated repair for the machine	5,000	Per annum
Estimated consumable stores	4,000	Per annum
Power – 2 units per hour at Rs.50 per 100 units.

The estimated life of the machine is 10 years and the estimated value at the end of the 10^th year is

Rs.1 lakh. The machine is expected to run 20,000 hours in its life time. The machine occupies

25% of the total area. The foreman devotes 1/6^th of his time for the machine. Calculate the

machine hour rate for the machine.

From the following data prepare a reconciliation statement. Rs.

Profit as per cost accounts 1,50,000

Works overheads under-recovered 10,000

Administrative overheads under-recovered 22,500

Selling overheads over-recovered 18,500

Overvaluation of opening stock in cost accounts 16,000

Overvaluation of closing stock in cost accounts 7,000

Interest earned during the year 4,250

Rent received during the year 27,000

Bad debts written off during the year 8,500

Preliminary expenses written off during the year 17,000

Prakash Transport company has been given a route 20 km. long to run a bus. The bus costs the

company a sum of Rs.50,000. It has been insured at 3% p.a. and the annual tax will amount to

Rs.1,000. Garage rent is Rs.100 p.m. Annual repairs will be Rs.1,000 and the bus is likely to last

for 5 years.

The driver’s salary will be Rs.2,500 p.m. and the conductor’s salary will be Rs.1,500 p.m. in

addition to 10% taking as commission (to be shared by the driver and the conductor equally).

The cost of stationery will be Rs.100 p.m. Manager-cum-Accountant’s salary is Rs.3500 p.m.

Petrol and oil will be Rs.25 per 100 km. the bus will make 3 round trips carrying, on an average,

40 passengers on each trip. Assuming 15% profit on takings, calculate the bus fare to be charged

from each passenger. The bus will run on an average 25 days in a month.

Prepare a Stores Ledger Account from the following details using LIFO method of pricing the issue of

materials:-

April 1	Opening Balance	10,850 kgs @ Rs.130.00 per kg
2	Purchased	20,000 kgs @ Rs.134.00 per kg
3	Issued	6,750 kgs to production
5	Issued	8,500 kgs to production
6	Received back	550 kgs from production being surplus
7	Purchased	17,550 kgs @ Rs.128.00 per kg
8	Issued	11,250 kgs to production
9	Physical stock verification revealed a loss of	250 kgs
10	Issued	8.950 kgs to production
12	Issued	6.300 kg. to production
15	Purchased	10,000 kgs @ Rs. 132.00 per kg
16	Issued	7,750 kgs to production

Write short notes on:
a) Perpetual Inventory system.
b) ABC analysis.

PART – C

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

Trichy Limited has three production departments (A,B and C) and two service departments (D and E).

From the following figures extracted from the records of the company, calculate the overhead rate per

labour hour using Repeated Distribution method.

Rs.

Indirect materials			15,000
Indirect wages			10,000
Depreciation on machinery			25,000
Depreciation on building			5,000
Rent, Rates and taxes			10,000
Electric power machinery			15,000
Electric power for lighting			500
General expenses			15,000
			95,500

Items	Total	A	B	C	D	E

Direct materials	Rs.60,000	20,000	10,000	19,000	6,000	5,000
Direct wages	40,000	15,000	15,000	4,000	2,000	4,000
Value of machinery	2,50,000	60,000	1,00,000	40,000	25,000	25,000
Floor area (sq.ft.)	50,000	15,000	10,000	10,000	5,000	10,000
H.P. of machinery	150	50	60	30	5	5
No. of light points	50	15	10	10	5	10
Labour hours	15,000	5,000	5,000	2,000	1,000	2,000
The expenses of service departments D and E are to be apportioned as follows:
		A	B	C	D	E
D		40	20	30	–	10
E		30	30	30	10	–

The following information is available in respect of a contract undertaken by a building contractor in 2000. The contract was for Rs.2,40,000

Rs.

Materials used	45,000
Wages paid	66,000
General charges	2,400
Plant installed at site on 1^st July 2000	12,000
Materials in hand at the end	2,400
Wages accrued due	2,400
Work certified	1,20,000
Work completed but not certified	3,000
Cash received	90,000
Materials transferred to other contracts	2,400
Materials received from other contracts	600

Depreciation on plant is to be provided at 10% per annum. Prepare Contract Account and show what

part of the profit on contract should be taken to credit in 2000.

The product of company passes through three distinct processes to completion. They are known as A,B and C. from past experience it is ascertained that loss is incurred in each process as: Process A-2%, Process B-5%, Process C-10%. In each case the percentage of loss is computed on the number of units entering the process concerned. The loss of each process possesses a scrap value. The loss of processes A and B is sold at Rs. 5 per 100 units and that of process C at Rs.20 per 100 unts. The output of each process passes immediately to the next process and the finished units are passed from process C into stock.

	*Process A*	*Process B*	*Process C*
	*Rs.*	*Rs.*	*Rs.*
Materials consumed	6,000	4,000	2,000
Direct Labour	8,000	6,000	3,000
Manufacturing expenses	1,000	1,000	1,500

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

as under: Process A 19,500; Process B 18,800; Process C 16,000. There is no work-in-progress in any

process.

Prepare Process Accounts. Calculations should be made to the nearest rupee.

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

October 19, 2017 by 01 prakash

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.Com. DEGREE EXAMINATION – COMMERCE

FIFTH SEMESTER – NOVEMBER 2012

CO 5501 – COST ACCOUNTING

Date : 03/11/2012 Dept. No. Max. : 100 Marks

Time : 9:00 – 12:00

PART A

Answer ALL questions: (10×2=20 marks)

Mention 2 reasons why profits as per cost accounts and financial accounts differ.
How is idle time cost treated in cost accounts?
What is an escalation clause in a contract agreement?
What is a machine hour rate?
True or False
When actual loss is less than anticipated loss the difference is abnormal gain.
I.F.O method will show more profit when material prices are falling.

Compute the economic batch quantity for a company using batch costing with the following information:

Annual demand for the component 24,000

Set-up cost per batch Rs. 120

Carrying cost per unit of production Rs. 0.36

From the following data calculate minimum level for material X

Delivery time 2 to 4 weeks

Consumption 100 to 150 units per week

A taxi runs for 4000 kilometers per month of which 20% is run empty. The total expenses for the month is Rs.25,500. Calculate the cost per kilometre.

From the following data provided to you calculate Labour Turnover under Flux method.

No. of workers on the payroll:

At the beginning of the month 500

At the end of the month 600

During the month, 5 workers left, 20 persons were discharged and 75 workers were recruited. Of these, 10 workers were recruited in the vacancies of those leaving, while the rest were engaged for an expansion scheme.

From the following calculate the value of raw material consumed:

Raw materials purchased Rs.88,000

Opening stock of raw materials Rs.1,00,000

Freight and purchases Rs.5,500

Sale of material scrap Rs.2,000

Closing stock of raw materials Rs.1,23,500

PART B

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

Define Overheads. Distinguish between allocation, apportionment and absorption of overheads.

Write short notes on:
Taylor’s Differential Piece rate system.
Opportunity cost
Joint and By-products
Labour Hour rate.

The information given below has been taken from the cost records of a factory in respect of Job No.707:

Direct material Rs.4,010

Wage details:

Department A: 60 hours @ Rs.3 per hour

Department B: 40 hours @ Rs.2 per hour

Department C: 20 hours @ RS.5 per hour

The variable overheads are as follows:

Department A: Rs.5,000 for 5,000 hours

Department B: Rs.3,000 for 1,500 hours

Department C: Rs.2,000 for 500 hours

Fixed expenses estimated at Rs.20,000 for 10,000 working hours. Calculate the cost of the Job No.707 and the price for the Job to give a profit of 25% on the selling price.

A workman’s wage for a guaranteed 44 hour is Rs.10 per hour. The estimated time to produce one article is 30 minutes and under incentive scheme the time allowed is increased by 20%,. During one week the workman manufactured 100 articles. Calculate the gross wages under each of the following methods of remuneration:
Time-rate
Piece work with a guaranteed weekly wage
Rowan premium bonus
Halsey premium bonus, 50% to workman.

A Ltd prices issues under F.I.F.O method. From the following prepare the Stores Ledger for the month of October 2012:

October 1 Opening balance 500 units at Rs.2 per uni

6^th Issued 250 units

13^th Received 200 units at Rs.1.90 per unit

15^th Returned from Department 15 units out of the issues on 6^th

20^th Issued 180 units

22^nd Received 240 units at Rs.1.80 per unit

29^th Issued 300 units

On 30^th October the stock verifier found a shortage of 10 units.

M/s. Kishore & Co. Commenced the work on a particular contract on April 1, 2011. They close their books of accounts for the year on December 31, each year. The following information is available from their costing records on December 2011.

Material sent to site Rs.50,000

Wages Paid Rs.1,00,000

Foreman’s salary Rs.12,000

A machine costing Rs.32,000 remained in use on site for 1/5^th of the year. Its working life was estimated at 5 years and scrap value at Rs.2,000. A supervisor is paid Rs.2,000 per month and had devoted one half of his time on the contract.

All other expenses were Rs.15,000. The material on site were Rs.9,000. The contract price was Rs.4,00,000. On December 31, 2011, 2/3^rd of the contract was completed; however, the architect gave certificate only for Rs.2,00,000 on which 75% was paid.

Prepare the Contract Account.

Raj Motors owns a bus which cost Rs.3.80 lakhs. The bus has a life of 5 years and a scrap value of Rs.20,000 at the end of its life. The bus runs between two towns which are 100 kms apart. It makes two round trips a day and operates for 30 days in a month. It has a capacity of 50 passengers and the average occupancy is 80%. Other details are as follows:

Driver’s wages : Rs.9000 per month

Conductor’s wages : Rs.7000 per month

Garage rent : Rs.2000 per month

Office expenses : Rs.7000 per month

Taxes and insurance : Rs.12000 per annum

Repairs : 80% of depreciation

Diesel : Rs.5 per km

Sale of old tyres and tubes : Rs.800 per month

Calculate the operating cost per passenger kilometre.

A Company’s records show the following particulars for a department for the year 2011 for production and sales of 100 units.

Materials Rs.14,000; Direct Labour Rs.7,000; Works Overheads Rs.7,000; Administration overheads Rs.2,800; Selling overheads Rs.3,200; Profit Rs.6,000.

You ascertain that 40% of the works overheads fluctuate directly with production and 70% of the selling overheads fluctuate with sales. It is anticipated that the department would produce 500 units per annum in the year 2012 and that direct labour charges per unit will be reduced by 20%, while fixed works overheads will increase by Rs.3,000. Administration overheads and fixed selling overheads are expected to show an increase of 25% but otherwise no changes are anticipated.

Prepare a statement of Cost and Profit in 2012, if the Company wants a profit of 20% on cost.

PART C

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

From the following details of Small Tools Ltd compute profit in Financial Accounts as well as in Cost Accounts and prepare a statement reconciling the two profits:

Rs. Rs.

Sales 20,000 Bad debts 100

Purchase of materials 3,000 Interest on overdraft 50

Closing stock of materials 500 Profit on sale of assets 1,000

Direct wages 1,000 Selling expenses 3,000

Indirect wages 500

Power 2,000

In Cost accounts:

Manufacturing overhead recovered @ 300% on direct wages.

Selling overhead recovered Rs.2,200

From the following data, calculate:
Equivalent production
Cost per unit of equivalent production and also prepare Process A account.

No. of units introduced in the process 4000 nos.

No. of units completed and transferred to Process B 3200 nos.

No. of units in process at the end of the period 800 nos.

Stage of completion:

Material 80%

Labour 70%

Overheads 70%

Normal process loss at the end of the process 5% of input

Value of scrap Re.1 per unit

Value of raw materials Rs.7,480

Wages Rs.10,680

Overheads Rs.7,120

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

Rent and rates Rs.25,000

General lighting Rs.3,000

Indirect wages Rs.7,500

Power Rs.7,500

Depreciation on machinery Rs.50,000

Sundries Rs.50,000

Additional data, department-wise

Direct wages (Rs)

Horsepower of machine Cost of machinery (Rs)

Production hours worked

Floor space used (Sq.Mt)

Lighting points (nos)

Total

Production dept.

Service dept.

50,000

150

12,50,000

–

10,000

15,000

3,00,000

6,226

2,000

10,000

4,00,000

4,028

2,500

15,000

5,00,000

4,066

3,000

7,500

25,000

–

2,000

2,500

–

25,000

–

500

Service department’s expenses allocation:

A B C P Q

P 20% 30% 40% – 10%

Q 40% 20% 30% 10% –

You are required to:

Compute the overhead rate per hour for production departments using the repeated distribution method; and
Hence, determine the total cost of Job 127 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.B.A. Business Administration Nov 2008 Cost Accounting Question Paper PDF Download

October 13, 2017 by 01 prakash

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.B.A. DEGREE EXAMINATION – BUSINESS ADMINISTRATION

OA 10

FIFTH SEMESTER – November 2008

BU 5504 – COST ACCOUNTING

Date : 07-11-08 Dept. No. Max. : 100 Marks

Time : 9:00 – 12:00

SECTION –A (10X2=20 MARKS)

Answer all the questions:

What is cost sheet?
What do you mean by Defectives?
Define inventory control?
How do you classify overheads?
What is process costing?
Calculate the total earnings of a worker under Halsey plan

Standard time – 30 hours

Time taken – 20 hours

Hourly rate of wages is Re 1 per hour plus D.A @ 50 paise per hour worked.

Find out the economic order of quantity with the help of following details :-

Monthly usage : 500 units

Cost of materials per unit : Rs 20

Cost of placing and receiving one order : Rs 60

Annual carrying cost : Rs 2 per unit

Compute the depreciation chargeable to each department:

Depreciation Rs 27500

Machinery value in the departments:

X- Rs 200,000, Y- Rs 400,000, Z- Rs 500,000.

Calculate profits as per financial accounts

Profit as per cost accounts Rs. 60,000

Overheads recovered in costing Rs. 3,500

Under absorption of expenses in costing Rs. 6,000

Income tax debited in financial Rs. 4000

Calculate the materials purchased during the year

Direct wages 60,000

Prime cost 110.000

Opening stock of raw materials 20,000

Closing stock of raw materials 25,000

Expenses on purchase 15,000

SECTION- B (5×8=40 marks)

Answer any 5 questions:-

What are the effects of labour turn over?
What are the limitations of cost accounting?
Explain ABC analysis? What are its advantages?

From the following, prepare stores ledger under FIFO method:

JAN 1 opening balance at Rs 5 each

2 received 500 units of Rs 4each

10 issued 300 units

15 issued 200 units

26 received 500 units of Rs 5.50 each

27 issued 300 units

31 issued 250 units

From the following information, calculate kilometers and total passenger kilometers:

No . Of buses : 4

Days operated in a month : 30

Round trips made by each bus : 4

Distance of route :30 km long (one way)

Capacity of bus : 60 passengers

Normal passengers traveling : 80% of the capacity

Calculate re-ordering level, minimum stock level , maximum stock level and average stock level:

Maximum consumption – 150 units per day

Minimum consumption – 100 units per day

Normal consumption – 120 units per day

Re-order period – 10-15 days

Re- order quantity – 1500 units

Normal re- order period – 12 days

Work out the normal and over time wages payable to a worker from the following:

Days Hours worked

Monday 8

Tuesday 10

Wednesday 9

Thurs day 11

Friday 9

Saturday 4

Normal working hours – 8 hours per day

Normal rate – Rs 2 per hour

Over time rate – double the usual rate

Compute the machine hour rate from the following :

Cost of machine : Rs 10,000

Scrap value after 10 years : Rs 2,000

Rent for a quarter for the department : RS 300

General lighting : Rs 240 p.a

Department supervisor’s salary : Rs 600 per quarter

Insurance premium for machine : R s 60 p.a

Repairs : Rs 100 p.a

Power 2 units per hour at Rs 5 per 100 units

Estimated working hours p.a 2000

Machine occupies 1/4^th of the total area in the department .The supervisor devotes 1/6^th time for this machine.

SECTION- C (2X20= 40 MARKS)

Answer any two questions:

From the following, prepare a cost sheet.

Materials – Rs 80,000

Direct wages – Rs 48,000

Machine hours worked – 8,000

Machine hour rate – Rs 4

Office overheads – 10% on work cost

Selling overheads – Rs 1.50 per unit

Units produced – 4000

Units sold – 3,600 units @ Rs 50 each

A product passes through 3 stages from the following prepare process accounts and abnormal gains and abnormal loss a/c

Particulars		Process
	I (Rs)	II (Rs)	III (Rs)
Raw material	2600	1980	2962
Direct wages	2000	3000	4000
Selling price of scrap (Per Unit)	2	4	5
Normal loss	5%	10%	15%
production	950units	840 units	750 units

General expenses Rs 9,000 which absorbed on the basis of wages . 1000 units at Rs 3 each introduced into process I.

A company’s informations related to a contract are given below. Prepare a contract account and also show how entries appear in balance sheet of the company:

Particulars Rs

Materials sent to site 85,349

Labour engaged on site 74,375

Plant installed at site 15,000

Direct expenditure 3,167

Establishment charges 4,126

Materials returned to stores 549

Work certified 195,000

Cost of work not certified 4,500

Material in hand at the end of year 1,883

Wages accrued for the year 2,400

Direct expenses accrued 240

Value of plant at the end of the year 11,000

Contract price agreed 250,000

Cash received 180,000

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Loyola College B.B.A. Business Administration Nov 2010 Cost Accounting Question Paper PDF Download

October 13, 2017 by 01 prakash

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.B.A. DEGREE EXAMINATION – BUSINESS ADMINISTRATION

FIFTH SEMESTER – NOVEMBER 2010

BU 5504/BU 5501 – COST ACCOUNTING

Date : 03-11-10 Dept. No. Max. : 100 Marks

Time : 9:00 – 12:00

PART – A

Answer ALL questions: (10×2=20 marks)

Explain the following:

Equivalent units
Opportunity cost
Abnormal loss and Abnormal gain
Work certified and Retention money
State the basis for apportioning the following expenses to different departments:
Power
Canteen expenses
C) Stock insurance
d) Crèche expenses
The works cost of a product is Rs.8000. factory overheads are Rs.1000, which is 50% of wages. Calculate the value of direct material used.
Standard time 10 hours, time taken 6 hours, time rate Rs.5 per hour. Calculate the earnings of a worker under Halsey and Rowan plan.
Calculate economic order quantity and the number of orders to be placed in a year from the following data:

Annual consumption 10000 kg; ordering cost per order Rs.50; cost per kg Rs.2; storage expenses 8% per annum on inventory.

From the following data compute the cost per unit assuming a batch of 1000 units are produced:

Material – Re 1 per unit. Each unit takes 10 minutes to produce.

Machine operator is paid Rs.12 per hour. The machine hour rate is Rs.1.50.

The setting up time for the machine is 1 hour.

Profit as per financial accounts Rs.2000.

Works overheads under recovered in cost – Rs.12000

Transfer fees in financial accounts – Rs.1000

Calculate the profit as per Cost Accounts.

PART – B

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

What are the benefits obtained by installing a Costing system? What are the practical difficulties in installing the system?

What is labour turnover? What are its causes and costs?

X Ltd undertook a contract for Rs.6,50,000 on 1^st April 2009. The following details relate to the contract for the year ending 31^st December 2009.

Materials issued Rs.1,80,000

Wages paid Rs.87,000

Other expenses Rs.38,750

Plant issued to contract Rs.32,000

Total establishment expenses amounted to Rs.40000, out of which 25% is chargeable to the contract. Out of the materials issued, materials costing Rs.4,000 were sold for Rs.5,000. Plant costing Rs.2,000 was damaged on 1^st October 2009 and was sold as scrap for Rs.300. Plant is to be depreciated at 10% per annum.

Material at site on 31^st December 2009 was Rs.17,500.

Cash received from contractee Rs.3,06,000 which is 90% of work certified.

Work uncertified on 31^st December 2009 Rs.30,000.

Prepare the contract account.

A transport company runs a bus between two towns which are 100 kms apart. The seating capacity of the bus is 40 passengers. It carries full capacity on the upward journey but only 75% of the capacity on the return journey. Bus runs for 30 days in a month and makes one round trip every day. The following details relate to the month of April 2010:

Wages of driver and conductor Rs.9,000

Diesel and oil Rs.18,000

Repairs and maintenance Rs. 8,000

Garage rent Rs.2,000

Taxes and insurance Rs.24,000 per annum

The bus costs Rs.4,00,000 and has a life of 10 years with an estimated scrap value of Rs.40,000.

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

A factory is engaged in the production of a chemical X and in the course of its manufacture, a by-product Y is produced, which after a separate process has a commercial value. For the month of January 2009, the following are the summarized cost data:

Joint expenses Separate expenses

X Y

Rs. Rs. Rs.

Materials 29,200 8,360 1,780

Labour 14,700 5,680 2,042

Overheads 3,450 1,500 544

The output for the month was 150 tonnes of X and 50 tonnes of Y and the selling price of X was Rs.500 per tone and that of Y Rs.290 per tone.

Assuming that the profit of Y is estimated at 25% of the selling price, prepare a statement showing the profit made on Product X.

The following details relate to the year 2004:

Material Rs.100000

Labor Rs.50000

Direct expenses Rs.20000

Factory overheads Rs.25000

Administration overheads Rs.39000

Selling overheads Rs.19500

Sales Rs.278850

During the year 2005 the company received a work order which requires, Material Rs.8000, Labor Rs.4000 and Direct expenses Rs.1500. What price should the company quote for this order, if it wants the same rate of profit on selling price as was realized in the year 2004? Assume factory overheads are recovered as a percentage of direct labor and administration and selling overheads as a percentage of works cost.

From the following information, calculate a composite machine rate, for a machine whose scrap value is Rs.20,000.
Cost of machine 3,80,000
Installation charges 40,000
Working life 10 years
Working hours 8000 per year
Repair charges 40% of depreciation
Power 10 units per hour at 40 paisa per unit.
Lubricating oil 4 per day of 8 hours
Consumable stores 10 per day of 8 hours
Machine operator’s wages 20 per day

In a factory, there are two Production depts., A and B, and two Service depts., X and Y. the overhead expense of these four depts. are as follows:

A – Rs.6,780; B – Rs.6,020; X – Rs.1,200 and Y Rs.1,000

The expenses of the Service Dept are to be divided between the other departments on the following percentage basis:

Dept. X Dept A 50% Dept B 30% Dept Y 20%

Dept. Y Dept A 50% Dept B 50% –

Prepare a statement showing the distribution of the Service dept expenses to the Production dept.
Dept A absorbs overheads at a rate per labor hour and Dept B at the rate per machine hour. The estimated labor hours and machine hours in the respective depts. are 2000 hours and 1000 hours respectively.

Calculate the overhead recovery rates for the two departments.

Calculate the price to be quoted for a job that requires Rs.500 in material, Rs.200 in wages and uses 6 Labor hours in Dept A and 4 machine hours in Dept B.

The company wants a profit of 50% on selling price.

PART – C

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

The following details are supplied by an oil distributing company for the month of October 2009.

Stock on 1^st October 2009 – 2000 litres at Rs.5 per litre

Receipts for the month:

7^th 1000 litres at Rs.6 per lt.

15^th 2000 litres at Rs.6.50 per lt

Issues during the month:

10^th 2500 litres

31^st 2200 litres

On 31^st October 2009 a shortage of 100 litres was noticed.

Prepare Stores Ledger under:

FIFO method
Weighted Average method.

From the following data calculate: (a) Equivalent production, (b) Cost per unit of equivalent production; and

No. of units introduced in the process A 4,000 units

No. of units completed and transferred in Process B 3,200 units.

No. of units in process at the end of the period 620 units.

Stage of completion:

Material 80%

Labour 70%

Overheads 70%

Normal process loss at the end of the process 200 units

Value of scrap Re.1 per unit

Value of raw materials Rs.11,228

Wages Rs.7,228

Overheads Rs.3,614

The following figures relate to R Ltd. for the year ending 31^st March 2007:

Financial A/cs (Rs.) Cost A/cs (Rs.)

Opening Stock:

Raw material 8000 5000

Work in progress 7000 8500

Finished stock 5000 4500

Closing Stock:

Raw material 3000 4500

Work in progress 3000 4700

Finished stock 6900 6200

Purchases 40000 40000

Direct wages 20000 20000

Factory overheads 18000 21000

Administration overheads 3000 2300

Selling overheads 4000 4500

Loss on sale of assets 1000 –

Interest and dividend received 1600 –

Sales during the year was Rs.1,20,000.

Calculate the profit in Financial A/cs and Cost A/cs and prepare a statement reconciling the two profits.

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Loyola College B.B.A. Business Administration April 2011 Cost Accounting Question Paper PDF Download

October 13, 2017 by 01 prakash

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.B.A. DEGREE EXAMINATION – BUSINESS ADMINISTRATION

FIFTH SEMESTER – APRIL 2011

BU 5504 – COST ACCOUNTING

Date : 19-04-2011 Dept. No. Max. : 100 Marks

Time : 1:00 – 4:00

PART A

Answer ALL questions Marks:10×2=20

Explain the following:

Rowan plan
Absorption of overheads
Equivalent units
Economic batch quantity
Fill in the blanks:
By products are always of lower value and importance than the ———–product.
Rent of building is apportioned on the basis of ————-.
Minimum consumption 150 units per week; maximum consumption 350 units per week; reorder period 2-4 weeks; reorder quantity 1000 units. Calculate maximum level and minimum level.
Profit as per financial accounts Rs.4000;

Factory overheads under-absorbed in cost accounts Rs.8000;

Closing stock over-valued in financial accounts Rs.3000.

Calculate profit as per Cost accounts

Standard time per unit 12 minutes; standard rate per hour Rs.60; differential to be used 80% and 120%. In a day of 8 hours A produced 50 units. Calculate his earnings under Taylors differential piece rate system.
Annual demand for a component is 6000 units. Setting up cost per batch Rs. 20; annual rate of interest 6%; cost of manufacture per unit Rs.100. Calculate Economic Batch quantity.
Calculate the amount of profit to be taken to P and L account.

Notional profit Rs.60000; cash received Rs.6,40,000 being 80% of works certified; contract price Rs.16,00,000. Calculate the profit to be credited to P and L account

PART B

Answer ANY FIVE questions Marks:5×8=40

a) Distinguish between Bin Card and Stores Ledger.
Write a note on ABC stock control.

Differentiate between financial accounting and cost accounting.

The following annual charges are incurred in respect of a machine in a shop where work is done by means of 5 similar machines.

Rent for the shop Rs.4800

Depreciation on each machine Rs.500

Repairs for 5 machines Rs.1000

Lighting charges for the shop Rs.540.

Sundry supplies for the shop Rs.450

There are two attendants for the 5 machines and they are each paid Rs.60 per month. There is one supervisor for the 5 machines who is paid Rs.250 per month.

Machine uses 10 units of power per hour at 50p per unit.

Calculate the machine hour rate, assuming each machine works for 1200 hours per annum.

Fast Roadways run 10 buses between two suburban centres which are 25 kilometres apart. Seating capacity of each bus is 30 passengers. The expenses for the month of March 2010 were as under:

(Rs)

Salaries of drivers and conductors 60,000

Salaries of mechanical staff 36,000

Taxes, insurance, etc. 20,200

Repairs and maintenance 28,000

Diesel and oil cost Rs.8 per litre. The vehicle runs 16 kms per litre. The cost of the vehicle is Rs.6,20,000. It has a life of 5 years and a salvage value of Rs.20,000 at the end of its life. Seating capacity utilised was 60%. All the buses ran 25 days a month. Each bus made four round-trips daily.

Find out the cost per passenger kilometre and the cost per round trip per passenger.

The following are the particulars relating to a contract which has begun on 1^st January 2010:

(Rs)

Contract price 5,00,000

Machinery 30,000

Materials 1,70,000

Wages 1,48,750

Direct expenses 6,330

Outstanding wages 5,380

Uncertified work 9,000

Overheads 8,240

Materials returned 1,600

Materials on hand 31^st December 2010 3,700

Machinery on hand 31^st December 2010 22,000

Value of work certified 3,90,000

Cash received 3,51,000

Prepare the Contract Account for the year 2010 showing the amount of profit that may be taken to the credit of Profit and Loss A/c of the year. Also show the amount of the work-in-progress as it would appear in the balance sheet of the year.

Compute the reorder level, minimum level, maximum level and average stock level for the component A based on the following data:

Maximum consumption per week 150 units

Average consumption per week 100 units

Minimum consumption per week 50 units

Reorder period 8 to 12 weeks

Annual consumption 4000 units

Ordering cost per order Rs.5

Cost per unit Rs.2

Storage and carrying cost 8% of annual inventory

A factory is engaged in the production of a Chemical X and in the course of its manufacture a by-product Y is produced, which after a separate process has a commercial value. For the month of January, the following are the summarised costing data:

Joint expenses Separate expenses

(Rs) X (Rs) Y (Rs)

Materials 19,200 7,360 780

Labour 11,700 7,680 2,642

On cost 3,450 1,500 544

The output for the month was 150 tons of X and 49 tons of Y and the selling price of Y averaged Rs.280 per ton.

Assuming that the profit on Y is estimated at 50% of the selling price, calculate the profit on X if its selling price is Rs.400 per tonne.

Net profits of Mayur Industries for the year ended 31.12.2010 as per Cost Account was Rs.1,60,000. However, financial records showed a different net profit. Scrutiny of the books of accounts revealed the following information:

Rs.

Interest on investments 10,000

Income tax provided 48,000

Loss due to obsolescence 6,800

Bank interest and transfer fees in financial accounts only as expenditure 1,250

Share transfer fees received 6,750

Depreciation charged in financial accounts 18,650

Depreciation charged in cost accounts 21,250

Works overhead under recovered in cost accounts 3,540

Closing stock under-valued in financial accounts 1,410

Prepare a reconciliation statement and show the amount of net profit as per financial accounts.

PART C

Answer ANY TWO questions Marks:2×20=40

Usha Engineering Works Ltd., manufactured and sold 1,000 sewing machines in 2010. Following are the particulars obtained from the records of the company:

Rs.

Cost of materials 80,000

Wages paid 1,20,000

Manufacturing expenses 50,000

Salaries 60,000

Rent, rates and insurance 10,000

Selling expenses 30,000

General expenses 20,000

Sales 4,00,000

Prepare a statement of Cost and Profit for the year 2010.

The company plans to manufacture 1200 sewing machines in 2011. You are required to submit a statement showing the price at which machines would be sold so as to show a profit of 10% on the selling price. The following additional information is supplied to you:

The price of materials will rise by 20% on the previous year’s level.
Wage rates will rise by 5%.

Manufacturing expenses will rise in proportion to the combined cost of materials and wages.

Selling expenses per unit will remain unchanged.
Other expenses will remain unaffected by the rise in output.

20 Prepare Process accounts, Normal Loss, Abnormal loss and Abnormal Gain accounts from the following details:

Process No.1 Process No.2

Materials (Rs) 30,000 3,000

Labour (Rs) 10,000 12,000

Overheads (Rs) 7,000 8,600

Inputs (units) 20,000 –

Output of the process 17,500 17,000

Normal loss on input 10% 4%

Sales value of scrap per unit Re.1 Rs.2

In a manufacturing concern there are four departments viz. A, B, C and D.

A and B are Production Departments and C and D are Service Departments. C renders service worth Rs.12,000 to D and balance to A and B in the ratio of 3:2. D renders service to A and B in the ratio of 9:1.

The overhead expenses incurred in a year are as follows:

Depreciation Rs.95,000

Rent, Rates and Taxes Rs.18,000

Insurance Rs. 7,600

Power Rs.10,000

Canteen expenses Rs. 5,400

Electricity Rs. 2,400

Following further information are given regarding the departments:

A B C D

Direct materials (Rs) 6,000 5,000 3,000 2,000

Direct labour (Rs) 20,000 10,000 10,000 5,000

Floor space occupied (sq.ft) 5,000 4,000 1,000 2,000

Value of assets (in lakhs) 10 5 3 1

H.P. of machines 1,000 500 400 100

No. of workers 100 50 50 25

Light and fan points 50 30 20 20

From the above particulars prepare a Statement showing overhead expenses of Production Departments A and B after redistribution of Service Department expenses. Also calculate the overhead recovery rate if it is based as a percentage on labour.

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Loyola College B.B.A. Business Administration April 2012 Cost Accounting Question Paper PDF Download

October 13, 2017 by 01 prakash

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.B.A. DEGREE EXAMINATION – BUSINESS ADMINISTRATION

FIFTH SEMESTER – APRIL 2012

BU 5504/BU 5501 – COST ACCOUNTING

Date : 30-04-2012 Dept. No. Max. : 100 Marks

Time : 9:00 – 12:00

SECTION – A

ANSWER ALL QUESTIONS: (10×2 = 20marks)

What is a cost sheet?
What is Bin Card?
What is Merit Rating?
What is ‘under-absorption’ of overheads?
Explain ‘Escalation Cause’.
Compute the prime cost: Rs.

Direct Material used 82,000

Productive wages 17,000

Royalty paid 11,000

Hire charge of special machines foe the job 13,000

Find out the Economic Order Quantity from the following particulars:

Annual usage 6,000 units

Cost of placing per unit Rs.20

Cost of placing and receiving one order:Rs. 60. Annual carrying cost of one unit: 10% of Inventory

value.

Mr.A a worker in a factory is paid on time basis. During the month of October 2010 he has worked

for 200 hours. His hourly wage rate is Rs.10 per hour.

Mr.B another employee of the company is paid on the basis of piece wages. During the month of

January 2010 his output was 1,000 units. Rate of wages per piece is Rs.3.

Calculate the wages of respective workers for the month of October 2010.

The works overheads of a department are Rs.3,00,000.

The direct wages are 3,00,000

The direct material cost is 9,00,000.

Ascertain the prime cost percentage rate of works overhead.

A company produces 300 units of product R, 200 units of product ‘S’ and 100 units of product J from

a single process. The costs upto the point of separation amounted to Rs.30,000. You are required to

apportion the joint cost of production among the products, using the average unit cost method.

SECTION –B

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

Discuss the advantages of Cost Accounting.
Explain the causes of labour turnover.
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 ; Minimum 2 months; Reorder quantity 750 units.

The following details pertain to the production department of a factory.

Material consumed Rs.60,000

Direct wages Rs.40,000

Machine hours Rs.50,000

Labour hours worked Rs.25,000

Factory overhead relating to the department Rs.50,000

Calculate overhead absorption rates under different possible method from the above detail.

Laxmi Travels, a transport company is running a fleet of six buses between two towns 75 kms apart.

The seating capacity of each bus is 40 passengers. The following particulars are available for the

month of April 2005.

Rs.

Wages of Drivers, Conductors, etc 3,600

Salaries of office and supervisory staff 1,500

Diesel oil, etc 10,320

Repairs and maintenance 1,200

Taxes and insurance 2,400

Depreciation 3,900

Interest and other charges 3,000

The actual passengers carried were 80% of the capacity. All the buses run all the days in the

month. Each bus made one round trip per day.

Find out the cost per passenger kilometre.

The following are the expenses of Balaji & Co., in respect of a contract which commenced on 1^st

January 2008.

Rs.

Materials purchased 50,000

Materials on hand 2,500

Direct wages 75,000

Plant issued 25,000

Direct Expenses 40,000

The contract price was Rs.7,50,000 and the same was duly received when the contract was completed in August 2008. Charge indirect expenses at 15% on wages; provide Rs.5,000 for depreciation on plant and prepare the contract account.

From the following particulars calculate the earnings of workers A & B under straight piece rate

system and Taylor’s differential piece rate system.

Standard time allowed 25 units per hour

Normal time rate Rs.50 per hour

Differentials to be applied

80% of piece rate when below standard

120% of piece rate at or above standard

In a day of 8 hours A produced 150 units and B produced 250 units.

The cost accounts department of a company has supplied the following data for the supply of 2,000

units of product.

Direct materials: 40,000 tons at Rs.5 per ton.

Direct wages : 8,000 labour hours at Rs.50 per hour

Overheads:

Variable: Factory Rs.10 per labour hour

Selling Rs.20 per unit

Fixed: Factory Rs.1,00,000

Office Rs.2,00,000

Prepare a Statement showing the price to be fixed which will fetch a profit of 25% on cost.

SECTION –C

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

From the following data, prepare a cost and production statement of Popular Stove Manufacturing

Company for the year 2010.

Rs.

Stock of materials on 1-1-2010 35,000

Stock of materials on 31-12-2010 4,900

Purchase of materials 52,500

Factory wages 95,000

Factory expenses 17,500

Establishment expenses 10,000

Completed stock in hand on 1-1-2010 NIL

Completed stock in hand on 31-12-2010 35,000

Sales 1,89,000

The number of stoves manufactured during the year was 4,000.

The company wants to quote for a contract for the supply of 1,000 electric stoves during the year 2011.

The stoves to be quoted are of uniform quality and make, and are similar to those manufactured in the

previous year; but the cost of material has increased by 15% and cost of factory labour by 10%.

Prepare a statement showing the price to be quoted to give the same percentage of net profit on

turnover as was realised during the year 2010 assuming that the cost per unit of overhead charges will

be the same as in the previous year.

Make out the necessary accounts from the following details:

Process A Process B

Rs. Rs.

Materials 30,000 3,000

Labour 10,000 12,000

Overheads 7,000 8,600

Input (units) 20,000 17,500

Normal loss 10% 4%

Sales of waste per unit Rs.1 Rs.2

There was no opening or closing stock or work-in-progress. Final output from process B was 17,000

units.

In a Light Engineering Factory, the following particulars have been collected for the three monthly

period ended 31-12-2008. Compute the departmental overhead rates for each of the production

departments, assuming that overheads are recovered as a percentage of direct wages.

Particulars

Production Departments

Service departments

Direct wages (Rs.)

Direct materials

Staff (Nos.)

Electricity (Kwh)

Light points (Nos.)

Assets value (Rs.)

Area occupied (Sq.mts.)

2,000

1,000

100

4,000

60,000

150

3,000

2,000

150

3,000

40,000

250

4,000

2,000

150

2,000

30,000

1,000

1,500

1,000

10,000

2,000

1,500

1,000

10,000

The expenses for the period were:

Rs. Rs.

Motive power 550 Amenities to staff 1,500

Lighting power 100 Repairs and maintenance 3,000

Stores overhead 400 General overhead 6,000

Depreciation 15,000 Rent and taxes 275

Apportion the expenses of service department E proportionate to direct wages and that of service department D in the ratio of 5:3:2 to departments A, B and C respectively.

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Loyola College B.B.A. Business Administration Nov 2012 Cost Accounting Question Paper PDF Download

October 13, 2017 by 01 prakash

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.B.A. DEGREE EXAMINATION – BUSINESS ADMINISTRATION

FIFTH SEMESTER – NOVEMBER 2012

BU 5504/BU 5501 – COST ACCOUNTING

Date : 06/11/2012 Dept. No. Max. : 100 Marks

Time : 9:00 – 12:00

PART A

Answer ALL questions: (10×2=20 marks)

Mention two differences between Bin Card and Stores Ledger.
Define Cost Unit. Give an example.
What is Economic Batch Quantity?
What is a Labour Hour Rate?
Fill in the blanks:
200 units closing work in progress 60% complete is equal to …………equivalent units.
Staff welfare expenses are apportioned among departments in the ratio of …………
From the following particulars, calculate the economic order quantity.

Annual requirements : 1,600 units

Cost of materials per unit : Rs.40

Cost of placing and receiving one order : Rs.50

Annual carrying cost of inventory : 10% of inventory value.

Rate per hour 1.50 per hour

Time allowed for job 20 hours

Time taken 15 hours

Calculate the total earnings of the worker under Rowan Plan.

Stock as on 1/1/2010 : 1000 units @ Rs.5 per unit

Purchases on 1/1/2010 : 9000 units @ Rs.6 per unit

Sale during the month : 8000 units

Calculate the value of closing stock on 31/01/2010, assuming the weighted average method of pricing is adopted.

A machine runs for 2000 hours a month, of which 100 hours is for non-production purposes. The fixed expenses of the machine is Rs.3800 per month and the variable expenses are Rs.3.00 per hour when run for production purposes only.

Calculate the machine hour rate.

The joint cost of making 40 units of Product A and 120 units of Product B is Rs.66.The selling price of the products at the split off point are Product A Rs.3 per unit and Product B Rs.2 per unit.

Calculate the share of joint cost of each product, if they are apportioned on sale value basis.

PART B

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

Write short notes on:
Labour turnover
Treatment of overtime in Cost Accounts.
Perpetual Inventory system
Retention money
Compare and contrast Financial Accounting with Cost Accounting.
Calculate the earnings of workers A and B under Straight Piece-rate System and Taylor’s Differential Piece-rate System from the following particulars.

Normal rate per hour : Rs.18

Standard time per unit : 20 seconds

Differentials to be applied:

80% of piece rate below standard

120% of piece rate at or above standard.

Worker A produces 1,300 units per day and worker B produces 1,500 units per day.

Calculate the minimum stock level, maximum stock level and re-ordering level from the following information:
Minimum consumption : 100 units per day
Maximum consumption : 150 units per day
Normal consumption : 120 units per day
Re-order period : 10-15 days
Re-order quantity : 1500 units
Normal delivery time : 12 days
From the following data prepare a reconciliation statement and ascertain the profit as per the financial accouts:

Rs.

Profit as per cost accounts 1,45,500

Works overheads under-recovered 9,500

Administrative overheads under-recovered 22,750

Selling overheads over-recovered 19,500

Overvaluation of opening stock in cost accounts 15,000

Overvaluation of closing stock in cost accounts 7,500

Interest earned during the year 3,750

Rent received during the year 27,000

Preliminary expenses written off during the year 27,000

A product passes through 2 processes, A and B before it is completed.

100 units of raw material are introduced in Process A at a cost of RS.10 per unit. Other details relating to the 2 processes are:

Process A Process B

Labour Rs.400 Rs.100

Other expenses Rs.202 Rs. 90

Normal loss as a %age of input 10 20

Sale value of normal loss per unit Rs.3 Rs.4

Output in units 75 70

Prepare Process accounts, Abnormal Loss Account and Abnormal Gain Account.

The Chennai Transport Co has been given a route 50 kms long to run a bus. The bus costs Rs.4,50,000. It has a life of 5 years and no salvage value. It is insured for 4% per annum and has an annual tax of RS.18,000 per annum. Other details are : Garage rent Rs.4,000 per month; Driver’s salary Rs.6,000 per month; Conductor’s salary : Rs.5,000 per month and office expenses Rs.10,000 per month.

Petrol will cost Rs.100 for 20 kms. The bus will run 3 round trips per day, carrying on an average 40 passengers on each trip. It will run for 30 days in a month.

If the company wants a profit of 20% on takings, what should be the fare per passenger kilometre?

The following information has been obtained from the records of Left-Centre Corporation for the period from January 1 to June 30, 2012.

Rs. Rs.

Cost of raw materials 30,000 25,000

Cost of work-in-progress 12,000 15,000

Transactions during six months are:

Purchases of raw materials 4,50,000

Wages paid 2,30,000

Factory overheads 92,000

Administration overheads 30,000

Selling and distribution overheads 20,000

90% of the production was sold @ a profit of 20% on sales.

Prepare statement of Cost and Profit.

PART C

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

A company undertook a contract for construction of a large building complex. The construction work commenced on 1^st April 2011 and the following data are available for the year ended 31^st March 2012.

Rs. Rs.

Contract price 350,000

Work certified 200,000

Progress payments received 150,000 Site Office cost 10,530

Materials issued to site 85,000 Direct expenses 9,020

Direct wages paid 62,500 Work not certified 1,490

Material returned from site 2,500

The contractors own a plant which originally cost Rs.20,000 has been continuously in use in this contract throughout the year. The residual value of the plant after 5 years of life is expected to be Rs.5,000. Straight line method of depreciation is in use.

As on 31^st March 2012 the direct wages due amounted to Rs.2,700 and the materials at site were estimated at Rs.2,000.

Prepare the contract account for the year ended 31^st March 2012.
Show the Contractee’s account.
Show the relevant balance sheet entries.
Following are the particulars for the production of 2,000 sewing machines of Nath Engineering Co. Ltd., for the year 2011.

Cost of materials Rs.1,60,000; Wages Rs.2,40,000; Manufacturing expenses Rs.1,00,000; Administration expenses Rs.1,80,000; Selling expenses Rs.40,000; Sales Rs.8,00,000.

Prepare a statement of cost and profit for 2011.

The company plans to manufacture 5,000 sewing machines during 2012.

The following additional information is supplied to you:

Price of material is expected to rise by 20%
Wages rates are expected show a decrease of 10%
Manufacturing 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.

Prepare a statement showing the price at which the machine should be sold in 2012 to earn a profit of 10% on sales.

The “Modern Company” is divided into four departments: A and B are production departments and X and Y are service departments. The actual costs for a period are as follows:

Rs. Rs.

Rent 1,000 Supervision 1,500

Repairs to plant 600 Fire insurance in respect of stock 500

Depreciation of Plant 450 Power 900

Light 350

The following information is available in respect of the four departments:

Dept A Dept B Dept X Dept Y

Area (sq.metres) 1500 1100 900 500

Number of employees 20 15 10 5

Direct wages (Rs.) 6000 4000 3000 2000

Value of Plant (Rs.) 24000 18000 12000 6000

HP of Plant 24 18 12 6

Light points 15 10 5 5

Direct material 4000 3000 1500 1000

Value of stock 1000 600 400 –

Apportion Service Dept X’s expenses between A, B and Y in the ratio of 2:2:1 and Service Dept Y’s expenses between A and B in the ratio of direct wages.

If the estimated machine hour in Departments A and B are 2000 hours and 1800 hours respectively, calculate the Machine Hour Rate for each department.

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Loyola College B.A. Corporate & Secretaryship Nov 2003 Cost Accounting Question Paper PDF Download

October 3, 2017 by 01 prakash

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034.

DEPARTMENT OF COPORATE SECRETARYSHIP

SECOND INTERNAL ASSESSMENT TEST

CR 5501 – COST ACCOUNTING

III B.A. (Corporate) Max. Marks : 40 marks

Date : 16/10/2003 Time : 5.15 – 6.45 p.m.

PART – A

Answer any THREE questions: ( 3 x 8 = 24 )

The following details pertain to the Production Department of XYZ Ltd;

Material Consumed – Rs.45,000

Direct Wages – Rs.60,000

Overheads – Rs.90,000

Direct Labour Hours – 15,000 hours

Machine hours – 30,000 hours

Find out different overhead absorption rates.

Work out the MHR for the following Machine whose scrap value is Nil.

Cost of Machine Rs.3,60,000.
Fright and installation Rs.40,000.

Working Life – 10 years

Working hours : 8,000 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.

Describe various reasons which cause difference between the profits disclosed by cost & financial accounts.

From the following data valuing to vehicle ‘X’ compute the cost per running km.

Rs.

Cost of Vehicle – 25,000

Road License (Annual) – 750.

Insurance (Annual) – 700

Garage rent (Monthly) – 50

Supervision & Salaries (Monthly) – 100

Driver Wages per hour – 3

Cost of Petrol per Litre – 3

Repairs & Maintenance per km. – 1.65

Tyre allocation per km. – 0.80

Estimated Life of vehicle (kms)- 1,00,000

Kilometres run (annual) – 15,000

Kilometres run per litre – 20

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

What is escalation clause? ( 2 marks )

Distinguish between job costing and Contract Costing. ( 6 marks )

PART – B

Answer any ONE question: ( 1 x 16 = 16 )

a) How much Profit, it any, you would allow to be considered in the following case.

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Loyola College B.A. Corporate & Secretaryship April 2007 Cost Accounting Question Paper PDF Download

October 3, 2017 by 01 prakash

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.A.

HO 10

DEGREE EXAMINATION – CORPORATE

FIFTH SEMESTER – APRIL 2007

CR 5501 – COST ACCOUNTING

Date & Time: 28/04/2007 / 1:00 – 4:00 Dept. No. Max. : 100 Marks

Section: A

Answer all questions: 10 x 2 = 20

State the objectives of Cost Accounting.

2) a) Imputed Cost is a ———- Cost.

b) Operating Costing is suitable for ———— Industries.

What is a Cost Sheet?

From the following figures calculate Economic Order Quantity and the number of orders to be placed in each year.

Annual consumption of materials – 4,000 units.

Cost of buying per order – Rs.5

Cost per unit- Rs.2 per unit.

Storage and carrying cost – 8% on average inventory.

Find out the value of closing stock under LIFO:

Purchases of material on 1-2-04: 1000 units’ @Rs.12 per unit.

Purchases of material on 5-2-04: 1500 units @Rs.14 per unit

Issue on 15-2-04: 2100 units.

Calculate the total earnings from the following data under Halsey plan and under Halsey-weir plan. Standard Time: 10 hours; Time taken: 8 hours; Time rate: Rs.2.50 per hour.

What are the bases for apportionment of expenses given below to the different departments? 1) Depreciation, 2) Canteen expense, 3) Factory cleaning, 4) Crèche expenses, 5) Power.

8) Write short note on a) Work Certified, b) retention money.

Answer the following questions in a sentence or two: A) How the normal loss treated in process costing? B) How is abnormal loss valued in process costing?

A transport service company is running four buses between two towns which are Apart. Seating capacity of each bus is 50 passengers. Actual passengers carried were 80% 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

Distinguish between Financial accounting and Cost accounting.

Briefly explain various inventory control techniques.

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

A) Compute machine hour rate from the information given below;

Cost of machine X Rs.13, 500.

Life of the machine – 10 years.

Estimated scrap value after 10 years Rs.1, 980.

Working hours 1800.

Insurance per annum Rs.45

Cotton wastes per annum Rs.75

Rent of dept. per annum Rs.975

Foreman’s salary per annum Rs.7500

Lighting for dept. per annum Rs.360

Repairs for entire life Rs.1440

Power: 10 units @ 7.5 paise per unit.

Machine X occupied 1/5 of the area and foreman devotes ¼ of his time to the machine. The machine has two light points out of the total 12 for lighting in the department.

B) Distinguish between allocation and apportionment.

The following details are available from the books of accounts of accounts of a contractor for the year ended 31^st March, 2004 with respect top particular contract No.113. He has undertaken for a manufacturing organization:

Materials sent to site 5, 11,800

Labour engaged in site 4, 66,100

Cost of plant installed at site 1, 00,000

Direct expenses 24,000

Establishment expenses 29,000

Materials returned to stores 2,120

Work certified 10, 70,000

Cost of work not certified 31,000

Materials in hand as on 31^st March, 2004 12,220

Accrued wages as on 31^st March, 2004 11,160

Accrued Direct expenses 1,330

Value of plant as revealed on 31^st March, 2004 88,000

The contractor price agreed upon with the Contractee is Rs.13, 00,000 payment of Rs.9, 90,000 has been received from the Contractee. You are required to prepare the contract account, computing and incorporating the said account the profit to be taken to the profit and loss account for the year ended 31^st March, 2004.

16) 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.0.50 per unit, B at Re.1 per unit and C at Rs.2 per unit. 20,000 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 2,000 3,000 1,000

Labour 10,000 16,000 13,000

Direct expenses 2,100 2,367 4,018

Actual output (units) 19,000 18,200 16,200

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.

A) From the following information calculate: a) Economic order quantity, b) Reorder level, c) Maximum level, d) Minimum level.

B) Draw a stores ledger card recording the following transaction under FIFO method.

2000 July. 1 Opening stock 2,000 units at Rs.10 each.

5 Received 1,000 units at Rs.11 each.

6 Issued 500 units

10 Received 5,000 units at Rs.12 each.

12 Received back 50 units out of the issue made on 6^th July.

14 issued 600 units.

18 Returned to supplier 10o units out of goods received on 5^th July.

19 Received back 100 units out of the issue made on 14^th July.

20 Issued 150 units.

25 Received 500 units at RS.14 each.

28 Issued 300 units.

The stock verification report reveals that there was a shortage of 10 units on 18^th July and another shortage of 15 units on 26^th July.

A manufacturer of product X finds that in 2005 it cost him Rs.7,20,060 to manufacture 175 products of X, which he sold for Rs.5,400 each. The cost made up of:

Materials Rs.2, 82,000

Direct wages. Rs.3, 24,000

Factory Overhead. Rs. 48, 600

Office Overhead. Rs. 65, 460

For the next year he estimates that:

Each product will require materials of Rs.1, 600 and labour Rs.1, 800.
The factory overhead will bear the same relation to wages as in the previous year.
The office overhead percentage on factory cost will be the same as in the past. Prepare a statement showing the profit he would make per unit, if he reduces the price of the product by Rs.200.

Section – C

Answer any two only. 2 x 20 = 40

Electronics Ltd., furnish the following information. It has three production departments A, B and C and two service departments D and E. The following figures are extracted from the records of the company:

Rent and Rates. Rs.5, 000. Power Rs. 1, 500

General lighting Rs. 600 Depreciation on Machinery Rs.10, 000

Indirect wages Rs. 1500 Sundries Rs.10, 000

The following further details are available:

Particulars A B C D E

Floor Area (Sq.mts.) 2000 2500 3000 2000 500

Light points 10 15 20 10 5

Direct wages (Rs) 3000 2000 3000 1500 500

H.P.of Machine 60 30 50 10 —-

Value of Machine.Rs.60000 80000 100000 5000 5000

Working hours 6226 4208 4066

The expenses of D and E are allocated as follows:

A B C D E

D 20% 30% 40% — 10%

E 40% 20% 30% 10% —

What is the total cost of an article if its raw material cost is Rs.50. Labour cost Rs.30, and it passes through departments A, B and C for 4, 5 and 3 hours respectively?

The following data are available is respect of Process I for a month.

Opening work in-progress: 900 units at Rs.4500

Degree of completion: Materials 100%, Labour 60%, Overhead 60%

Input of Materials: 9100 units at Rs.27, 300

Direct wages: Rs.8, 200

Production overhead: Rs.16, 400

Units Scrapped: 1,200 units

Degree of completion: Materials 100%, Labour 70%, Overhead 70%

Closing work in progress: 1000 units

Degree of completion: Materials 100%, Labour 80%, Overhaead 80%

Units transferred to next

Process: 7, 800 units.

Normal process loss in 10% of total input (opening stock plus units put in); Scrap value is Rs.3 per unit.

Required:

Compute equivalent production
Compute cost per equivalent unit for each element and cost of abnormal loss or gain, closing WIP and units transferred to the next process; and
Prepare necessary accounts.

From the following particulars prepare:
- A statement of cost of manufacture for the year 2005
- A statement of profit as per cost accounts and
- Profit and loss account in the financial books
- Prepare also a reconciliation between cost and financial records

Rs.

Opening stock of raw materials 30, 000

Opening stock of finished goods 60, 000

Purchase if raw materials 1, 80,000

Stock of raw materials at end 45, 000

Stock of finished goods at end 15, 000

Wages 75, 000

Calculate the factory expenses at 25% on prime cost and Office expenses at 75% on factory expenses.

Actual works expenses amounted to Rs.58, 125 and actual office expense amounted to Rs.45, 750. The selling price is fixed at a profit of 25% on cost.

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