Dibrugarh University - Cost Accounting 1985

Answer any five:-
1. What is cost accounting? Why is cost accounting necessary? Explain the relationship between cost & financial accounting.                (5+5+10)
2. Describe in details the procedure of purchasing material from outside.(20)

3. State briefly the different methods of wage payment.              (20)

4. Define standard cost, standard costing & variance analysis. Mention briefly the various cost variances. (12+8)

5. Write short notes on :-(5x4)
a)      Bin card.
b)      ABC analysis.
c)       Premium plan.
d)      Abnormal wastage.

6. It has been mentions that the cost standards for material consumption are 40 kg @ Rs10 per kg. Compute the variance when actual are :-(5x4)
a)      48 kg @ Rs10 per kg
b)      40 kg @ Rs12 per kg
c)       48 kg @ Rs12 per kg
d)      36 kg for a total cost of Rs360

7. From the following particulars prepare a statement showing (a) the cost of materials consumed (b) prime cost (c) work cost (d) total cost (e) the percentage of works on cost to productive wages (f) the percentage of general expenses on cost to works cost.    (2X6)

                Stock of finished goods on 31/12/1983                                                                   72800
                Stock of raw materials on 31/12/1983                                                                     33280
                Purchase of raw materials                                                                                       759200
                Productive wages                                                                                                       516880
                Sales of finished goods                                                                                           1539200
                Stock of finished goods on 31/12/1984                                                                   78000
                Stock of raw materials on 31/12/1984                                                                     35360
                Workers overhead                                                                                                     129220
                Office & general expenses                                                                                          70160
                Interest on capital                                                                                                             5000

                The company is about to send a tender for a large plant. The costing department estimates that the materials required would cost Rs52000 and the wages to workers for making the plant would cost Rs31200. The tender is to be made at a net profit of 20% on the selling price. Show what the amount of the tender would be if based on the above percentage. (8)

8. From the following figures show the cost of three processes of manufacture. The production of each process is passed on the next process immediately on completion: -(4+8+8)

Process A
Process B
Process C
Wages & materials
Works overhead
Productions in units
Stock (units from preceding process 1/7/84)
Stock (units from preceding process 31/7/84)
Prepare A, B, C, process A/c.