Dibrugarh University - Cost Accounting 1992

Answer any five questions:-

1. What do you understand by cost accounting? In what ways are they useful to the management of industrial concerns?                (5+15)

2. What is labour-hour-rate? How is it ascertained? In what respect it differs from a machine-hour-rate? (5+7+8)

3. What do you mean by administration overheads? Give four examples. How are administration overhead allocated to the products? (5+2+13)

4. Give specimen of a Bin card & a Stores ledger? What are the differences between the two? (8+12)

5. What do you mean by standard costing? Explain its advantages & disadvantages. (6+14)

6. a) Mention the essential characteristics of a good system of wage payment. (10)

b) During the first week of Jan 92’, the workmen Sri Mahendra Tanti manufactured 300 articles. He receives wages for a
guaranteed 48 hours per week at the rate of Rs4 per hour. The estimated time to produce one articles is 10 minute & under
incentive scheme the time allowed is increased by 20%.
Calculate his gross wages & effective hourly rate according to:-
a.    Price work with a guaranteed weekly wage.
b.   Rowan Premium Plan.
c.    Halsey Premium Bonus, 50% to workmen. (10)

7. A statement of material received & issued in March 92 is given below:-
March 1                Opening stock of materials 4000 units @ Rs4 per unit.
March 5                Purchased 500 units @ Rs5 per unit.
March 8                Issued 2000 units.
March 10             Purchased 6000 units @ Rs6 per unit.
March 16             Issued 4000 units.
March 20             Issued 1000 units.
March 23             Issued 2000 units.
March 27             Purchased 4500 units @ Rs5.50 per unit.
March 31             Issued 3000 units.
From the above statement prepare two separate stores ledger accounts by applying the following two methods: - (10+10)
a)   First in First Out (FIFO)
b)   Last in First Out (LIFO)

8. What do you mean by Standard costing? What are its advantages & disadvantages? (20)