Dibrugarh University - Cost Accounting 1988

Answer any five questions:-

1. Explain the different method of costing. State in what types of industries each of these methods can be applied. (20)

2. Describe the routine for control of the purchases & receipts of materials from suppliers. (20)

3. Define ‘selling overhead’ & ‘distribution overhead’. How are these overhead appointed to the products? (10+10)

4. Define normal & abnormal process losses. Why such losses occur? How are these losses dealt with a cost account? (20)

5. The following particulars have been obtained from the cost records of an industrial concern:-

a.       Stock of raw materials on 1/1/1987                                                                          Rs10000
b.      Stock of finished products on 1/1/1987 (2000 tons)                                          Rs  8000
c.       Purchase of raw materials                                                                                            Rs60000
d.      Direct wages                                                                                                                      Rs50000
e.      Carriage inward                                                                                                                Rs  1000
f.        Factory rent                                                                                                                       Rs20000
g.       Stock of raw materials on 31/12/1987                                                                     Rs11000
h.      Stock of finished products on 31/12/1987                                                             (4000 tons)                                        
i.         Work in progress on 1/1/1987                                                                                    Rs  2400
j.        Work in progress on 31/12/1987                                                                                Rs  8000
k.       Sales of finished products                                                                                            Rs150000
l.         Cost of factory supervision                                                                                          Rs  4000

Advertising & selling costs were Rs0.40 per ton sold. 32000 tons of the commodities were produced during the period.
From the given particulars, prepare the following two statements: - (10+10)
a.       Statement of cost of production of goods produced.
b.      Statement of net profit per ton of the commodity.

6. Write short notes on: - (5x4)
a.       Stores ledger
b.      Re-order level
c.       Cost unit
d.      Cost control

7. Compute the machine hour rate from the following data: - (20)

                Cost of machine                                                                                                               Rs100000
                Installation charges                                                                                                         Rs  10000
                Estimated scrape value after the expiry of its life (15 yrs)                             Rs    5000
                Rent of the shop per month                                                                                       Rs     200
                General lighting of the shop per month                                                                 Rs     300
                Insurance premium for the machine per annum                                                Rs     960
                Repairs expenses per annum                                                                                     Rs   1000
                Power consumption – 10 units per hour
                Rate of power per 100 units                                                                                        Rs      20
                Estimated working hours per annum 2200. This includes setting up time of 200 hours.
                Shop supervision’s salary per month                                                                      Rs     600

                The machine occupies 1/4th of the total area of the shop. The supervision denotes 1/5th of his time for supervising .

8. From the following data show the total earnings per hour of each workers separately under: a) The Halsey b) The Rowan premium schemes

                Workers                                                 A             B             C             D             E
                Time allowed-hours                         3              4              5              6              7
                Actual time- hours                            5              3              4              5              3
                Basic wages per hours (Rs)          2              2              2              2              2                                                                              (10+10)