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Tuesday, May 21, 2019

Gauhati University Question Papers:Cost Accounting (Nov-Dec’ 2013)

Full Marks: 80
Time: 3 hours
(The figures in the margin indicate full marks for the questions)
1. Answer as directed:                                                            1x10=10
1)         Cost Accounting is generally concerned with internal reporting for managerial requirement. (State whether the statement is True or False)
2)         Cost is expressed in ‘Rs.’ Pr physical unit (like metre, kg, km, tonne etc.) (State whether the statement is True or False)
3)         Calculate the value of raw materials consumed if Raw materials purchased Rs. 88,000, Opening stock of raw materials Rs. 1,00,000 and Closing Stock of raw materials Rs. 1,23,500.
4)         Select the most appropriate:
Material control covers:
a)         Purchase of Materials.
b)         Issue of Materials.
c)          Storing of Materials.
d)         All of the above.
5)         Materials should be issued by the storekeeper against _______ slip. (Fill in the blank)
6)         Stock verification sheets are maintained to record the result of _______. (Fill in the blank)
7)         Time and Motion study is conducted by Payroll Department. (State whether the statement is True or False)
8)         Cost of Abnormal idle time is transferred to _______. (Fill in the blank)
9)         Wages sheet is prepared by the Select the most appropriate:
a)         Personnel department.
b)         Pay-roll department.
c)          Cost accounting department.
d)         None of the above.
10)      Overhead cost is the aggregate of indirect material cost, indirect wages and _______. (Fill in the blank)
2. Answer the following very briefly:                              2x5=10
1)         Write the meaning of cost classification.
2)         State at least four items of expenses/losses which will not form a part of the costs as per cost accounting.
3)         Write the meaning of merit rating.
4)         Write the meaning of cost apportionment.
5)         What basis would you follow for distribution of the following overhead expenses to departments?
Factory rent, Municipal rent and Taxes, ESI, Store service expenses.
3. (1) The following information relates to the manufacturing of a standard product during June 2013:
(1) Write the meaning of cost classification.

Amount in Rs.
Raw materials
Direct labour
Machine hour rate
Machine hour worked
Administrative overheads 20% of
Works cost selling overhead Rs. 5 per unit
Units Produced
Units Sold
900 hours

17,100 units
16,000 units @ 40 per unit
You are required to prepare statement of cost, showing cost and profit per unit sold.
(2) State five features of a good cost accounting system.                              5
(3) Write five causes of under or over absorption of overheads.                        5
Write five objectives of departmentalization overheads.               5
(4) Briefly describe the process costing procedure.                                       5
Briefly describe the accounting treatment of the following while preparing contract Account.
a)         Depreciation of Plant.
b)         Cash Ratio and Retention Money.
4. Barpeta Rice Enterprise do not maintain perpetual inventory system. Only physical inventory was taken at the end of each month. The physical inventory at the end of Dec. 2012 showed 200 bags of fine rice at Rs. 212.25 per bag. The following purchases were made during the month of January, 2013:
3rd Jan.
10th Jan.
15th Jan.
28th Jan.
30th Jan.
400 bags at Rs. 218 per bag.
900 bags at Rs. 223.50 per bag.
400 bags at Rs. 220 per bag.
700 bags at Rs. 213 per bag.
300 bags at Rs. 224 per bag.
On 31st January, 2013, the physical stock was 1,200 bags. You are required to calculate the value of the stock on 31st January, 2013 according to
1)      FIFO method.
2)      LIFO method and
3)      Average cost method.
Explain briefly the meaning of Maximum Level, Minimum Level and Re-ordering Level in maintenance of stock in an organisation. What is the factor that governs the fixing of these levels?                                                 10
5. From the following particulars, prepare the labour cost per man day of 8 hours.                            10

Basic pay Rs. 5 per day.
Dearness allowance Rs. 25 per every point over 100 cost of living index for working class. Current cost of living index is 700 points.
Leave salary, 10% of (1) and (2).
Employer’s contribution to Provident Fund 8% of (1) (2) and (3).
Expenditure on amenities to labour Rs. 20 per head per month.
Number of working days in a month 25 days of 8 hours.

Write short notes on:                                                                            5+5=10
1)         Job evaluation.
2)         Job analysis.
6. Describe briefly the principal accounts to be maintained in the Cost Ledger and state their functions.                                 10
Why in Reconciliation of Cost and Financial Accounts necessary? State the possible reasons for differences between profits shown by both the accounts.                                5+5=10
7. The following expenditure was incurred for producing 190 units of a standard product

Material issued (200 units)
Direct Labour
Indirect expenses
Normal wastage 5% of the input
Prepare Process Account and Calculate the per unit cost of the good units if:
1)      Scrap value of wastage sold at Rs. 33 per unit.
2)      Scrap value of wastage is nil.
The following figures relate to two jobs of a building contractor.

Contract A
Contract B
Total expenditure upto 31st Dec 2010
Wages paid in 2011
Materials issued in 2011
Indirect expenses charged in 2011
In each case the work was actually completed on 30th Nov. 2011 but contract could not be considered as completed until the maintenance period of six months had expired on 31st May, 2012.
Prepare Contract Account in Columnar form and state what profit or less (is any) should be transferred to Profit and Loss Account of 2011 supposing maintenance expenses to be Rs. 200 per month for each contract.                                    10


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