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Tuesday, May 21, 2019

Gauhati University Question Papers:Cost Accounting (Nov-Dec’ 2014)

Full Marks: 80
Time: 3 hours
(The figures in the margin indicate full marks for the questions)
1. Answer as directed:                                                       1x6=6

a)         What is just-in-Time Purchasing?
b)         Define ‘Codification of materials’.
c)          What is ‘Time Booking’ in Labour Cost Control?
d)         Mention the meaning of ‘Time and Motion Study’.
e)         Give two features of ‘Process Costing’.
f)          Mention two difficulties involved in process costing.
2. Answer the following questions briefly:                                         3x5=15
a)         Explain the practical difficulties faced while installing Cost Accounting System in are organisation.
b)         Define, with examples, the meaning of
1)         Cost Unit and
2)         Cost Centre.
c)          What are the essential of ‘Perpetual Inventory System’?
d)         Mention the causes of high labour turnover.
e)         Discuss the applicability of Process Costing.
3. Answer the following questions:                                                      5x2=10
(a) Write a brief note on ‘Methods of Classification’ of overheads in cost accounting.
Write a brief note on ‘Methods of overhead absorption in Cost Accounting.
(b) Describe the treatment of the following items in Cost Accounting:
1)         Depreciation.
2)         Interest of Capital.
The following budget is presented before you for the year 2014-15.

Factory overheads
Direct labour cost
Direct labour hours
Machine Hours
15,500 hours
50,000 hours
There will be 3,000 direct labour and 10 machines working during 2014-15.
You are required to calculate –
1)         Direct Labour Hour Rate.
2)         Direct Labour Cost Rate.
3)         Machine Hour Rate.
4. Explain the following questions:                                                   5x2=10
a)         Explain the meaning and basic features to ‘Integral System of Cost Accounting records’.
b)         Explain the possible reasons for differences between Profit (Loss) shown by Cost Accounts and Financial Accounts.
5. Answer the following questions:
(a) From the following information, prepare a Cost Sheet showing cost per unit and show the profit for the month of January 2014.                                 9

Raw Materials Consumed
Direct wages
Selling Overhead per unit
Machine hours worked
Machine hour rate
Office Overhead
Unit Produced
Unit Sold
8,000 hours
4 per hour
10% of works cost
3,600 @ Rs. 50 each

(b) From the following particulars find out the value of Closing Inventory as on 31.3.2014.                         10

2014, March
400 kgs @ Rs. 2.50 per kg.
800 kgs @ Rs. 3.00 per kg.
500 kgs @ Rs. 3.50 per kg.

2014, March
600 kgs.
500 kgs.
600 kgs.
Stock on March 1, 2014 was 500 kgs valued @ Rs. 2.00 per kg. The stock verification on March 27 revealed that there was a loss of 10 kg. Apply FIFO Method.
Discuss the merits and demerits of FIFO and LIFO methods of inventory valuation.
(c) Calculate the total monthly remuneration of two workers: A and B from the following data:                              10
1)         Standard production per month per workers 200 units.
Actual Production:
A: 1,800 units
B: 1,600 units.
2)         Piece Work rate in Re. 1.00 per unit of actual production.
3)         Additional production bonus is Rs. 20 for each percentage actual production exceeding 80% of actual production.
Give the treatment of the following items as applied in Cost Accounting:           10
1)         Direct Expenses.
2)         Indirect Expenses.
3)         Interest on Capital.
4)         Research and Development expenses.
5)         Depreciation.
(d) The following is the condemned record of transaction on 31st March, 2014 relating to a special contract completed on the same financial year.                                          10

Materials bought from Market
Materials issued from the Stores
Direct Expenses
Work on cost 25% of Direct Wages; Office on cost 10% of Prime Cost; Contract Price Rs. 12,000.
You are required to prepare a Contract Account keeping in view that material returned amounted to Rs. 480.


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