# Cost Accounting Question Paper May' 2019, Dibrugarh University B.Com 4th Sem CBCS Pattern

## Cost Accounting Question Paper 2019 (May)Dibrugarh University B.Com 4th Sem CBCS PatternCommerce (General/Speciality)Course: 401Full Marks: 80Time: 3 Hours

1. (a) Choose the correct answer:      1x4=4
1)      Prime cost includes
a)      Direct material + Direct labour + Works expenses.
b)      Direct material + Direct labour + Chargeable expenses.
c)       Direct material + Direct labour + Office expenses.
2)      Purchase budget should be prepared by the
a)      Financial Manager.
b)      Production Manager.
c)       Purchase Manager.
3)      Depreciation is a
a)      Fixed expenses.
b)      Variable expenses.
c)       Semi-variable expenses.
4)      In process costing, the abnormal loss is treated as
a)      Period cost.
b)      Unit cost.
c)       Future cost.
(b) Fill in the blanks:              1x4=4
1)      Fixed cost per unit _______ with rise in output.
2)      Re-order quantity may be measured in _______.
3)      Fixed overhead cost is a _______ cost.
4)      The need of reconciliation arises in _______ accounting system.
2. Write short notes on (any four):    4x4=16
a)      Techniques of costing.
b)      ABC analysis.
e)      Abnormal process loss.
3. (a) Discuss in detail the advantages and limitations of Cost Accounting.                      8+6=14
Or
(b) Following data are taken from the Cost Accounts of a manufacturer in respect of the month of March 2019:
 Particulars Rs. Stock in hand on 1st March 2019: Raw materials Work-in-progress Finished goods Purchase of raw materials Sale of finished goods Direct wages Stock in hand on 31st March, 2019: Raw materials Work-in-progress Finished goods Non-productive wages Works expenses Office and administrative expenses Selling and distribution expenses 25,000 8,220 17,360 21,900 72,310 17,150 26,250 9,100 15,750 830 8,430 3,160 4,210
Prepare a Statement of Cost and Profit showing the following:                            2x7=14
1)      Cost of materials consumed.
2)      Prime cost.
3)      Works cost.
4)      Cost of production.
5)      Cost of goods sold.
6)      Cost of sales.
7)      Profit for the month.
4. (a) A statement of materials received and issued in March 2019 is given below:
 March 1 March 5 March 8 March 10 March 16 March 20 March 23 March 27 March 31 Opening stock of materials 4,400 units @ Rs. 8 per unit Purchased 550 units @ 10 per unit. Issued 2,200 units. Purchased 6,600 units @ 12 per unit. Issued 4,400 units. Issued 1,100 units. Issued 2,200 units. Purchased 4,950 units @ 11 per unit Issued 3,300 units.
From the above statement, prepare Stores Ledger by applying –
1)      First-in-first-out method;
2)      Last-in-first-out method;                                      7+7=14
Or
(b) (1) What is idle time? What are its causes?                                                    6
(2) A worker takes 12 hours to complete a work on daily wages and 8 hours on a scheme of payment by results. Worker’s daily rate is Rs. 6 per hour. The cost of material of the product is Rs. 20 and the overheads are recovered at 200% of the total wages. Calculate the Factory Works Cost of the product under:
1)      Rowan plan;
2)      Halsey scheme;  4+4=8
5. (a) Define overhead. How are overheads classified? Explain four reasons of over-absorption and under-absorption of overheads.         4+5+5=14
Or
(b) From the following information, work out the production hour rate of recovery of overhead in department P1, P2 and P3:       14
 Particulars Total Production Departments Service Departments Rs. P1 P2 P3 S1 S2 Rent (Rs.) Electricity (Rs.) Fire insurance (Rs.) Plant depreciation (Rs.) Transport (Rs.) Estimated working hours 1,000 200 400 4,000 400 - 200 50 80 1,000 50 1,000 400 80 160 1,500 50 2,500 150 30 60 1,000 50 1,800 150 20 60 300 100 - 100 20 40 200 150 -
Expenses of service departments S1 and S2 are apportioned as under:
 P1 P2 P3 S1 S2 S1 30% 40% 20% - 10% S2 10% 20% 50% 20% -

6. (a) (1) What is process costing? What are its features? Name any three industries in which process costing is used. 2+5+3=10
(2) Distinguish between normal process loss and abnormal process loss.   4
Or
(b) A company’s Trading and Profit & Loss Account was as follows:
 Rs. Rs. Purchases Direct wages Works expenses Selling expenses Administration expenses Depreciation Net profit 25,210 10,500 12,130 7,100 5,340 1,100 20,300 Sales (50,000 units at Rs. 1.50 each) Discount received Profit on sale of land Closing stock 75,000 260 2,340 4,080 81,680 81,680
The profit as per Cost Accounts was only Rs. 19,770. Reconcile the financial and cost profits using the following information:                                                 14
1)      Cost accounts value of closing stock Rs. 4,280.
2)      The works expenses in the Cost Accounts were taken as 100% of direct wages.
3)      Selling and administration expenses were charged in the Cost Accounts at 10% of sales and Rs. 0.10 per unit respectively.
4)      Depreciation in the Cost Accounts was Rs. 800.

### Also Read: Cost Accounting Question Papers and Solutions

 Cost Accounting Question Papers Cost Accounting Solved Papers Old Course New Course 20192022 (CBCS PATTERN) 201020112016 20172019
(OLD COURSE)
Full Marks: 80
Pass Marks: 32
1. (a) Fill in the blanks:                                                                            1x4=4
1)         _______ is defined as ‘the technique and process of ascertaining costs’.
2)         A _______ provides a complete record of all materials received and the quantity thereof.
3)         The rate of change in the composition of labour force in an organization is termed as _______.
4)         _______ is the aggregate of indirect material, indirect labour and indirect expenses.
(b) Choose and write the correct answer:                                                1x4=4
1)         Unit costing / Job costing is employed in paper mill industries.
2)         In case of rising prices, LIFO / FIFO method of pricing material issues reports higher income.
3)         Cost of normal idle time is always controllable / uncontrollable.
4)         Fixed overheads per unit is reduced / increased when volume of output is increased.
2. Write on the following (any four):    4x4=16
a)      Elements of cost.
b)      Scope of Cost Accounting.
c)       ABC analysis.
e)      Cost audit.
f)       Cost sheet.
3. (a) Prepare a Cost Sheet from the following:    11
 Particulars Rs. Sales Materials 1.1.2018 Materials 31.12.2018 Work-in-progress 1.1.2018 Work-in-progress 31.12.2018 Finished goods 1.1.2018 Finished goods 31.12.2018 Materials purchased Direct labour Manufacturing overheads Selling expenses General office expenses 8,00,000 40,000 32,000 55,000 72,000 64,000 1,51,000 1,52,000 1,45,000 1,08,000 50,000 40,000
Or
(b) Distinguish between the following:      6+5=11
1)      Direct cost and Indirect cost.
2)      Fixed cost and Variable cost.
4. (a) XYZ Ltd. manufactures a product A and provides you the following particulars:
 Cost of placing an order Annual carrying cost per unit Normal usage Minimum usage Maximum usage Re-order period Rs. 90 Rs. 5.20 50 units per week 25 units per week 75 units per week 4 to 6 weeks
Compute from the above:                                           11
1)      Re-order quantity.
2)      Re-order level.
3)      Minimum level.
4)      Maximum level.
5)      Average stock level.
Or
(b) Explain the meaning and purpose of the following documents:     4+3+4=11
1)      Purchase Requisition.
2)      Bin Card.
3)      Stores Ledger.
5. (a) From the following particulars, you are required to work out the earning of worker for a week under –
1)         Straight piece rate;
2)         Halsey premium scheme (50% sharing);
 Weekly working hours Hourly wage rate Piece rate per unit Normal time taken per unit Normal output per week Actual output per week 48 Rs. 7.50 Rs. 3.00 24 minutes 120 units 150 units
Or
(b) What is idle time? Explain its causes. How is idle time treated in Cost Accounts?       3+4+4=11
6. (a) Compute the machine hour rate from the following data:       12
 Particulars Rs. Cost of machine Installation charges Scrap value after 10 years Rent of the ship per month General lighting for the ship per month Insurance for the machine p.a. Repairs p.a. Power consumption 10 units per hour and average rate of power per unit Shop supervisor’s salary p.m. Estimated working hours p.a. 10,00,000 1,00,000 50,000 10,000 2,000 9,000 10,000 4 15,000 2,500
The machine occupies one-fourth of total area of the shop. Supervisor denotes one-third of his time for the machine.
Or
(b) What are the causes of under-absorption and over-absorption of overheads? How will you deal with them in Cost Accounts?           7+5=12
7. (a) A product of XYZ Ltd. Co. possesses through two processes A and B. 10,000 units at a cost of Rs. 1.10 were issued to process A. Other direct expenses were as follows:
 Particulars Process – A Process – B Sundry materials Direct labour Direct expenses Output (units) Rs. 2,000 Rs. 4,500 Rs. 1,500 9,000 Rs. 2,000 Rs. 8,000 Rs. 1,500 9,120
Wastage of process A was 5% and in process B 4%.Wastage of process A was sold at 0.25 per unit and that of process B at 0.50 per unit. Overhead charges were 160% of direct labour. Prepare Process – A A/c and Process – B A/c.           11
Or
(b) (1) Explain the special features of contract costing.                    5
(2) How does cost audit differ from financial audit?                          6
***