Sunday, June 09, 2019

Dibrugarh University B.Com 4th Sem: Cost Accounting Question Papers (May' 2019)


2019 (May)
COMMERCE (General/Speciality)
Course: 401 (Cost Accounting)
Time: 3 hours
The figures in the margin indicate full marks for the questions
 (NEW COURSE)
Full Marks: 80
Pass Marks: 24
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.
c)       Rowan premium bonus plan.
d)      Manufacturing overheads.
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.
(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.
d)      Apportionment of overheads.
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);
3)         Rowan premium scheme.                                        3+4+4=11
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
***

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