2015
(July)
COMMERCE
Paper: 107
(Cost Accounting)
Full Marks: 90
Time: 3 hours
The figures in the
margin indicate full marks for the questions
1.
(a) Outline the steps involved in installing a costing system in a
manufacturing unit. What are the essentials of an effective costing system? 8+6=14
Or
(b) Explain the term ‘cost accounting’. How does it
contribute to the planning of business operations? 14
2.
(a) “Stores Ledgers are essential to an efficient costing system”. Give your
views on this statement highlighting the uses and values of Stores Ledgers. 14
Or
(b) Your factory buys and uses a component for production
at Rs. 10 per piece. Annual requirement is 2,000 number of pieces. Carrying
cost of inventory is 10% per annum and ordering cost is Rs. 40 per order. The
Purchase Manager argues that as the ordering cost is very high, it is
advantageous to place a single order for the entire annual requirement. He also
says that if 2,000 pieces are ordered at a time, 3% discount can be obtained
from the supplier. Evaluate the proposal and make your recommendation. 14
3.
(a) In a factory, Ram and Shyam produce the same product using the same input
of same material and at the same normal wage rate.
Bonus is paid to both of them in the form of normal time
wage rate adjusted by the proportion in which time saved bears to the standard
time for the completion of the products. The time allotted to the product is
fifty hours. Ram takes 30 hours and Shyam takes 40 hours to produce the
product. The factory cost of the product for Ram is Rs. 3,100 and for Shyam is
Rs. 3,280. The factory overhead rate is Rs. 12 per man hour.
Calculate (1) Normal wage rate, (2) Cost of material used
for the product and (3) The input material if the unit material cost is Rs. 16. 14
Or
(b) Distinguish between normal and abnormal idle time. How
would you deal with each of them in cost accounting? 8+6=14
4.
(a) What do you mean by underabsorption and overabsorption of production
overhead? How do they arise? How are they treated in cost accounts? 4+4+6=14
Or
(b) What do you understand by codification of overheads?
What are the essential characteristics of a good system of codification?
Enumerate various methods of codification. 2+6+6=14
5.
(a) Journalize the following transactions assuming that cost and financial
accounts are integrated. [Ignore narrations]: 14
|
|
Rs.
|
|
Raw materials
purchased
Direct materials
issued to production
Wages paid (30%
indirect)
Wages charged to
production
Manufacturing
expenses incurred
Manufacturing
overhead charged to production
Selling and
distributive cost
Finished product at
cost
Sales
Receipts from
customers
Paid to creditors
Closing stock
|
1,50,000
1,12,500
90,000
75,000
63,000
69,000
15,000
1,50,000
2,25,000
52,500
82,500
Nil
|
Or
(b) State the reasons for the difference between the
profits shown in the cost accounts and those shown in the financial accounts of
an industrial organisation. Explain the need for reconciliation of cost and
financial accounts. 8+6=14
6.
Write short notes on: (any four) 5x4=20
1)
Concept of Cost Audit.
2)
Methods of pricing material issues.
3)
Main features of process costing.
4)
Incentives schemes.
5)
Methods of wage payment.
Post a Comment
Kindly give your valuable feedback to improve this website.