2018
(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) Choose the correct answer: 1x4=4
1)
Variable cost per unit remains
same/increase/decrease due to increase in production.
2)
Under ABC analysis the material control, A
stands for low value/moderate value/high value items.
3)
Idle time represents the time for which the
employer makes payment and gains something in terms of production/makes payment
but does not gain anything in terms of production.
4)
The method of costing used in a refinery is
process costing/job costing/batch costing.
(b) Fill in the blanks: 1x3=3
1)
Fixed overhead cost is an _______ cost.
2)
Prime cost incurred due to any abnormality is
debited to _______.
3)
In process costing the output of each process is
the _______ of next process.
(c) Write True or False: 1x3=3
1)
Most of the items of costs are direct in
contract costing.
2)
High wages need not necessarily mean high cost
per unit.
3)
The practice of charging all costs to product is
batch costing.
2.
Answer the following: 4x5=20
a)
Distinguish between Cost Accounting and
Financial Accounting.
b)
What do you mean by Perpetual Inventory System?
c)
Define Labour Turnover. Explain the causes of
labour turnover.
d)
State four reasons of under absorption and over
absorption of overheads.
e)
Reconciliation of Cost Accounting and Financial
Accounting.
3.
(a) Explain elaborately the necessity of reconciliation between Cost and
Financial Accounting. 15
Or
(b) Define Cost Accounting. How do cost accounting records
help in planning and control of operations of a business enterprise? Discuss in
detail. 5+10=15
4.
(a) From the following information, calculate the total monthly remuneration of
each of three workers X, Y and Z.
|
Standard production
per month per worker
Actual production during
a month
X
Y
Z
Piece work rate per
unit of actual production
Dearness wages
(Fixed)
House Rent Allowance
(Fixed)
|
1,000 units
890 units
720 units
960 units
20 paisa
Rs. 50 per month
Rs. 20 per month
|
Additional production Bonus @ Rs. 5 for each percentage of
actual production exceeding 80% of the standard 15
Or
When do you advocate pricing the issue of materials at cost
price based on “First-in-First-Out”? Give your arguments. What are the
limitations of this method of pricing? 8+7=15
5.
(a) Assam Engineering works has three production departments A, B, C and one
service department S. From the following particulars, calculate labour hour
rate for each of the production departments. Expenses for the period of 12
months: 15
|
|
Rs.
|
|
Rent
Power
Indirect Wages
Depreciation on
Machinery
Electricity
Canteen Expenses
|
36,000
8,250
5,200
22,000
5,600
6,500
|
Additional
Information:
|
|
A
|
B
|
C
|
S
|
|
Light Points
Floor space (sq. m.)
Horse Power of
Machine (H.P.)
No. of workers
Direct wages (in
Rs.)
Cost of Machine (in
Rs.)
|
7
300
65
2
12,000
50,000
|
7
250
30
3
14,000
60,000
|
9
450
30
6
18,000
80,000
|
5
200
40
2
8,000
10,000
|
Working days – 200 days of 8 hours each
Service rendered by service department S to production
department A, B and C are 30%, 20% and 50% respectively.
Or
(b) What is “Labour Hour Rate”? How is it ascertained? In
what respect it differs from a “Machine Hour Rate”? 4+5+6=15
6.
(a) From the following particulars prepare Contract Account on 31st
March, 2018: 15
|
|
Rs.
|
|
Materials send to
site
Wages paid
Wages Outstanding
Direct Expenses
Establishment
charged
Special plant
installed cost
Cost of work not
certified
Value of special
plant on 31-3-2018
Material at site on
31-3-2018
Total contract price
Cash received
Retention – 10% of
work certified
Sale of scrap
|
1,90,000
1,20,000
5,500
60,000
52,000
2,00,000
25,000
1,70,000
21,000
12,00,000
5,94,000
2,000
|
General plant costing Rs. 1,20,000 was used for 3 months,
depreciation on date is to be provided at 15% per annum.
Or
(b) What do you mean by Scrap Value and Abnormal Gain? How
are these treated in process costing? 7+8=15
***
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