Friday, July 19, 2019

2017
(August)
COMMERCE
Paper: 107
(Cost Accounting)
Full Marks: 90
Time: 3 hours
The figures in the margin indicate full marks for the questions
1. (a) “Cost Accounting is a branch of Accounting and has been developed due to limitations of Financial Accounting”. Explain.             14
Or
(b) Write a note on the concepts and classification of costs.                7+7=14
2. (a) What is material control? Discuss the essential requirements of an effective material control.4+10=14
Or
(b) A lorry load of material of mixed goods was purchased for Rs. 9,000. These were sorted out and the following goods are found whose market selling rates are shown against each type of goods:                   14
 Goods Unit Selling Price A B C 5,000 3,000 2,000 Rs. 1.20 Re. 1.00 Re. 0.50

Find the purchase rate per unit on each type of goods assuming that all types of goods yield same rate or profit.
3. (a) What do you mean by Rowan Premium Plan and Halsey Premium Plan? Ascertain the differences between these two plans.       4+4+6=14
Or
(b) From the following particulars, prepare the labour cost per man day of 8 hours.     14
a)         Basic pay Rs. 5 per day.
b)         Dearness allowances Re. 0.25 per point over 100 cost of living index for working class. (Current cost of living index for working class is 700 points).
c)          Leave salary, 10% of (a) and (b) .
d)         Employer’s contribution to provident fund 8% of (a), (b) and (c).
e)         Employer’s contribution to ESI – 2.5% of (a), (b) and (c).
f)          Expenditure on amenities to labour – Rs. 20 per head per month.
g)         No. or working days in a month – 25 days of 8 hours.
4. (a) What is Labour Hour Rate? How is it ascertained? In what respect it differs from Machine Hour Rate?      2+6+6=14
Or
(b) “Saikia Company” is divided into four departments A, B, C are producing departments and D is a service department. The actual costs for a period are as follows:           14
 Rs. Rs. Rent Repairs to plant Depreciation of plant Fire insurance in respect of stock 1,000 600 450 500 Light Employer’s liability for insurance Supervision Power 120 150 1,500 900

The following information is available in respect of Departments:
 Department A Department B Department C Department D Area sq. m. No. of Employee Total Wages Value of plant Value of stock 1,500 20 Rs. 6,000 24,000 15,000 1,100 15 Rs. 4,000 18,000 9,000 900 10 Rs. 3,000 12,000 6,000 500 5 Rs. 2,000 6,000 -

Apportion the cost to various departments on most equitable basis.
5. (a) What do you mean by Scrap Value and Abnormal Gain? How are these treated in process costing?              4+10=14
Or
(b) Manufacture of a certain product requires two distinct processes. Process A and Process B. The following information for a particular costing period applied to process A:          7+7=14
 Rs. Direct Material Direct Wages Production Overhead 15,000 8,000 7,000

Completed production amounted to 1,700 units but the following units are only partly completed:
400 units were 50% completed.
400 units were 25% completed.
Prepare Process ‘A’ account incorporating the columns of units and amount. Show separately the calculation of work-in-progress (clothing) in units and amount.
6. Answer the following:              4x5=20
1)         Write four points of difference between Bin Card and Stores Ledger.
2)         Distinguish between normal idle time and abnormal idle time with suitable examples.
3)         Give four points of importance of segregation of semi-variable costs into fixed and variable costs.
4)         Give the names of any eight methods of pricing material issues.
5)         Mention briefly two points with reference to which distinction is made between main-product and by-product.

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