Cost Accounting Question Paper’ 2023
COMMERCE (Honours Core / Regular)
Paper: COM – HC – 4016 / COM – RC – 4026
(Cost Accounting)
Full Marks: 80
Time: Three hours
The figures in the margin
indicate full marks for the questions.
Answer either in English or in Assamese
1. Answer the following as directed: 1x10=10
(a) Cost Accounting is a method of _______
cost. (Fill in the blank with appropriate word)
(b) A _______ cost is an irrecoverable cost.
(Fill in the blank with appropriate word)
(c) Indirect labour is created as part of
_______. (Select the correct answer)
(i) finished goods.
(ii) work-in-progress.
(iii) factory overhead.
(iv) product.
(d) Material is the first element of cost.
(State whether the statement is true or
false)
(e) _______ method of valuing material issues
is suitable in the times of falling price. (Fill in the blank with appropriate
word).
(f) Bin card is a part of accounting record.
(State whether the statement is true or
false)
(g) Which of the following is not a part of
time-keeping? (Select the correct
answer)
(i) Punch card.
(ii) Job card.
(iii) Attendance register.
(iv) None of the above.
(h) Depreciation is a semi-variable expenses.
(State whether the statement is true or
false)
(i) What is process costing?
(j) Write the measuring of ‘relevant cost’ in
costing accounting.
2. Answer the following questions: 2x5=10
(a) What is the concept of cost?
(b) State the meaning of motion study in
labour costing.
(c) State the important features of process
costing.
(d) What is operating costing?
(e) Name from the following the method of
costing and cost unit for:
(i) Aircraft.
(ii) Transport. 3. Answer any four of the following questions: 5x4=20
(a) Mention five objectives of cost
accounting.
(b) A consignment of sugar was received by
Murli Brothers. The Invoice reveals the following data:
Quantity Rate per kg GST Freight |
600 kg Rs. 25 @ 12% Rs. 2,130 |
After receiving the consignment, it was
noticed that there is a shortage of 300 kgs. What stock rate would you adopt
for the product assuming a provision of 5% towards further deterioration?
(c) What is ‘payment by result’ method of
labour remuneration? Mention two advantages and two disadvantages of this
system. 1+(2+2)=5
(d) The following data pertain to a material
‘J’:
Supply period Consumption Rate: Maximum: Minimum: Normal: Yearly: |
4 to 8 months 1,200 units per month 600 units per month 900 units per month 10,800 units |
Storage costs are 50% of stock value.
Ordering costs are Rs. 400 per order.
Price per unit of material Rs. 100
Compute the minimum stock level.
(e) Explain the five resources of abnormal
idle time of labour cost.
(f) How is abnormal gain calculated and
treated in process costing? 2+3=5
4. Answer any four of the following questions: 10x4=40
(a) What are the various costs classified
under functional classification? Give a brief description of each of these
costs.
(b) Assam Manufacturing Company uses copper
wire which is purchased from the market as and when necessary. Following
purchases and issues were made during the month of January, 2023:
January 1: January 3: January 7: January 11: January 18: January 24: January 28: |
Opening balance 300 kgs
at Rs. 50/kg. Purchased 500 kgs at Rs.
52/kg. Issued 220 kgs. Issued 440 kgs. Purchased 490 kgs at Rs.
46/kg. Issued 300 kgs. Surplus 20 kgs returned
to store out of quantity issued on 7th January. |
Prepare Stores Ledger A/c for the above
transaction according to FIFO method of pricing issue of materials.
(c) During the first week of January 2023,
the workman Mr. Santosh produces 150 articles. He received wages for a
guaranteed 48 hours a week @ Rs. 50 per hour. The estimated time to produce one
article is 20 minutes and under incentive scheme the allowed is increased by
20%. Calculate his gross wages according to –
(i) Piece works with guaranteed weekly wages;
(ii) Rowan premium bonus plan;
(iii) Halsey premium bonus plan.
(d) Explain ‘under-absorption’ and ‘over
absorption’ of overheads. What are the causes for under and over absorption of
overheads? (2+2)+6=10
(e) A firm of building constructors began to
trade on 1st April, 2022. Following was the expenditure on a
contract for Rs. 9,00,000.
Material issued Plant issued Wages incurred Other expenses incurred |
Rs. 1,44,000 Rs. 30,000 Rs. 1,48,000 Rs. 30,000 |
Cash received on account of 31st
March, 2023 amounted to Rs. 4,00,000, being 80% of the work certified. Of the
Plant and Materials charged to contract. Plant which cost Rs. 6,000 and
Materials which cost Rs. 5,000 were lost. On 31st March, 2023 Plant
cost Rs. 4,000 was returned to stores, the cost of work done but uncertified
was Rs. 20,000 and materials costing Rs. 4,600 were in hand on site.
Charged 15% depreciation on plant and prepare
Contract Account.
(f) Briefly describe the need for and
procedure for integration of Cost Accounting and Financial Accounting. 5+5=10
(g) (i) What is allocation and apportionment
of overheads?
(ii) A company has four departments. The
actual costs for the periods are given below. Apportion the cost to the various
departments by using the most equitable method – 2+8=10
|
(Rs.) |
Rent Depreciation Supervision Employer’s Liability
Insurance Insurance |
5,000 4,800 9,000 900 3,000 |
The following data are also available in
respect of four departments:
Particulars |
A |
B |
C |
D |
Area (sq. feet) |
50 |
40 |
30 |
30 |
Number of Workers |
24 |
16 |
12 |
8 |
Value of Plant (in Rs.) |
12,000 |
9,000 |
6,000 |
3,000 |
Total Wages (Rs.) |
4,000 |
3,000 |
2,000 |
1,000 |
Value of Stock (Rs.) |
15,000 |
9,000 |
6,000 |
- |
(h) A manufacturing company disclosed a net
loss of Rs. 2,91,000 as per their cost accounts for the year ended on March 31st,
2023. The following information was revealed as a result of scrutiny of the figures
of both the sets of books:
|
(Rs.) |
Factory overhead over
absorbed Administrative overhead
under absorbed Depreciation charged in
financial accounts Depreciation charged in
cost accounts Income tax provided Interest on loans fund
in financial accounts Interest on investments
not included in cost accounts Transfer fees (Credit in
financial books) Stores adjustment
(Credit in financial books) |
8,000 12,000 1,10,000 1,22,000 75,000 1,34,000 32,000 8,000 4,000 |
Prepare a Reconciliation
Statement from the above information.
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