BCOC-138: Cost Accounting Question Papers [IGNOU BCOM]

BCOC-138: COST ACCOUNTING QUESTION PAPERS DECEMBER 2024

Term-End Examination

Time: 3 Hours

Maximum Marks: 100

Note: Answer any five questions. Each question carries 20 marks.

1. (a) How do Cost Accounting records help in the planning and control of business operations of an enterprise? (10 marks)

(b) Explain the role and responsibilities of a Cost Accountant in a Manufacturing/Service organisation. (10 marks)

2. (a) Define the term ‘Material Control’. Discuss the important requirements of an efficient system of material control. (10 marks)
(b) Explain the ABC technique of inventory control with suitable examples. (10 marks)

3. Discuss the LIFO and FIFO methods of pricing of material with suitable examples. (20 marks)

4. What do you understand by Labour Turnover? What are its main causes? Describe various measures to minimize the labour turnover. (4+10+6 = 20 marks)

5. (a) Discuss various principles of apportionment of overheads. Give a few examples of the bases used for apportionment and re-apportionment. (10 marks)
(b) From the following information, calculate the cost per kilometre of a vehicle: (10 marks)

Value of vehicle: ₹30,000

Licence fee per annum: ₹1,000

Insurance charges per annum: ₹200

Garage charges per annum: ₹1,200

Driver’s salary per annum: ₹400

Cost of petrol per litre: ₹2

Km run per litre: 16

Tyre and maintenance per km: ₹0.40

Estimated life: 3,00,000 km

Estimated annual km: 12,000 km

Ignore interest on capital.

6. A radio manufacturing company which commenced business on 1st January, 2023, supplies the following information and asks you to: (20 marks)

a) Prepare a statement showing the profit per radio set sold.

b) Prepare a reconciliation statement between profit as per cost accounts and as per financial accounts.

Given:

Material per set: ₹240

Wages per set: ₹80

Selling price per set: ₹600

Works overhead: 75% of wages

Office overhead: 30% of works cost

Actual works expenses: ₹32,160

Office expenses: ₹61,800

Number of radio sets sold: 540

7. Product A yields by-product B. The joint expenses of manufacture are:

a) Materials: ₹20,000

b) Labour: ₹10,000

c) Overheads: Half of labour charges

Subsequent expenses:

Expense	A (₹)	B (₹)
Materials	10,000	5,000
Labour	15,000	10,000
Overheads	4,000	3,000
Selling Price	—	30,000
Estimated Profit on B	—	25%

Prepare process accounts and show apportionment of joint expenses. (20 marks)

8. Urvashi Enterprises undertook a contract for construction of a building for ₹5,00,000 starting on 1st January, 2023. The following expenses were incurred: (20 marks)

Materials purchased: ₹80,000

Materials issued from stores: ₹1,10,000

Materials from other contracts: ₹25,000

Wages paid: ₹90,000

Indirect expenses: ₹25,000

Plant & Machinery: ₹1,00,000

Materials returned to stores: ₹5,000

Materials returned to other contracts: ₹7,000

Materials lost by fire: ₹3,500

Plant stolen: ₹10,000

Materials on site (31-12-2023): ₹4,000

Plant on site (31-12-2023): ₹8,000

Outstanding wages (31-12-2023): ₹5,000

Other outstanding charges (31-12-2023): ₹2,500

The contract was completed on 31st December, 2023 and full contract price was received.

Prepare: Contract Account and Contractee’s Account.

BCOC-138: COST ACCOUNTING QUESTION PAPERS JUNE 2024

Term-End Examination

Time: 3 Hours

Maximum Marks: 100

Note:

Attempt Section–A and Section–B.

Section–A carries 40 marks and Section–B carries 60 marks.

In Section–B, attempt any three questions. All questions carry equal marks.

Section—A (40 Marks)

Attempt all questions.

1. Define ‘Cost Accounting’. State its main objects. (4 + 6 = 10)

2. What are the different methods of costing? State the industries to which they can be applied. (6 + 4 = 10)

3. Write short notes on any four of the following: (5 marks each = 20 marks)

(a) LIFO Method

(b) Idle Time

(c) Halsey Premium Plan

(d) ABC Analysis

(e) Purchase Requisition

(f) Joint Product

Section—B (60 Marks)

Attempt any three questions. Each question carries 20 marks.

4. From the following transactions, prepare a Store Ledger Account using FIFO method of material issues: 20

Date	Transaction	Quantity	Rate (₹)
1st July 2023	Opening Stock	1000	40
4th July 2023	Received	400	42
6th July 2023	Issued	1200	—
8th July 2023	Received	1600	48
9th July 2023	Issued	1000	—
13th July 2023	Issued	600	—
24th July 2023	Received	1000	50
28th July 2023	Issued	800	—

5. PQR Co. Ltd. has two production departments (Spinning and Weaving) and two service departments (Stores and Time Keeping). The following information is given: 20

Particulars	Amount (₹)
Rent	4,000
Maintenance	2,400
Depreciation	1,800
Lighting	400
Insurance	2,000
Employees’ Provident Fund	600
Energy	3,600
Supervision	6,000

Other departmental data:

Department	Spinning	Weaving	Stores	Time Keeping
Floor Space (sq. ft.)	300	220	180	100
Number of Workers	48	32	24	16
Total Direct Wages (₹)	16,000	12,000	8,000	4,000
Cost of Machinery (₹)	48,000	36,000	24,000	12,000
Stock of Goods (₹)	30,000	18,000	12,000	—

Prepare a statement showing apportionment of costs to various departments.

6. Compute the machine hour rate for the month of December 2022:  20

Cost of Machine: ₹64,000

Scrap Value: ₹4,000

Effective Working Hours: 10,000

Repairs and Maintenance (Life): ₹5,000

Standing Charges (for December): ₹1,000

Power Consumption Cost: ₹0.60 per unit

Power Consumed: 10 units/hour

Power Charges for December: ₹1,200

7. Anant Kumar owns a bus that operates as follows:

Delhi–Chandigarh–Delhi: 10 days/month, 150 km one-way

Delhi–Agra–Delhi: 10 days/month, 120 km one-way

Within City: 4 days/month, 40 km/day

He wants to earn 33.33% profit on net earnings.

Other details:

Cost of bus: ₹2,40,000

Driver's salary: ₹10,000/month

Insurance: ₹1,680/year

Depreciation: 20% per annum

Diesel: 4 km/litre @ ₹100/litre

Toll Tax: ₹600/year

Lubricant: ₹10 per 100 km

Repairs & Maintenance: ₹500/month

Permit Fee: ₹284/month

Seating capacity: 50 persons

Occupancy: Chandigarh (90%), Agra (80%), Local (100%)

Passenger tax: 20% of net earnings

Calculate the charge per passenger per km.

9. A product passes through three processes A, B, and C. During a four-week period, 1000 units are produced. The data is:

Process	Direct Material (₹)	Direct Wages (₹)	Direct Expenses (₹)
A	2,000	1,500	300
B	1,000	700	100
C	—	800	—

Indirect production costs: ₹4,500 (to be apportioned based on direct wages). Prepare necessary process accounts.

BCOC-138: COST ACCOUNTING QUESTION PAPERS DECEMBER 2023

Term-End Examination

Time: 3 Hours

Maximum Marks: 100

Note: Attempt Section A and Section B. Section A carries 40 marks and Section B carries 60 marks. In Section B attempt any three questions. All questions carry equal marks.

Section—A

1. Differentiate between Cost Accounting and Financial Accounting. 10

2. “Costs may be classified according to their nature and characteristics.” Elaborate on this statement.     10

3. Write short notes on any four of the following: 5+5+5+5

(a) Purchase Order.

(b) FIFO Method.

(c) Overtime.

(d) Time Wage System.

(e) Prime Cost Method.

(f) Depreciation.

Section—B

Note: Attempt any three questions. All questions carry equal marks.

4. From the following transactions, prepare a Store Ledger Accounting using LIFO method of material issued:        20

Year 2023
1st August 5th August 9th August 11th August 16th August 21st August 24th August	Opening Stock Purchased Issued Purchased Issued Purchased Issued	750 units @ Rs. 3 each. 1500 units @ Rs. 4 each. 1250 units. 1750 units @ Rs. 4 each. 2000 units. 750 units @ Rs. 5 each. 250 units.

5. A factory has two Production Departments—A and B and two Service Departments—X and Y: 20

Particulars	A	B	X	Y
Wages (Rs.) Area Sq. meters Number of employees Value of Plant and Machinery (Rs.) Value of Direct Material Purchased (Rs.) Lighting units	8,000 1,500 80 3,200 1,000 500	6,000 1,100 60 2,400 2,000 300	3,000 900 40 1,600 - 150	3,000 500 20 800 - 50

Following costs have been incurred:

	Rs.
Supervision Repairs to Plant and Machinery Light Employees contribution to ESI Rent Depreciation to Plant and Machinery Power Canteen Expenses	6,000 2,400 2,000 400 1,600 4,000 2,000 200

Apportion the overhead of Service Department—Y and X in the ratio of 1 : 1 the Production Department.

6. The following expenses have been incurred in respect of a workshop having 5 identical machines and occupied equal space:   20

	Particulars	Amount (Rs.)
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.	Rent and Rates of workshop (per annum) Repairs and maintenance of 5 Machines (per annum) Lighting for Workshop (per annum) Power Charges of 5 Machines @ Rs. 2 per unit Supervisor’s salary (per month) Attendant’s salary Annual Interest on Hire-Purchase for Machine Cotton for cleaning for the workshop (per annum) Depreciation on each Machine (per annum) Direct Wages	60,000 10,000 20,000 1,20,000 15,000 40,000 25,000 1,000 16,000 1,20,000

Each machine consumes 10 units of power per hour. Supervisor and Attendants spent equal time on each machine. Calculate Machine Hour Rate per machine.

7. Anant Transport Company supplies the following details of a truck of 5 tons capacity: 20

Cleaner’s wage Cost of truck Estimated life Oil, grease, etc. Repairs and Maintenance Driver’s wage Insurance Taxes General Supervision Charges

Rs. 2,000 per month Rs. 6,00,000 10 years Rs. 120 per trip each way Rs. 8,000 per month Rs. 12,000 per month Rs. 36,000 per year Rs. 24,000 per year Rs. 36,000 per year

The truck carries goods to and from city covering a distance of 60 kilometers each way. While going to the city, freight is available to the extent of full capacity and on return 20% of capacity. Assuming that the truck run on an average 25 days of a month, work out : operating cost per ton kilometer.

8. The Bharat Manufacturing Company’s product passes through two distinct processes X and Y, and then to the finished stock. It is known from the past experience that wastage occurs in the process as under:

In Process X, 5% of the units entering the process.

In Process Y, 10% of the units entering the process.

The scrap value of the wastages in process X is Rs. 8 per 100 units and in process Y is Rs. 10 per 100 units:               20

	Process X (Rs.)	Process Y  (Rs.)
Material consumed Wages Manufacturing expenses	6,000 7,000 2,000	3,000 4,000 2,000

10000 units were brought into process X, costing Rs. 5,000.

The outputs were:

Process X=9500 Units and Process Y=8500 Units.

Prepare Process Cost Accounts showing the output.

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BCOC-138: COST ACCOUNTING QUESTION PAPERS JUNE 2023

Term-End Examination

Time: 3 Hours

Maximum Marks: 100

Note: Attempt Section A and Section B. Section A carries 40 marks and Section B carries 60 marks.

Section—A

1. What are the points that a Cost Accountant should keep in mind before installing a costing system in a manufacturing concern? Explain.             10

2. Discuss any five methods of costing and state the industries to which they can be applied.  10

3. Write short notes on any four of the following:              5 each.

(a) Decentralised purchasing.

(b) Halsey Premium Plan.

(c) Apportionment of overheads.

(d) Byproducts.

(e) Service costing.

(f) Purchase requisition.

Section—B

Note: Attempt any three questions. All questions carry equal marks.

4. From the following transactions, prepare a Stores Ledger A/c using FIFO method of material issued.      20

Year 2022:
1 Feb. 4 Feb. 6 Feb. 8 Feb. 9 Feb. 13 Feb. 24 Feb. 26 Feb. 28 Feb.	Opening Stock Purchased Issued Purchased Issued Issued Purchased Received back from production department Issued	500 units @ Rs. 20 each 400 units @ Rs. 21 each 600 units 800 units @ Rs. 24 each 500 units 300 units 500 units @ Rs. 25 each 50 units 400 units

5. The following are the particulars relating to a contract which has begun on 1-1-2021:                  15+5=20

Particulars	Rs.
Contract price Machinery Materials Wages Direct expenses Outstanding wages Uncertified work Overheads Materials returned Material on hand (31-12-2021) Machinery on hand (31-12-2021) Value of work certified Cash received	5,00,000 30,000 1,70,600 1,48,750 6,330 5,380 9,000 8,240 1,600 3,700 22,000 3,90,000 3,51,000

Prepare the Contract A/c for the year ending 2021 showing the amount of profit to be credited to Profit and Loss A/c. Also show the amount of work-in-progress as it would appear in the Balance Sheet.

6. Calculate Machine Hour Rate from the details given below:                    20

	Rs.
Purchase price of machine Installation Expenses Rent per quarter Foreman’s Salary p.a. General lighting for the total area – p.m. Insurance for the machine – p.a. Repairs for the machine – p.a. Estimated consumables – p.a.	4,00,000 1,00,000 15,000 30,000 1,000 3,000 5,000 4,000

Power: 2 units per hour at Rs. 50 per 100 units.

Estimated life of the machine is 10 years and the estimated value at the end of 10 years is Rs. 1,00,000. It is expected to run 20000 hours in its life time. The machine occupies 1/4 of the total area. The foreman devotes 1/6 of his time on this machine.

7. A product is obtained after it passes through two distinct processes. From the following information, prepare Process-I and Process-II Accounts and Abnormal Loss Account:     20

Process-I: Input
Material – A Material – B Mixing labour	6,000 kgs 4,000 kgs 430 hours	@ 50 paise per kg @ Rs. 1 per kg @ Rs. 2 per hour

Normal loss 5% of weight input, disposed off at 16 paise per kg

Output 9200 kgs. Process-II: Input
Material – C Material – D Mixing labour Flavouring Essence	6,600 kgs 4,200 kgs 370 hours Rs. 300	@ Rs. 1.25 per kg @ Rs. 0.75 per kg @ Rs. 2 per hour

Normal waste 5% of weight input with no disposal value.

Output 19000 kgs. Overheads of Rs. 3,200 incurred by the two processes to be absorbed on the basis of mixing labour hours.

8. (a) A transport company in running a fleet of six buses between two towns 75 km apart. Seating capacity of each bus is 40 passengers. The following particulars are available for the month of June:

	Rs.
Wages of drivers, conductors and cleaners Salaries of staff Diesel and other oils Repairs Taxes and insurance Depreciation Interest of capital	3,600 1,500 10,320 1,200 2,400 3,900 3,000

Actual passengers carried were 80% of the seating capacity. All the buses ran on all days of the month. Each bus made one round trip per day. Find out the cost per passenger per kilometer.    15

(b) From the following data, calculate the Economic Order Quantity (EOQ):            5

Cost of ordering per order = Rs. 18

Annual consumption = 75000 units

Cost per unit Rs. = 1.50

Carrying cost estimated to be 20% of unit cost.

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BCOC-138: COST ACCOUNTING QUESTION PAPERS JUNE 2022

Term-End Examination

Time: 3 Hours

Maximum Marks: 100

Note: Attempt any five questions. All questions carry equal marks.

1. Why is costing necessary in the modern system of economy? Explain various advantages of cost accounting.     8+12

2. What are the main characteristics of the cost? Describe different types of classifications of the cost.   4+16

3. Explain different steps involved in purchases in a manufacturing organization.                 20

4. (a) Explain the concept of reordering level. Find out the reorder level from the following data:                 2+8

Maximum Stock Minimum Stock Time required for receiving the material Daily consumption of material

= 6000 units = 1000 units = 15 days = 100 units

(b) Calculate the minimum stock level from the following data: 10

Net normal consumption Normal reorder period Reorder level

= 500 units per week = 5 weeks = 4000 units

5. From the following invoice received from a supplier, calculate the material cost per unit:

Quantity	Particulars	Rate (Rs.)	Amount (Rs.)
300 kg 200 kg	Material X Material Y	10.00 per kg 12.00 per kg	3,000 2,400
Less: Trade Discount			5,400 270
Add: Cost of containers (capacity of each (100 kg) Cartage and Carriage Octroi duty @ 0.5%			5,130 60 75 27
			5,292

Terms:

(a) 5% cash discount within a week.

(b) Return value of containers Rs. 9 each. 20

6. ‘‘Time keeping is the basis of preparing labour cost.’’ Elaborate and discuss the methods of time keeping.       20

7. Prepare (a) statement of equivalent production, (b) statement of cost, and (c) statement of evaluation from the following data: 20

	Rs.
Opening work in progress (50% complete) 5000 units Direct Material Direct Labour Overhead Units introduced in process Units finished and transfer to store Closing work in progress (25% complete)	11,240 30,000 22,500 22,500 38,000 39,000 4,000

8. Write short notes on the following:                    4x5=20

(a) Perpetual Inventory System.

(b) Idle Time.

(c) Concept of Overheads.

(d) Integral Accounting.

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BCOC-138: COST ACCOUNTING QUESTION PAPERS DEC’ 2021

Term-End Examination

Time: 3 Hours

Maximum Marks: 100

Note: Answer any five questions. All questions carry equal marks.

1. Define costing. Differentiate between cost accounting and financial accounting. 4+16

2. What is meant by inventory control? What are its objectives? Describe any two techniques of inventory control. 4+8+8

3. What are the characteristics of a good method of wage payment? Discuss the merits and demerits of time wage system and piece wage system. 4+8+8

4. The production department of a manufacturing organization furnished the following information for June 2020:      20

	Rs.	Hours
Materials used Direct Wages Overheads Labour hours worked Machine hours worked	60,000 48,000 38,000	38000 32000

For an order executed by the department during June 2020 the relevant data is as follows:

	Rs.	Hours
Materials used Direct Wages Labour hours worked Machine hours worked	6,500 3,500	3500 2500

Calculate the overheads chargeable to the job:

(i) Direct material cost method.

(ii) Direct labour cost method.

(iii) Labour hour rate.

(iv) Machine hour rate.

5. (a) In a factory 25000 units of product X were prepared in the month of July 2020. From the following figures obtained from the costing records, prepare a cost sheet showing the total cost and cost per unit:                   5

	Rs.
Direct Material consumed Direct wages Other direct expenses Factory overheads Office and administrative overheads Selling and Distribution overheads	2,20,000 1,50,000 45,000 75,000 65,000 65,000

(b) State the causes of difference between profits shown by financial accounts and profits shown by cost accounts.     15

6. Explain the term ‘Contract Costing’. What are its features? Differentiate between Job costing and Contract costing. 4+8+8

7. In a process 1500 units were introduced at a cost of Rs. 15,000. The additional expenditure incurred was Rs. 5,000. From past experience and technical estimates a normal loss equal to one fifth of the input is expected which has scrap value of Rs. 1 per unit.

The actual output for the period was 1000 units. Complete the process account and show how abnormal loss will be treated in accounts.        20

8. Write short notes on the following:     5×4=20

(a) Joint products and byproducts.

(b) Service costing.

(c) Fringe benefits.

(d) Time keeping.

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