Answer any five questions:-
1. ‘Cost Accounting is a branch of
Accounting and has been developed due to limitations of Financial Accounting.’
Explain. 20
2. What is a cost sheet? What are
the purposes of a cost sheet? Give the composition of a selling price. 5+5+10
3. What do you understand by ABC
analysis and what is meant by Economic Order Quantity? Explain them with
illustrations. 10+10
4. What do you mean by overheads?
How are overheads classified? 5+15
5. The accounts of a machine
manufacturing company disclose the following information for the six months
ending 31st Dec, 97 Rs.
Materials
used 1,
50,000
Direct
wages 1,
20,000
Factory
overheads 30,000
Administrative
expenses 15,000
Prepare the cost sheet of the
machines and calculate the price which the company should quote for the
manufacture of a machine requiring materials valued Rs 1250 and expenditure in
productive wages Rs 750 so that the price may yield a profit of 20% on the
selling price. 10+10
6. From the following particulars,
work out the earnings for the week of a worker under –
a)
Straight Piece Rate System;
b)
Differential Piece Rate System;
c)
Halsey Premium System;
d)
Rowan System; 3+5+7+5
Number
of working hours per week 48
Wages
per hour Rs 3.75
Rate
per piece Rs 1.50
Normal
time per piece 20 minutes
Normal
output per week 120 pieces
Actual
output for the week 150 pieces
Differential
Piece Rate:
80%
of piece rate when output is below standard and 120% when above standard.
7. From the following figures,
show the cost of the three processes of manufacture. The production of each
process is passed on to the next till completion: 20
Process
A Process
B Process
C
Wages
and materials 60,800 24,000 58,500
Works
Overheads 11,200 10,500 12,000
Production
(in units) 72,000 75,000 96,000
Stock
(units from 1st July, 89) _ 8,000 33,000
Stock
(units from 31st July, 89) _ 2,000 11,000
8. From the following particulars,
calculate – Standard
Mix Rs
a) Material Cost Variance; A 55 kg at Rs 2 110
b) Material Price Variance; B 45 kg at Rs 4 180
c) Material Total Usage Variance; 100 290
d) Material Mix Variance. 5+5+5+5
Actual Mix Rs
A 60 kg at Rs 2.25 135
B 40 kg at Rs 3.50 140
100 275