Answer any five questions:
1. Distinguish between Cost and
Financial Accounting and enumerate the advantages of a good system of cost
accounting. 10+10
2. Write in brief on each of the following:
5x4
a)
Bin cards
b)
Perpetual inventory system
c)
Purchase requisition
d)
Minimum reorder level
3. Explain the time wage system
and the piece rate system of wage payments. 10+10
4. What is the meaning of the term
‘overhead’? Explain fixed, variable and semi-variable overhead. 5+5+5+5
5. In respect of a factory the
following figures have been obtained for the year 1998:
Rs
Cost
of materials 3,
00,000
Direct
wages 2,
50,000
Factory
overheads 1,
50,000
Administrative
overheads 1,
68,000
Selling
overheads 1,
12,000
Distribution
charges 70,000
Profit
2,
10,000
A work order has been executed in 1999 and
the following expenses have been incurred: Materials Rs 4,000 and Wages Rs
2,500. Assuming that in 1999 the rate of factory charges has increased by 20%,
distribution charges have gone down by 10% and selling and administrative
charges have each gone up by 12 ½ %. At what price should the product be sold
so as to earn the same rate of profit on the selling price as in 1998? Factory
overheads are based on direct wages while all other overheads are based on
factory cost. 8+4+8
6. The product of a manufacturing
concern passes through two processes A and B and then to finished stock. It is
ascertained that in each process 5% of the total weight is lost and 10% is
scrap, which from processes A and B realise Rs 80 per tonne and Rs 200 Per
tonne respectively. The following are the figure relating to both the processes: 8+8+4
Process
A Process
B
Materials
(tones) 1000 70
Cost
of materials (Rs per tonne) 125 200
Wages
(Rs) 28,000 10,000
Manufacturing
(Rs) 8,000 5,250
Output
(tones) 830 780
Prepare the process cost account showing cost per tonne of each process.
There was no stock or work-in-process in any process.
7. During the first week of April,
1999, a worker Mr. Kalyan manufactured 300 articles. He received wages for a
guaranteed 48 hours week at the rate of Rs 4 per hour. The estimated time to
produce one article is 10 minutes and under the incentive scheme the time
allowed is increased by 20%. 4+7+9
Calculate his gross wage according
to –
a)
piece work with a guaranteed weekly wage;
b)
rowan premium bonus;
c)
Halsey premium bonus 50% to workman.
8. The standard materials cost to
produce one tonne of chemical X is –
300
kg of material A @ Rs 10 per kg;
400
kg of material B @ Rs 5 per kg;
500
kg of material C @ Rs 6 per kg;
During a period, 100 tonnes of mixture X was produced from the usage of
–
35
tonnes of material A at a cost of Rs 9,000 per tonne;
42
tonnes of material B at a cost of Rs 6,000 per tonne;
53
tonnes of material C at a cost of Rs 7,000 per tonne.
Calculate the cost, price, usage,
mix and yield variances. 2+3+5+5+5