Answer any five questions:
1. ‘Cost Accounting is beneficial
to varied sections of society.’ Elaborate.
20
2. The books and record of Anand
Manufacturing Company present the following data for the month of August, 2000:
Direct labour cost Rs 16,000 (160% of factory overhead)
Cost of goods sold Rs 56,000
Inventory accounts showed these opening and closing balances:
August
1 August
31
Rs
Rs
Raw
materials 8000 8600
Work-in-progress 8000 12000
Finished
goods 14000 18000
Other data:
Selling
expenses 3400
General
and administration expenses 2600
Sales
for the month 75000
You are required to prepare statement showing
cost of goods manufactured and sold and profit earned. 10+10
3. What is perpetual inventory
system? Why control of material is cost an essential of a good cost accounting
system? 10+10
4. What is idle time? Why is it
caused? How is it controlled? 6+7+7
5. What are the principles of
allocation and apportionment of overheads? With the help of a chart, show the
classification of overheads. 10+10
6. a) During one week, the workman
X manufactured 200 articles. He receives wage for a guaranteed 44-hour week at
the rate of Rs 15 per hour. The estimated time to produce one article is 15
minutes and under incentive scheme the time allowed is increased by 20%.
Calculate his gross wages under each of the following methods of remuneration:
(i)
Time rate
(ii)
Piece work with a guaranteed weekly wage
(iii)
Rowan premium bonus
(iv) Halsey
premium bonus, 50% to workman
b) What factors should be considered in a particular incentive system? 2+3+5+5+5
7. Product B is obtained after it
passes through three distinct processes. The following information is obtained
from the accounts for the week ending February 12, 2001:
Items Total I II III
Rs Rs Rs Rs
Direct
material 7542 2600 1980 2962
Direct
wages 9000 2000 3000 4000
Production
overhead 9000
1000 units at Rs 3 were introduced
to Process I. There was no stock of materials or work-in-progress at the
beginning or end of the period. The output of each process passes direct to the
next process and finally to finished stores. Production overhead is recovered
on 100% of direct wages. The following additional data are obtained:
Process Output during
the week %
of normal loss to input Value
of scrap per unit (Rs)
Process
I 950 5% 2
Process
II 840 10% 4
Process
III 750 15% 5
Prepare process cost accounts and
abnormal gain or loss accounts. 2+2+2+2+2+2+8
8. XYZ company manufactures a
product ABC by mixing three raw materials. For every 100 kg of ABC, 125 kg of
raw materials are used. In April 2000, there was an output of 5600 kg of ABC.
The standard and actual particulars of April 2000 are as follows:
Raw
material Standard Actual
Mix Price/kg Mix Price/kg
% Rs % Rs
Raw
material I 50 40 60 42
Raw
material II 30 20 20 16
Raw
material III 20 10 20 12
Calculate
all variances. 20