Dibrugarh University - Cost Accounting 1989


Answer any five questions:-

1. Explain the relationship between cost accounting & financial accounting? What are the differences between the two?    (10+10)

2. Explain the importance of material control. Discuss about the measures that are to be undertaken for effective material control. (10+10)
3. What is ‘Labour-hour-rate’? How it is ascertained? In what respect it differs from a machine-hour-rate? (5+7+8)

4. What do you understand by ‘Standard costing’? Explain its advantages & disadvantages. (4+8+8)

5. Write short notes on: -  (5x4)
               
a.    Abnormal wastage.
b.   ABC analysis
c.    Cost centre
d.   Weighted average price.

6. The following particulars have been obtained from the cost records of an industrial concern:-
Direct labour cost Rs16000 (160% of factory overhead) cost of goods sold Rs56000.
Inventory accounts showed these opening & closing balances:-
                                                                                Jan 1, 1988                                          Jan 31, 1988
Raw materials                                                    8000                                                       8600
Work-in-progress                                            8000                                                       12000
Finished goods                                                  14000                                                    18000
Other data:-
Selling expenses                              3400
Administrative expenses              2600
Sales for the month of Jan.          75000
               
Prepare a statement showing the cost of goods manufactured, cost of goods sold & profit earned. (20)

7. The production section of a factory working on a job order system pays their workers under the rowan premium bonus scheme. Workers are also entitled to a dearness allowance of Rs24 per work of 48 hours. A worker’s basic wage is Rs4 per day of 8 Hours & his work time sheet for a week are given below:-
                Job No.                                                 Time allowed                                                     Time taken
                   1                                                           25 hours                                                               20 hours
                   2                                                           28 hours                                                               20 hours
                Idle time (waiting)                                  _                                                                        8 hours

Calculate gross wages the worker has earned for the week. (20)

8. From the data given below, calculate the material price variance, material usage variance & material mixture variance. (6+7+7)

                                                                                                Consumption per 100 units of product.

                Raw materials                                                    Standard                                                              Actual

                        A                                                                     40 units @ Rs50 per unit                                50 units @ Rs50 per unit.
                        B                                                                     60 units @ Rs40 per unit                                60 units @ Rs45 per unit.