Dibrugarh University - Cost Accounting 1996


Answer any five questions:-

1. Define cost accounting. Discuss in details about the significance of cost accounting. (5+15)

2. Explain the following & give examples: - (5x4)
a)   Cost centre.
b)   Cost unit.
c)    ABC analysis.
d)   Overhead.

3. What is unit costing? What are its features? State the names of six industries in which it is applicable. (5+12+3)

4. What do you mean by abnormal wastage & normal wastage? How are these treated in process costing? (8+12)

5. Write short notes on the following: -  (5x4)
a)   Tender price
b)   Factory overhead
c)    Administration overhead
d)   Cost sheet

6. a) How the amount of bonus is determined according to the Rowan Premium plan? (10)

    b) An employee working under bonus scheme saves 10 hours in a job for which standard time is 50 hours. Calculate the rate per hour worked and wage payable for time taken under the following alternative schemes. (The award rate is Rs2)

                Scheme-I: The employer receives an increase in the hourly rate based on the percentage that the time saved bears to the Time set.

                Scheme-II: The bonus of 20% on award rate is payable when time (namely, 100% efficiency) is achieved plus a further
Bonus of 2% on award rate for each 1% in excess of that 100% efficiency. (5+5)

7. The following are the data regarding the manufacture of 20000 units.
STANDARD
Direct material: 2 kg of input at Rs4 per kg or Rs8 per unit of output.
                Direct labour: ½ hour of input at Rs10 per hour or Rs5 per unit of output.

The following are the data regarding actual performance:-

                Output produced                                             20000 units
                Input purchased and used                           37000 kg
                Price per kg                                                        Rs4.10
                Direct labour cost                                             Rs88200
                Actual hours of input                                      9000
                Labour rate per hour                                      Rs9.80

From the aforesaid data, ascertain the following: - (4x5)
a)      Material yield variance.
b)      Material usage variance.
c)       Labour Rate variance.
d)      Labour efficiency variance
e)      Labour cost variance.

8. The following are the data taken from the cost accounts of a manufacturer in respect of the month of March 1995:

                Stock in hand on 1/3/1995.                                           Rs.
                                Raw material                                                      25000
                                Work in progress                                              8220
                                Finished goods                                                  17360
                Purchase of raw material                                              21900
                Sale of finished goods                                                    72310
                Direct wages                                                                      17150

                Stock in hand on 31/3/1995.
                                Raw material                                                      26250
                                Work in progress                                              9100
                                Finished goods                                                  15750
                Non-productive wages                                                  830
                Work expenses                                                                 8430
                Office & administrative exp.                                       3160
                Selling expenses                                                              4210

Prepare statement showing the following: -        (5x4)

a)   Cost of materials consumed
b)   Cost of production
c)    Cost of goods sold
d)   Profit for the month.