1. (a)
Enumerate the main objectives of introduction of a cost accounting system.
Or
(b) “Cost Accounting has come to be an essential tool of the
management.” Comment.
2. (a)
“The perpetual inventory system is an integral part of material control.” Discuss
this statement by bringing out briefly the salient features and advantages of this system.
Or
(b) From the following information, prepare a cost sheet
showing the cost and profit:
Rs
|
|
Opening raw material
|
29,500
|
Closing raw material
|
36,000
|
Opening
work-in-progress :
Material
Wages
Works overhead
|
13,600
11,000
6,600
|
Closing
work-in-progress :
Material
Wages
Works overhead
|
12,000
16,500
9,900
|
Opening
finished goods – 200 units @ Rs 84
Closing
finished goods – 1600 units
Rs
|
|
Purchase of raw
material
|
1,90,000
|
Carriage on purchase
|
1,500
|
Sale of scrap of raw
material
|
5,000
|
Wages
|
2,97,000
|
Works
overhead @ 60% of direct labour cost
Administration
overhead @ Rs 12 per unit produced
Selling
and distribution overhead @ 20% of selling price
Sales
– 7600 units at a profit of 10% on sales price.
3. (a)
What is reconciliation statement? Why is it prepared? State the reason for the
difference between the profit shown in the cost accounts and those shown in the
financial account of an industrial organization.
Or
(b) What do you mean by allocation and apportionment of
overhead to cost centres? What are the bases of overhead apportionment utilized
in manufacturing concern?
4. (a) What is idle
time? Discuss its causes. How is it treated in cost accounts?
Or
(b) From the following particulars, work out the earnings
for the week of a worker under –
(i) straight piece rate system;
(ii) differential piece rate system;
(iii) Halsey premium system;
(iv) Rowan system.
Number
of working hours per week – 48 hrs
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% piece rate When output is below standard and 120% When output is above standard.
5. (a)
What are the fundamental principles of process costing? Distinguish between job
costing and process costing. Point out the advantages of process costing.
Or
(b) The following was the expenditure on a contract for Rs
6,00,000 commenced on 1st April,
2009 :
Rs
Material
1,20,000
Wages 1,64,400
Plant 20,000
Business
charges 8,600
Cash
received on account to 31st March, 2010 Rs 2,40,000 , being 80% of
work certified; the value of material in hand on 31.3.2010 was Rs 10,000. Prepare
contract account for the year showing profit to be credited to the year’s profit and loss account. Plant is to
be depreciated at 10%.