Cost Accounting Question Paper 2016 (May)
Dibrugarh University B.Com 4th Sem CBCS Pattern
Commerce (General/Speciality)
Course: 401
Full Marks: 80
Time: 3 Hours
a)
The method of costing used in a refinery is
process costing/job costing.
b)
The practice of charging all costs to product is
absorption costing/batch costing.
c)
Administration expenses are mostly
fixed/variable.
d)
Variable cost per unit remains same/increases
when the volume of production increases.
(b) Fill in the
blanks: 1x4=4
a)
Fixed cost per unit ____ with rise in output and
____ with fall in output.
b)
Under the ABC analysis of material control, A
stands for ____ items.
c)
Muster roll is necessary for the preparation of
the ____.
d)
Fixed overhead cost is a ____ cost.
2. Answer the
following (any four): 4x4=16
a)
“Classification of cost plays a vital role in
ascending cost.” Explain this statement.
b)
Give five differences between Cost Accounting
and Financial Accounting.
c)
Give four reasons of under-absorption and
over-absorption of overheads.
d)
What is ABC analysis? How is it differ from VED
analysis?
e)
Give four differences between Job Costing and
Process Costing.
3. (a) From the
following information, prepare a Cost Sheet showing the cost and profit: 14
|
Particulars
|
Rs.
|
|
Opening raw material
Closing raw material
Opening work-in-progress:
Material
Wages
Works Overhead
Closing work-in-progress:
Material
Wages
Works overhead
|
29,500
36,000
13,600
11,000
6,600
12,000
16,500
9,900
|
Opening finished
goods – 200 units @ Rs. 84.
Closing finished
goods – 1,600 units
|
Particulars
|
Rs.
|
|
Purchase of raw material
Carriage on purchases
Sale of scrap of raw material
Wages
|
1,90,000
1,500
5,000
2,97,000
|
Works overhead @ 60% of direct
labour cost; Administrative overhead @ 12 per unit produced. Selling and distribution
overheads @ 20% of selling price. Sales 7,600 units at a profit of 10% on cost
price
Or
(b) “The
perpetual inventory system is an integral part of material control.” Discuss
this statement by bringing out the salient features and advantages of this
system. 14
4. (a) From the
following particulars, work out the earnings for the week of a worker under the
– 14
|
Particulars
|
Rs.
|
|
i.
Straight piece rate system;
ii.
Differential piece rate system;
iii.
Halsey premium system;
iv.
Rowan system:
Number of working hours per week
Wages per hour
Rate per piece
Normal time per piece
Normal output per week
Actual output for the week
Differential piece rate:
80% piece rate when output is below standard 120%
when output is above standard.
|
48 hours
3.75
1.50
20 minutes
120 pieces
150 pieces
|
Or
(b) What is idle time? Discuss its causes.
How is it treated in Cost Accounting? 4+6+4=14
5. (a) From the
following details, compute the hourly rate of a machine installed in a shop: 14
|
Particulars
|
Rs.
|
|
Cost of Machine
Installation charges
Estimated Scrap value
Rent and rates of the whop p.a.
General lighting of the shop p.m.
Insurance premium for the machine
per quarter
Estimated repairs and maintenance
cost of the machine p.a.
Power consumption of the machine
Rate of power per 100 units
Estimated working hours of the
machine per year
Shop Supervisor’s salary per
month
|
2,00,000
20,000
10,000
7,200
800
720
3,000
20 units per hour
20
2,300
1,800
|
The machine
occupies 1/4th of the total floor area of the shop. The supervisor
is expected to devote 1/5th of his time for supervising the machine.
Normal idle time is expected to be 300 hours per annum.
Or
(b) Define
overhead. What do you mean by absorption of overheads? Discuss the different
methods of absorption of overheads. 4+2+8=14
6. (a) The
product of a manufacturing concern passes through two processes A and B and
then to finished stock. It is ascertain that in each process normally 5% of the
total weight is lost and 10% is scrap which realizes Rs. 80 per tonne and Rs.
200 per tonne from processes A and B respectively. The following are the
figures relating to both the processes:
|
Particulars
|
Process – A
|
Process – B
|
|
Materials (in tonnes)
Cost of material per tonne (in
Rs.)
Wages (in Rs.)
Manufacturing expenses (in Rs.)
Output (in tonnes)
|
1,000
125
28,000
8,000
830
|
70
200
10,000
5,250
780
|
Prepare Process
Accounts showing cost per tonnes of each process. There was no stock of
work-in-progress in any process. 14
Or
(b) Under what
circumstances, an enterprise needs to reconcile of Cost Accounts and Financial
Accounts? State the reasons for which profit from Cost Accounting and that of
Financial Accounting do not tally. 5+9=14
Also Read: Cost Accounting Question Papers and Solutions
(OLD COURSE)
Full Marks: 80
Pass Marks: 32
1. (a) Choose the
correct answer: 1x4=4
a)
Prime Cost/Production cost is the combination of
direct material, direct labour and direct expenses.
b)
In ABC analysis, A indicates less value/moderate
value/high value material.
c)
Fixed cost per unit remains
same/increases/decreases when volume of production increases.
d)
Standard costing is a method/technique of Cost
Accounting.
(b) Fill in the blanks: 1x4=4
a)
In process costing, output of every process is
the ____ of next process.
b)
FIFO method, if pricing issue of material is
suitable at the time of ____.
c)
Prime cost under abnormal condition is to be
debited to ____.
d)
Under Rowan plan, bonus is always in ____.
2. Write short
notes (on any four): 4x4=16
a)
ABC analysis.
b)
Cost of idle time.
c)
Reconciliation of Cost Accounting and Financial
Accounting.
d)
Classification of Cost.
e)
Machine hour rate.
3. (a) The
following are the data taken from the Cost Accounts of a manufacturer in
respect of the month of March, 2014: 14
|
Particulars
|
Rs.
|
|
Stock in hand on 01-03-2014:
Raw Materials
Work-in-progress
Finished goods
Purchase of Raw materials
Sales of finished goods
Direct wages
Stock in hand 31-3-2014:
Raw Materials
Work-in-progress
Finished goods
Non-productive wages
Works Expenses
Office and Administrative
expenses
Selling expenses
|
25,000
8,220
17,360
21,900
72,310
17,150
26,250
9,100
15,750
830
8,430
3,160
4,210
|
Prepare a Cost
Sheet showing the following:
a)
Cost of materials consumed.
b)
Cost of production.
c)
Cost of goods sold.
d)
Profit for the month.
Or
(b) Define Cost
Accounting. Briefly explain different methods and techniques of Cost
Accounting. 4+4+6=14
4. (a) during the
first week of January, 2015, a worker Mr. Ashok 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%. Calculate his gross wage
according to –
a)
Piece work with a guaranteed weekly wages;
b)
Rowan premium bonus;
c)
Halsey premium bonus 50% to workman. 4+5+5=14
Or
(b) (i) Define
labour turnover. Explain its reasons.
(ii)
Discuss the essential features of an ideal wage payment method. 4+3+7=14
5. (a)
From the following data, calculate the machine hour rate of a machine: 14
|
Particulars
|
Rs.
|
|
Cost of machine
Scrap value
Estimated life
Effective working days:
200 days of 8 hours
100 days of 6 hours
Maintenance and repairs
Stores consumed
Power consumption
Insurance premium
Supervision expenses
Estimated idle time
|
35,500
2,500
12 years
7.5% of cost of machine
1,000
2 per operating hour
1% of cost of machine
7,500
10%
|
Or
(b) Define
overhead. How are overheads classified? Explain four reasons of over-absorption
and under-absorption of overheads. 4+5+5=14
6. (a) A
product passes through three processes P, Q and R. The Normal wastage of each
process is as follows:
Process P
= 5%, process Q = 6%, and process R = 10%. Wastage of process P was sold at Rs.
2 per unit, that of process Q at Rs. 5 per unit and that of process R at Rs. 10
per unit. 1,000 units were issued to process P in the beginning of April, 2015
at cost of Rs. 2 per unit. The other expenses were as follows:
|
|
Process
|
||
|
|
P
|
Q
|
R
|
|
Raw materials (in Rs.)
Wages (in Rs.)
Direct expenses (in Rs.)
Actual output (in Rs.)
|
2,000
5,000
1,550
950
|
3,000
8,000
2,946
910
|
1,000
6,000
3,738
810
|
Prepare
Process Accounts of P, Q and R assuming that there were no openings or closing
stocks. 14
Or
(b) What
do you mean by Cost Audit and Cost Management? Explain how a cost auditor works
in conducting cost audit. 4+4+6=14