Cost Accounting Question Paper 2017 (May)
Dibrugarh University B.Com 4th Sem CBCS Pattern
Commerce (General/Speciality)
Course: 401
Full Marks: 80
Time: 3 Hours
1. (a) Fill in the blanks: 1x4=4
a)
Cost which can be charged to a particular unit
of cost is considered as ____.
b)
Reorder quantity may be measured in ____.
c)
Under the Rowan plan ____ is a fixed percentage.
d)
The basis of apportionment for indirect wages is
____.
(b) Choose and write the correct
answer: 1x4=4
a)
In a printing industry, job costing/process
costing is applied.
b)
The sum of direct material cost and direct
labour cost is termed as prime cost/overhead.
c)
Tender form is issued by the purchasing
department/production department.
d)
Vacation pay for factory workers should be
charged to factory overhead/direct labour.
2. Write on the following (any
four): 4x4=16
a)
Statement of cost and profit.
b)
Inventory control.
c)
Causes of labour turnover.
d)
Allocation, apportionment and absorption of
overhead.
e)
Five reasons for disagreement of profit as shown
by the Cost Accounting and Financial Accounting.
3. (a) Following information are
related to a product for the year ended on 31st March, 2016:
|
|
Rs.
|
|
Stock on 1st April, 2015:
Raw
materials
Finished
products (2000 tons)
Stock on 31st March, 2016:
Raw
materials
Finished
products (4000 tons)
Raw material purchased
Direct wages
Rent, rates and taxes of works
Carriage inwards
Work-in-progress on 1st April, 2015
Work-in-progress on 31st March, 2016
Cost of factory supervision
Sales of finished goods
|
10,000
8,000
12,120
16,000
60,000
50,000
20,000
720
2,400
8,000
4,000
1,50,000
|
Advertisement and selling
expenses amount to 0.25 paise per ton sold. 32000 tons were produced during the
year. Prepare a cost sheet showing (i) the value of raw materials used, (ii)
cost of production for the year, (iii) cost of goods sold, (iv) the net profit
for the year and (v) the net profit per ton of the product. 14
Or
(b) What do you understand by
cost classification? Discuss the various bases of classification of costs and
various types of costs. 4+6+4=14
4. (a) A worker takes 80 hours to
do a job for which the time allowed is 100 hours. His daily rate is Rs. 2.50 per
hour. Calculate the work cost of the job under the following methods of payment
of wages and statement of works cost:14
a)
Time rate
b)
Halsey plan
c)
Rowan plan
Additional information:
1)
Material cost – Rs. 120
2)
Factory overhead 125% of wages
Or
(b) What do you mean by perpetual
inventory system? How does it differ from ABC analysis? State the advantages of
ABC analysis. 4+6+4=14
5. (a) From the following
particulars, compute a comprehensive machine hour rate: 14
a)
Cost of machine – Rs. 1,00,000; Estimated life –
15 years; Residual value – Rs. 10,000
b)
Machine running hours – 2040 hours per machine
per annum including idle time of 40 hours due to repairs and maintenance and
breakdown of machine.
c)
Power consumption of the machine per hour – 20
units; Rate of power per 100 units – Rs. 80.
d)
There are two operators in the shop and wages of
an operator who is in charge of two machines Rs. 12,000 p.a.
e)
Rent, rates and taxes of the shop Rs. 4,800 p.a.
f)
Insurance premium for the machine Rs. 400 per
quarter.
g)
General lighting per month – Rs. 600
h)
Repairs and maintenance expenses per month Rs.
400 per machine.
i)
Shop supervisor’s salary per month – Rs. 1,500.
j)
Other factory overhead allocated to the shop Rs.
6,000 p.a.
There are four
identical machines in the shop. The supervisor devotes 1/5th of his
time for supervising the machine.
Or
(b) Explain the following: 7+7=14
a)
Various methods of determining overhead rate.
b)
Various bases of apportionment of overheads to
departments.
6. (a) From the following
information, prepare a Reconciliation Statement: 14
|
|
Rs.
|
|
Profit as per cost accounts
Works overheads under recovered
Administrative overheads under recovered
Selling overheads over recovered
Overvaluation of opening stock in cost accounts
Overvaluation of closing stock in cost accounts
Interest earned during the year
Rent received during the year
Bad debts written-off during the year
Preliminary expenses written-off during the year
|
1,45,500
9,500
22,750
19,500
15,000
7,500
3,750
27,000
9,000
18,000
|
Or
(b) (i) How does job costing
differ from process costing?
(ii) What do you
mean by normal loss, abnormal loss and abnormal gain in process costing? How
are they treated in Process Accounts? 7+7=14
Also Read: Cost Accounting Question Papers and Solutions
(OLD COURSE)
Full Marks: 80
Pass Marks: 32
Time: 3 hours
1. (a) Choose the correct answer:
1x4=4
a)
Fixed cost per unit decreases/increases with
rise in output.
b)
For EOQ, Q stands for quality/quantity.
c)
Under the Rowan plan, bonus is a fixed/variable
percentage.
d)
Bases of factory rent apportionment are floor
area/direct expenses.
(b) Fill in the blanks: 1x4=4
a)
In an oil industry, ____ costing method is
applied.
b)
The perpetual inventory system means a ____
stock-taking system.
c)
In process costing, costs are calculated at the
end of the ____ process.
d)
Overheads are the ____ f indirect material,
indirect labour and indirect expenses.
2. Answer the following questions
(any four): 4x4=16
a)
Distinguish between Cost Accounting and
Financial Accounting.
b)
What do you mean by perpetual inventory system?
c)
Explain the causes of labour turnover.
d)
Explain different methods of calculating
overheads.
e)
Distinguish between Job Costing and Process
Costing.
3. (a) Following information has
been obtained from the cost records of Aditya Chemical Ltd. for 2016:
|
|
Rs.
|
|
Finished goods on 1.1.2016
Raw materials on 1.1.2016
Work-in-progress on 1.1.2016
Direct Labour
Purchase of raw material
Indirect labour
Heat, light and power
Factory insurance and taxes
Repairs to plant
Factory supplies
Depreciation on factory building
Depreciation on plant
Finished goods on 31.12.2016
Raw materials on 31.12.2016
Work-in-progress on 31.12.2016
|
50,000
10,000
14,000
1,60,000
98,000
40,000
20,000
5,000
3,000
5,000
6,000
10,000
1,70,000
13,000
78,000
|
No office and administrative
expenses were incurred during the year 2016. Prepare a statement of cost for
the year 2016 showing (i) cost of raw material consumed, (ii) factory cost and
(iii) cost of goods sold. 11
Or
(b) What do you understand by
cost classification? Discuss the various bases of classification of costs and
give examples of each class of cost. 3+5+3=11
4. (a) The products A and B are
used as follows:
|
|
A
|
B
|
|
Normal consumption
Maximum consumption
Minimum consumption
Reorder quantity
Reorder period
|
200 units Per week
300 units Per week
100 units Per week
1,000 units
4 to 5 weeks
|
100 units Per week
200 units Per week
50 units Per week
500 units
2 to 4 weeks
|
For each product, calculate the
following: 11
1)
Reorder level
2)
Maximum level
3)
Minimum level
4)
Average stock level
Or
(b) What do you understand by
economic order quantity (EOQ)? Describe the methods pricing materials issues
with its advantages and disadvantages. 4+7=11
5. (a) A worker takes 12 hours to
complete a work on daily wages and 8 hours on a scheme of payment by results.
Worker’s day rate is Rs. 6 per hour. The cost of material of the product is Rs.
20 and the overheads are recovered at 200% of the total wages. Calculate the
factory works cost of the product under (i) Rowan plan and (ii) Halsey scheme. 11
Or
(b) Write short notes on: 3+3+5=11
a)
Idle time
b)
Overtime
c)
Labour turnover
6. (a) A machine purchased for
Rs. 55,000. It was installed in a shop over 1/5th of its floor area
at an additional cost of Rs. 5,000. The working life of the machine as also the
scrap value was estimated at 10 years and Rs. 5,000 respectively. From the
following details, compute the machine hour rate: 12
|
|
Rs.
|
|
Rent and rates of the shop p.a.
General lighting of the shop p.m.
Repairs and maintenance for the machine p.a.
Insurance premium p.a.
Supervisor’s salary p.m.
|
5,000
500
3,000
2,400
1,000
|
It is estimated that the
supervisor devotes 1/4th of his time for the machine. The cost of
power is Rs. 20 per 100 units and the machine consumed 10 units per hour. Normal
working hour of the machine is estimated at 1200 but during the year it
actually worked for 1000 hours.
Or
(b) What do you mean by overhead
cost? Explain the various classifications of overhead cost and its bases of
apportionment. 4+8=12
7. (a) A product posses through
three processes for completion. During December 2016, 1000 units were produced.
The data relating to the process were as follows:
|
Particulars
|
A (Rs.)
|
B (Rs.)
|
C (Rs.)
|
|
Material
Labour
Direct Expenses
|
30,000
25,000
5,000
|
15,000
20,000
21,600
|
10,000
15,000
9,050
|
The indirect expenses for the
period were Rs. 14,000. The scraps of process B and C were sold at Rs. 1,450
and Rs. 1,660 respectively. Prepare the Process Accounts and cost of Production
Account. 11
Or
(b) Explain the following: 5+6=11
a)
Difference between Cost Audit and Financial
Audit.
b)
Reconciliation of Cost Account and Financial
Account.