Cost Accounting Question Paper 2018 (May)
Dibrugarh University B.Com 4th Sem CBCS Pattern
Commerce (General/Speciality)
Course: 401
Full Marks: 80
Time: 3 Hours
1)
Fixed cost per unit _____ when volume of
production increases.
2)
In printing industries, the method of _____
costing is applied.
3)
In process costing, the output of the each
process in the _____ of the next process.
4)
In Cost Accounting, _____ is the combination of
indirect material, indirect labour and indirect expenses.
(b)
Choose and write the correct answer: 1x4=4
1)
Under the ABC analysis of material control, A
stands for low value/moderate value/high value items.
2)
In a chemical industry, the method of process
costing/contract costing is applied.
3)
Variable overhead cost is a period cost/an
output cost.
4)
Cost of abnormal idle time and overtime is
transferred to costing Profit and Loss Account/General Profit and Loss Account.
2.
Write on the following (any four): 4x4=16
a)
Distinction between Cost Accounting and
Financial Accounting (any four points)
b)
Causes of labour turnover.
c)
Allocation and absorption of overheads.
d)
Reconciliation of Cost Account and Financial
Account.
e)
Perpetual inventory system.
3.
(a) The following data have been extracted from the books of M/s, ABC
Industries Ltd. For the calendar year, 2017:
(Rs.)
|
|
Opening stock of raw
materials
Purchase of raw
materials
Closing stock of raw
materials
Carriage inwards
Wages: Direct
Indirect
Other direct charges
Rent and rates:
Factory
Office
Indirect consumption
of materials
Depreciation: Plant
Office Furniture
Salary: Office
Salesman
Other factory
expenses
Other office
expenses
Managing Director’s
remuneration
Other selling
expenses
Travelling expenses
of salesman
Carriage and freight
Sales
Advance income-tax
paid
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|
25,000
85,000
40,000
5,000
75,000
10,000
15,000
5,000
500
500
1,500
400
2,500
2,000
5,700
700
12,000
1,000
1,100
1,400
2,50,000
15,000
2,000
|
Managing
Director’s remuneration is to be allocated in the ratio of 2 : 1 : 3 for
factory, office and sales departments respectively. From
the above information, prepare the different phases of cost and net profit. 14
Or
(b) What do you mean by material control? What are its
techniques? Discuss its significances. 3+3+8=14
4.
(a) The following are the information in respect to a worker who has
manufactured 240 articles during the last week of December 2017: 4+5+5=14
Working
hours during the week are 48 hours, standard rate Rs. 5 per hour and standard
time to manufacture an article is 15 minutes.
Calculate
his gross wages for the week according to –
1)
Piecework with guaranteed weekly wages;
2)
Rowan Premium Bonus Plan;
3)
Halsey Premium Bonus Plan;
Or
(b) (1) Describe the essential characteristics of a good
system of wage payment. 7
(2) Describe with illustration the salient features of
Rowan Plan and Halsey Plan. 7
5.
(a) From the following information, compute machine hour rate of a machine in a
shop consisting of 3 machines occupying equal floor space. The estimated
working hours per year are fixed at 2500 hours in which normal idle time is
estimated at 20% of the standard time: 14
Rent and taxes of
the shop per annum – Rs. 3,600
General Electricity
for the shop per month – Rs. 200
Repairs and
maintenance expenses for the machine per annum – Rs. 600
Rate of power
charges for 100 units (the machine consuming 10 units per hour) – Rs. 3
Foreman’s salary for
supervising all the machines per month – Rs. 750
Indirect labour cost
– Rs. 2 per hour for the machine.
The machine cost –
Rs. 1,30,000.
Scrap value is
estimated at Rs. 10,000.
|
Estimated
life is 10 years. The foreman devotes equal attention for each machine in the
shop.
Or
(b) What factors would you consider for determining the
overhead absorption rate? Explain the causes of over and under-absorption of
overheads. 7+7=14
6.
(a) A product of a manufacturing concern posses through two processes A and B
and then to finished stock. It is ascertained that in each process 5% of the
total weight is lost and 10% is scrap, which from processes A and B realizes
Rs. 80 per tone and Rs. 200 per tone respectively.
The
following are the figures relating to both the processes:
Process – A
|
Process – B
|
|
Materials (tones)
Cost of materials
(Rs. Per tone)
Wages (Rs.)
Manufacturing
expenses (Rs.)
Output (tones)
|
1,000
125
28,000
8,000
830
|
70
200
10,000
5,250
780
|
Prepare
the Process Cost Accounts showing cost per tones of each process. There was no
work-in-progress in any process. 14
Or
(b) (1) Define job costing. Where is it applied? 2+2=4
(2) Under what circumstances, we need to prepare
Reconciliation of Cost Account and Financial Account and how is it prepared? 10
Also Read: Cost Accounting Question Papers and Solutions
(OLD COURSE)
Full Marks: 80
Pass Marks: 32
1.
(a) Fill in the blanks: 1x4=4
1)
_____ is the combination of direct material,
direct labour and direct expenses.
2)
Fixed cost per unit _____ when volume of
production increases.
3)
In Cost Accounting, depreciation is the _____
expenses.
4)
In process costing, the output of the each
process is the _____ of the next process.
(b) Choose and write the correct answer: 1x4=4
1)
Variable cost per unit remains same/increases/decreases
due to increase in production.
2)
Rent of factory building is a variable
cost/fixed cost/semi-variable cost.
3)
A high labour turnover increases/decreases the
cost of production.
4)
Standard costing is a method/technique of Cost
Accounting.
2.
Write on the following (any four): 4x4=16
a)
Distinction between Cost Accounting and
Management Accounting.
b)
Economic Order Quantity (EOQ)
c)
Labour turnover.
d)
Apportionment and absorption of overheads.
e)
Reconciliation of Cost Account and Financial
Account.
3.
(a) The Accounts of ABC Manufactures Ltd. For the year ending 31st
December, 2017 shows the following:
(Rs.)
|
|
Stock of raw
material on 1.1.2017
Materials purchased
Material returned to
suppliers
Direct labour
Direct expenses
Factory expenses
Office and
administrative expenses
Selling and
distribution expenses
Stock of materials
on 31.12.2017
Profit
|
6,720
1,50,000
2,000
50,000
15,300
20,000
8,000
7,900
7,720
10,000
|
Find
out –
1)
Material consumed;
2)
Prime cost;
3)
Work cost;
4)
Cost of production;
5)
Sales. 11
Or
(b) What are elements of cost? Classify costs according to
elements, function and variability and give two examples of each. 3+8=11
4.
(a) Compute the reorder level, minimum level, maximum level and average stock
level for components A and B based on the following data: 11
A
|
B
|
|
Maximum consumption
per week
Average consumption
per week
Minimum consumption
per week
Reorder period
Reorder quantity
|
150 units
100 units
50 units
8 to 12 weeks
400 units
|
150 units
100 units
50 units
4 to 8 weeks
600 units
|
Or
(b) Describe the various methods of pricing materials issued
for production and point out their advantages and disadvantages. 11
5.
(a) From the following data, ascertain the total earnings of each worker
separable under (1) Halsey scheme (50%) and (2) Rowan scheme: 11
Name of Worker
Time allowed
Actual time taken
Basic rate of wages
per hour
|
Amal
5 hours
4 hours
Rs. 3.00
|
Bimal
5 hours
6 hours
Rs. 3.00
|
Or
(b) What is labour turnover? What are its causes? How can it
be reduced? 3+5+3=11
6.
(a) From the following details, compute the hourly rate of a machine installed
in a shop: 12
(Rs.)
|
|
Cost of machine
Installation charges
Estimated scrap
value
Rent and rates p.a.
General lighting of
the shop p.m.
Insurance premium
for the machine per quarter
Repairs and
maintenance p.a.
|
2,00,000
20,000
10,000
7,200
800
720
3,000
|
Power
consumption 20 units per hour, rate of power per 100 units is Rs. 20, estimated
working hours of the machine 2300 hours per year, shop supervisor’s salary per
month Rs. 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. State the different methods of
classification for determining overheads. 4+8=12
7.
(a) Assam Construction obtained a contract for the building of an office for
Rs. 6,00,000. Construction work commenced on 1st April, 2017 and at
the end of the financial year they received payment of Rs. 2,40,000
representing 80% of the amount of work certified. The following information in
available from the books of the contractors:
(Rs.)
|
|
Material issued
Materials of land on
31.3.2018
Wages paid
Plant installed at
site
Direct Expenses
Overheads allocated
to the contract
Work finished but
not yet certified at cost
Plant to be
depreciated at 10%
|
1,20,000
5,000
1,60,000
1,20,000
22,000
11,000
10,000
|
Prepare
the Contract Account for the year ended 31.3.2018 and show your calculation of
the amount adjusted to the credit of Profit and Loss Account. 11
Or
(b) Distinguish between: 6+5=11
1)
Job Costing and Process Costing.
2)
Cost Audit and Financial Audit.
***
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