Cost Accounting Question Paper 2019 (May)
Dibrugarh University B.Com 4th Sem CBCS Pattern
Commerce (General/Speciality)
Course: 401
Full Marks: 80
Time: 3 Hours
1) Prime
cost includes
a) Direct
material + Direct labour + Works expenses.
b) Direct
material + Direct labour + Chargeable expenses.
c) Direct
material + Direct labour + Office expenses.
2) Purchase
budget should be prepared by the
a) Financial
Manager.
b) Production
Manager.
c) Purchase
Manager.
3) Depreciation
is a
a) Fixed
expenses.
b) Variable
expenses.
c) Semi-variable
expenses.
4) In
process costing, the abnormal loss is treated as
a) Period
cost.
b) Unit
cost.
c) Future
cost.
(b) Fill in the blanks: 1x4=4
1) Fixed
cost per unit _______ with rise in output.
2) Re-order
quantity may be measured in _______.
3) Fixed
overhead cost is a _______ cost.
4) The
need of reconciliation arises in _______ accounting system.
2. Write short notes on (any four): 4x4=16
a) Techniques
of costing.
b) ABC
analysis.
c) Rowan
premium bonus plan.
d) Manufacturing
overheads.
e) Abnormal
process loss.
3. (a) Discuss in detail the advantages and limitations of
Cost Accounting. 8+6=14
Or
(b) Following data are taken from the Cost Accounts of a
manufacturer in respect of the month of March 2019:
|
Particulars
|
Rs.
|
|
Stock in hand on 1st March
2019:
Raw materials
Work-in-progress
Finished goods
Purchase of raw materials
Sale of finished goods
Direct wages
Stock in hand on 31st March,
2019:
Raw materials
Work-in-progress
Finished goods
Non-productive wages
Works expenses
Office and administrative expenses
Selling and distribution 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 Statement of Cost and Profit showing the following: 2x7=14
1) Cost
of materials consumed.
2) Prime
cost.
3) Works
cost.
4) Cost
of production.
5) Cost
of goods sold.
6) Cost
of sales.
7) Profit
for the month.
4. (a) A statement of materials received and issued in March
2019 is given below:
|
March 1
March 5
March 8
March 10
March 16
March 20
March 23
March 27
March 31
|
Opening stock of
materials 4,400 units @ Rs. 8 per unit
Purchased 550 units
@ 10 per unit.
Issued 2,200 units.
Purchased 6,600
units @ 12 per unit.
Issued 4,400 units.
Issued 1,100 units.
Issued 2,200 units.
Purchased 4,950
units @ 11 per unit
Issued 3,300 units.
|
From the above statement, prepare Stores Ledger by applying –
1) First-in-first-out
method;
2) Last-in-first-out
method; 7+7=14
Or
(b) (1) What is idle time? What are its causes? 6
(2) A worker takes 12 hours to complete a work on daily wages
and 8 hours on a scheme of payment by results. Worker’s daily 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:
1) Rowan
plan;
2) Halsey
scheme; 4+4=8
5. (a) Define overhead. How are overheads classified? Explain
four reasons of over-absorption and under-absorption of overheads. 4+5+5=14
Or
(b) From the following information, work out the production
hour rate of recovery of overhead in department P1, P2 and P3:
14
|
Particulars
|
Total
|
Production Departments
|
Service Departments
|
|||
|
|
Rs.
|
P1
|
P2
|
P3
|
S1
|
S2
|
|
Rent (Rs.)
Electricity (Rs.)
Fire insurance (Rs.)
Plant depreciation
(Rs.)
Transport (Rs.)
Estimated working
hours
|
1,000
200
400
4,000
400
-
|
200
50
80
1,000
50
1,000
|
400
80
160
1,500
50
2,500
|
150
30
60
1,000
50
1,800
|
150
20
60
300
100
-
|
100
20
40
200
150
-
|
Expenses of service departments S1 and S2 are
apportioned as under:
|
|
P1
|
P2
|
P3
|
S1
|
S2
|
|
S1
|
30%
|
40%
|
20%
|
-
|
10%
|
|
S2
|
10%
|
20%
|
50%
|
20%
|
-
|
6. (a) (1) What is process costing? What are its features?
Name any three industries in which process costing is used. 2+5+3=10
(2) Distinguish between normal process loss and abnormal
process loss. 4
Or
(b) A company’s Trading and Profit & Loss Account was as
follows:
|
|
Rs.
|
|
Rs.
|
|
Purchases
Direct wages
Works expenses
Selling expenses
Administration expenses
Depreciation
Net profit
|
25,210
10,500
12,130
7,100
5,340
1,100
20,300
|
Sales (50,000 units at Rs. 1.50 each)
Discount received
Profit on sale of land
Closing stock
|
75,000
260
2,340
4,080
|
|
|
81,680
|
|
81,680
|
The profit as per Cost Accounts was only Rs. 19,770. Reconcile
the financial and cost profits using the following information: 14
1) Cost
accounts value of closing stock Rs. 4,280.
2) The
works expenses in the Cost Accounts were taken as 100% of direct wages.
3) Selling
and administration expenses were charged in the Cost Accounts at 10% of sales
and Rs. 0.10 per unit respectively.
4) Depreciation
in the Cost Accounts was Rs. 800.
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 defined as ‘the technique and process
of ascertaining costs’.
2)
A _______ provides a complete record of all
materials received and the quantity thereof.
3)
The rate of change in the composition of labour
force in an organization is termed as _______.
4)
_______ is the aggregate of indirect material,
indirect labour and indirect expenses.
(b) Choose and write the correct answer: 1x4=4
1)
Unit costing / Job costing is employed in paper
mill industries.
2)
In case of rising prices, LIFO / FIFO method of
pricing material issues reports higher income.
3)
Cost of normal idle time is always controllable
/ uncontrollable.
4)
Fixed overheads per unit is reduced / increased
when volume of output is increased.
2. Write on the following (any four): 4x4=16
a) Elements
of cost.
b) Scope
of Cost Accounting.
c) ABC
analysis.
d) Apportionment
of overheads.
e) Cost
audit.
f) Cost
sheet.
3. (a) Prepare a Cost Sheet from the following: 11
|
Particulars
|
Rs.
|
|
Sales
Materials 1.1.2018
Materials 31.12.2018
Work-in-progress 1.1.2018
Work-in-progress 31.12.2018
Finished goods 1.1.2018
Finished goods 31.12.2018
Materials purchased
Direct labour
Manufacturing overheads
Selling expenses
General office expenses
|
8,00,000
40,000
32,000
55,000
72,000
64,000
1,51,000
1,52,000
1,45,000
1,08,000
50,000
40,000
|
Or
(b) Distinguish between the following: 6+5=11
1) Direct
cost and Indirect cost.
2) Fixed
cost and Variable cost.
4. (a) XYZ Ltd. manufactures a product A and provides you the
following particulars:
|
Cost of placing an order
Annual carrying cost per unit
Normal usage
Minimum usage
Maximum usage
Re-order period
|
Rs. 90
Rs. 5.20
50 units per week
25 units per week
75 units per week
4 to 6 weeks
|
Compute from the above: 11
1) Re-order
quantity.
2) Re-order
level.
3) Minimum
level.
4) Maximum
level.
5) Average
stock level.
Or
(b) Explain the meaning and purpose of the
following documents: 4+3+4=11
1) Purchase
Requisition.
2) Bin
Card.
3) Stores
Ledger.
5. (a) From the following particulars, you are required to
work out the earning of worker for a week under –
1)
Straight piece rate;
2)
Halsey premium scheme (50% sharing);
3)
Rowan premium scheme. 3+4+4=11
|
Weekly working hours
Hourly wage rate
Piece rate per unit
Normal time taken per unit
Normal output per week
Actual output per week
|
48
Rs. 7.50
Rs. 3.00
24 minutes
120 units
150 units
|
Or
(b) What is idle time? Explain its causes. How is idle time
treated in Cost Accounts? 3+4+4=11
6. (a) Compute the machine hour rate from the following data: 12
|
Particulars
|
Rs.
|
|
Cost of machine
Installation charges
Scrap value after 10 years
Rent of the ship per month
General lighting for the ship per month
Insurance for the machine p.a.
Repairs p.a.
Power consumption 10 units per hour and
average rate of power per unit
Shop supervisor’s salary p.m.
Estimated working hours p.a.
|
10,00,000
1,00,000
50,000
10,000
2,000
9,000
10,000
4
15,000
2,500
|
The machine occupies one-fourth of total area of the shop.
Supervisor denotes one-third of his time for the machine.
Or
(b) What are the causes of under-absorption and
over-absorption of overheads? How will you deal with them in Cost Accounts? 7+5=12
7. (a) A product of XYZ Ltd. Co. possesses through two
processes A and B. 10,000 units at a cost of Rs. 1.10 were issued to process A.
Other direct expenses were as follows:
|
Particulars
|
Process – A
|
Process – B
|
|
Sundry materials
Direct labour
Direct expenses
Output (units)
|
Rs. 2,000
Rs. 4,500
Rs. 1,500
9,000
|
Rs. 2,000
Rs. 8,000
Rs. 1,500
9,120
|
Wastage of process A was 5% and in process B 4%.Wastage of
process A was sold at 0.25 per unit and that of process B at 0.50 per unit.
Overhead charges were 160% of direct labour. Prepare Process – A A/c and
Process – B A/c. 11
Or
(b) (1) Explain the special features of contract costing. 5
(2) How does cost audit differ from financial audit? 6
***
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