2017
(August)
COMMERCE
Paper: 107
(Cost Accounting)
Full Marks: 90
Time: 3 hours
The figures in the
margin indicate full marks for the questions
1.
(a) “Cost Accounting is a branch of Accounting and has been developed due to
limitations of Financial Accounting”. Explain. 14
Or
(b) Write a note on the concepts and classification of
costs. 7+7=14
2.
(a) What is material control? Discuss the essential requirements of an
effective material control.4+10=14
Or
(b) A lorry load of material of mixed goods was purchased
for Rs. 9,000. These were sorted out and the following goods are found whose
market selling rates are shown against each type of goods: 14
Goods
|
Unit
|
Selling Price
|
A
B
C
|
5,000
3,000
2,000
|
Rs. 1.20
Re. 1.00
Re. 0.50
|
Find the purchase rate per unit on each type of goods
assuming that all types of goods yield same rate or profit.
3.
(a) What do you mean by Rowan Premium Plan and Halsey Premium Plan? Ascertain
the differences between these two plans. 4+4+6=14
Or
(b) From the following particulars, prepare the labour cost
per man day of 8 hours. 14
a)
Basic pay Rs. 5 per day.
b)
Dearness allowances Re. 0.25 per point over 100
cost of living index for working class. (Current cost of living index for
working class is 700 points).
c)
Leave salary, 10% of (a) and (b) .
d)
Employer’s contribution to provident fund 8% of
(a), (b) and (c).
e)
Employer’s contribution to ESI – 2.5% of (a),
(b) and (c).
f)
Expenditure on amenities to labour – Rs. 20 per
head per month.
g)
No. or working days in a month – 25 days of 8
hours.
4.
(a) What is Labour Hour Rate? How is it ascertained? In what respect it differs
from Machine Hour Rate? 2+6+6=14
Or
(b) “Saikia Company” is divided into four departments A, B,
C are producing departments and D is a service department. The actual costs for
a period are as follows: 14
Rs.
|
Rs.
|
||
Rent
Repairs to plant
Depreciation of
plant
Fire insurance in
respect of stock
|
1,000
600
450
500
|
Light
Employer’s liability
for insurance
Supervision
Power
|
120
150
1,500
900
|
The following information is available in respect of
Departments:
Department A
|
Department B
|
Department C
|
Department D
|
|
Area sq. m.
No. of Employee
Total Wages
Value of plant
Value of stock
|
1,500
20
Rs.
6,000
24,000
15,000
|
1,100
15
Rs.
4,000
18,000
9,000
|
900
10
Rs.
3,000
12,000
6,000
|
500
5
Rs.
2,000
6,000
-
|
Apportion the cost to various departments on most equitable
basis.
5.
(a) What do you mean by Scrap Value and Abnormal Gain? How are these treated in
process costing? 4+10=14
Or
(b) Manufacture of a certain product requires two distinct
processes. Process A and Process B. The following information for a particular
costing period applied to process A: 7+7=14
Rs.
|
|
Direct Material
Direct Wages
Production Overhead
|
15,000
8,000
7,000
|
Completed production amounted to 1,700 units but the
following units are only partly completed:
400 units were 50% completed.
400 units were 25% completed.
Prepare Process ‘A’ account incorporating the columns of
units and amount. Show separately the calculation of work-in-progress
(clothing) in units and amount.
6.
Answer the following: 4x5=20
1)
Write four points of difference between Bin Card
and Stores Ledger.
2)
Distinguish between normal idle time and
abnormal idle time with suitable examples.
3)
Give four points of importance of segregation of
semi-variable costs into fixed and variable costs.
4)
Give the names of any eight methods of pricing
material issues.
5)
Mention briefly two points with reference to
which distinction is made between main-product and by-product.
***
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