2022 Cost Accounting Question Paper (Hons), Dibrugarh University B.Com 4th Sem CBCS Pattern

The figures in the margin indicate full marks for the questions

1. (a) Indicate which of the following statements are True or False:            1x4=4

(1) Cost Accounting is the oldest branch of accounting.

(2) Purchase order is prepared by the purchasing department.

(3) Fixed overhead cost is a committed cost.

(4) Process Costing is ordinarily applied where all the operations are performed in one department.

(b) Fill in the blanks:                    1x4=4

(1) Out of pocket costs involve payment to _______.

(2) Labour once lost cannot be _______.

(3) Any expenditure over and above prime cost is known as _______.

(4) The need of reconciliation arises in _______ accounting system.

2. Write short notes on any four of the following:              4x4=16

(a) Cost Sheet.

(b) ABC analysis.

(c) Apportionment of overhead expenses.

(d) Job costing.

(e) Memorandum Reconciliation A/c.

3. (a) Define Cost Accounting. How does cost accounting help in the planning and control of operations of a business enterprise?                         4+10=14

Or

(b) Explain fully the concept of ‘cost’. Distinguish between Direct Cost and Indirect Cost. Also describe the principal aims of classifying the costs.                  2+6+6=14

4. (a) Prepare Stores Ledger A/c using FIFO and LIFO method for issue pricing:    7+7=14

2022		Units	Price per unit
February 1 5 11 22 24 28 28	Opening Balance Purchases Issues Purchases Issues Issues Shortages	300 200 150 200 150 200 5	20 22 ? 23 ? ? ?

Or

(b) Production section of a factory working on the job order system pays their workers under the Rowan Premium Bonus Scheme. Workers also get a dearness allowance of Rs. 120 per week of 48 hours. A worker’s basic wage is Rs. 20 per day of 8 hours and his time sheet for a week is summarised below:

Job No.	Time Allowed  (in hours)	Time Taken (in hours)
101 102 Idle time (waiting)	25 30	20 20 8
		48

Calculate the gross wages he has earned for the week and indicate the accounts to which the wages amounts will be debited. 14

5. (a) Define Cost Allocation and Cost Apportionment. Explain the various bases of apportionment of overheads to departments with illustrations as to the items of expenses. 2+2+6=10

Or

(b) Compute the Machine Hour Rate from the following data:    10

Rs.

(1) Cost of the machine (2) Installation charges (3) Estimated scrap value (after the expiry of its life of 15 years) (4) Rent and rates for the shop per month (5) General lighting for the shop per month (6) Insurance premium for the machine per annum (7) Repairs and maintenance expenses per annum (8) Per consumption: 10 units per hour and rate of power per 100 units (9) Estimated working hour per annum is 2,200 hours which includes setting up time of 200 hours (10) Shop supervisor’s salary per month (11) The machine occupies 1/4th of the total area of shop (12) The supervisor is expected to devote 1/5th of his time in supervising the machine

1,00,000 10,000 5,000 200 300 960 1,000 20   600

6. (a) What do you mean by Unit Costing? In which industries unit costing is applied? Explain its purposes.     2+3+4=9

Or

(b) The product of a manufacturing concern passes through two processes – A and B and then to finished stock. It is ascertained that in each process normally 5% of the total weight is lost and 10% is scrap which from process A and B realizes Rs. 80 per ton and Rs. 200 per ton respectively.  Following are the figures relating to both the processes:

	Process – A	Process – B
Materials Cost of materials per ton Wages Manufacturing expenses Outputs	1,000 tons Rs. 125 Rs. 28,000 Rs. 8,000 830 tons	70 tons Rs. 200 Rs. 10,000 Rs. 5,250 780 tons

Prepare Process Cost Accounts showing cost per ton of each process. There was no stock or work-in-progress in any process.               9

7. (a) What are the purposes of Reconciliation of Cost and Financial Accounts? Why is it necessary to reconcile the profits shown by Cost and Financial Accounts? 4+5=9

Or

(b) The following is the Trading and Profit & Loss A/c of Madan Industries Ltd. for the year ended 31^st March, 2022:

Particulars	Rs.	Particulars	Rs.
To Materials ‘’ Wages ‘’ Works Expenses ‘’ Administrative Expenses ‘’ Net Profit	45,000 33,000 24,000 6,000 8,400	By Sales (4,800 units) ‘’ Closing Stock (1,200 units)	96,000 20,400
	1,16,400		1,16,400

The Company’s Cost Accounts show as under:

(1) Works overheads have been absorbed at Rs. 3 per unit produced.

(2) Administrative overheads have been absorbed at Rs. 1.50 per unit produced.

You are required to prepare:

(a) a statement of cost indicating net profit.

(b) a reconciliation statement.                   4+5=9

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