Cost Accounting Question Paper 2023
Gauhati University BCOM 4th SEM
COMMERCE (Honours Core/Regular)
Paper: COM-HC-4016/COM-RC-4026
Full Marks: 80
Time: 3 hours
The figures in the margin indicate full marks for the questions.
1. Answer the following as directed: 1x10=10
(a) Cost accounting is a
method of _______ cost. (Fill in the blank with appropriate word)
(b) A _______ cost is an
irrecoverable cost. (Fill in the blank with appropriate word)
(c) Indirect labour is
treated as part of _______.
(i) Finished goods.
(ii) Work-in-Progress.
(iii) Factory overhead.
(iv) Product.
(Select the correct
answer)
(d) Material is the first
element of cost. (State whether the statement is true or false)
(e) _______ method of
valuing material issues is suitable in the times of falling price. (Fill in the
blank with appropriate word)
(f) Bin card is a part of
accounting record. (State whether the statement is true or false)
(g) Which of the following
is not a part of time-keeping?
(i) Punch card.
(ii) Job card.
(iii) Attendance register.
(iv) None of the above.
(Select the correct
answer)
(h) Depreciation is a
semi-variable expense. (State whether the statement is true or false)
(i) What is process
costing?
(j) Write the meaning of
‘relevant cost’ in cost accounting.
2. Answer the following questions: 2x5=10
(a) What is the concept of
cost?
(b) State the meaning of
motion study in labour costing.
(c) State two important
features of process costing.
(d) What is operating
costing?
(e) Name from the following
methods of costing and cost unit for:
(i) Aircraft.
(ii) Transport.
3. Answer any four of the following questions: 5x4=20
(a) Mention five objectives
of cost accounting.
(b) A consignment of sugar
was received by Murli Brothers. The invoice reveals the following data:
Quantity = 600 kg
Rate per kg = Rs. 25
GST = @12%
Freight = Rs. 2,130
After receiving the
consignment, it was noticed that there is a shortage of 300 kgs. What stock
rate would you adopt for the product assuming a provision of 5% towards further
deterioration?
(c) What is ‘payment by
result’ method of labour remuneration? Mention two advantages and two
disadvantages of this system. 1
+ (2+2)=5
(d) The following data
pertain to a material ‘J’:
|
Supply period Consumption Rate: Maximum Minimum Normal
Yearly
|
4 to 8 months 1200 units per month 600 units per month 900 units per month 10800 units |
Storage costs are 50% of
stock value.
Ordering costs are Rs. 400
per order.
Price per unit of material
Rs. 100
Compute the minimum stock
level.
(e) Explain the five
reasons of abnormal idle time of labour cost.
(f) How is abnormal gain
calculated and treated in process costing? 2+3=5
4. Answer any four of the following questions: 10x4=40
(a) What are the various
costs classified under ‘functional classification’? Give a brief description of
each of these costs.
(b) Assam Manufacturing
Company uses copper wire which is purchased from the market as and when
necessary. Following purchases and issues were made during the month of
January, 2023:
|
January 1: January 3: January 7: January 11: January 18: January 24: January 28: |
Opening balance 300 kgs
at Rs. 50/kg. Purchased 500 kgs at Rs.
52/kg. Issued 220 kgs. Issued 440 kgs. Purchases 490 kgs at Rs.
46/kg. Issued 300 kgs. Surplus 20 kgs returned
to store out of quantity issued on 7th January. |
Prepare Stores Ledger A/c
for the above transaction according to FIFO method of pricing issue of
materials.
(c) During the first week
of January 2023, the workman Mr. Santosh produces 150 articles. He received
wages for a guaranteed 48 hours a week @ Rs. 50 per hour. The estimated time to
produce one article is 20 minutes and under incentive scheme the allowed is
increased by 20%. Calculate his gross wages according to:-
(i) Piece works with
guaranteed weekly wages;
(ii) Rowan premium bonus
plan;
(iii) Halsey premium bonus
plan.
(d) Explain
‘under-absorption’ and ‘over-absorption’ of overheads. What are the causes for
under and over-absorption of overheads? (2+2)+6=10
(e) A firm of building
contractors began to trade on 1st April, 2022. Following was the
expenditure on a contract for Rs.
9,00,000:
|
|
Rs. |
|
Material issued Plant issued Wages incurred Other expenses incurred |
1,44,000 30,000 1,48,000 30,000 |
Cash received on account of
31st March, 2023 amounted to Rs. 4,00,000; being 80% of the work
certified. On the Plant and Materials charged to contract, Plant which cost Rs.
6,000 and Materials which cost Rs. 5,000 were lost. On 31st March,
2023, Plant cost Rs. 4,000 was returned to stores, the cost of work done but
uncertified was Rs. 20,000 and materials costing Rs. 4,600 were in hand on
site.
Charge 15% depreciation on
plant and prepare Contract A/c.
(f) Briefly describe the
need for and procedure for integration of Cost Accounting and Financial
Accounting. 5+5=10
(g) (1) What is allocation
and apportionment of overheads?
(2) A company has four
departments. The actual costs for the period are given below. Apportion the
cost to the various departments by using the most equitable method:- 2+8=10
|
|
Rs. |
|
Rent Depreciation Supervision Employer’s Liability
Insurance Insurance |
5,000 4,800 9,000 900 3,000 |
The following data are also
available in respect of four departments:
|
Particulars
|
A |
B |
C |
D |
|
Area (sq. feet) |
50 |
40 |
30 |
30 |
|
Number of Workers |
24 |
16 |
12 |
8 |
|
Value of Plant (in Rs.) |
12,000 |
9,000 |
6,000 |
3,000 |
|
Total Wages (Rs.) |
4,000 |
3,000 |
2,000 |
1,000 |
|
Value of Stock (Rs.) |
15,000 |
9,000 |
6,000 |
- |
|
|
Rs. |
|
Factory overhead over
absorbed Administrative overhead
under absorbed Depreciation charged in
financial accounts Depreciation charged in
cost accounts Income Tax provided Interest on loans fund
in financial accounts Interest on investments
not included in cost accounts Transfer fees (Credit in
financial books) Stores adjustment
(Credit in financial books) |
8,000 12,000 1,10,000 1,22,000 75,000 1,34,000 32,000 8,000 4,000 |
Prepare a Reconciliation
Statement from the above information
***
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