1985
Answer any five:-
1. What is cost accounting? Why is cost accounting necessary? Explain the relationship between cost & financial accounting. (5+5+10)
2. Describe in details the procedure of purchasing material from outside.(20)
3. State briefly the different methods of wage payment. (20)
4. Define standard cost, standard costing & variance analysis. Mention briefly the various cost variances. (12+8)
5. Write short notes on :-(5x4)
a) Bin card.
b) ABC analysis.
c) Premium plan.
d) Abnormal wastage.
6. It has been mentions that the cost standards for material consumption are 40 kg @ Rs10 per kg. Compute the variance when actual are :-(5x4)
a) 48 kg @ Rs10 per kg
b) 40 kg @ Rs12 per kg
c) 48 kg @ Rs12 per kg
d) 36 kg for a total cost of Rs360
7. From the following particulars prepare a statement showing (a) the cost of materials consumed (b) prime cost (c) work cost (d) total cost (e) the percentage of works on cost to productive wages (f) the percentage of general expenses on cost to works cost. (2X6)
Particulars
Stock of finished goods on 31/12/1983 72800
Stock of raw materials on 31/12/1983 33280
Purchase of raw materials 759200
Productive wages 516880
Sales of finished goods 1539200
Stock of finished goods on 31/12/1984 78000
Stock of raw materials on 31/12/1984 35360
Workers overhead 129220
Office & general expenses 70160
Interest on capital 5000
The company is about to send a tender for a large plant. The costing department estimates that the materials required would cost Rs52000 and the wages to workers for making the plant would cost Rs31200. The tender is to be made at a net profit of 20% on the selling price. Show what the amount of the tender would be if based on the above percentage. (8)
8. From the following figures show the cost of three processes of manufacture. The production of each process is passed on the next process immediately on completion: -(4+8+8)
Particulars | Process A | Process B | Process C |
Wages & materials Works overhead Productions in units Stock (units from preceding process 1/7/84) Stock (units from preceding process 31/7/84) | 30400 5600 36000 ----- ----- | 12000 5250 37500 4000 1000 | 29250 6000 48000 16500 5500 |
Prepare A, B, C, process A/c.
1986
Answer any five:-
1.
Explain the scope of cost accounting. Discuss in detail its advantages &
disadvantages. (4+8+8)
2.
Discuss the various elements of cost. Give a few examples of each. Define
‘direct expenditure’ & ‘indirect expenditure’. (7+6+7)
3.
What do you mean by Bin card & stores ledger? What are the differences
between two? Give specimen of Bin card & Stores ledger. (7+6+7)
4.
What is labour turnover? How is it measured? What are its causes? What steps are
taken for controlling it? (4+5+5+6)
5.
Write short notes on:-
a. Cost
centre.
b. Idle
time.
c. Weighted
average price.
d. Standard
costing.
6.
The following figure relate to the costing of a manufacturer of electrics
heater for a period of one month ending 31st Dec 85.
Rs.
Finished stock on 1st Dec, 1985 nil
Finished stock on 31st Dec, 1985 20250
Stock of raw materials on 1st
Dec, 1985 5000
Stock of raw materials on 31st
Dec, 1985 3500
Factory wages 75000
Indirect charges 12500
Carriage inward 2500
Materials purchased 30000
Sales 112500
The
number of heaters manufactured during the month of December was 3000.
a)
Prepare a statement, showing the cost per heater & the profit
per heater. And
b)
A statement showing the price to be quoted for 750 heaters &
the profit thereon to realize the same percentage of profit as was realized
during the month of the December assuming the same conditions. (14+6)
7.
Compute the machine hour rate from the following data:-
Cost of machine 50000
Installation charges 10000
Scrap value of the machine at the end of
its life of 10 yrs 5000
Rent of the shop per year 2500
General lighting of the shop per month 250
Repaired & maintenance for the machine
per year 1500
Insurance premium for the machine per quarter 300
Supervisor’s salary per month 500
The supervisor devotes 1/4th
of his time for the machine. The cost of power is Rs10 per 100 units &
machine consumes power at the rate of 10 units per hour. Normal working hours
of the machine is 1200 per year, but during the year it actually worked for
1000 hours. The machine occupies 1/5th of the floor area of the
shop. (20)
8.
A company’s product passes through two distinct processes, A & B, &
then to finished stocks. It is known from past experience that wastage occurs
in the processes as under:-
In process A- 5% of the units entering the process.
In process B- 10% of the units entering the process.
The
process costs are:-
Particulars
|
Process
A
|
Process
B
|
Materials
consumed
Wages
Manufacturing
expenses
|
6000
7000
2000
|
3000
4000
2000
|
10000
units were introduced into the process A costing Rs5000. The outputs were:-
Process
A – 9400 units.
Process
B – 8300 units.
Prepare
process cost accounts showing the cost of the output. (10x2)