Cost Accounting Question Paper 2014 (May)
Dibrugarh University B.Com 4th Sem CBCS Pattern
Commerce (General/Speciality)
Course: 401
Full Marks: 80
Time: 3 Hours
1. (a) Fill in the blanks : 1x5=5
(i)
LIFO
method is suitable in times of ____ prices.
(ii)
Material
control aims at achieving effective material ____.
(iii)
Cost
audit is concerned with the ____ of Cost Accounts.
(iv) When actual loss is more than the estimated
loss, then the difference is considered to be ____.
(v)
Depreciation
is ____ expenses in cost.
(a)
Select
the appropriate answer for each of the following questions : 1x3=3
(i) Which of the following is
not a method of costing?
(1)
Contract
Costing
(2)
Operating
Costing
(3)
Batch
Costing
(4)
Marginal
Costing
(ii) Specify the method of
costing suitable to a toy-making unit
(1)
Process
Costing
(2)
Operating
Costing
(3)
Batch
Costing
(4)
Multiple
Operating Costing
(iii) In which of the following
contracts Contract Costing is applied as a specialized system of Job Costing?
(1)
Short-term
contract
(2)
Long-term
contract
(3)
Medium-term
contract
(4)
Continuous
processes
2. Write short notes on (any four) : 4x4=16
(a)
ABC
analysis
(b)
Merit
rating
(c)
Idle
time
(d)
Time
and motion study
(e)
Job
card
3. (a) Define costing. Discuss the essentials
of an Ideal Cost Accounting System. 4+8=12
Or
(b) Following details relate to
ATEACO Ltd. for the year ending 31.03.2013 :
01.04.2012
|
31.03.2013
|
|||
Units
|
Rs.
|
Units
|
Rs.
|
|
Stock of Raw Materials
|
1000
|
12,000
|
800
|
10,000
|
Work-in-progress
|
800
|
16,000
|
1000
|
20,000
|
Stock of Finished Goods
|
6000
|
-
|
10000
|
-
|
Expenses during the year in Rs.
Direct Wages
|
6,00,000
|
Purchase of Raw Materials
(97000 units)
|
11,14,000
|
Other Materials
|
36,000
|
Carriage Inward
|
5,640
|
Carriage Outward
|
3,000
|
Wages to Foremen
|
48,000
|
R & D Expenses
|
30,000
|
Other Wages
|
6,000
|
Manager’s Salary
|
72,000
|
Employee’s State Insurance
|
6,000
|
Power and Fuel
|
54,000
|
Office Expenses
|
36,000
|
Printing and Stationery
|
12,000
|
Counting House Salary
|
12,000
|
Sales of Scraps
|
1,640
|
Income Tax
|
22,000
|
Donation to Charity
|
5,000
|
Selling and Distribution expenses Rs. 1 per
unit. Units manufactured during the year are 96000
Finished stock is valued at current cost. Prepare Cost Sheet showing the
following : 2x6=12
a)
Materials
consumed
b)
Prime
cost
c)
Factory
cost
d)
Cost of
production
e)
Cost of
goods sold
f)
Total
cost of sales
4. (a) Sunshine Electronics manufactures
picture tubes for TV. Details of their operation during the year are given
below :
Average monthly
market demand – 2000 tubes
Ordering cost –
Rs. 100 per order
Inventory
carrying cost – 20% per annum
Cost of tubes –
Rs. 500 per tube
Normal usage –
100 tubes per week
Minimum usage –
50 tubes per week
Maximum usage –
200 tubes per week
Lead time to
supply – 6 to 8 weeks.
(i) Compute
economic order quantity. If the supplier is willing to supply quarterly 1500 units
at a discount of 5%, is it worth accepting. 5
(ii) Compute the
following : 2x3=6
(1) Maximum level
of stock
(2) Minimum level
of stock
(3) Reorder level
Or
(b) What do you mean by material
control? Discuss its objectives. 4+7=11
Also Read: Cost Accounting Question Papers and Solutions
5. (a) A workman has taken 15 hours in
performing a job. The standard hours fixed for the job are 20 hours. He is paid
hourly payment @ Rs. 4. He is allowed to be paid 40% of the time saved. In
addition, he also gets a dearness allowance of Rs. 2 a day of 8 hours. Calculate his total earnings under:
(i) Halsey
Premium Plan;
(ii) Rawan
Premium Plan; 5½+5½=11
Or
(b) What do you mean by labour
turnover? What steps should be taken to check the increasing rate of labour
turnover? Discuss. 4+7=11
6. (a) Assam Engineering Works has three
production departments A, B, C and one service department S. From the following
particulars, calculate labour hour rate for each of the production departments.
Expenses for the period of 12 months :
Particulars
|
Rs.
|
Rent
|
36,000
|
Power
|
8,250
|
Indirect Wages
|
5,200
|
Depreciation on Machinery
|
22,000
|
Electricity
|
5,600
|
Canteen Expenses
|
6,500
|
Additional information :
A
|
B
|
C
|
S
|
|
Light points
|
7
|
7
|
9
|
5
|
Floor space (sq. m)
|
300
|
250
|
450
|
200
|
Horsepower of Machine (HP)
|
65
|
30
|
30
|
40
|
No. of workers
|
2
|
3
|
6
|
2
|
Direct wages (in Rs.)
|
12,000
|
14,000
|
18,000
|
8,000
|
Cost of machine (in Rs.)
|
50,000
|
60,000
|
80,000
|
10,000
|
Working days – 200 days of 8 hours each. Service rendered by service department S to production departments A, B and C are 30%, 20% and 50% respectively.
Or
(b) Define overhead, How are
overheads classified? State four reasons of over-absorption or under-absorption
of overheads. 2+5+4=11
7. (a) From the following particulars, prepare
Contract Account for the year ended on 31st December, 2013
: 11
Rs.
|
|
Materials sent to site
|
1,90,000
|
Wages paid
|
1,20,000
|
Wages outstanding
|
5,500
|
Direct expenses
|
60,000
|
Establishment charges
|
52,000
|
Special plant installed at
cost
|
2,00,000
|
Cost of work not certified
|
25,000
|
Value of special plant of 31.12.2013
|
1,70,000
|
Materials at site on
31.12.2013
|
21,000
|
Total contract price
|
12,00,000
|
Cash received
|
5,94,000
|
Retention – 10% of work
certified Sale of scrap
|
2,000
|
General plant costing Rs. 1,20,000 was used
for 3 months. Depreciation on that is to be provided
at 15 % p.a.
Or
(b) What do you mean by ‘Cost Audit’ and
‘Cost Management’? Discuss the functions of a Cost Auditor. 3+3+5=11