B.B.A. (Semester II) (CBCS) Examination Mar/Apr-2018
COST ACCOUNTING
Time: 2½ Hours
Max. Marks: 70
Instructions: All questions are compulsory. Use of Calculator is allowed.
Q.1

Choose correct alternatives:
07
costs are partly fixed and partly variables in relation to output.
Variable
Fixed
Semi variable
Packing Cost is an item of
Production overhead
Selling overhead
Office overhead
cost per unit does not change with change in activity level.
Semi Fixed
Variable
Fixed
Direct Expenses are also called expenses.
Variable
Chargeable
Fixed
If the minimum stock levels is 3000 units and re-order quantity is 2000 units, what is the average stock Level?
5000 units
4000 Units
3000 units
will leads to unnecessary blocking of working capital.
Over stocking
Under stocking
Minimum stocking
Under method of wage payment, wages on time basis are not guaranteed.
Halsey Pan
Rowan Plan
Taylor's Piece rate
Q.1

Fill in the blanks:
07
If Contribution per unit is Rs.25 and Fixed Costs are Rs. 250000, the breakeven point in units is equal to
If Contribution per unit Rs.15 and Sales per unit Rs. 60, the PV Ratio cent.
If Direct Labour is Rs.600000 and Factory overheads 72% of Direct Labour, Then factory overhead Rs.
budget is designed to change according to the level of activity actually attained.
Sales Rs. 440000 and Profit 10% on Cost of Sales, then Cost of Sales Rs.
When standard output is 10 units per hour and actual output is 12 units per hour, the efficiency is per cent.
Aggregate of all expenses relating to indirect material cost, indirect labour cost and indirect expenses is known as
Page 2 of 3
SLR-CU-8
Q.2
Solve any two questions from the following:
14

Prepare a cost sheet to determine the Profit when the Selling Price is Rs. 120 per unit.
Particular
Cost
Particular
Cost
Raw materials Consumed
Rs.240000
Office overheads
10% of factory cost
Direct wages
Rs. 75000
Selling overheads
Rs. 5 per unit
Factory overheads
Rs. 25550
Units produced
4000 units
Direct Expenses
Rs. 53500
Units Sold
3588 units

Prepare a Store Leger Account using LIFO Method of pricing the issue of materials:
April 1
Opening Balance
10850 Kg Rs.130 per Kg
2
Purchased
20000 Kg Rs.134 per Kg
3
Issued
6750 Kg to Production Dept
5
Issued
8500 Kg to Production Dept
6
Received Back
550 Kg from Production Dept
7
Purchased
17550 Kg Rs. 128 per Kg
8
Issued
11250 Kg to Production Dept

Short a Note on
Break-Even analysis.
Q.3
Solve any two questions from the following:
14

Calculate the total wages earned by a workman for a working day of 8 hours under Halsey and Rowan Plan.
Standard production per hour
35 units
Actual Production of the day
385 units
Wage rate per hour
Rs. 32

Calculate EOQ and No. of Orders in a year: Annual Demand 5000 Kg Cost of placing one order Rs.125 Carrying Cost per unit per annum Rs. 1.25


Write note on Cost control and cost reduction.
Q.4
Solve any one questions from the following:
14

A manufacturing company has three production departments and two service departments. Overheads allocated for a period to these departments are as follows:-
Production Department
Rs.
Service Department
Rs.
A
225000
X
80000
B
130000
Y
50000
C
120000
Basis of Apportionment
Department
A
B
C
X
Y
X
50%
20%
10%

20%
Y
30%
20%
40%
10%

Re-apportion the overheads of Service Department by Simultaneous Equation method.

Distinction between Financial Cost Accounting
Page 3 of 3
SLR-CU-8
Q.5
Solve any one questions from the following:
14

The following data pertains to Material
Consumption rate:- Maximum 1600 units per month Minimum 900 units per month Normal 1250 Units per month Yearly 36000 units
Price per unit of material Rs. 64 Storage costs are of stock value Ordering costs are Rs.400 per order Supply period: 3 to 4 months.
Calculate:
Re-order Quantity
Re-order Level
Maximum Level
Minimum Level

Fixed Expenses Rs. 47000 Variable Cost Rs. 72 p.u. S.P. Rs. 120 p.u. On the basis of the information calculate:-
P/V Ratio
Profit when sales are Rs. 250000
Sales to earn profit of Rs. 60000
New Break Even Point if selling price is reduced by 5%.