Exam Details

Subject cost accounting
Paper
Exam / Course b.b.a.
Department
Organization loyola college
Position
Exam Date April, 2018
City, State tamil nadu, chennai


Question Paper

1
LOYOLA COLLEGE (AUTONOMOUS), CHENNAI 600 034
B.B.A.DEGREE EXAMINATION -BUSINESS ADMINISTRATION
THIRD SEMESTER APRIL 2018
16UBU3MC01- COST ACCOUNTING
Date: 03-05-2018 Dept. No. Max. 100 Marks
Time: 09:00-12:00
SECTION A (10X2=20Marks)
ANSWER ALL THE QUESTIONS
1. State the objectives of cost accounting.
2. What is imputed cost? Give an example.
3. What are the components of prime cost?
4. List the items that are excluded while preparing a cost sheet.
5. What is Stores Ledger Account?
6. How overtime wages is computed?
7. What do you mean by activity based costing?
8. State the purpose of absorption costing.
9. Distinguish Batch costing from contract costing.
10. How residuals are treated in contract costing?
SECTION-B(4X 10=40 MARKS)
ANSWER ANY FOUR QUESTIONS
11. Discuss various cost accounting techniques.
12. The following data relate to the manufacturing of a standard product during the month of march 1989:
a. Raw material Rs 20000
b. Direct wages Rs 12000
c. Machine hours worked 1000 hours
d. Machine hour rate Rs 2 per hour
e. Office overhead 20% on works cost
f. Selling overhead Re. 0.40 per unit
g. Units produced- 20000 units
h. Units sold at Rs 3 each 18000 units
Prepare a cost sheet
2
13. From the information given below you are required to fix high piece rate and calculate earnings of who complete the job within 12,10,9 hrs respectively
Standard time 10 hr for a job
Rate per hour: Re 0.50
Below 100% efficiency- Time wages
At 100% efficiency-Time wages plus 10%
Above 100% efficiency-straight piece rate plus 20%
What will be effective hourly rate?
14. Find out the Machine Hour Rate from the following:
Cost of Machine Rs.3,60,000
Freight and Installation 40,000
Working Life- 20 Years
Working Hours 8,000 hours, p.a
Repairs Charges 50% of Depreciation
Power- 10 units per hour@ 10 Paise per unit
Lubricating oil@ Rs.2 per day of 8 hours
Consumable stores Rs.10 Per day of 8 hours
Wages of operator Rs.4 Per day
15. Two components X and Y are used as follows:
Normal usage: 600 units per week each
Minimum usage: 900 units per week each
Maximum usage: 300 units per week each
Reorder quantity
4,800 units
7,200 units
Reorder period:
4 to 6 weeks
2 to 4 weeks
Calculate for each of the components:
Reorder level Minimum level Maximum level Average stock level
16. Senthil Construction Company undertook a contract for constructing a building from 1st Jan 2010, contract price was Rs.1, 00,000. He incurred the following expenses.
Rs.
Materials issued 6000
Materials in hand, at the end 1000
Wages 5000
Direct expenses 20000
3
Plant purchased 10000
The contract was completed on 30th June 2010 and the contract price was duly received. Provide depreciation 20% p.a on plant and charge indirect expenses at 20% on wages. Prepare contract account in the books of the company.
17. M/s Vimal& Co. Has supplied the following information regarding its production departments for the month of March 2005.
Rs.
Material used 72,000
Direct Labour cost 60,000
Direct Labour hours worked 48,000 hrs
Hours of machine operators 40,000 hrs
Factory overheads of departments 50,000
On one particular job order carried out within the department, the relevant data were:
Material used 4000
Direct Labour 3300
Machine 4800 hrs
Prepare a comparative statement of cost of the job order by using the following three method of recovery of overheads:
Direct labour cost rate method
Direct labour hour method
Machine hour rate method
SECTION-C
ANSWER ANY TWO OF THE FOLLOWING X 20= 40 Marks)
18. Explain the need and importance of cost accounting.
19. The following figures have been obtained from the cost records of Ria manufacturing company for the year 1992
cost of materials 2,40,000
Wages of labour 2,00,000
Factory overhead 1,20,000
Distribution expenses 56,000
Administration expenses 1,34,400
Selling expenses 89,600
Profit 1,68,000
A work order has been executed in 1993 and the following expenses have been incurred:
Cost of materials 32000,and wages 20000
4
Assuming that in 1993 the rate for factory overhead went up by 10% and administration charges went up by 12.5% at what price should the product or the job be quoted so as to earn the same rate profit on the selling price? Show the full working. Selling and Distribution charges are based on the factory cost.
20. A factory has three production departments Z and service departments A and B. The budgeted expenditure for the month of March 1999 are given below:
Rent- Rs.15,000,General Lighting-Rs.6600, Indirect Wages-20,000,Power-15,000,Depreciation on Machines-100000,and Sundries-10,000.
The other details are:
Particulars
X
Y
Z
A
B
Direct Wages
30000
20000
30000
15000
5000
Working Hours
3070
4475
2419


Value of machines
600000
800000
1000000
50000
50000
Horse Power of Machines
60
30
50
10

No. of light points
100
150
200
100
50
Floor area
20000
25000
30000
20000
5000
Service department overheads are apportioned on the following basis.
X Y Z A B
Service Dept.A 20% 30% 40% 10%
Service Dept.B 40% 20% 30% 10%
Find out the work cost of product which is processed for manufacture in departments X Y and Z for 4 5 and 3 hours respectively, given that its direct materials is Rs.500 and labour cost is Rs.430.
21. Construction Ltd., is engaged on two contracts A and B during the year. The following particulars are obtained at the end of Dec. 1998.
Contract A
April 1 Rs.
Contract B
Sep. 1 Rs.
Contract price
6,00,000
5,00,000
Materials issued
Materials returned
Materials at site Dec 31
Direct labour
Direct expenses
Establishment expenses
Plant installed at site at cost
Value of plant (Dec.31)
Cost of contract not yet Certified
Value of contract certified
Cash received from contractees
Architect's fees
1,60,000
4,000
22,000
1,50,000
66,000
25,000
80,000
65,000
23,000
4,20,000
3,78,000
2,000
60,000
2,000
8,000
42,000
35,000
7,000
70,000
64,000
10,000
1,35,000
1,25,000
1,000
During the period materials amounting to the Rs.9,000 have been transferred from contract A to contract B. You are required to show:
Contract accounts
Contractee's accounts
Balance sheet extracts, showing work-in-progress clearly.



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