M.Com. DEGREE EXAMINATION,
NOVEMBER 2017
Third Semester
Commerce with Computer Applications
PRACTICAL COST ACCOUNTING
(CBCS 2015 onwards)
Time 3 Hours Maximum 75 Marks
Section A (10 x 2 20)
Answer all questions.
1. What do you mean by costing accounting?
2. What is cost reduction?
3. Write a note on spoilage.
4. Write a note on EOQ.
5. What do you mean by ABC analysis?
6. Write a note on process costing.
7. What is standard cost?
8. From the following data calculate material usage value:
Standard 20kg at Rs.5.50 per kg. and actual 25 kg at
Rs.6 per kg.
9. What do you mean by responsibility accounting?
10. What is cost audit?
Sub. Code
5MCC3C1
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Section B x 5 25)
Answer all questions.
11. Differentiate between cost accounting and
management accounting.
Or
Differentiate between cost control and cost
reduction.
12. Compute the economic batch quantity for a
company using batch costing with the following
informations Annual demand for the parts 4000
units; setting up cost Rs. 100; Cost of manufacture
(one unit) Rs.200; Rate of interest per annum 10%.
Or
Show the treatment of the following items in cost
statement. Raw materials consumed Rs. 80,000;
Direct wages Rs. 60,000; Direct expenses Rs. 25,000;
Factory overhead Rs. 45,000; Opening work-in
progress Rs. 8,000; Closing work-in progress
Rs. 6,000.
13. Opening stock of work-in-progress 4,000 units 40%
complete: Units put into process 30,000; Units
completed 32,000; Closing stock of work-in-progress
2,000 units, 60% complete. Calculate equivalent
production.
Or
What are the advantages of ABC analysis?
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14. Differentiate between historical cost and standard
cost.
Or
A factory works on the standard costing system. The
standard estimates of materials for the
manufacture of 1,000 units of a commodity is
400 kg. at Rs.250 per kg. When 2,000 units of a
commodity are manufactured, it is found that
820kg. of materials is consumed at Rs.2.60 per kg.
Calculate the Material Variances.
15. What are the types of values?
Or
State the merits of responsibility accounting.
Section C x 10 30)
Answer any three questions.
16. Differentiate between financial accounting and cost
accounting.
17. From the following information prepare a Cost Sheet for
the Month of January: Stock on hand- January 1st Raw
materials Rs. 25,000; Finished goods Rs. 17,300; Stock on
hand January 31st Raw materials Rs.26,200; Finished
goods Rs. 15,700; Purchases of raw materials Rs. 21,900
Carriage on purchase Rs. 1,100; Work in progress (works
cost) January 1st Rs.8,200; Work in progress (works cost)
January 31st Rs.9,100; Sale of finished goods Rs. 72,300;
Direct wages Rs. 17,200; Non productive wages Rs.800;
Direct expenses Rs.1,200; Factory overheads Rs.8,300;
Administrative overheads Rs.3,200; Selling and
distribution overheads Rs.4,200.
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18. From the following particulars prepare Process Account
and calculate abnormal loss. Input of raw materials 1,200
units at Rs.6 per unit. Direct labour Rs.4,000; Factory
expenses Rs.5,610; Scrap value of process loss Re.0.50 per
unit; Net production 1,060 units; Normal loss 10% of
input.
19. From the following particulars calculate Sales value
variance; Sales price variance and Sales volume
variance. The budgeted and actual sales for a period in
respect of two products are
Product Budgeted Quantity Actual Quantity
Units Price Units Price
A 1,000 Rs.20 1,300 Rs.21
B 2,000 Rs.I5 2,300 Rs.14
20. Elaborate the powers and duties of cost auditor.