B.B.A. (Semester II) (CGPA) Examination, 2017
COST ACCOUNTING
Day Date: Tuesday, 18-04-2017 Max. Marks: 70
Time: 10.30 AM to 01.00 PM
N.B. All questions are compulsory.
All questions carry equal marks.
Use of calculators is allowed.
Figures to the right indicate full marks.
Q.1 Choose correct alternatives: 07
Contribution Margin Ratio ratio) is 25%. The fixed costs are
Rs. 30,00,000. The break even point is
Rs.120,00,000 Rs.60,00,000
Rs.30,00,000 Rs.15,00,000
Break even is not affected with changes in
Sales price per unit Variable cost per unit
Total fixed costs No. of units sold
In base stock method of pricing the material issues, the term
'base stock' represents the
Stock Issued Stock in balance
Minimum Stock Maximum Stock
Which of the following is a part of both prime cost and
conversion cost?
Direct Material Direct labour
Indirect Material Indirect labour L
An example of direct expense is
Direct material cost Direct labour cost
Both(a) and Hire of a special plant for a
particular job
When standard output is 10 units per hour and actual output is
12 units per hour, the efficiency is
80% 120%
100% None of these
Bad Debt is an example of
Production overhead Selling overhead
Administrative overhead Distribution overhead
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Q.1 Fill in the Blanks: 07
costs are partly fixed and partly variable in relation to
output.
The unit for which costs are measured is called a
Under method, the issues of materials are priced with
assumption that materials received last will be issued first.
be defined as the percentage of changes in the
labour of an organization during a specific period.
refers to recording of each worker's time of coming in and
going out of the factory.
Aggregate of all expenses relating to indirect material cost,
indirect labour cost and indirect expenses in known as
budget is designed to change according to the level of
activity actually attained.
Q.2 Attempt Any two questions
Define Budget and discuss various types of Budget 07
On 1st January 2015, the opening balance of stock in factory was
1500 units of Rs.1.50 each. The following are particulars of receipt
and issue of materials in a factory. Prepare a statement showing the
value of closing stock at the end of month if the materials were
issued according to
FIFO method ii) LIFO method
07
Date
2015
Receipts
Quantity
Price
Rs.
Issues
Quantity
Jan. 12 2000 1.55
Jan. 15 1100
Jan 18 800
From the following detail calculate Variable Cost per unit,
Contribution per unit, Total Profit, P/V Ratio, Break-Even Point (in
Rupees and in Units) and Margin of Safety (in Rupees).
07
Sales 8,000 units
Selling Price Per Unit Rs.40,00
Variable Cost per Unit
Direct Materials Rs.15.00
Direct Labour Rs.7.50
Variable Overheads 100% of Direct Labour Cost
Fixed Cost (Total) Rs.40,000
Q.3 Attempt Any two questions.
A manufacturing company has three production departments and two
service departments. Overheads allocated for a period to these
departments are as follows:
07
Production
Department:
Rs. Service Department: Rs.
A 25,000 X 5,000
B 30,000 Y 8,000
C 20,000
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SLR-SINA 18
Basis of
Apportionment:
Department: A B C X Y
X 40% 30% 20% 10%
Y 50% 30% 20%
Re-apportion the overheads of Service Departments by Simultaneous
Equation Method.
The expenses budgeted for production of 10,000 units in a factory
are furnished as follows:
07
Per Unit
Materials 60
Labour 30
Variable Overheads 15
Fixed Overheads (Rs.150000) 15
Variable Expenses (Direct) 16
Selling Overheads Fixed) 12
Total Cost of Sale Per Unit 148
Prepare a budget for production of 8000 units.
Calculate the total wages earned by a workman for a working day of
8 hours under Halsey and Rowan Plan.
07
Standard production per hour 20 units
Actual Production of the day 200 units
Wage rate per hour Rs.30
Q.4 Attempt any one question: 14
Two components A and B are used as Follows*
Normal Usage 120 units per week each
Maximum Usage 144 units per week each
Minimum Usage 96 units per week each
Re-order quantity A:300 units and B:500 units
Re-order period 4 to 6 weeks and B:2 to 4 weeks
Calculate for each component:
Re-ordering level Minimum Level
Maximum level Average Stock Level
Define Cost Accounting. Distinguish between financial accounting
and cost accounting.
Q.5 Attempt any one question: 14
Prepare a cost sheet from the following data to find out profit and
cost per unit during the month:
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SLR-SINA 18
Particulars Cost
Raw materials Consumed Rs.2,00,000
Direct wages Rs.80,000
Factory overheads Rs.20,000
Direct expenses Rs.50,000
Office overheads 10% of factory cost
Selling overheads Rs.5 per unit
Units produced 4000 units
Units Sold 3600 units
Selling Price Rs.120 per unit
Prepare a monthly Cash Budget for the three months ending 31st
December, 2015 from the following information-
14
Cash and Bank Balance on 1st October is expected to be Rs.25,000.
Month Sales
Rs.
Purchase
Rs
Wages
Rs.
Overheads
Rs.
August 60,000 36,000 8,000 7,500
September 65,000 40,000 7,500 7,500
October 80,000 40,000 7,500 5,000
November 90,000 45,000 8,000 5,000
December 90,000 50,000 8,500 8,000
Credit terms are: sales-2 months to debtors
Purchase- 1 months to creditors
Lag in payment: Wages- ¼ month
Overheads- ½ month