DISTANCE EDUCATION
B.Com. (CA)/B.Com. (Lateral) DEGREE EXAMINATION,
DECEMBER 2017.
COST ACCOUNTING
(2005 onwards)
Time Three hours Maximum 100 marks
SECTION A — × 8 40 marks)
Answer any FIVE questions.
1. Define Cost Accounting. List out the methods of
classifying cost.
2. "Price fixing is the only advantage of costing data" — Do
you agree?
3. The following information is available in respect of
material
Reorder quantity 3600 units
Reorder period:
Minimum 3 weeks
Maximum 5 weeks
Average 4 weeks
Maximum consumption 900 units per week
Minimum consumption 300 units per week
Average normal consumption 600 units per week
Calculate:
Re-order level
Maximum stock level and
Minimum stock level.
Sub. Code
33
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4. Calculate the economic order quantity from the following.
Particulars
Annual requirements 1600 units
Cost of material per units Rs. 40
Cost of playing and receiving one order Rs. 50
Annual carrying cost of inventory 10% of inventory value.
5. 1000 units of raw material were transferring is to the
costing profit Rs. 4,000 10% wastage is allowed, each unit
of wastage realizes Rs. 2.50. The actual production was
650 units (with an abnormal wastage of 50 units)
expenses being as follows.
Direct wages Rs. 6,500
Indirect wages R.s. 3250.
Prepare the process account to bring out the effect of
wastage.
6. What are the important aspects of process costing?
7. The following information is given.
Standard hours per unit 15
Standard rate Rs. 4 per hour
Actual data:
Actual production 1,000 units
Actual hours 15,300 hours
Actual rate Rs. 3.90 per how.
Calculate labour cost variance, labour efficiency
variance labour rate variance.
8. Explain the objectives of integral accounting.
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SECTION B — × 15 60 marks)
Answer any FOUR questions.
9. Distinguish between cost accounting and financial
accounting.
10. Two types of materials, X and Y are used in a factory as
follows:
Normal usage 600 units per week
Maximum usage 900 units each per week
Minimum usage 300 units per week
Re-order quantity X 4,800 units Y 7,200 units
Re-order period X 4 to 6 weeks Y 2 to 4 weeks
Calculate for each material.
Re-order level
Minimum level
Maximum level
Average stock level.
11. Show the stores ledger entries as they would appear
when using.
Weighted average method.
LIFO method of pricing issues in connection with
the following transaction.
April Units Values
1 Balance b/f 300 600
2 Purchased 200 440
4 Issued 150 —
6 Purchased 200 460
11 Issued 150 —
19 Issued 200 —
22 Purchased 200 480
27 Issued 250 —
In a period of rising prices such as above, what are the
effects of each methods?
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12. Calculate wages under Halsey plan and Rowan plan from
the following particulars:
Time allowed 16 hours
Time taken 10 hours
Time rate Rs. 1 per hour
13. Explain the advantages and disadvantages of process
costing.
14. What is standard costing? Explain the limitation and
advantages of standard costing.
15. From the following figures, prepare a reconciliation
statement between cost and financial records.
Rs.
Net profit as per financial records 1,28,775
Net profit as per costing records 1,72,400
Works overhead under recovered in costing 3,100
Administration overhead recovered in excess 1,700
Depreciation in cost accounts 12,500
Depreciation in financial accounts 11,200
Interest on investments not included in costing 8,000
Obsolescence loss charged in financial accounts 5,700
Income tax debited in financial accounts 40,300
Bank interest credited to financial accounts 750
Stores adjustment credited in financial account 475
Depreciation of stock charged in financial account 6,750
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