Exam Details
Subject | cost accounting | |
Paper | ||
Exam / Course | b.b.a. | |
Department | ||
Organization | loyola college | |
Position | ||
Exam Date | November, 2017 | |
City, State | tamil nadu, chennai |
Question Paper
1
LOYOLA COLLEGE (AUTONOMOUS), CHENNAI 600 034
B.B.A. DEGREE EXAMINATION BUSINESS ADMINISTRATION
FIFTH SEMESTER NOVEMBER 2017
BU 5504 COST ACCOUNTING
Date: 03-11-2017 Dept. No. Max. 100 Marks
Time: 09:00-12:00
PART A 10 X 2
ANSWER ALL THE QUESTIONS
1. What is Bin card?
2. Define EBQ.
3. What is Danger level of stock?
4. What is Work study?
5. Define Quotation.
6. Opening stock of raw material Rs. 15,000; Closing stock of raw material Rs. 20,000;
Material purchased Rs. 1,20,000. Find raw material consumed.
7. Find the amount of overhead under or over absorbed from the details given below:
Machine hour rate Rs. 10 per hour
Actual machine hours worked: 6,500
Actual overhead incurred: Rs. 50,000
8. Mention the basis of apportionment the following overheads;
General administration expenses; time office expenses; Recreation expenses;
Electricity for power purpose
9. Compute cost per unit of output of a process account from the following:
Materials (500 units) Rs. 10,000
Labour Rs. 8,000
Indirect expenses Rs.7,000
Normal loss: of input
Scrap value Rs. 31 per unit
10. Ascertain the bonus under Rowan scheme:
Standard time: 12 hours; Actual time: 8 hours; Time rate: Rs. 1.50 per hour.
2
PART B 4 X 10
ANSWER ANY FOUR QUESTIONS
11. Explain the nature and scope of Cost accounting.
12. Compare the re-order level, minimum level, maximum level, average stock level for components A and B
based on the following data:
Maximum consumption per week
Average consumption per week
Minimum consumption per week
Re-order period
Re-order quantity
A
150 units
100 units
50 units
8 to 12 weeks
400 units
B
150 units
100 units
50 units
4 to 9 weeks
600 units
13. Explain the essential features of good wage payment system.
14. From the following particulars, calculate the earnings of different workers under Taylor's differential piece
rate system
Standard time per hour 6 minutes
Normal rate Rs. 5 per hour
Differential piece rates
80% of piece rate below the standard
120% of piece rate at or above the standard
In a day of 8 hours, the production by different workers is as under:
Amar: 70 units; Badekhan: 80 units; chaplin: 90 units; Dharmsingh: 100 units.
15. Work out the Machine Hour Rate for the following machine whose scrap value is nil.
Cost of machine Rs. 3,60,000
Freight and installation Rs. 40,000
Working life 20 years
Working hours 8000 per year
Repair charges 50% of depreciation
Power 10 unit per hour 10 paisa per unit
Lubricating oil Rs. 2 per day of 8 hours
(viii) Consumable stores Rs.10 per day of 8 hours
Wages of operator Rs. 4 per day
3
16. From the following data calculate the cost per running kilometre of a vehicle.
Value of vehicle
Road license fee per year
Insurance charges per year
Garage rent for the year
Drivers rent for the year
Cost of petrol per liter
Kilometer per liter
Proportionate charges for tiers and maintenance
per kilometre
Estimated life
Estimated annual kilometers
4,50,000
1,500
300
1,800
400
18
8 kms
0.30
1,50,000 Kms
6,000 Kms
17. Draw the proforma of cost sheet with all necessary adjustments.
PART C 2X 20 40)
ANSWER ANY TWO
18. "Cost can be classified in various ways according to their nature and needs of management". Discuss.
19. Draw a stores ledger card recording the following transactions under FIFO method:
2015 July 1 Opening stock 2,000 units at Rs. 10 each
5 Received 1,000 units at Rs.11 each
6 Issued 500 units
10 Received 5,000 units At Rs. 12 each
12 Received back 50 units out of the issue made on 6th July
14 Issued 600 units
18 Returned to supplier 100 units out of goods received on 5 th July
19 Received back 100 units out of the issue made on 14th July
20 Issued 150 units
25 Received 500 units at Rs. 14 each
28 Issued 300 units
The stock verification report reveals that there was a shortage of 10 units 18th July and another shortage of
15 units on 26th July.
20. A product passes through two distinct processes, A and B and thereafter to finished stock. From the
following information, you are required to prepare Process cost accounts.
Materials consumed
Direct labour
Manufacturing expenses
Input in Process A (units)
Input in Process A (Value)
Output (units)
Normal wastage
Value of normal wastage
(per 100 units)
Process A
Rs. 12,000
Rs.14,000
Rs. 4,000
10,000
9,400
Rs 8
Process B
Rs. 6,000
Rs. 8,000
Rs. 4,000
Rs.10,000
8,300
10%
Rs.10
4
21. Modern manufacturers Ltd., have three production departments P1, P2 and P3 and two service departments
S1 and S2, the details pertaining to which are as under:
P1 P2 P3 S1 S2
Direct wages(Rs.)
Working hours
Value of
machine(Rs)
H.P.of machine
Light points
Floor space
(Sq.feet)
30,000
3,070
6,00,000
60
100
20,000
20,000
4,475
8,00,000
30
150
25,000
30,000
2,419
10,00,000
50
200
30,000
15,000
50,000
10
100
20,000
5,000
50,000
50
5,000
The following figures extracted from the accounting records are relevant.
Rent Rs. 15,000
General lighting Rs. 6,600
Indirect wages Rs. 20,000
Power Rs. 15,000
Depreciation on machines Rs. 1,00,000 and sundries Rs. 10,000
The expenses of services departments are allocated as under
P1 P2 P3 S1 S2
S1 20% 30% 40% 10%
S2 40% 20% 30% 10%
Find out the works cost of product which is processed for manufacture in departments P1, P2 and P3 for 4,5
and 3 hours respectively, given that its direct material is Rs. 500 and direct labor cost is Rs. 430.
LOYOLA COLLEGE (AUTONOMOUS), CHENNAI 600 034
B.B.A. DEGREE EXAMINATION BUSINESS ADMINISTRATION
FIFTH SEMESTER NOVEMBER 2017
BU 5504 COST ACCOUNTING
Date: 03-11-2017 Dept. No. Max. 100 Marks
Time: 09:00-12:00
PART A 10 X 2
ANSWER ALL THE QUESTIONS
1. What is Bin card?
2. Define EBQ.
3. What is Danger level of stock?
4. What is Work study?
5. Define Quotation.
6. Opening stock of raw material Rs. 15,000; Closing stock of raw material Rs. 20,000;
Material purchased Rs. 1,20,000. Find raw material consumed.
7. Find the amount of overhead under or over absorbed from the details given below:
Machine hour rate Rs. 10 per hour
Actual machine hours worked: 6,500
Actual overhead incurred: Rs. 50,000
8. Mention the basis of apportionment the following overheads;
General administration expenses; time office expenses; Recreation expenses;
Electricity for power purpose
9. Compute cost per unit of output of a process account from the following:
Materials (500 units) Rs. 10,000
Labour Rs. 8,000
Indirect expenses Rs.7,000
Normal loss: of input
Scrap value Rs. 31 per unit
10. Ascertain the bonus under Rowan scheme:
Standard time: 12 hours; Actual time: 8 hours; Time rate: Rs. 1.50 per hour.
2
PART B 4 X 10
ANSWER ANY FOUR QUESTIONS
11. Explain the nature and scope of Cost accounting.
12. Compare the re-order level, minimum level, maximum level, average stock level for components A and B
based on the following data:
Maximum consumption per week
Average consumption per week
Minimum consumption per week
Re-order period
Re-order quantity
A
150 units
100 units
50 units
8 to 12 weeks
400 units
B
150 units
100 units
50 units
4 to 9 weeks
600 units
13. Explain the essential features of good wage payment system.
14. From the following particulars, calculate the earnings of different workers under Taylor's differential piece
rate system
Standard time per hour 6 minutes
Normal rate Rs. 5 per hour
Differential piece rates
80% of piece rate below the standard
120% of piece rate at or above the standard
In a day of 8 hours, the production by different workers is as under:
Amar: 70 units; Badekhan: 80 units; chaplin: 90 units; Dharmsingh: 100 units.
15. Work out the Machine Hour Rate for the following machine whose scrap value is nil.
Cost of machine Rs. 3,60,000
Freight and installation Rs. 40,000
Working life 20 years
Working hours 8000 per year
Repair charges 50% of depreciation
Power 10 unit per hour 10 paisa per unit
Lubricating oil Rs. 2 per day of 8 hours
(viii) Consumable stores Rs.10 per day of 8 hours
Wages of operator Rs. 4 per day
3
16. From the following data calculate the cost per running kilometre of a vehicle.
Value of vehicle
Road license fee per year
Insurance charges per year
Garage rent for the year
Drivers rent for the year
Cost of petrol per liter
Kilometer per liter
Proportionate charges for tiers and maintenance
per kilometre
Estimated life
Estimated annual kilometers
4,50,000
1,500
300
1,800
400
18
8 kms
0.30
1,50,000 Kms
6,000 Kms
17. Draw the proforma of cost sheet with all necessary adjustments.
PART C 2X 20 40)
ANSWER ANY TWO
18. "Cost can be classified in various ways according to their nature and needs of management". Discuss.
19. Draw a stores ledger card recording the following transactions under FIFO method:
2015 July 1 Opening stock 2,000 units at Rs. 10 each
5 Received 1,000 units at Rs.11 each
6 Issued 500 units
10 Received 5,000 units At Rs. 12 each
12 Received back 50 units out of the issue made on 6th July
14 Issued 600 units
18 Returned to supplier 100 units out of goods received on 5 th July
19 Received back 100 units out of the issue made on 14th July
20 Issued 150 units
25 Received 500 units at Rs. 14 each
28 Issued 300 units
The stock verification report reveals that there was a shortage of 10 units 18th July and another shortage of
15 units on 26th July.
20. A product passes through two distinct processes, A and B and thereafter to finished stock. From the
following information, you are required to prepare Process cost accounts.
Materials consumed
Direct labour
Manufacturing expenses
Input in Process A (units)
Input in Process A (Value)
Output (units)
Normal wastage
Value of normal wastage
(per 100 units)
Process A
Rs. 12,000
Rs.14,000
Rs. 4,000
10,000
9,400
Rs 8
Process B
Rs. 6,000
Rs. 8,000
Rs. 4,000
Rs.10,000
8,300
10%
Rs.10
4
21. Modern manufacturers Ltd., have three production departments P1, P2 and P3 and two service departments
S1 and S2, the details pertaining to which are as under:
P1 P2 P3 S1 S2
Direct wages(Rs.)
Working hours
Value of
machine(Rs)
H.P.of machine
Light points
Floor space
(Sq.feet)
30,000
3,070
6,00,000
60
100
20,000
20,000
4,475
8,00,000
30
150
25,000
30,000
2,419
10,00,000
50
200
30,000
15,000
50,000
10
100
20,000
5,000
50,000
50
5,000
The following figures extracted from the accounting records are relevant.
Rent Rs. 15,000
General lighting Rs. 6,600
Indirect wages Rs. 20,000
Power Rs. 15,000
Depreciation on machines Rs. 1,00,000 and sundries Rs. 10,000
The expenses of services departments are allocated as under
P1 P2 P3 S1 S2
S1 20% 30% 40% 10%
S2 40% 20% 30% 10%
Find out the works cost of product which is processed for manufacture in departments P1, P2 and P3 for 4,5
and 3 hours respectively, given that its direct material is Rs. 500 and direct labor cost is Rs. 430.
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