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LOYOLA COLLEGE (AUTONOMOUS), CHENNAI 600 034 B.B.A.DEGREE EXAMINATION BUSINESS ADMINISTRATION FIFTHSEMESTER APRIL 2017
BU 5504- COST ACCOUNTING
Date: 20-04-2017 Dept. No. Max. 100 Marks
Time: 01:00-04:00 Part A Answer all Questions: (10 x 2 20 Marks)
1. List out the functions of cost Accounting.
2. What is Cost center?
3. What is VED Analysis?
4. What do you mean by labour turnover?
5. Define Overhead Absorption.
6. What do you mean by By-Product?
7. A transport company operates 4 buses on a route 100 kms. Long. Each bus makes three round trips per day on all 30 days in a month. On an average 20% of the vehicles are in garage for repairs and maintenance. Ascertain the total distance covered by the buses in one month period.
8. From following data is available in respect of Job No. 876:
Direct materials Rs. 17,000; wages 160 hours at Rs.50 per hour. Variable overheads incurred for all jobs Rs.80000 for 2,000 labour hours. Fixed overheads are absorbed at Rs.20 per hour. Find the profit or loss from the job if the job is billed for Rs.40,000.
9. Find our inventory carrying cost per unit:
Cost of raw materials per unit Rs.70; Inventory carrying cost Rent, Taxes Insurance etc. Rs.2.5 per unit
10. Calculate the net wages from the following
Basic wages per month Rs.400 D.A. at 25% on Basic wage Employee's contribution to P.F. 20% of Basic.
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Part B Answer any Four Questions (4x10=40 Marks)
11. What are the advantages and disadvantages of straight piece rate system?
12. Differentiate between Cost accounting and Management Accounting.
13. What are essential requirements of good costing system?
14. The accounts of a machine manufacturing company disclose the following information for six months ending 31st December 1982.
Material used Rs.1,50,000 Direct wages Rs.1,20,000 Factory overheads Rs.30,000 Administrative expenses Rs.15,000 Prepare cost sheet for the half year and calculate the price which the company should quote for the manufacture of a machine requiring materials valued at Rs.1250 and expenditure in productive wages Rs.750, so that the price might yield a profit of 20% on the selling price.
15. Two components A and B are used as follows:
Reordering quantity A 1,200 units B 1,000 units Reordering period A 2 to 4 weeks B 3 to 6 weeks Normal usage 300 units per week each Minimum usage 150 units per week each Maximum usage 450 units per week each You are required to calculate the following for each of the components Reordering level Maximum level Minimum level Average stock level.
16. Work out the machine hour rate for the following machine whose scrap value is
Cost of machine Rs.3,60,000 Freight and installation Rs.40,000 Working life 20 years Working hours 8,000 per year Repairs charges 50% of depreciation. Power 10 units per hour 10 paise per unit Lubricating oil Rs.8 per day of 8 hours Consumable store Rs.10 per day of 8 hours Wages of operator Rs.4 per day.
17. Prepare a reconciliation statement from the following details
Net loss as per cost accounts Rs.3,44,800 Net loss as per financial accounts Rs.4,32,890 Works overhead under recovered in costing Rs.6,240
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Depreciation overcharged in costing Rs.2,600 Interest on investments Rs.17,500 Administrative overhead over recovered in costing Rs.2,600 Goodwill written off Rs.92,000 Store adjustment in financial books Rs.950 Deprecation of stock charged in financial books Rs.13,500 Part C Answer any Two Questions (2x20=40 Marks)
18. Define job costing and what are the merits and demerit of job costing?
19. The product of a manufacturing concern passes through two processes and and then to finished stock. It is ascertained that in each process normally of the total weight is lost and 10 is scrap which from processes A and B realizes Rs.80 per ton and Rs.200 per ton respectively.
The following are the figures relating to both the processes: Process A Process B Materials in tons 1,000 70 Cost of materials per ton 125 200 Wages 28,000 10,000 Manufacturing expenses 8,000 5,250 Out put (tons) 830 780 Prepare process Cost Accounts showing cost per ton of each process. There was no stock or work-in-process.
20. Draw stores ledger card recording the following transactions under FIFO method and LIFO method
July 2010 1st Opening stock 2,000 units at Rs.10 each 5th Received 1,000 units at Rs.11 each 6th Issued 500 units 10th Received 5,000 units at Rs.12 each 12th Received back 50 units out of the issue made on 6thjuly 14th Issued 600 units 18th Returned to supplier 100 units out of goods received on 5thjuly 19th received back 100 unit out of the issue made on 14thjuly 20th Issued 150 units 25th Received 500 units at Rs.14 each 28th Issued 300 units. The stock verification report reveals that there was a shortage of 10 units on 18thjuly and another shortage of 15 units on 26th July.
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21. M/s Arun and Varun undertook a contract for Rs.2,50,000 for constructing a college building. The following is the information concerning the contract during the year 2007.
Rs. Materials sent to site 85,349 Labour engaged on site 74,375 Plant installed at site at cost 15,000 Direct expenditure 3,167 Establishment charges 4,126 Materials returned to stores 549 Work certified 1,95,000 Value of plant as on 31st Dec. 2007 11,000 Cost of work not yet certified 4,500 Materials at site 31st Dec. 2007 1,883 Wages accrued 31st Dec. 2007 2,400 Direct expenditure accrued 31st Dec. 2007 240 Cash received from contractee 1,80,000 Prepare contract accounts, contractee's account and show how the work-in-progress will appear in the Balance sheet as on 31st Dec.2007.