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LOYOLA COLLEGE (AUTONOMOUS), CHENNAI 600 034 B.B.A.DEGREE EXAMINATION BUSINESS ADMINISTRATION FIFTHSEMESTER APRIL 2017
BU 5507- COST ACCOUNTING
Date: 19-04-2017 Dept. No. Max. 100 Marks
Time: 01:00-04:00 Part A Answer all Questions (10 x 2 20 Marks)
1. Define 'Costing'.
2. Write a note on 'By-Product'
3. What is Batch Costing
4. What is the meaning of 'Abnormal Loss'
5. Ascertain the cost of Job No. 305:
Prime cost Rs.8,000 Factory overhead 10% of prime cost Administration overhead 20% of work cost.
6. The financial books of a company show a net profit of Rs.2,50,000 for the year ending 31st December 2015. Prepare a Reconciliation Statement taking into consideration the following items:
Income -tax debited in financial accounts Rs.80,000
Interest on investments not included in cost accounts Rs.16,000
7. Ascertain the value of Raw Materials purchased:
Materials consumed Rs. 5,00,000 Opening stock of Materials Rs.50,000 Closing stock of Materials Rs.25,000
8. From the following data Calculate the Inventory turnover ratio
Stock at 1st January Rs.18,000 Stock at 31st December Rs.10,000 Purchases during the year Rs.76,000
9. What is cost of production?
10. The time card of a worker reveals that in a normal week of 48 hours, he worked for 52 hours at the rate of Rs.15 per hour. Taking overtime premium at 100% of the time rate. Calculate the gross wages.
Part B Answer any Four Questions (4x10=40 Marks)
11. Write the difference between Financial Accounting and Cost Accounting
12.Explain the essentials of material control.
13. What is job Costing? What are the merits and Demerits of it?
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14.M/s Arun and Varun undertook a contract for Rs.250000 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. 15.Krishna producing concern is divided into four departments. are production departments and is a service department. The actual expenses for a period are as follows: Rs. Rent 10,000 Repairs to plant 6,000 Depreciation of plant 4,500 Lighting expense 1,000 Supervisory expenses 15,000 Fire insurance (on stock) 5,000 Power 9,000 Employer's liability for insurance 1,500 The following information is available in respect of the four departments. Department A B C D Area (sq. feet) 1,500 1,100 900 500 Number of lights 75 11 9 5 Number of employees 200 150 100 50 Total wages 60,000 40,000 30,000 20,000 Value of plant 2,40,000 1,80,000 1,20,000 60,000 Value of stock 1,50,000 90,000 60,000 Apportion the costs to the various departments on the most equipment method.
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16. 100 units are introduced into process I at a cost of Rs.9,600 and expenditure of Rs.4,800 is incurred. From past experience, it is ascertained that wastages normally arises to the extent of 15% of units introduced. This wastage is having a scrap value of Rs. 10 per unit. The actual output of process I is 90 units, transferred to process II. Prepare Process I Accounts, Abnormal Gain Account and Normal loss Account.
17.The accounts of a machine manufacturing company disclose the following information for six months ending 31st December 1982. Rs. Materials used 1,50,000 Direct wages 1,20,000 Factory overheads 30,000 Administrative expenses 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.1,250 and expenditure in productive wages Rs.750, so that the price might yield a profit of 20% on the selling price. Part C Answer any Two Questions (2x20=40 Marks)
18. What are Essential Requisites of a good costing system
19. In this Question Answer Both the question and 10 marks each XY Ltd. Purchased and issued the materials in the following order: 1985 March 1st Purchased 300 units at Rs.3 per unit 5th purchased 500 units at Rs.4 per unit 10th Issued 500 units 12th Purchased 700 units at Rs.4.50 per unit 15th Issued 700 units 20th Purchased 300 units at Rs.5 per unit 30th Issued 150 units Ascertain the quantity of closing stock as on 31st march and state its value under " weighted average cost " method. )From the following particulars prepare stores ledger account under method of pricing issues. 1992 Jan. 1st Opening balance 50 units at Rs.30 per unit 5th Issued 20 units 7th Purchased 48 units at Rs.40 per unit 9th Issued 20 units 19th Purchased 36 units at Rs.35 per unit 24th Received back 10 units out of the units issued on 9th January 27th Issued 15 units
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20. A manufacturing concern has three production departments and two service departments. In july 2008, the departmental expenses were as follows: Production Departments Rs. A 16,000 B 13,000 C 14,000 Service Departments X 4,000 Y 6,000 The service department expenses are charged out on a percentage basis, viz., A B C X Y Expenses of Department E 20% 25% 35% 20% Expenses of department F 25% 25% 40% 10% Prepare a statement of secondary distribution under repeated distribution method.
21. John Joseph owns a fleet of trucks. His records for 2010 contain the following details No. of trucks 10 Life of each truck in kms 2,00,000 Monthly distance run by a truck in kms. 5,000 Average empty running p.m 20% Fuel usage 1 Litre for every 20 kms. Rs. Cost of truck 1,20,000 Scrap value at the end of life 20,000 Manager's salary per month 2,000 Accountant's salary per month 1,500 Driver's salary per truck per month 700 Cleaner's salary per truck per month 400 Salary of 3 mechanics common for all trucks each per month 500 Garage expense for 10 trucks p.a 12,000 Insurance at 2.4% on cost of truck p.a Road tax per truck p.a 1,200 Price of petrol per litre 10 Lubricants, tyres and repairs per k.m. 0.40 Compute cost per effective running K.m.