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LOYOLA COLLEGE (AUTONOMOUS), CHENNAI 600 034
B.B.A. DEGREE EXAMINATION BUSINESS ADMINISTRATION
FIFTH SEMESTER NOVEMBER 2017
BU 5507 COST ACCOUNTING
Date: 03-11-2017 Dept. No. Max. 100 Marks
Time: 09:00-12:00
Section A (10 X 2 =20 marks)
Answer all the Questions.
1. What are the elements of cost?
2. Write a note cost sheet.
3. What is Inter- process profit?
4. What is Labour Turnover?
5. What are the types of functional overheads?
6. What is 'Transport costing'?
7. What is scrap?
8. There were 8000 workers in a factory on 1.1.2015.Number of workers in the fctory on 31.12.2015
were 8200 . New entrants in service during the year were 400 and leavers were 200. Calculate the
labour turnover by applying separation method.
9. Calculate the economic order quantity from the following particulars:
Annual usage 20,000 Units
Buying cost per order Rs.10
Cost per unit Rs.100
Cost of carrying inventory 10% of cost
10. Calculate the earnings of a worker under Rowan Plan from the following data:
Standard time 10 hours
Time Taken 6 hours
Rate Rs.2 per hour
Section B 4X10 =40 marks)
Answer any FOUR Questions.
11. Discuss the objectives of cost accounting.
12. Discuss the methods of measurement of Labour Turnover.
13. Discuss the advantages of Process Costing.
14. Calculate Machine Hour Rate from the following:
a. Cost of machine Rs.19,200
b. Estimated scrap value Rs.1,200
c. Repair charges per month Rs.150
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d. Standing charges allocation to machine per month Rs.50
e. Effective working life of machine 10,000 hrs
f. Running time per month 166hrs
g. Power used by machine=5 units per hour at 19 paise per unit.
15. Sathya&co.,produces a product through two processes R S.The following details pertaining to
process R for January 2007 are available.
Inputs Rs.
Materials (500Units) 10,000
Labour 8,000
Indirect Expenses 7,000
Normal loss in process is estimated at of the input which possesses a scrap value of Rs. 31 per
unit. Prepare the process account.
16. The following is the information relating to contract No. X123.
Particulars; Rs.
Contract price 6,00,000
Wages 1,64,000
General expenses 8,600
Raw materials 1,20,000
Plant 20,000
As on date, cash received was Rs.2,40,000 being 80% of work certified. The value of
material remaining at site was Rs.10,000. Depreciation plant by 10%. Prepare contract
Account showing profit to be credited to P&L A/c.
17. The following information is extracted from the store ledger:
Jan.
1. Opening Balance 500 units at Rs.4
5. Purchases 200 units at Rs.4.25
12. Purchases 150 units at Rs.4.10
20. Purchases 300 units at Rs.4.50
25. Purchases 400 units at Rs.4
Issues of Materials were as follows:
Jan.
4. 200 Units
10. 400 units
15 100 units
19. 100 units
26. 200 units
30. 250 units
Issues are being priced on the principle of method. Write the store ledger account
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Section C 2X20 =40 marks)
Answer any TWO Questions.
18. Distinguish between financial accounting and cost accounting.
19. On August 15, 1991 a manufacturer soman desired to quote for a contract for the supply of 500 radio
sets. From the following details prepare a statement showing the price to be quoted to give the same
percentage of net profit on turnover as was realised during 6 months ending on 30 June 1991
Material as on 1/1/1991 20,000
Material as on 30/6/1991 25,000
Purchase of material during 6 months 1,50,000
Factory wages during 6 months 1,20,000
Indirect charges during 6 months 25,000
Opening stock of completed sets Nil
Closing stock of completed sets 100
Sales during 6 months 3,24,000
The number of radio sets manufactured during these six months was 1450 sets including those sold and
those stocked at the end of the period. The radios to be quoted are of uniform quality and size as were
manufactured during six months to 30/6/1991. As from August the cost of factory labour has gone up by
10%.
20. The following particulars relate to a manufacturing company which has three department and
two service departments X and Y.
Department
A B C X Y
Rs Rs Rs Rs Rs
Total department overheads as per primary
destitution
16,000 13,000 14,000 4,000 6,000
The company decided to charge the service department cost on the basic of the following percentage
Production Dept Service dept
A B C x Y
X 20% 25% 35% 20%
Y 25% 25% 40% 10
Find the total overhead of production departments on the Repeated Distribution method.
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21. The net profit as per cost records of Aishwarya Ltd.,was Rs.86200. From the following data Prepare a
reconciliation statement showing profit as per financial accounts:
Rs.
Works overhead under-recovered in costing 1560
Administrative over recovered in costing 850
Depreciation charged in financial accounts 5600
Depreciation recovered in costing 6250
Interest on investment not included in costing 4000
Loss due to obsolescence charged in financial accounts 2850
Income tax 20150
Bank interest and transfer fee in financial accounts 375
Stores adjustment Credited in financial accounts 237
Interest charged in financial accounts 2000
Goodwill written off 5000
Loss on sale of furniture 600
Cost A/c. Financial A/c.
Value of opening stock Rs.24800 Rs.26300
Value of closing stock Rs.25000 Rs.23000.