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LOYOLA COLLEGE (AUTONOMOUS), CHENNAI 600 034
B.B.A.DEGREE EXAMINATION -BUSINESS ADMINISTRATION
FIFTH SEMESTER APRIL 2018
BU 5504- COST ACCOUNTING
Date: 04-05-2018 Dept. No. Max. 100 Marks
Time: 09:00-12:00
Part A
Answer all Questions: (10 x 2 20 Marks)
1. Define 'cost Accounting'.
2. Write a note on cost centre.
3. Pankajam travels employs 5 buses which run over a route of 140 km (one way) making one round trip per day. The buses run 360 days per year and 10 of them on average are laid out for repairs. Ascertain the total running kilometers per year.
4. Write a note on Labour turnover.
5. Distinguish between joint product and By-Product.
6. Find out quotation for Job No. 1001.
Cost of sales Rs.15,000 and profit 20% on sales.
7. Calculate the straight piece rate.
Normal rate per hour Rs.1.80
Standard time per unit 20 seconds
Worker production per day 1,300 units.
8. Calculate the maximum stock level:
Reorder level 4,000 kg; Reorder quantity: 2,500 kg; Minimum reorder period: 6 weeks; Minimum consumption per week :300 kgs.
9. Net loss as per cost accounts Rs.1,00,000
Works overhead under-recovered in cost accounts Rs.10,000
Interest on investments received Rs.3,000
Selling and distribution overheads over-recovered in cost accounts Rs.5,000
Calculate profit as per financial accounts from the above information.
10. Compute Economic Bach quantity through E.B.Q. formula.
Annual demand 2,500 units; Selling up cost Rs.250; cost of production per unit Rs.250; Rate of interest 20% p.a.
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Part B
Answer any Four Questions (4x10=40 Marks)
11. Write the differences between Financial Accounting and Cost Accounting.
12. What are the merits and Demerits of Job Costing?
13. From the following data relating to the manufacture of a standard products during the month of September 1983. prepare a statement showing the cost and profit per unit:
Raw materials used Rs.20,000
Direct wages Rs.12,000
Man hours worked 9,500 (hours)
Man hour rate Rs.2 per hour
Office overheads 20 on work cost
Selling overheads 0.50 per unit
Units produced 20,000 units
Units sold 18,000 Rs.5 per unit
14. In a truck load, the following materials were received:
Code No. Material Quantity Rate
M2010 Carbon Black 3,050 Kgs. Rs.4.00 per kg
P5025 S.H. Phosphate 2,060 Kgs. Rs. 3.00 per kg.
Sales tax was charged at
Railway freight Rs.1,050
Transport charges Rs.100
Loading Unloading Rs.50
The goods received Note received from the store keeper showed the following quantity
M2010 3,000 kgs.
P5025 2,000 kgs.
From the above figures you are required to calculate the purchase rate per kg. of Carbon Black and S.H. Phosphate.
15. From the following work out the earnings for the week of a worker under.
Straight piece-rate
Differential piece rate
Halsey premium system
Rowan system
Number of working hours per week 48
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Wages per hour Rs.3.75
Normal time per piece 20 minutes
Rate per piece Rs.1.50
Normal output per week 120 pieces
Actual output for the week 150 pieces.
Differential piece rate: 80% of piece -rate when output is below standard and 120 when above standard.
16. From the following figures prepare a reconciliation statement between cost and financial records:
Net profit as per financial records Rs.1,28,755
Net profit as per costing records Rs. 1,72,400
Work overhead under-recovered in costing Rs.3,120
Administrative overhead recovered in excess Rs.1,700
Depreciation charged in financial records Rs.11,200
Depreciation recovered in costing Rs.12,500
Interest received but not included in costing Rs.8,000
Obsolescence los charged in financial records Rs.5,700
Income tax provided in financial books Rs.40,300
Bank interest credited in financial books Rs.750
Stores adjustment (credit in financial books) Rs.475
Depreciation of stock charged in financial books Rs.6,750
17. A company has three production departments and two service departments their respective expenditures are
given below: Production Department Service Department
A Rs.800 X Rs.234
B Rs.700
C Rs.500 Rs.300
Service Departments given service in the following manner to various departments.
Service department: A B C X Y
X 20% 40% 30% 10
Y 40% 20% 20% 20%
You are required to show the distribution of service department overheads under simultaneous equation method.
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Part C
Answer any Two Questions (2x20=40 Marks)
18. Explain the Advantages and disadvantages of cost Accounting.
19. Discuss causes for and effects of Labour Turnover.
20. From the following particulars prepare stores ledger account showing the pricing of materials issues under
Simple average method and weighted average method.
2-8-83 Opening stock 800 units at Rs.4.20
3-8-83 Purchased 800 units at Rs.4.20
4-8-83 Issued 1,200 units
6-8-83 Purchased 1,600 units at Rs.4.80
7-8-83 Issued 1,000 units
9-8-83 Purchased 400 units at Rs.6
11-8-83 Issued 800 units
13-8-83 Issued 100 units
15-8-83 Purchased 500 units at Rs.8
21. The following details are extracted from the costing records of an oil mill for the year ended 31st March 2011.
Purchase of 5,400 tons of coconut for Rs. 2,20,000.
Particulars Crushing Refining Finishing
Rs. Rs. Rs.
Cost of Labour 2,750 1,100 1,650
Electric Power 660 396 264
Sundry Materials 110 2,200
Machinery repairs 308 363 154
Steam 660 495 495
Factory expenses 1,452 726 242
Cost of casks 8,250
3,200 tons of Crude oil were produces. 2,600 tons of oil were produced by the refining process and 2,550 tons of Refined oil were finished for delivery.
Coconut sacks sold Rs. 440
1925 tons of coconut residue sold for Rs. 12,100.
Loss in weight in crushing process 275 tons.
500 tons of by -products were obtained from refining process at Rs. 7,425.
Prepare the necessary process accounts showing the cost per ton of production at each stage of manufacture.