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LOYOLA COLLEGE (AUTONOMOUS), CHENNAI 600 034
B.B.A.DEGREE EXAMINATION -BUSINESS ADMINISTRATION
FIFTH SEMESTER APRIL 2018
BU 5507- COST ACCOUNTING
Date: 30-04-2018 Dept. No. Max. 100 Marks
Time: 09:00-12:00
Section-A
Answer ALL the questions 10 X 2=20
1. What is cost unit?
2. What is ABC analysis?
3. What do you mean by Labour Turn Over?
4. What is overhead?
5. Define EOQ.
6. Write a note on Apportionment.
7. What is notional profit?
8. Calculate Reorder Level from the following:
Annual consumption of materials=4000 units; Cost of buying per order=Rs.5; Cost per unit=Rs.2 per unit; Storage and carrying cost=8% on average inventory.
9. Calculate LTO under Replacement method:
Number of employees replaced during 2004-1000; Average number of employees during 2004-8000.
10. P Travels employs 5 buses which run over a route of 140 kms (one making one round trip per day. The buses run 30 days per year and 10% of them on average are laid out for repairs. Ascertain the total running kilometers per year.
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Section-B
Answer any FOUR of the following: 4 x 10=40
11. Explain the nature of cost accounting.
12. Differentiate between Process Costing and job costing.
13. Write a note on Idle time Over-time c)Absorption
14. Two components A B are used as follows:
Normal usage: 3000 units per week each
Minimum usage: 1500 units per week each
Maximum usage 4500 units per week each
Reorder quantity—A 13000 units; B 14000 units
Reorder period:--A 4 to 6 weeks; B 2 to 4 weeks
Calculate for each component: Reorder level Minimum level Maximum level Average stock level
15. Calculate the earnings of a worker under Halsey and Rowan Plan
Standard Time—36 hours; Actual time—30 hours; Rate per hours—Rs.10
16. How much profit, if any, you would allow to be considered in the following case:
Rs.
Contract cost 560000
Contract value 1000000
Cash received 540000
Uncertified work 60000
Deduction made from bills by way of security deposit 10%
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17. From the following particulars ascertain the amount of profit shown in profit and loss account by preparing necessary reconciliation account:
Rs.
Profit shown as per cost books 1,40,000
Depreciation shown excess in cost books 2,000
Interest on investment received 1,000
Provision made for income tax 40,000
Income received for share transfer 150
Factory overhead under recovered in cost books 3,000
Office expenses under recorded in financial books 1,000
Section-C
Answer any TWO of the following: 2x20=40
18. Explain the various elements of cost.
19. 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 for I productive wages Rs.750, so that the price might yield a profit of 20% on the selling price from the following for six months ending 31st December 2012. Rs.
Materials used 1,50,000
Direct wages 1,20,000
Factory overheads 30,000
Administrative expenses 15,000
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20. X company has purchased and issued materials as under:
2010
June 1 Stock of materials 200 units at Rs.2.50 per unit
3 Purchased 300 units at Rs.3 per unit
7 Purchased 500 units at Rs.4 per unit
10 Issued 600 units
12 Purchased 400 units at Rs.4 per unit
18 Issued 500 units
24 Purchased 400 units at Rs.5 per unit
28 Issued 200 units.
Prepare the stores ledger under FIFO method and LIFO method.
21. From the following data relating to two vehicles X and Y compute the cost per running km.
X Y
Cost of vehicle 25000 15000
Road licence (annual) 750 750
Insurance (annual) 700 400
Garage rent (annual) 600 500
Supervision and salaries (annual) 1200 1200
Driver wages per hour 3 3
Cost of petrol per litre 3 3
Repairs and maintenance per km 1.65 2.00
Tyre allocation per km 0.80 0.60
Estimated life of vehicle 100000 75000
Kilometers run (annual) 15000 6000
Kilometers run per litre 20 15
You are required to charge interest on the cost of vehicles at per annum. The vehicles run 20 km per hour on an average.