GUG/W/18/10603 1 P.T.O
Bachelor of Business Administration (Part II) (CBCS Pattern) Third Semester CBCS
UCB3C06 Cost Accounting
P. Pages 4 GUG/W/18/10603
Time Three Hours Max. Marks 80

Notes 1. All questions are compulsory
2. All questions carry equal marks.
1.

Explain the importance, Nature and scope of cost Accounting.
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Find out Prime cost.
Particular
Rs.
Material Purchased
18000
Closing stock of material
2500
Carriage inward
200
Material scrap sold
150
Wages 10 workers for 24 days Rs. 40 per day workers.
other chargeable Direct expenses 20% on material consumed.
8
OR

Following are the particulars for the production of 2000 sewing machine of ABC engineering company Ltd for the year ended 31st March 2016.
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Cost of material
1,60,000
Wages
2,40,000
Manufacturing Expenses
1,00,000
Salaries
1,20,000
Rent, Rates Insurance
20,000
Selling Expenses
60,000
General Expenses
40,000
Sales
8,00,000
Company plans to manufacturer 3000 sewing machine during the year 2017-18 submit a statement showing the price at which machine would be marketed so as to show a profit of 10% on selling price. Following additional information is supplied to you.
Price of material will rise by 20% on the previous year level.
ii) Wages will rise by
iii) Manufacturing expenses will rise in proportion to the combined cost of material and
wages.
iv) Selling expenses per unit will remain in same.
Other expenses will remain unaffected by rise in output.
*2784*
GUG/W/18/10603 2
2.

Net profit of ZY manufacturing company Ltd. Appearing Rs. 1,28,755 as per financial records for the year ended 31st Dec. 2015 cost books however showed a net profit of Rs. 1,72,400 for the same period. A scrutiny of the figures from the both the sets of accounts disclosed the following facts.
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Rs.
Works overheads under recovered in cost
3,120
Administration overheads recovered in cost
1,700
Depreciation recovered in cost
12,500
Depreciation charged in Financial A/c
11,200
Interest on Investment not include in cost
8,000
Loss due to obsolescence charge in Financial Account
5,700
Income tax provided in Financial Account
40,300
Bank interest and transfer fees in Financial Account
750
Store adjustment (Credit in Financial)
475
Loss due to depreciation stock value Charged in Financial Accounts
6,750
You are required to prepare Reconciliation statement.

From the following figures. Prepare a Reconciliation statement.
8
Rs.
Net loss as per Financial records
2,16,045
Net loss as per costing records
1,72,400
Works overheads under recovered in costing
3,120
Administration overhead recovered in excess in costing
1,700
Depreciation charged in Financial record
11,200
Depreciation recovered in costing
12,500
Interest received but not included in costing
8,000
Absolescence loss charged in Financial book
5,700
Bank interest credited in Financial book
750
Store adjustment (Credit in Financial book)
475
Depreciation of store charged in financial books
6,750
Income tax provided in Financial books.
40,300
OR

Following information are obtained from cost records of a ABC electronic Co. Ltd. Prepare cost-sheet. Financial account and Reconciliation statement. Two types of transistors were manufactured.
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Type A
Type B
Unit produced
100
200
Material per unit
22
20
Wages per unit
45
50
Sales per unit
125
150
Works on cost 60% of wages, office on cost 25% of work cost. Actual works on cost
Rs. 9000.
Actual office on cost Rs. 4500.
GUG/W/18/10603 3 P.T.O
3.

A product passes through three different processes. It is ascertained from the past record that there is a normal wastage of 10% of input. Following information is available for process No. 1.
Material brought in 10000 units Rs. 2 per unit
Wages Rs. 15000
Direct expenses Rs. 10000
Actual production output 8500 units.
Prepare process No. 1 Account.
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A product passes through two process A and B product of each process can be sold in the marked. Following particulars are available from the cost book of M/s Atharva Co. Ltd. Prepare process cost Accounts.
8
Process
Process
Raw material brought in
20000 units

Cost of materials
Rs. 2 per unit

Wages
Rs. 24400
Rs. 18100
Factory expenses
Rs. 23200
Rs. 13700
Other expenses
Rs. 5000

Normal wastage
of input
10% of input
(sold at Rs. 1 per unit)
By Product
of input
(Sold at Rs. 3600)
Transfer to Godwon
25%
100%
Transfer to Next process
75%

Production
18000 units
12500 units
OR

The following particulars are taken from the books of an oil mill for the month of September 2017.
Purchase of 100 tonnes of oil seeds at Rs. 10000 per tonne.
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Crushing
Refining
Finishing
Wages
10000
7000
9000
Store used
2000
6000
1000
Power
4000
3500
2000
Steam
3000
2500
2000
Factory overhead
5000
4000
3000
Containers


23500
60 tonnes of crude oil were produced 51 tonnes of oil were produced in the Refining process 50 tonnes of Refinery oil were finished for delivery Empty bags of oil seeds were sold for Rs. 1000 35 tonnes of oil cake was sold at Rs. 600 per tonne Loss in weight in crushing 5 tonnes.
8.5 tonnes of by-products from the Refinery process were valued at Rs. 25500.
Prepare account in respect of each process and calculate the cost of production per tonne at the end of each process.
4.

Prepare contract Account
Contract Price Rs. 6,00,000
Direct wages Rs. 65000
Work certified Rs. 1,50,000
Other Expenses Rs. 6500
Material issued Rs. 95000
Plant issued to contract Rs. 20000
Plant in hand Rs. 18000
Material in hand Rs. 2500
Cash received 80% of work certified.
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GUG/W/18/10603 4

Prepare contract account No. 150.
Rs.
Contract Price 8,00,000
Wages 88,200
Plant issued to contract 1,00,000
Work Certified 3,00,000
Work Certified 5,000
Depreciation on plant 10% p.a.
Material purchased 1,66,500
Sub contract 16,000
Material in hand 10,000
Cash received 2,40,000
Plant destroyed 10,000
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OR

Mr. Raj took a contract of constructing building for District Industries contract at a contract price of Rs. 10,00,000 and started work on 1st August 2012. Details of the work done and expenses incurred upto 31st March are as follow.
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Rs.
Work Certified
4,50,000
Amount Received from Contractee
3,82,400
Valuation of uncertified work
35,000
Material on hand (31-03-2013)
6.000
Plant at site
80,000
Plant sent to site
1,00,000
Sundry material supplied from stores
12,000
Materials returned to stores
3,000
Material Purchased
Cement Rs. 80,000
Steel Rs. 60,000
Stand Rs. 10,000
Bricks Rs. 70,000
2,20,000
Water used
2,000
Wages Paid
Manson Rs. 54000
Coolies Rs. 66000
Supervisor Rs. 16000
1,36,000
Administrative expenses 2.5% of full contract price contingencies
5,000
Part of plant costing Rs. 5500 was sold for Rs. 4000.
Prepare contract Account and find out profit to be transferred to profit and loss Account.
5.
Write short note on
Write the limitation of cost Accounting.
4
Mention two reasons for differences between profit as per cost Account and Financial Account.
4
What do you mean by "Abnormal loss" and Abnormal Gain".
4
Work certified.
4