GUG/W/18/834 1 P.T.O
Bachelor of Commerce (Computer Application) Third Semester Old
BCCA232 Cost Accounting
P. Pages 4 GUG/W/18/834
Time Three Hours Max. Marks 80

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

Define cost accounting. Explain methods of cost accounting.
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Following information is drawn from the books of Chandrapur Manufacturing company, Ltd. on 31st March, 2017 for the quarter ending as on that date. The company produced 1250 units of a product, during this period.
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Particular Amount
Direct materials 12500
Direct wages 5000
Direct expenses 1250
Factory expenses 7500
Office administration expenses 3750
Sales Distribution expenses 1250
The selling price of the product is to be fixed so as to realise profit on total cost. From the above information prepare a cost sheet showing cost per unit and total cost.
OR

The Nagpur manufacturing co. Ltd. Two types of play-guns i.e. type and type
The total expenses during the year ended 31st march 2016 as shown by the books for the assembly of 40,000 Guns of type and 1,20,000 Guns of type user as under
Direct materials Rs. 5,00,000
Direct wages Rs. 2,80,000
Production overheads Rs. 1,20,000
There was no work-in progress on 1st April, 2015 and 31st March 2016. It is ascertained from the records that
Direct material in type cost twice as much direct material in type
ii) The direct wages for type were 60% of those for type
iii) Production overheads were 75 paise for both the type of Guns.
iv) Administrative overheads for each type of Gune was 200% of Direct wages.
Selling expenses ware 75 paise per Gun of for both the types.
vi) Production during 2015-2016 was
Type Guns 40,000
Type Guns 1,20,000
vii) Sales during 2015-2016 were
Type 36,000 Guns
Type 1,00,000 Guns
viii) Selling price was a under
Type Rs. 7 per Guns
Type Rs. 5 per Guns
Prepare a statement showing total cost per Gun for each type and the profit made on each type of Gun.
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2.

Prepare a statement showing the profit per unit sold taking materials and wages at actual cost, work expenses at 75% of wages and office Expenses 30% of works cost. Also
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GUG/W/18/834 2
prepare a statement reconciling the profit shown by the cost account with the profit shown by profit and loss account.
There was no stock of finished good or work in progress either at the beginning or end of the period covered. The number of units sold during the month of January 2018 was 270 and selling price per unit was Rs. 600. The material cost per unit was Rs. 240 and wages paid per unit were Rs. 80.
Prepare also a statement showing the actual profit earned if the actual works. Expenses and office expenses were Rs. 16080 and Rs. 30900 respectively.

Prepare a statement showing reconciliation of profit.
Profit as per cost accounts. Rs. 14,55,000
ii) Works overheads under recovered Rs. 95,000
iii) Administrative overheads under recovers Rs. 2,27,500
iv) Selling expenses over recovered in cost book Rs. 1,95,000
Over-valuation of opening stock in cost A/c Rs. 1,50,000
vi) Over-valuation of closing stock in cost A/c Rs. 75,000
vii) Interest earned during the year Rs. 37,500
viii) Rent receives during the year Rs. 2,70,000
ix) Bud debts written of during the year Rs. 90,000
Preliminary expenses written of during the year Rs. 1,80,000
xi) Profit as per financial Accounts Rs. 14,40,000
OR
8

Chandrapur Co. Manufactures two sizes of machine components-size and size The following data refers to the year ended 31st march 2017
Particulars
Size
Size
Production
125 units
400 units
Sales
120 units
360 units
Labour cost per unit
Rs. 40
Rs. 30
Material cost per unit
Rs. 15
Rs. 12
Sale price per unit
Rs. 125
Rs. 90
All the expenses other than wages and materials are analysed under 'works overheads' which during the year amounted to Rs. 9000 and 'Office overheads' which amounted to Rs. 10,000.
In fixing the selling price it was estimated that 'Works overheads' should be taken 50% on wages and 'Office overheads' 33.33 of works cost.
You are required to compute
The total cost of each unit on the basis of the above overhead percentage.
The net profit of the years shown by the financial accounts, valuing unsold stock at actual material and labour costs plus works overheads as 50% wages.
The reconciliation of net profit.
Above with estimated total net profit based on cost figures.
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3.

Prepare process B and C account.
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Particular
Process
A
Process
B
Process
C
Production transferred to next process
66.67%
60%
Nil
Production transferred to Godown
33.33%
40%
100%
Loss



Scrap



Sales of scrap per ton Rs.
3
5
6
Material in tons
1400
160
1260
Per ton cost of material Rs.
10
16
7
Wages and other expenses Rs.
5152
3240
2898
GUG/W/18/834 3 P.T.O

A product passes through two process and and then finished stock, from the following information prepare process accounts.
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Particulars
Process
M
Process
N
Material consumed
70,000
50,000
Direct labour
60,000
40,000
Manufacturing Expenses
19,500
20,400
Input unit 5000 in process
75,000
Nil
Input unit 500 in process
Nil
25,000
Normal wastages
10%
15%
Indirect expenses Rs. 2,00,000 to be allocated in the proportion of labour the value of normal wastage from process Realize Rs. 120 and from process Realized Rs. 140 per units.
OR

Nagpur fertilizers Ltd. Manufactures chemical Fertilizers for which 3 processes Q R are adopted. Following particulars relate to the Month of April, 2018.
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Process
P
Q
R
Materials consumed
30,000
20,000
10,000
Rate of materials
Rs. 20
Rs. 10
Rs. 5
Productive wages
1,00,000
60,000
40,000
Works on cost
50,000
40,000
10,000
Production transfer to stores
25%
50%
100%
Transfer to next process
75%
50%
Nil
Sale of waste Rs. per ton
10
15
18
of the total weight introduced in each process is lost and of the Wight introduced turns into wastage.
No profit is charged when goods are transferred from one process to the another or to the stores. However when goods are sold from the stores profit 25% on the cost of production of each process is charged.
From the information given above prepare process accounts and finished Goods account.
4.

Following information is drawn from the books of a construction company in respect of contract No. 97.
Materials Rs. 90,000
Plant Rs. 15,000
Wages Rs. 1,23,300
Office expenses Rs. 6450
The work on contract commenced on 1st April 2017. the contract price is Rs. 4,50,000. An amount of Rs. 1,80,000 is received in cash from the contractee till how and the same is 80% of the work certified. On 31st March 2018 the materials at hand on site are valued at Rs. 3000 and the value of work completed but not certified is Rs. 4500. The plant on site is to be depreciated 10% P.a.
Prepare account of contract No. 97 from the above information calculate profit therein and show what portion of the profit should be transferred to profit loss account of the year.
8

Prepare a contract account.
Contract price Rs. 25 per square foot
ii) Materials
(Materials in hand at the time of commencement of work Rs. 10,000).
Cement 9,000 Bags Rs. 10 per bag.
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GUG/W/18/834 4
Bricks 1,00,000 Bricks Rs. 50 per thousand
Sand 10,000 Q. F. Rs. 10 per 100 Q. F.
Stock of material on completing the construction work Rs. 15,000.
iii) Labour
100 skilled workers Rs. 10 per day for 40 day.
500 unskilled workers Rs. 5 per day for 40 days.
iv) Machines Tools
2 Machines Rs. 10,000 each purchases for the contract. After completing the work the scrap value of the machines was Rs. 3500 each.
Supervision
4 Engineers Rs. 500 p.m. each for 2 months of their salary) 10 overseers Rs. 200 p.m. for 4 months (50 of salary).
vi) Administrative overheads
20% of the office expenses incurred during the period of contract
(Total office expenses Rs. 5000)
vii) Quantity of work done
Work completed and certified by Engineers 12,000. Square feet.
OR

Kishor Constructions Ltd. with a paid up share capital of Rs. 50 Lakhs undertook a contract to construct P.N.G. Apartment the work commenced on the contract on 1st April, 2016. The contract price was Rs. 60 Lakhs cash received on account of the contract upto 31st March, 2017 was Rs. 18 Lakh (Being 90 of the work certified). Work completed but not certified was estimated at Rs. 1,00,000. As on 31st March 2017. Materials as site was estimated at Rs. 30,000, machinery at site costing Rs. 2,00,000 was returned to stores and wages out standing were Rs. 5000. Plant and machinery at site is to be depreciated 5%.
The following were the ledger balances as per trial balance as on 31st March 2017.
Land and Building 23,00,000
Plant and machinery 25,00,000
Furniture 60,000
Materials 14,00,000
Fuel and power 1,25,000
Site expenses 5000
Office Expenses 12,000
Rates and taxes 15,000
Cash at Bank 1,33,000
Wages 2,50,000
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Prepare
Contract Account ii) Balance sheet.
5.
Write short answers from the following.
Explain scope of cost accounting.
4
Give the Items of expenditure which are appeared in financial account but not recovered in cost book.
4
Explain the limitations of process costing.
4
Write the difference between certified work and uncertified work.
4