(Pages 1493
P.T.O.
MAR IVANIOS COLLEGE (AUTONOMOUS)
THIRUVANANTHAPURAM
Reg. No. :.………………… Name :.………………….
Fifth Semester B.Com. Degree Examination, November 2016
First Degree Programme under CBCSS
Core Course: Commerce XII
AUCO542: Cost Accounting
Time: 3 Hours Max. Marks: 80 SECTION A
Answer ALL questions in one or two sentences.
1. Define cost centre.
2. Give any two examples of fringe benefits.
3. What is semi variable overhead Give an example.
4. Differentiate between wastage and scrap
5. What is apportionment of overheads
6. What do you mean by sunk cost
7. What are direct materials
8. The cost price of a tender is Rs.5,00,000. What will be the tender price if the profit added is 20% of the tender price
9. What is bin card
10. What do you mean by prime cost
(10 × 1 10 Marks)
SECTION B
Answer any EIGHT questions, not exceeding a paragraph.
11. State whether 'nails and adhesives' used in furniture manufacturing are direct materials or indirect. Justify your answer.
12. What is ABC analysis
13. Show the treatment of idle time in cost accounts.
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14. Differentiate between apportionment and absorption of overheads.
15. Distinguish between stock and inventory.
16. The annual demand for an item is 3200 units at the rate of Rs.6 per unit. The inventory carrying cost is 25% per annum and the cost per order is Rs.150. Determine EOQ and the number of orders per year.
17. Distinguish between costing method and costing technique.
18. Cite any two disadvantages of piece rate system of wage payment
19. A labourer is paid Rs. 50 per hour for the work to be completed in 8 hours. If he completes the work in 6 hours, calculate his wages under Rowan plan.
20. What do you understand by over/under absorption of overheads
21. What is minimum/buffer stock? Indicate the importance of lead time in fixing buffer stock.
22. Given the following:
Number of workers 100.
Days of work in an year 300.
Hours of work per day 8.
Normal idle time 5%.
Departmental works overheads Rs.11400. Calculate labour hour rate for absorption of overheads.
× 2 16 Marks)
SECTION C
Short essay type: Answer any SIX questions.
23. State with reasons what method of cost ascertainment is suitable in each of the following:
i. Electric supply ii. Oil refining iii. Soap manufacturing and
iv. Printing
24. Fix the minimum and maximum limits, ordering and danger levels from the following information:
1. Average daily requirements 12 units.
2. Usual time to obtain supply 2weeks, i.e., 12 working days.
3. Maximum requirement in the month of 4 weeks 400 units.
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4. Minimum requirement in this period 200 units.
5. Economic Order Quantity 20 units.
6. Time sufficient for emergent supply 2 days
25. In a company, the works overheads are 20% of wages and office overheads are 10% of works cost. What price shall the company quote for a supply of which, it is estimated, will require material worth Rs. 1000 and Rs.1500 for wages and the profit would be 20% of selling price
26. Briefly explain the difference between costing profit and financial profit
27. What is integrated accounting system What are its advantages
28. Using the following information calculate the remuneration of a worker under
Halsey Premium Plan and Rowan Premium Plan
Work started 1-4-2008 at 8 a.m., Work finished 5 4 2008 at 12 N Work allotted 40 units, Work done and approved 500 units, Time and units allowed 10 units per hour, Wage rate Rs.3 per hour, Bonus 40% of time saved, Worker worked for 9 hours a day.
29. Z Ltd. Produces 500 boxes of a product every month. The rate of raw materials is Rs.10 per unit. The ordering cost is Rs.400 per order and other costs are as follows:
a. Interest per annum
b. Godown rent Rs.150 per month
c. Insurance premium 3.6% on policy of Rs.100000
d. Wastage, theft etc. per annum
Calculate EOQ and Total inventory cost.
30. At 60% capacity utilization the overhead recovery rate is Rs. 17.50 per unit. At 70% capacity the rate gets reduced to Rs. 16 per unit. Find out what should be the recovery rate if the production attains 90% capacity utilization.
31. From the following details of receipts and issues of materials of a manufacturing concern prepare stores ledger under LIFO method of valuing issues.
October 1 Balance 500 units Rs.10 per unit
10 Ordered 250 units
18 Issued 125 units
21 Received 150 units Rs.11 per unit
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25 Ordered 200 units
November 1 Issued 175 units
10 Received 200 units Rs.12 each
20 5 units defective, returned: they were purchased on October 21
December 1 Received 100 units Rs.11 each
15 Issued 150 units
20 Returned to store 25 units, issued on December 15
30 Issued 125 units
× 4 24 Marks)
SECTION D
Long essay type: Answer any TWO questions.
32. Ms. Mysore petro Ltd. showed a net loss of Rs. 205000 as per the financial records for the year ended 31st March 2015. The cost accounts, however, disclosed a net loss of Rs.164000 for the same period. The following information was revealed as a result of scrutiny of figures of both the books.
1. Under absorption of factory overheads Rs.3000
2. Administrative overheads over recovered Rs. 2000
3. Cl. Stock as per financial books Rs. 15000
4. Closing stock as per cost books Rs. 12000
5. Interest on investments Rs. 10000
6. Income tax provided Rs. 60000
7. Transfer fees (in financial books) Rs. 1000
8. Stores adjustments (Cr. In financial books) Rs. 1000
9. Deprecation charged in financial books Rs. 60000
10. Depreciation recovered in cost Rs. 65000
Prepare reconciliation statement
33. The following information is available from the books of Cochin Industries Ltd. for the year ended 31st March 2015. Prepare cost sheet.
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Opening Stock Finished goods
Raw materials
Purchases
Factory wages
Factory overheads
Administrative overheads
Closing stock: Raw materials
Finished goods
Sales
20000
140000
210000
380000
70000
40000
19600
160000
756000
The number of products manufactured was 4000 including those sold and those in stock at the end.
The company wishes to supply 1000 units of the product in the forthcoming period on the basis of the above figures. It is likely that the cost of materials and labour will increase by 15% and 10% respectively. Calculate the price to be quoted.
34. Modern Machines Ltd. has three production departments B and C and two service departments D and E. From the following figures extracted from the records of the company, calculate the overhead rate per labour hour.
Indirect materials
Rs. 1500
Indirect wages
Rs.10000
Depreciation on machinery
Rs. 25000
Depreciation on building
Rs. 5000
Rent, rates and taxes
Rs. 10000
Electric power for machinery
Rs. 15000
General expenses
Rs.15000
Elect. Power and lighting
Rs. 5000
Items
Total
A
B
C
D
E
Direct materials
Rs.60000
Rs.20000
Rs10000
Rs.19000
Rs.6000
Rs.5000
Direct labour
Rs.40000
Rs.15000
Rs.15000
Rs.4000
Rs.2000
Rs.4000
Value of machinery
Rs.250000
Rs.60000
Rs.100000
Rs.40000
Rs.25000
Rs.25000
Floor area(Sq.Ft.)
50000
15000
10000
10000
5000
10000
H P of machines
150
50
60
30
5
5
No. of light points
50
15
10
10
5
10
Labour hours
15000
5000
5000
2000
1000
2000
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The expenses of service departments D E are to be apportioned as below
A B C D E
D 40 20 30 10
E 30 30 10
35. Explain the different methods of wage payment and indicate the relative advantages and disadvantages.
× 15 30 Marks)