Sree Narayana Guru College Units sold at Rs.
3 each 18,000 units
Department of Commerce CA [Or]
Subject: Cost Accounting
Class: III B.Com & B.Com IB b) Prepare Cost Sheet
I Internal Examination (Oct 2020) Rs.
Time: 2 hours Max. Marks: 50 Direct Materials 1,00,000
Part A (5X1=5) Direct Wages 25,000
1. Elements of Cost ________ Direct Expenses 5,000
a) 3 b) 2 c) 4 d) 5 Wages for foremen 2,500
2. Direct expenses are also called _______ Electric Power 500
a) Major expenses b) Sundry expenses Lighting:
c) Overhead expenses d) Chargeable expenses Factory 1,500
3. Goodwill written is part of _______ Office 500
a) Prime Cost b) Factory O/Hs Rent:
c) Office O/Hs d) None Factory 5,000
4. Tender is an _________ Office 2,500
a) Estimation of cost only Salaries to Salesman 1,250
b) Estimation of profit only Advertising 1,250
c) Estimation of sales only Income Tax 10,000
5. Bad Debts written off is a part of _______ O/Hs. Sales 1,89,500
a) Factory b) Administration
c) Selling d) none 7 a) Compute the cost of Raw Materials purchased from the
Part B (3X5=15) data given below:
6. a) The following data relate to the manufacturing of a Rs.
standard product during the month of March 2006: Opening Stock of raw materials 10000
Raw materials consumed Rs. 20,000 Closing Stock of raw materials 15000
Direct Wages Rs. 12,000 Expenses on Purchase 5000
Machine hours worked 1000 hours Direct wages 50000
Machine hour rate Rs. 2 per hour Prime Cost 100000
Office Overheads 20% on works cost [Or]
Selling Overheads Re. 0.40 per unit
Units Produced 20,000 units b) Explain the elements of cost.
Finished Goods 15000
8 a) From the following figures, Calculate EOQ & the Materials purchased 5,00,000
number of orders to be placed in each year. Direct Wages 1,50,000
Manufacturing Expenses 1,00,000
Annual Consumption of Materials – 4000 units Sales 8,00,000
Cost of buying per order – Rs.5 Selling & Distributing expenses 20,000
Cost per Unit – Rs. 2
Storage & carrying cost – 8% on average inventory [Or]
b) A manufacturer presents the following details about the
[Or] various expenses incurred by him.
b) Calculate Re-Order Level, Minimum Stock Level, Rs.
Maximum Stock Level & Average Stock Level from the Raw Materials consumed 70,000
following information. Carriage inwards 2,000
Factory Rent 2,400
Normal Usage – 300 units per week Bad Debts 440
Maximum Usage – 450 units per week Printing & Stationery 620
Minimum Usage – 150 units per week Legal Expenses 350
Re-order period – 4 to 6 weeks Carriage Outwards 1540
Re-order quality – 2400 units Indirect Materials 560
Power 4600
Part C (3X10=30) Depreciation of furniture 160
Postage expenses 465
9 a) Draw a statement of cost from the following particulars. Repairs of Plant & Machinery 1,200
Salesmen’s expenses 3,400
Rs. Advertising 500
Opening Stock: Direct Wages 85,000
Materials 2,00,000 General Manager’s Salary 36.000
Work-in-Progress 60,000 Factory Manager’s Salary 18,000
Finished Goods 5,000 Depreciation on P& M 1,240
Closing Stock: Audit fees. 350
Materials 1,80,000
Work-in-Progress 50000 Prepare Cost Sheet.
11 a) From the following particulars, Prepare a stores ledger
10 a) From the following information Calculate by adopting LIFO method.
a) Economic Order Quantity
b) Re-Order Level Date Receipt Issues
c) Maximum Level 1990
d) Minimum Level Jan 1 300 units at Rs.10 per unit
Normal Usage 150 units per day. Minimum Usage 100 units Jan 10 200 units at Rs.12 per unit
per days. Maximum Usage 200 units per day. Re-Order Jan 15 250 units
Period 50 to 60 days. The annual usage is 50,000 units. The Jan 18 200 units at Rs. 14 per unit
Cost of purchase is Rs.100 per order. Cost per unit is Re.1.00. Jan 20 300 units
carrying cost is 10% per annum. Jan 25 100 units at Rs.16 per unit
[Or] Jan 31 100 units
b) The following information is provided by Sunrise [Or]
Industries for the fortnight of April 1998. b) Show the stores ledger entries as they would appear
Material stock on 1-4-1998 100 units aat Rs. 5 per unit. when using.
1) Simple Average Method & 2) Weighted Average
Purchases Method
5-4-98 300 units at Rs.6 1993 Units Price
8-4-98 500 units at Rs.7 (Rs.)
12-4-98 600 units at Rs.8 May 1 Balance in hand b/f 300 2.00
Issues May 2 Purchased 200 2.20
6-4-98 250 units May 4 Issued 150 -
10-4-98 400 units May 6 Purchased 200 2.30
14-4-98 500 units May 11 Issued 150 -
May 19 Issued 200 -
You are required to prepare the statement using FIFO & May 22 Purchased 200 2.40
LIFO. May 27 Issued 150 -
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