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ANIL SURENDRA MODI SCHOOL OF COMRERCE ,
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AcademicYear:2016-2017
Progran: - B.B.A. Year: I Seine:t`:itr:'`i*|Jjry!
Subject: Cost Accounting Batch: 2016-2019
Date : 22/04/2017 ,' Time:2 hrs (10.00am to 12.00noon) -
Marks: ' 60 .
FINAL EXAMINATION
Instructions: Candidates should read carefully the instructions printed on the question paper and on the cover
of the Answer Book, which is provided for their use.
1. Question 1 is compulsory.
2. Attempt any TIREE questions fi.om the remaining questions. Each question carries 15marks.
3. In all FOUR questions to be attempted. Figures in brackets indicate maximum marks.
4. Answers to each new question to be started on a fresh page.
Q 1. Following data is available for a product for the month of July 2016:
Particulars Process I Process 11
Opening work in progress Nil Nil
Cost incurred during the month : (Rs.)
Materials 60,000
Labour 12'000 16,000
Factory overheads 24,000 20,000
Units of production (units)
Received in process 40,000 36,000. .`
Completed and transferred 36,000 32,000
Closing w.I.P. ' 2,000 ?
Normal loss in process 2,000 1,500
Production remaining in process is to be valued as follows:
Material -100%; Labour -50%; Overheads -50%
There was no abnormal loss in Process 11.
Prepare process adcounts after working out the missing figures with the help of detailed workings.
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Q2. A machine shop cost Centre contains six machines of equivalent capacities. Three operators are
employed on each machine, one at Rs. 10 an hour and two at Rs. 5 per hour each. The factory works
a forty hour week which includes four hours for set up time. The work is jointly done by the
operators. The operators are paid fully for the forty hours. In addition they are paid a bonus of 10%
on productive time. Costs are reported for this company on the basis of thirteen four weekly periods.
The company for the purposes of computing machine hour rate includes the direct wages of the
operators and also recoups the factory overheads allocated to the machines. The following details of
the factory overheads applicable to the cost center are available:
1) Setup time is unproductive.
2) Depreciation @ 10% p.a. on original cost on each machine. Original cost of the machine is Rs.
13,000/-.
3) Maintenance and repairs per week per machine is Rs. 25.
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5) Power -20 units per hour per machine at 40 paise per unit.
6) Apportionment to the.Cost centre : y3
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Rent p.a. -Rs. 3,000
Heat and Light p.a. -Rs. 5,400
Foreman's salary p.a. -Rs. 7,200
You are required to calculate the wages and machine hour rate for the four weeks period.
Q3. The summarized Trading and Profit and Loss Account of a Company for the year ended on 30th September
2016 i s as under:
Particulars Rs. Particulars Rs.
To Cost of Materials 50,000 By Sales 2,90,000
To Direct Wages 75,000
To Manufacturing expenses 40,000
To Gross Profit 1,25,000
Total 2'90'000 2'90'000
To Staff Salaries 30,000 By Gross Profit 1,25,000
To Rent and Rates 5000
To Selling Expenses 25,000
To General Expenses 20,000
To Net Profit 45,000
1'25,000 1'25,000
During the year, the company manufactured and sold 1000 motors. For the year ended 30 September,
2017, it is estimated that:
a) Production and sales will be 1,200 motors and 1,100 motors respectively.
b) Price ofmaterials will rise by 30% on the previous year's trend.
c) Wagerateswillriseby331/3 %.
d) Manufacturing cost will rise by 25%.
e) A bonus of 1/6 ofsalary is expected to be paid to office staff.
I) Selling and General expenses are flxed in nature. Each of them will rise in proportion to the cost of
materials.
You are required to submit a statement for the directors showing the price at which the motors should be
marked so as to earn a profit of 10% on the selling price.
Q4) Following particulars relate to two houses which a firm of builders has in course of construction under
ntract:
Particulars House A qu.) Hous`e 8 ais.)
Work in progress on Jam 1 14,800
Materials purchased 23,000 16,600
Wages 20,000 14,000
Electrical services and fittingsRoadmakingcharges 1,400 300
8,000
Contract price (including Road making) 60,000 40,000
Cash receivedLup Dec 3 1, 2015Percentageofbashreceivedtowork--6ertifiedValueofmaterialsonhandDec31,2015 60,000 24,000
100% 66 2/3%
400 540
- 2,500
Completed work not certified
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Value of plant used on sites 12,000 6,000
Period of plant remaining on site during the year 10 months 8 months
The total establishment expenses incurred during the year 2015 amounted to Rs. 12,240. These are to
be charged to the two contracts in proportion to wages. Depreciation of plant is to be taken into
account at the rate of 10% per annum.
Prepare two contract accounts (in columnar form) showing the profit or loss on each house for the year
2010 and the sums which you would consider appropriately transferable to the Profit and Loss
Account.
Q5. Answer the following in brief: (Any three) (5 Marks each)
A. Write a short note on Idle time and causes of Idle time.
8. Write a short note on Advantages of Cost Accounting to the Management.
C. Write a short note on Economic Order Quantity and also explain Canying cost in brief.
D. Write a short note on Techniques of Inventory Control,
