BANGLADESH UNIVERSITY OF TEXTILES
8. Sc. in Textile Engineering
Level-3 Term-I, Final Examination-2021
Subject: Accounting and Cost Management (Code: TEM 303n'M 301)
T .1me: JOH
. rs. Full Marks: 72
(Use separate answer script for Part: A and Part: B)
(All parts of a question must be answered consecutively)
Part: A
(Answer any three questions)
1. (a) Define economic event with examples.
(b) Prepare a tabular analysis which shows the effect of following transactions on thc expanded
accounting equation with showing all financial statements.
March I. Invested SI 1,000 cash in March 5. 0orrowed $8,000 cll!lh from 11
business bank on a note payuble.
Murch 2. Paid $900 for February rent on Murch 6. Perfonned services for 11 cl lent on
office space. uccount $2,500.
March 3. Purchased ollice equipment on March 7. J>uid monthly cxpc11sc1.1: :mlurles
account $3,500. S 600, utilities S200, oncJ telephone S 150.
March 4. Provided services to clients for March 8. Owner withdruw & 1,000 for
cash $1 ,600. personal use.
12+10::3 I2I
2. (a) Show operating cycle of merchandising company and service com puny.
(b) Differentiate between FOB shipping point and FOO destinution.
{c) Assume a company had finished goods inventory of $2,00,000 on 1/1/2022. The Compnny
decided to manufacture finished goods of$7,00,000 but at the end of the ycur finished goods
inventory was $1,78,000. Calculate COGS and COGM.
(4+4+41:112)
3. (a) What are purchase returns and purchase nllowanccs. Why buyer provided discount vnluc lu
a matter of loss in garments export?
(b) Define gain in disposal on plant asset. Dificrcntiatc interest revenue und intcrc3t expense.
(c) Explain four basic codes of ethical conducts in mwmgt:ment accountonts.
13+4+5= 12)
4. (a) Show debit-credit effect on ull expundcd accounting cquution terms.
(b) Prepare joumul, ledger und trial balance for following transactions.
I
April I. lnvcslcd SJ 1,500 cosh in April 8. PoiJ $ 11 ,000 In co.sh for cmployco
business. sulurlcs.
April S. Purchll.\cd computer by S2 l,OOO April 11. Provided computor /Jorvlcc
from Jumcs COlllj)O_r:!Y. Lid. $3 ,000 in C11!>h .
April 6. Paid $'1 ,000 in cn:.h for this 1110111h April IJ. PufcJ $ mJvct1151118 CXl)CIIISO of
rent on ~•omi;.tc i.ouce. $ 1,200 in c1L,h to utlvo11lsl11g COJ~lpan . _
April 7. Received $15,000 in Cll'> h from April 15. Owner whl1tln:w t50U for
cu:,10111ers by providing ~crvicc. hl111solf.
l2+J0 121
Part: B
(Answer any three questions)
5. (a) Define cost munagement. State its objectives.
(b) Differentiate between financial accounting and managerial accounting.
(c) Arden Company reported the following costs and expenses for the most recent month:
Direct n1aterials ..... ...... ......................... ......... $95,000
Direct lubor.. .. .... . ......... ................... ........ ...... $42,000
Manufacturing overhead .. ................................. $19,000
Selling expenses ... ...................... . ... ............... $ 22,000
Administrative expenses ...... .. ............... .. ......... $ 35,000
i) \Vhat is the total amount of product costs?
ii) \Vhat is the total amount of period costs?
iii) What is the total amount of conversion costs?
iv) What is the total amount of prime costs?
-==12)
6. (a) Classify the cost from different points of view with appropriate example.
(b) Briefly discuss CVP analysis with graphical presentation.
(c) Explain mi.xed cost with curve. If your fixed monthly utility charge is$ 70, your variable
cost is $0.05 per kilowatt hour und your monthly activity level is 1, 0000 kilowatt hours,
what is the wnount of your..utility bill?
[4+4+4=12)
7. (n) With short notes on difforent cost, sunk cost and ad opportunity cost.
(b) Menlo company distributes a single product. The company's sales· and expenses for last
month are follows:
Total($) Per Unit (S)
Sales 450,000 30
Vnrinble expenses 180.QQQ 12
Contribution m~in 270 000 18
Fixed expenses i 16.000
Net ooeratinR income 54 000
i) What is the monthly break-even point in unit sales and in dollar sales?
ii) How many units would have to be sold each month to earn a target profit of $90,000?
Use the formula method. Verify your W1swcr by preparing a contribution format incor
statement at the turget sales level.
iii) Refer to the originul data. Compute the company's margin of safety in both dollar an<l
percentage h:nns.
iv) What is the compuny's CM ratio? If sales increase by $ 50,000 per month and there is
no chW1gc in fixed expenses, by how much would you expect monthly net operating income
to increusc?
(4+8=12)
8. (n) Define standnrd costing and mention its objectives.
(b) Show variance analysis cycle and explnin
(c) Peak outfitters hns the following direct mutcriul standard for the fiberfill in its mountain
purkn: 0.1 kg of fiberfill per pnrku nt $ S.00 per kg. Lust month 210 kgs of fiberfill were
purchased und used to muke 2,000 purkus. The material cost is a total of$ 1,029. Determine
the material price vurinncc 1md quulity vuriance in dollurs.
[4+4+4=12I
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