Bharathiar University 2007 Bachelor of Computer Science (B Level) BCS Cost Accounting BCS 314 - Question Paper

BCS Cost Accounting BCS 314 May 2007

Time : 3 hours Maximum : 100 marks
PART A — (5 ? eight = 40 marks)
ans any 5 ques. in about 200 words every.
1. Define cost accounting, elaborate the objects and functions of cost accounting?
2. What is inventory control? Mention its objectives and different methods of inventory for proper control.
3. Explain with example the significance of material turn over ratio.
4. What do you mean by ‘batch costing’ in which industries it is applied?
5. Describe the general principles of process costing. Name three industries where process costing can be applied.
6. In manufacturing its products a company uses 3 raw materials and in respect of which the subsequent applies.
Raw materials Usage per unit product Re-order quantity Price per Kg. Delivery period Order level Minimum level
Kg. Kg. Rs. (Weeks) Kg. Kg.
A 10 10,000 10 1 to 3 8,000 –
B 4 5,000 30 3 to 5 4,750 –
C 6 10,000 15 2 to 4 – 2,000
Weekly production varies from 175 to 225 units, averaging 200 what would you expect the volumes of the subsequent to be
(a) Minimum stock of and
(b) Maximum stock of
(c) Re-order level of .
7. A manufacturing company has 2 production departments and and the 3 services departments – Time keeping, stores and maintenance. The department summary showed the subsequent expenses for Oct. 1980.
Production Department Service Department
Rs. Rs.
X 16,000 Time Keeping 4,000
Y 10,000 26,000 Stores 5,000
Maintenance 3,000 12,000
The other info are
Particulars Production Depts. Service Departments
X Y Time keeping Stores Maintenance
No. of employees 40 30 20 16 10
No. of stores
requisition 24 20 – – 6
Machine-hours 2,400 1,600 – – –
You are needed to make departmental allocation of expenses.
8. A factory uses job costing. The subsequent data are found from its books for the year ended 31st Dec. 1992.
Rs. Rs.
Direct Materials 90,000 Selling and distribution
Direct Wages 75,000 overheads 52,500
Profit 60,900 Administrative
overheads 42,000
Factory overheads 45,000
(a) Prepare a Job cost sheet indicating the price cost, work cost, cost of production, cost of sales and the sales value.
(b) In 1993, the factory receives an order for a number of jobs. It is estimated that direct material needed will be
Rs. 1,20,000 and direct labour will cost Rs. 75,000. What should be the price for these jobs if factory intends to earn the identical rate of profit on sales assuming that the selling and distribution overheads have gone up by 15%. The factory recovers factory overheads as a percentage of direct wages and administration and selling and distribution overheads as a percentage of work cost, based on cost rates prevailing in the previous year.
PART B — (4 ? 15 = 60 marks)
ans any 4 ques. in about 400 words every.

Earning:   Approval pending.