Bangalore University 2006 B.Com COST ACCOUNTING - Question Paper

Estimated scrap value after the expiry of its life of 15 years Rs. 10,000
Rent for the shop per month Rs. 400
General lighting for the shop per month Rs. 600
Insurance premium for the machine p.a. Rs. 1,920
Repair expenses p.a. Rs. 2,000
Power 10 units per hour
Rate of power per 100 units Rs.40
Estimate working hours p.a. 2,000
SHop Supervisor`s salary per month Rs. 1,200
The machine occupies 1/4 th of the total are of the shop.THe supervisor devotes
1/3 rd of his time for this machine

SECTION-C

ans ANY 3 ques..EACH CARRIES 15 MARKS(3*15=45)

10.On March 2004 ther are 1,500 units of materials at Rs.12 per unit in stock.The
subsequent transaction were made during the month.Prepare Store Ledger
Account fy FIFO and LIFO methods
March two Issued 200 units
" four Purchased 1,000 units at Rs. 15 per unit
" eight Issued 1,200 units
" 12 Purchased 600 units at Rs. 20 per unit
" 15 Issued 650 units
" 20 Returned to stores from issued of March 2,100 units
" 24 Purchased 300 units at Rs. 25 per unit
" 28 Issued 250 units
" 30 Issued 300 units

11.Following are the particulars for the production of 2,000 sewing machines of
Bhararth Engineering Co.Ltd. for the year 2004

Cost of materials Rs. 1,60,000, wages Rs. 2,40,000, Manufacturing expenses
Rs. 1,00,000, office salaries Rs. 1,20,000, office rent ,rate and insurance
Rs. 20,000, General expenses Rs. 40,000, selling expenses Rs. 60,000 and Sales
Rs. 8,00,000
The company plans to manufacture 3,000 sewing machines during 2005.You
are needed to submit a statement showing the price at which machines would be
sold so as to show a profit of 10% on selling price .The subsequent additionnal
info is supplied to you:
i)Price of material is expected to rise by 20%
ii)Wage rate are expected to show an increase of 5%
iii)Manufacturing expenses will rise in proportion to the combined cost of
material and wages
iv)Selling expenses per unit will remain the identical
v)Other expenses will remain unaffected by the rise in output


12.The subsequent particulars relate to a manifacturing company which has
3 production departments A,B and C ant 2 service departments X and Y
PRODUCTION DEPTS. SERVICE DEPT.
A B C X Y
Rs. Rs. Rs. Rs. Rs.
Total departmental
overhead as per primary
distribution 6,300 7,400 2,800 4,500 2,000

The company decided to charge the Service dept. cost on the basis of the
subsequent percentages:
A B C X Y
X 40% 30% 20% - 10%
Y 30% 30% 20% 20% -
obtain out the total overhead of production dept. charging service dept. cost to
production depts. by Simultaneous formula method

13.FRom the subsequent figures,prepare a Reconciliation statement

Net profit as per Financial accounts Rs.1,13,000.Net profit as per cost accounts Rs 2,00,000 ,income tax given in financial accounts Rs. 60,000, share transfer
fees credited in financial accounts Rs. 4,000
Overheads as per cost accounts were estimated at Rs.34,000 whereas Rs. 28,000
were charged in financial accounts

Company given Rs. 20,000 for doubtful depts. Directors fees shown in
financial accounts Rs. 8,000 .Depreciation charged in financial accounts
Rs. 7000.Value of closing stock inm cost accounts Rs. 18,750.Value of colosing
stock in financial accounts Rs. 20,750,interest on investment not included in
cost accounts Rs 4,000
Good will written off in financial accounts Rs. 9,000.Stores adjustments credited
in Financial accounts Rs. 1,000

14 a)a workman`s wage for a guaranteed 48 hour week is Rs. 25 per hour
Estimates time to produce 1 article is 20 minutes and under incentives
scheme the time allowed is increased by 80% .during a week the workman
produced 100 articles .Calculate his time wages under i)Time Rate
ii)Piece Rate iii)Halsey Plan iv)Rowan Plan

b)Calculate the earning of the workers under subsequent
i)Taylorr`s Plan ii)Merrick`s Plan
Time rate Rs. three per hour,standard output per hour six units
Differential rate are:
1)Low piece rate at 80% of normal piece rate
2)High piece rate at 120% of normal piece rate
in a day of eight hours ,A produced 39 units,B 45 units,C 48 units and D 50 units

Earning:   Approval pending.