Bangalore University 2006 B.Com COST ACCOUNTING - Question Paper

Maximum four months.

8. From the subsequent information, prepare Stores Ledger Account under Simple avg. method.

Jan 2005, 1 Received 500 units at Rs. 20 per unit.
10 Received 300 units at Rs. 24 per unit
15 Issued 700 units
20 Received 400 units at Rs. 28 per unit
25 Issued 300 units
28 Received 500 units at Rs. 22 per unit.
31 Issued 200 units.

9. calculate the Machine Hour Rate from the subsequent data :

Cost of the Machine Rs. 2,00,000

Installation charges Rs. 20,000

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 pr 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

Estimated working hours p.a. 2,000

Shop Supervisor’s salary per month Rs. 1,200

The machine occupies 1/4th of the total area of the shop. The supervisor devotes 1/3rd of his time for this machine.

part - C

ans any 3 ques.. every carries 15 marks. 3x15=45

10. On March 2004 there are 1,500 units of material at Rs. 12 per unit in stock. The subsequent transactions were made during the month. Prepare Stores Ledger Account by FIFO and LIFO methods.

March 2 Issued 200 units
4 Purchased 1,000 units at Rs. 15 per unit.
8 Issued 1,200 units
12 Purchased 600 units ar 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.
25 Issued 250 units
30 Issued 300 units.

11. subsequent are the particulars for the production of 2,000 sewing machines of Bharath 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, rates 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 additional info is supplied to you :

i. Price of material is expected to rise by 20%
ii. Wage rates 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 manufacturing company which has three Production departments A, B and C and 2 Service departments X and Y.

Production Depts. Service Depts.
A B C X Y
Rs. Rs. Rs. Rs. Rs.
Total departmental
overheads as per primary
distribution 6,300 7,400 2,800 4,500 2,000

The company decide 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 depts.. charging service dept. costs 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 account Rs. 2,00,000, income tax given in Financial accounts Rs. 60,000, share transfer fees credited in Financial accounts Rs. 4,000.

Overhead 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 debts. Directors fees shown in Financial accounts Rs. 8,000. Depreciation charged in financial accounts Rs. 7,000. Value of closing stock in cost accounts Rs. 18,750. Value of closing stock in cost accounts Rs. 4000.

Goodwill 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. Estimated time to produce on e article is 20 minutes and under incentives scheme the time allowed is increased by 80%. During a week the workman produced 100 articles. compute his time wages under i) Time Rate ii) Piece Rate iii) Halsey Plan iv) Rowan Plan.

b) compute the earnings of the workers under subsequent
i) Taylor’s Plan ii) Merrick’s Plan.

Time rate Rs. three per hour, standard output per hour six units.

Differential rates 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.

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Earning:   Approval pending.