Institute of Chartered Financial Analysts of India (ICFAI) University 2008 C.A Accounts -PCC--08_ _ 4 COST ACCOUNTING AND FINANCIAL MANAGEMENT.doc - Question Paper

12 per sold unit. The budgeted fixed production expenses were Rs. 24,00,000 per annum
and the fixed selling expenses were Rs. 16,00,000. During the year ended 31st March,
2008, the company worked at 80% of its capacity. The operating data for the year are as
follows:
Production 3,20,000 units
Sales @ Rs. 80 per unit 3,10,000 units
Opening stock of finished goods 40,000 units
Fixed production expenses are absorbed on the basis of capacity and fixed selling
expenses are recovered on the basis of period.
You are needed to prepare Statements of Cost and Profit for the year ending 31st
March, 2008:
(i) On the basis of marginal costing
(ii) On the basis of absorption costing.
(b) define briefly, how wages may be computed under the subsequent systems:
(i) Gantt task and bonus system
(ii) Emerson’s efficiency system
(iii) Rowan system
(iv) Halsey system
(v) Barth system. (7 + nine = 16 Marks)

ques. 4

ans any 3 of the following:

(i) A product passes from Process I and Process II. Materials issued to Process I amounted
to Rs. 40,000, Labour Rs. 30,000 and manufacturing overheads were Rs. 27,000.
Normal loss was 3% of input as estimated. But 500 more units of output of Process I
were lost due to the carelessness of workers. Only 4,350 units of output were
transferred to Process II. There were no opening stocks. Input raw material issued to
Process I were 5,000 units. You are needed to show Process I account.

(ii) PQ Ltd. reports the subsequent cost structure at 2 capacity levels:
(100% capacity)
2,000 units 1,500 units
Production overhead I Rs. three per unit Rs. four per unit
Production overhead II Rs. two per unit Rs. two per unit
If the selling price, decreased by direct material and labour is Rs. eight per unit, what would be
its break-even point?

(iii) A contract expected to be completed in year 4, exhibits the subsequent information:
End of Year Value of work
certified
Cost of work
to date
Cost of work not
yet certified
Cash received
(Rs.) (Rs.) (Rs.) (Rs.)
1. 0 50,000 50,000 0
2. 3,00,000 2,30,000 10,000 2,75,000
3. 8,00,000 6,60,000 20,000 7,50,000
The contract price is Rs. 10,00,000 and the estimated profit is 20%.
You are needed to calculate, how much profit should have been credited to the Profit

Earning:   Approval pending.