Cochin University of Science and Techology (CUST) 2007 M.B.A Management Accounting - Question Paper
niijn>r tjuv t o
M.B.A. DEGREE (FT) n SEMESTER EXAMINATION, MAY 2007
SMS 2208 MANAGEMENT ACCOUNTING
*
Time: 3 Hours Maximum marks : 50(Answer ALL questions)
(All questions carry EQUAL marks)
niijn>r tjuv t o
M.B.A. DEGREE (FT) n SEMESTER EXAMINATION, MAY 2007
SMS 2208 MANAGEMENT ACCOUNTING
*
Time: 3 Hours Maximum marks : 50(5x 10 = 50)
1, a. What are the limitations of Cost Accounting?
(OR)
b. From the following particulars of a manufacturing firm, prepare a statement showing (a) Cost of materials used ; (b) Works cost ; (c) Cost of production ; (d) Percentage of works overhead to productive wages ; (e) Percentage of general overhead to works cost.
Rs. Rs.
Stock of materials on Finished goods sold 24,00,000
1st January, 1984 40,000 Works overhead charges 1,50,000 Purchase of raw materials Office and general
on January, 1984 11,00,000 expenses 1,00,000
Stock of finished goods Stock of materials on
on 1st January, 1984 50,000 31st January, 1984 1,40,000
Stock of finished goods
on 31st January, 1984 60,0000
2 a. What are the methods of valuing materia! issues ?
' (OR)
b. Calculate Machine Hour Rate from the following:
1. Cost of Machine Rs.19,200
2. Estimated scrap value Rs. 1,200
3 Average Repairs and Maintenance charges per month Rs. 150
4 Standing charges allocated to machine per month Rs.50.
5. Effective working life of machine 10,000 hours.
6. Running time per month 166 hours. v
7. Power used by machine :5 units per hour @ 19 paise per unit.
3. a. Haw is profit on uncompleted contract calculated?
(OR)
b. A product passes through three processes. During December 1984,
1,000 finished units were produced with the following expenditure:
Process A Process B Process C
Rs. Rs. Rs.
Direct Materials 1,000 2,000 1,000
Direct Labour 5,000 4,000 3,000
Direct Expenses 500 600 1,000
Overhead expenses amounted in ail to Rs.6,000. They are to be apportioned on the basis of direct wages. Main raw materials issued to Process A (beside above) were worth Rs.6,000. Ignoring the question of stock, prepare the Process Account concerned.
4. a. What are the preliminaries to the establishment of standard costs?
(OR)
b. From the following* particulars, find out the-break-even point.
Rs.
Variable cost per unit 12
Selling price per unit 20
Fixed Expenses 60,000
What will be the selling price per unit, if break - even point is brought down to 6,000 units?
5. a. What are the advantages of Cost Audit?
(OR)
b. From the following information and the assumption that the balance in hand on 1#* Jan. 2006 Rs.72,500, prepare a Cash Budget:
|
Month Jan. |
Sales Rs. 72,000 |
Materials Rs. 25,000 |
Wages Rs. 10,000 |
Selling and Dis.Cost Rs. 4,000 |
Production cost Rs. 6,000 |
Admini stration cost Rs. 1,500 |
|
Feb. |
97,000 |
31,000 |
12,100 |
5,000 |
6,300 |
1,700 |
|
March |
86,000 |
25,500 |
10,600 |
5,500 |
6,000 |
2,000 |
|
April |
88,600 |
30,600 |
25,000 |
6,700 |
6,500 |
2,200 |
|
May |
1,02,500 |
37,000 |
22,000 |
8,500 |
8,000 |
2,500 |
|
June |
1,08,700 |
28,800 |
23,000 |
9,000 |
8,200 |
2,500 |
Assume that 505 are cash sates. Assets are to be acquired in the month of February and April Therefore, provision should be made for the payment of rs.8,000 and Rs.25,000 for the same. An application has been made to the bank for the grant of loan of Rs.30,000 and it is hoped that it will be received in the month of May.
It is anticipated that a dividend of Rs.35,000 will be paid In June. Debtors are allowed one month's credit. Sales Commission @ 3% on sales is to be paid. Creditors (for goods or overheads) grant one months credit.
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Attachment: |
| Earning: Approval pending. |
