Cochin University of Science and Techology (CUST) 2006 M.B.A Management Accounting - Question Paper

-v    MB A.F.2/06.8(a)

M.B.A. DEGREE (FT) II SEMESTER EXAMINATION, Mi    2006 MANAGEMENT ACCOUNTING

Time: 3 Hours    Maximum marks : 50

(Answer ALL questions)

(All questions carry EQUAL marks)

1 A. Define Management Accounting and bring out its features. Also ixplatn how management accounting is different from financial accounting.

OR

B. The following figures have been extracted from the books of AB?' Ltd. fbr the

year ending 31* March, 1999

Rs.

Direct materials    70,000 .

Direcfwages    75,000

Indirect wages    10,000

Other direct expenses    15,000

Factory rent and rates    5,000

Office rent and rates    500

Indirect materials    500

Depreciation of plant    1,500

Depreciation of office fiirniture .    100

Managing Directors remuneration    12,000

_{w General factory expenses    5,700}

General office expenses    1,000

Genera] selling expenses    1,000

Travelling expenses    1,100

Office salaries    4,300

Carriage outward    1,000

Advertisements    2,000

Sales    2,50,000

From the above figures, calculate the following;

> a) Prime cost

b)    Works cost

c)    Cost of production

d)    Cost of safes

e)    Netpiojfit

IT A. Describe the various methods of pricing issue of materials

OK

B_ From the following information prepare stores ledger accounts sho¹ ving the issue of materials an UFO method.

Odobtr 2002

1 - Balance 500 units >$Rs.l0 unit 10 - Ordered 250 units 18 - Issn&ti 125 units

21 - Received 150 units @Rs. 11 each 25 - Ordered 200 units

Navembt* 20Q2

1 - Issued 175 units

10 - Received 200 unit! @ 12 each 15 - Issued 100 units . , 20 - Returned to stored units issued on Odober 18 30 - Issued 125 units

(i)    Features of job costing

(ii)    Treatment of variable as d fixed cost under marginal cost: ng

(iii)    Machine-hour rate    ~

(iv)    Standard costing

015.

B. Alcon Construction Co. Ltd. commenced its business on l11 Janus ry, 2002. The

following data has been extracted from its books in relation to a c untract. Rs. Cash received from Contractee 1,20,000 Materials 40,000 Direct Labour 55,000 Expenses at site 2,000 Plant and Equipments (at cost) 30,000 Fuel and Power 2,500 The contract price was Rs.3,0(,000 and the work certified Rj .1,50,000.

work completed, since certification had been estimated at Rs. 1,000 (at >st). Machinery costing Rs.2,000 was returned to stores at the end of the year. Stock of naferials at site on 33 -12-2002 was worth Rs.5,000 and wages outstanding were Rs.200. Depreciation of Machinery was to be charged at 10%. You are required to calculate t le profit on the contract and show how the work-in-progress will appear in the Bataxe Sheet as on 31-12-2002. Also prepare the Contradtc.es Account.

IV A Define Budget and Budgetary Control. Explain the steps in th 5 installation of budgetary control.

V    OR

B. The finished product of a factor) has to pass through three proces les A, B and C. The normal wastage of each process is 2% in A, 3% in B and 10% in C. The percentage of waste is computed on the number of units entering ;ach process.

Hie scrap values of wastage of processes A, B and C are 10 paise, 40 paise and 20 paise per unit respectively.

The output of each process is transferred to the next process and t le finished proctocts are transferred from process C into stock. The foflowii g fiirther information is obtained:

i	Process A -WL	Process B (Rs.)	Process C (Rs)
Materials consumed	11,000	4,000	4,00d
direct labour	8,000	6,000
Manufacturing expenses	2,000	4,000	2,006

20,000 units wereput into process A at s cost of Rsl 16,000. The output o. 'each process has been A -19,600 units; B -18,400 units and C - 16,700 units.

There was no stock of wctk-in-progress in any process. Prepare the Proct ss Accounts, abnormal Loss and Abnormal Gain accounts.

V A. Define cost audit and stale its es sential features. In wrtiat respect s cost audit different from financial audit.

OR

From the above details, compute:

i)    Profit-Vohime ratio

ii)    Break-even sales (quantity)

iii)    Break-even sal's (value)

iv)    Margin of safely

v)    Margin of safely ratio

vi)    Break-even sahs, if sales quantity increases to 15000 units

vii)    Profit at a sale:; of 10,000 units

viii)    Sales (qty.) njcuired to cam a profit ofRs.40,003

(5 c 10 50 marks)

Attachment: cochin-university-of-science-and-techology--cust--2006-m-b-a-37403-1.pdf

Earning:   Approval pending.