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 | ||||||||||||||||
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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
B. Sales (Qty.)
* 12000 units Rs. 6/unit Rs.20,Q0Q Rs. 10/unit
Variable cost Fixed cost Selling price
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)
K
Attachment: |
Earning: Approval pending. |