Guru Gobind Singh Indraprastha Vishwavidyalaya 2011 B.B.A Cost Accounting - Question Paper
(Please write your Exam. Roll No.) Exam. Roll No.
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SECOND SEMESTER [BBA/(B&I)/(TTM) MOM], MAY - 2011 | |||||||||
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Q. 1. Define Cost Accounting. Explain its Objectives and Limitations. (15) | |||||||||
Q. 2. (a) Calculate Economic Order Quantity when, monthly demand is 400 units, purchase price per unit is ? 20, ordering cost is ? 120 per order and holding cost is 10% per annum. (7V2)
(b) From the following, calculate earnings of the worker under :
(i) Halsey Plan and (ii) Rowan Plan Standard Time = 10 hours, Hourly rate = ? 2 and
Time Taken = 6 hours. . (7V2)
Q. 3. ABC Limited undertook a contract for ? 5,00,000 on 1st July, 2009 on (15) 30th June, 2010 when the accounts were closed, the following details about the contract were gathered :
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Materials Purchased |
1,00,000 |
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Wages Paid |
45,000 |
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General Expenses |
10,000 |
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Plant Purchased |
50,000 |
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Materials in hand 30.6.10 |
25,000 |
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Wages Accrued 30.6.10 |
5,000 |
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Work Certified |
2,00,000 |
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Cash Received |
1,50,000 |
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Work Uncertified |
15,000 |
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Depreciation of Plant |
5,000 |
The above contract contained an escalation clause which read as follows:
In the event prices of materials and rates of wages increase by more than 5%, the contract price will be increased accordingly by 25% of the rise in the cost of materials and wages beyond 5% in each case.
It was found that since the date of signing the agreement the prices of materials and wage rates increased by 25%. The value of the work certified does not take into account the effect of the above clause.
Prepare the contract account.
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Q. 4. The product of a company passes through three different processes (15) A, B and C. The normal wastage of each process is as follows :
Process A : 2%, Process B : 5%, Process C : 10%.
The wastage of process A and B is sold at Re. 1 per unit and that of process C at ? 4 per unit.
The company gives you the following information for the month of July, 2005
2000 units of crude material were introduced in process A at a cost of ? 8 per unit. Besides this the following were other costs.
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July 1, Per unit |
Stock on 31st July, 2005 is to be valued at cost as shown by months production accounts. Prepare the Process Accounts.
Q. 5. Differentiate between any Five. (3x5=15)
(a) Product Cost and Period Cost
(b) Cost Apportionment and Cost Absorption
(c) Shut down cost and Sunk Cost -
(d) Casual Workers and Out workers
(e) Waste and Scrap
(f) Job Costing and Batch Costing
Q. 6. The following figures are extracted from the books of a manufacturing (15) company having A, R, C as production departments and X as Maintenance Department and Y as Store Department,
' Power and Light 6,000
Rent and Rates 2,800
Insurance on Assets 1,000
Meal Charges 3,000
Depreciation per annum - 6% on Capital values.
From the above prepare a Departmental Distribution Summary with the following departmental data :
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Item |
Production Department |
Service Department | |||
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A |
B |
C |
X |
Y | |
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Indirect Materials |
950 |
1,200 |
200 |
1,500 |
400 |
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Indirect Wages |
900 |
1,100 |
300 |
1,000 |
650 |
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Area Sq. mt. |
400 |
400 |
300 |
200 |
100 |
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Capital value of |
1,00,000 |
1,20,000 |
80,000 |
60,000 |
40,000 |
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assets () | |||||
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KW Hrs. |
4,000 |
4,400 |
1,600 |
1,500 |
500 |
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No. of workers |
90 |
120 |
30 |
40 |
20 |
Q. 7. Ascertain the cost of carrying one tonne of goods for a distance of one (15) km. from the following particulars :
Cost of truck - ? 3,00,000
Estimated Scrap Value - ? 25,000
Life 5 years; Capacity 4 tones; Average daily distance covered (km)
200 (100 outward and 100 return)
Working days in a month 25.
Freight : Full capacity outward, 50% on return journey.
Annual Charges ?
Insurance @ 2%
Repairs and Maintenance 4,500
Garage Rent 3,600
Taxes 6,000
Interest @ 18%
Tyre, Battery etc. 6,500
Monthly Charges
Drivers Salary 750
Coolie y 500
Petrol etc. ? 100 for every 100 kms.
Q. 8. Write Short notes on any Three : (5x3=15)
(a) Activity Based Costing
(b) Esclation clause with example
(c) Reconciliation of Cost and Financial Accounts
(d) Stores Ledger Vs. Bin Cards
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Attachment: |
| Earning: Approval pending. |
