University of Allahabad 2009 B.Com , (part II) - Question Paper

Cost Accounting
Paper ; Seventh
(Group D)
Time Allowed : 3 Hours] [Maximum Marks : 100
Note : There are 2 parts. Attempt all ques. from Part-A and attempt any 3 ques. from part-B.
Part-'A'
Note : Attempt all 8 ques.. ans in not more than 100 words. every ques. carries five marks.

1. explain the objective of cost accounting?
2. What is Bin Card?
3. elaborate the kinds of Job-Cards?
4. discuss ABC analysis of material control?
5. calculate E.O.Q from the following:
Annual Demand = 5000 Units
Unit Price = Rs. 20
Order Cost = Rs. 16 per order
Storage Rate = 2% per annual
Interest Rate = 12% per annual
Obsolescence Rate = 6% per annual
6. Differentiate ranging from normal loss abnormal loss?
7. explain Cost Plus Contracts?
8. discuss the importance of sales budget?

Part-'B'
Note : Attempt any 3 ques. in maximum 600 words. every ques. carries 20 marks.

9. At the end of the year, a Contract Account stands debited with the cost of materials issued, abour and overheads and plant issued, it stands credited with materials at sight, Rs. 2,000 and plant at site revalued at Rs. 8,000 after charging depreciation at 20%. The net cost of contract is Rs. 30,000. The materials, lobour and overheads debited to the Contract account are in the ratio of 3:2:1.
The Contract price is Rs. 50,000. Fopurth-fifth of the Contract has been certified by the contractee's architect as completed, a month before at the end of the year and 80% of the certified work has been received in cash. The accountant informs that 2/3rd of the profit on cash basis credited to profit and loss account on this Contract is Rs. 8,000.
Prepare in full the Contract Account showing the cost of work done but uncertified and the work-in-progress Account from the above info.

10. On the basis of subsequent information, calculat5e the account of profit according to profit and
loss account-
(a) The profit according to cost accounts was Rs. 1,50,300.
(b) Factory overhead according to cost accounts was under-recovered by Rs. 4,000.
(c) Administration expenses were under-recovered in financial accounts by Rs. 1,500.
(d) Depreciation in cost accounts was over-recorded by Rs .950.
(e) During the year a interest of Rs. 495 on investments was received.
(f) Transfer fees of Rs. 120 in connection with the registration of transfer of shares was
received.
(g) Income-tax of Rs. 48,500 was given in financial accounts.
11. The Standard Cost of a chemical mixture is as under-
40 Tons of Material X @ Rs. 100 per ton.
60 Tons of Material Y @ Rs. 150 per ton.
Standard loss 10%
true cost for a period is as under:
45 Tons of Material X @ Rs. 80 per ton.
55 Tons of Material Y @ Rs. 170 per ton.
true yield is 91 tons
calculate material variances.
12. explain the various bases on which factory overheads can be apportioned. define the merits
and suitability of every of them.
13. Write short notes on-
(i) Methods of allocating Joint Costs of Joints Products.
(ii)Advantages and disadvantages of Budgetary Control.

Earning:   Approval pending.