B.Com-B.Com 2nd Sem Cost Accounting(Guru Nanak Dev University, Amritsar, Punjab-2013)
B.COM - Second Semester
(Cost Accounting)
Time allowed: 3 hours Maximum Marks: 50
SECTION - A
1. Attempt any TEN questions. Each question carries 1 Mark.
(a) Cost Center
(b) FIFO
(c) Direct Cost
(e) Labour Turnover
(f) Piece Rate System
(g) Safety Level
(h) Factory overheads
(i) Cost of goods sold
(j) Abnormal loss
(k) Work in progress
(l) Notional Profits
(m) Inter process profits
SECTION - B
2. What is Cost Accounting? Explain the difference between cost accounting and financial accounting.
3. What is a Reconciliation Statement? Explain the reasons for the difference between profits shown by cost accounts and financial accounts.
4. Following is the detailed information of XYZ Stores:
|
Cost of placing an order |
Rs. 120 |
|
Annual carrying cost per unit |
Rs. 15 |
|
Normal usage of material |
50 units per week |
|
Minimum usage |
20 units per week |
|
Maximum usage |
75 units per week |
|
Re-order Period |
5-7 weeks |
Its a 52 weeek year.
From the above information, compute:
(a) Re-order quantity
(b) Re-order level
(c) Minimum Level
(d) Maximum Level
(e) Average stock Level
5. Explain the following methods of wage payment:
(a) Taylor`s differential piece rate system
(b) Merrick`s multiple piece rate system.
SECTION - C
6. The following particulars relate to a manufacturing company which has 3 production departments A, B and C and two service departments X and Y:
Production Services
Depts. Depts.
A B C X Y
Rs. Rs. Rs. Rs. Rs.
Total departmental
Overheads as per
Primary distribution 13,600 14,800 5,600 9,000 4,000
The company decides to charge the service dept. cost on the basis of the following
Percentages:
A B C X Y
X 40% 30% 20% - 10%
Y 30% 30% 20% 20% -
Find out the total overhead of production departments charging services department costs to Production departments by using Simultaneous Equation method.
7. From the following particulars of A Ltd. You are required to calculate the machine hour rate:
|
Cost of Machine |
1,16,800 |
|
Installation Charges |
6,400 |
|
Anticipated Life of Machine 12 years |
|
|
Scrap value of machines at the end of anticipated life |
2,000 |
|
Rents and Rates per annum |
12,000 |
|
Insurance of the machine per annum |
4,000 |
|
Consumable stores per annum |
18,000 |
Power cost is 5 units per working hour @ 40 paise per unit.
Setting up time (Non-productive) 400 hours per annum.
There are 300 working days of 8 hours (per day) in a year.
8. A product passes through three processes X, Y and Z. The output of process X and Y is transferred to next process at cost plus 20 per cent each on transfer price and the output of process Z is transferred to finished stock at a profit of 25 per cent on transfer price. The following informations are available in respect of the year ending 31st March, 2008:
|
Process X |
Process Y |
Process Z |
Finished stock |
|
|
Rs. |
Rs. |
Rs. |
Rs. |
|
|
Opening Stock |
15,000 |
27,000 |
40,000 |
45,000 |
|
Material |
80,000 |
65,000 |
50,000 |
|
|
Wages |
1,25,000 |
1,08,000 |
92,000 |
|
|
Manufacturing Overheads |
96,000 |
72,000 |
66,500 |
|
|
Closing Stock |
20,000 |
32,000 |
39,000 |
50,000 |
|
Inter process profit included in opening stock |
NIL |
4,000 |
10,000 |
20,000 |
Stock in processes is valued at prime cost. The finished stock is valued at the price at which it is received from process Z. Sales of the finished stock during the period was Rs. 14, 00,000.
You are required to prepare:
Process accounts and finished stock account showing profit element at each stage.
9. What are the different methods of calculating profit on incomplete contracts? Give examples.
| Earning: ₹ 8.00/- |
