Alagappa University 2007 B.Com COST ACCOUNTING - Question Paper

DISTANCE EDUCATION
B.Com. DEGREE EXAMINATION, DECEMBER 2007.
COST ACCOUNTING
(Upto 2004)
Time : 3 hours Maximum : 100 marks
part A — (5 x eight = 40 marks)
ans any 5 ques..
All ques. carry equal marks.
1. What is cost accounting? State its objectives.
2. What are Direct expenses and Indirect expenses? provide examples.
3. State any 3 objectives of materials control. Also state 2 limitations.
4. What is meant by idle time? How is it dealt with?
5. What is meant by labour turnover? State its methods of computations.
6. What are the benefits of Standard Costing?
7. What is the need for reconciliation of cost accounts and financial accounts?
8. What are meant by ‘Abnormal gain’ and ‘Abnormal loss’?
part B — (4 x 15 = 60 marks)
ans any 4 ques..
All ques. carry equal marks.
9. From the subsequent particulars, compute the labour cost per man day of eight hours :
(a) Basic pay – Rs. 120 per day.
(b) Additional pay (DA) – Rs. two per every point over
100 cost of residing index for working class-current cost of residing index-700 points.
(c) Leave salary – 10% of (a) and (b).
(d) Employer's contribution to provident fund – 8% of (a), (b) and (c).
(e) Employer's contribution to State Insurance – 2.5% of (a), (b) and (c).
(f) Expenditure on amenities to labour – Rs. 200 per head per month.
(g) Number of working days in a month – 25 days of
8 hours per day.
10. Show the Stores Ledger account as it would appear when using 1st in 1st out method :
April 1 Balance in hand – 300 units, value Rs. 600
2 Purchased – 200 units, value Rs. 440
4 Issued – 150 units
6 Purchased – 200 units, value Rs. 460
11 Issued – 150 units
19 Issued – 200 units
22 Purchases – 200 units value Rs. 480
27 Issued – 250 units
11. Work out the machine hour rate for the subsequent machine whose scrap value is Nil :
Cost of the machine – Rs. 90,000
Freight and installation charges – Rs. 10,000
Working life – 10 years
Working hours – 2000 per year
Repairing charges – 50% of depreciation
Power – 10 units per hour @ Re. one per unit
Lubricating oil – @ Rs. two per day of eight hours
Consumable stores – @ Rs. 10 per day of eight hours
Wages of operator – @ Rs. 40 per day.
12. What is process costing? State its features. How does it differ from Job Costing?
13. Alpha Ltd., made a profit of Rs. 23,000 during the year 1990 as per the costing records, whereas the financial accounts disclosed a profit of Rs. 15,000. From the subsequent profit and loss account for the year ended 31.12.1990 (as per financial book), prepare a reconciliation statement.
Profit and Loss Account
Rs. Rs.
To Opening stock 1,00,000 By Sales 1,75,000
To Purchases 80,000 By Closing stock 80,000
To Direct wages 20,000
To Factory expenses 15,000
To Administrative expenses 10,000
To Selling expenses 15,000
To Net profit 15,000
2,55,000 2,55,000
The costing records show the subsequent :
(a) Stock ledger closing balance – Rs. 89,000
(b) Factory overhead – Rs. 13,000
(c) Administrative overheads computed @ 8% of selling price
(d) Selling expenses computed @ 8% selling price.
14. A producer produces product ‘A’. This product has to go through 4 process. From the subsequent particulars, prepare the process cost accounts :
Particulars Total cost Process 1 2 3 4
Rs. Rs. Rs. Rs. Rs.
Direct materials 26,000 15,000 4,000 –– 7,000
Direct wages 26,500 2,500 3,000 9,000 12,000
Direct expenses 8,000 1,000 –– 2,000 5,000
Manufacturing
overheads 79,500 –– –– –– ––
Apportion the manufacturing overheads @ 300% of direct wages. Total production 1000 kg. Opening and Closing stocks are taken to be nil.
15. A production concern has 2 production departments, viz. A and B and 2 service departments viz. C and D.
The overhead expenses for a particular period are provided beneath :
Factory Manager's salary – Rs. 4,000
Fuel – Rs. 21,000
Provident fund contribution – Rs. 9,000
Building maintenance – Rs. 4,000
Depreciation on building – Rs. 20,000
Canteen expenses – Rs. 12,000
Rent – Rs. 6,000.
Given beneath are particulars of different departments :
Departments
A B C D
Total number of employees 16 8 4 4
Area occupied (sq.ft.) 2,000 3,000 500 500
Value of building (Rs.) 75,000 1,00,000 25,000 ––
Wages (Rs.) 40,000 20,000 10,000 5,000
Horse power ratio 3 3 1 ––
Prepare overhead distribution statement.

Earning:   Approval pending.