LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

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LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034
B.B.A. DEGREE EXAMINATION – BUSINESS ADMINISTRATION
FIFTH SEMESTER – SUPPLEMENTARY – JUNE 2012
BU 5504/BU 5501 - COST ACCOUNTING
Date : 28-06-2012
Time : 2:00 - 5:00
Dept. No.
Max. : 100 Marks
PART-A
ANSWER ALL QUESTIONS
(10 X 2 = 20 marks)
1.
2.
3.
4.
5.
What is cost centre?
What is JIT inventory?
State the purposes of Retention Money.
Define Scrap.
Fill in the Blanks:
A. Total of Direct Cost is also known as ----------cost.
B. ------------profit is the basis for computing profit on incomplete records.
6. Compute EOQ from the following information:
Consumption of material per annum: Rs.8,000
Ordering cost per order: Rs.25
Storage and carrying cost per annum 10% of inventory value
7. How to apportion the following expenses:
A. Crèche Expenses
B. Welfare Expense
8. Compute the profit to be transferred to P&L account.
Notional Profit- Rs.2,00,000
cash received- 10,80,000
contract value- 20,00,000
9. Ascertain the abnormal gain or loss
Input- 5000 units
Normal loss- 20%
Output – 4300 units
10. The production overhead of department A – 12 in a factory is budgeted at Rs.80,000. It is anticipated
that the labour hours worked during the same period will be 10,000 hours. Calculate the labour hour
rate.
SECTION B
(5X8=40 Marks)
ANSWER ANY FIVE QUESTIONS
11. What are the advantages of cost accounting?
12. Distinguish between Job costing and Process costing.
13. Discuss the different methods of overhead distribution under secondary distribution summary.
14. From the following particulars, prepare Stores Ledger Account showing the pricing of Materials to be
issued by adopting the FIFO method.
Date
Particulars
2008,December,1
Opening stock 1000units @ Rs.2 each
3
Purchased 800 units @ Rs.2.10 Each
5
Issued 800 units
12
Purchased 1,200 units @ [email protected] Each
17
Issued 1,500 units
20
Purchased 900units @ [email protected] Each
25
Issued 600 units
15. Find out the Machine Hour Rate from the following:
a) Cost of Machine – Rs.3,60,000
b) Freight and Installation – 40,000
c) Working Life- 20 Years
d) Working Hours – 8,000 hours, p.a
e) Repairs Charges – 50% of Depreciation
f) Power- 10 units per [email protected] 10 Paise per unit
g) Lubricating [email protected] Rs.2 per day of 8 hours
h) Consumable stores @ Rs.10 Per day of 8 hours
i) Wages of operator @ Rs.4 Per day
j) Scrap value – Nil
16. Prepare a Reconciliation statement from the following.
a) Profits as per Costing Records – 45,030
b) Income Tax provided in financial books- 4,000
c) Bank Interest (Cr.) in financial books- 150
d) Depreciation charged in cost books-3,000
e) Depreciation charged in financial books-2,800
f) Works overhead over recovered- 550
g) Administration overhead under recovered- 450
h) Interest on investment – 1,200
i) Stores adjustment(credit in financial books) – 120
17. Calculate the earnings of the Mr. Alex and Mr. Basheer from the following based on Merrick’s
Multiple piece rate system.
Standard Production per day- 150 units
Normal piece Rate – Re.0.50 per unit
Production per day Mr. Alex- 140 units, Mr. Basheer – 160 units.
18. The following information relating to contract: 5678
Contract Price – 6, 00,000
Wages- 1, 64,000
General Expenses- 8,600
Raw Materials – 1, 20,000
Plant- 20,000
As on the date cash received was Rs.2, 40,000 being 80% of work certified. The value of materials
remaining at the site was Rs. 10,000. Depreciate Plant by 10%. Prepare contract account showing
profit to be credited to P& L account.
SECTION C (2X20=40)
ANSWER ANY TWO QUESTIONS
19. A factory has three production departments X, Y, Z and service departments A and B. The budgeted
expenditure for the month of March 1999 are given below:
Rent- Rs.15,000,General Lighting-6600, Indirect Wages-20,000,Power-15,000,Depreciation on
Machines-100000,and Sundries-10,000.
The other details are:
Particulars
X
Y
Z
A
B
30000
20000
30000
15000
5000
Direct Wages
3070
4475
2419
Working Hours
600000 800000 1000000
50000
50000
Value of
machines
30
50
10
Horse Power of 60
Machines
100
150
200
100
50
No. of light
points
20000
25000
30000
20000
5000
Floor area
Service department overheads are apportioned on the following basis.
X
Y
Z
A
B
Service Dept.A
20% 30% 40% 10%
Service Dept B
40% 20% 30% 10% Find out the Works Cost of Product ‘X’ which is processed for manufacture in départements X Y
and Z for 4 5 and 3 hours respectively, given that its direct materials is Rs 500 and labour cost is Rs.430.
20. The cost of manufacturing 5,000 units of a commodity comprises :
 Materials – Rs.20,000
 Wages - Rs.25,000
 Chargeable expenses- Rs.400
 Fixed factory overheads - Rs.16,000
 Variable factory overheads - Rs.4,000.
For manufacturing every 1,000 extra units of the commodity the cost of production increases as
follows :
 Materials : Proportionately
 Wages : 10% less than proportionately
 Chargeable expenses- No extra cost
 Fixed factory overheads – Rs.200 extra
 Variable factory overheads 25% less than proportionately
Calculate the estimated overhead cost of producing 8,000 units of the commodities and show how
much it would differ if a flat rate of factory overhed based on wages were charged.
21. The Product of X ltd passes through two process viz., A and B. The following are the particulars
relating to them.
Process
A (Rs)
B (Rs)
1,00,000
--
10,000
20,000
Wages
20,000
30,000
Overheads
12,000
15,000
Normal loss
5%
2%
Scrap value per unit
3
5
Actual Output (units)
9,400
9,350
Materials 10,000 units @
Rs.10 per unit
Other materials
You are required to prepare process accounts, Normal loss accounts and other necessary accounts.
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