Final Exam (Take-Home) Fall - 2020
Student Name:
Reg. ID:
Instructor: Fahim Qazi / Muhammad Asif
Program : BBA
Subject: Cost accounting
Max. Marks:25
Q. No.
1
2
3
Total Marks
15
04
06
Total
25
Obtained Marks
Department of Business Administration
Please follow the instructions carefully:
1. Write your answers in a Word file and upload the file before the due date on black
board .
2. Write your name and registration ID on the first page of your Word file.
3. Answer scripts can be uploaded on black board any time before its deadline. Therefore,
do not wait for the last hour to avoid any unforeseen problems.
4. Submission of answer copy will be considered acceptable through black board only.
Therefore, do not submit your document through email or any other medium.
5. Use 12 pt. font size and Times New Roman font style along with 1-inch page margins.
6. Follow the requirements of the word limit and the marking criteria while writing your
answers.
7. Provide relevant, original and conceptual answers, as this exam aims to test your ability
to examine, explain, modify or develop concepts discussed in class.
8. Do not copy answers from the internet or other sources. The plagiarism of your answers
may be checked through Turnitin.
9. Recheck your answers before the submission on black board to correct any content or
language related errors.
Q# 1 – A (3.5 marks)
Case 1
case 2
Case 3
Beginning inventory
24,600
8,000
45,000
Ending inventory
20,000
12,400
?
Purchases
262,000
?
248,400
Direct Material used
?
15,000
234,200
Beginning inventory
11,600
12,560
?
Ending inventory
12,000
12,560
85,200
Beginning inventory
254,200
2,800
334,480
Ending inventory
?
4,600
367,400
Cost of goods manufactured
679,200
58,000
1,518,220
Total manufacturing cost
679,600
58,000
1,526,800
Cost of goods sold
760,000
56,200
?
Gross margin
328,000
13,400
1,874,600
Direct labor
173,000
23,200
?
Manufacturing overhead
240,000
19,800
430,600
Sales
1,088,000
69,600
3,359,900
Raw Material
Work in process
Finished goods
Determine the missing amounts in each of the following independent cases ( with out
computation answer will not be acceptable)
Q# 1 ( B )
A Hotel pays the phone company 100 per month plus .25 for each call made during January
6,000 calls were made in February 5,000 calls were made
Required
1.
2.
3.
4.
Calculate the hotel s’ phone bill for January and February
Calculate the cost per phone call in January and in February
Separate the January phone bill into its fixed and variable components
What was the average cost of a phone call in January
(1.5 marks)
Q No.1-c ( 06 marks )
Raw material(1-1-03)
Rs.
12,500
Raw material(31-12-03)
Rs. 32,000
Work-in-Process(1-1-03)
6,300
Work-in-Process(31-12-03)
16,500
Finished Goods (1-1-03)
12,500
Finished Goods(31-12-03)
25,000
Sales
Sales return
Purchases of raw material
678,600
15,000
245,000
Direct labor
125,000
Other factory overhead
17,600
Repair and maintenance
10,000
Administrative expense
70,000
Insurance-factory
12,000
Marketing expense
55,000
Depreciation-factory
22,000
Indirect material
8,000
Indirect labor
4,500
Required:
1. Statement of cost of goods manufactured
2. Income Statement
Q# 1D – ( 04 marks)
The ASF Corporation manufactures one product and accounts for costs by a job orders cost system
You have obtained the following information for the year ended December 31 2010 from the
Corporations books and records
Total manufacturing cost added during 2010 was 1,000,000
Cost of goods manufactured was 970,000
Factory overhead was applied to work in process inventory at 75% of direct labor (applied factory
overhead for the year 27% of the total manufacturing cost)
Beginning work in process inventory January 1 was 80% of ending work-in – process inventory
December 31
Required
1. Prepare a formal statement of cost good manufactured
2. Prepare journal entries reflecting the above transactions
Q# 2-A
Job #
Feb
March
101
5,000
102
7,500
103
1,000
4,500
104
2,500
3,000
105
7,500
106
10,000
During the period job # 103,104,105 and 106 were completed and job # 101 and 105 were sold
with 20% above cost
Required
 Cost of work in process beginning
 Cost of work in process ending
 Cost of finished goods
 Cost of goods sold
 Cost of finished goods beginning
 Cost of finished goods ending
 Sales
( 05 marks)
Q.2-B ( 5 marks ) On March 01, 2009 HASF Engineering Works had two jobs in process as
follows.
……………………………………………… Job No. 18 ……….. Job No. 19
Direct Material ……………………………. . 50,000 ………………. 18,000
Direct Labour ………………………………. 36,000 ………………. 12,000
Direct Labour Hours …………………… . 10,000 ……………….. 8,000
Direct Machine Hours …………………
3,000 …………………. 2,500
Applied Factory Overhead ……… ..
Rs. 3 per direct …… Rs. 5 per direct
………………………………………
(Machine Hour) …….. (Labour Hour)
During March Job No. 20, 21, 22 and 23 were started. Direct materials of Rs. 37,500 and direct
labour of 1800 hours at an average rate of Rs. 15 per hour used during the month. Pre determined
FOH applied rate is Rs. 10 per direct labour hour on all jobs starting in March.
Job No. 23 was the only incomplete job at the end of March. Direct material of Rs. 15,000 and
direct labour of Rs. 9,000 were charged to job. At the end of month job No. 22 was the only
finished job on hand. It has accumulated total cost of Rs. 27,250.
There was no beginning inventory in finished goods. Jobs completed were sold on account at a
profit of 20% on cost.
Required:
Prepare journal entries to record
(a) Cost incurred on jobs started in the month of March
(b) Cost of goods manufactured
(c) Sales
(d) Cost of Sales.