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LOYOLA COLLEGE (AUTONOMOUS), CHENNAI 600 034
B.Com.DEGREE EXAMINATION -COMMERCE
FIFTH SEMESTER APRIL 2018
CO 5501- COST ACCOUNTING
Date: 30-04-2018 Dept. No. Max. 100 Marks
Time: 09:00-12:00
SECTION A ANSWER ALL QUESTIONS (10x2=20)
1. What is cost sheet?
2. What is stock in trade?
3. Write the importance of differential piece rate.
4. List out the types of overhead.
5. Mention the significance of EBQ.
6. What is abnormal loss?
7. From the following calculate the total passenger kms No. of buses- 10. No. of days operated in a month 28. No. of trips by each bus per day- 2 trips. Distance of route- 25 Kms. (one side). Capacity of the bus 50 passengers. Normal capacity- 80%.
8. Compute the Economic Order Quantity from the following information:
Annual usage- 20,000 units, Buying cost per order Rs. 10, Cost per unit- Rs. 100 and Cost of carrying inventory 10% of cost.
9. Calculate the labour turnover rate by applying: separation method replacement method.
No. of workers on payroll: At the beginning of the month 800 and At the end of the month 1,200.
During the month 20 workers left; 30 workers were discharged and 150 workers were recruited. Of these, 25 workers are recruited in the vacancies of those leaving while the rest were engaged for an expansion scheme.
10. Find the overtime hours and overtime wages from the following information: Actual hours worked: 50, Normal working hours: 40 and Normal wage rate: Rs. 25 per hour.
SECTION-B ANSWER ANY FIVE QUESTIONS
11. Explain the objectives of cost accounting.
12. What is operating costing? Explain the procedures involved in transport costing.
13. What is labour turnover? Explain the causes of labour turnover.
14. On October 30th 2010 the account of contract number 75 showed the following amounts as expended thereon:
Particulars
Rs.
Particulars
Rs.
Materials directly purchased
9,00.000
Materials issued from stores
2,50,000
Plant purchased
8,00,000
Wages
12,20,000
Direct expenses
1,20,000
Proportionate establishment charges
2,70,000
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The contract was Rs. 75, 00,000 and up to 30th October, 2010 Rs. 29, 00,000 had been received in cash which represented 80% of work certified by the architect. The materials on site unconsumed were valued at Rs. 75,000. The depreciation on plant worked out to Rs.80, 000. Prepare the contract account showing what profit there in had been earned to date. Also state what amount should, in your opinion, is taken to profit and loss account of the period.
15. Prepare reconciliation statement from the following information
Profit as per financial accounts- Rs.1, 000
Less depreciation charged in cost accounts-Rs.1, 000
Factory overhead absorbed in cost accounts Rs.3, 500
Factory expenses incurred Rs. 3,000.
Administration overhead under recovered Rs.2, 500.
Provision for doubtful debts Rs. 1,000
Income tax paid Rs.2, 500
Dividend received- Rs. 4,000
Stores adjustment credited in financial accounts- Rs.1, 400.
16. Two components X and Y are used as follows:
Normal usage: 600 units per week each
Maximum usage: 900 units per week each
Minimum usage: 300 units per week each
Reorderquantity: 4,800 units 7,200 units
Reorder period: 4 to 6 weeks, 2 to 4 weeks.
Calculate for each component:
Reorder level Minimum Level Maximum level Average stock level.
17. Raj works in a factory where the following particulars apply:
Normal rate per hour- Rs.150, Normal piece rate is Rs.10, Raj produces 157 units in
an 8 hour day. Compute his wages for the day on: Time basis and Piece basis.
Calculate the wages due under Rowan Plan and Halsey Plan, with the following details: Standard time- 9 hours, Time taken- 6 hours, Normal rate- Rs. 8 per hour, Material Cost- Rs.40 and Overhead recovered 150% of direct wages. Compute the factory cost also.
18. Calculate machine hour rate from the following:
Particulars
Rs.
Particulars
Rs.
Cost of machine
80,000
Cost of installation
20,000
Scrap value after 10 years
20,000
Rent, rates per quarter for the shop
3,000
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General lighting (per month)
200
Shop supervision per quarter
6,000
Insurance premium p.a
600
Estimated repairs p.a
1,000
Power 2 units per hour at Rs. 50 per 100 units. Estimated working hours per annum 2,000. The machine occupies 1/4th of the total area of the shop. The supervisor devotes 1/6th of his time for supervising this machine. General lighting is to be apportioned on the basis of floor area.
SECTION-C ANSWER ANY TWO QUESTIONS (2X20=40)
19. Modern manufacturers Ltd, have three production departments and two service departments P and the details pertaining to which are as under:
Particulars
A
B
C
P
Q
Direct wages
30,000
20,000
30,000
15,000
5,000
Value of machine
6,00,000
8,00,000
10,00,000
50,000
50,000
H.P. of machine
60
30
50
10

Light points
100
150
200
100
50
Floor area Sq. feet)
20,000
25,000
30,000
20,000
5,000
The following figures extracted from the accounting records are relevant: Rent Rs.15,000, General lighting Rs.6,600, Indirect wages Rs. 20,000, Power Rs.15,000, Depreciation on machines Rs.1,00,000, Insurance on machines Rs.50,000, Contribution to P.F Rs.40,000 and Sundries Rs.10,000.
The expenses of service departments are allocated as under:
Particulars
A
B
C
P
Q
P
20%
30%
40%

10%
Q
40%
20%
30%
10%

Calculate the total overheads of the production department B and C.
20. Prepare stores ledger under FIFO method and LIFO method
1st July 2010- opening stock 2,000 unit at Rs. 10 each
5th July- received 1,000 units at Rs. 11 each
6th July issued 1500 units
10th July- received 5,000 units at Rs. 12 each
14th July issued 600 units
20th July issued 150 units
25th July- received 500 units at Rs. 14 each
28th July- issued 300 units.
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21. The product of a manufacturing concern passes through three processes. In March 2005, the cost of production was as given below:
Particulars
Process A
Process B
Process C
Raw materials used (tons)
200
71
164
Cost per ton
Rs. 100
Rs. 300
Rs.50
Direct wages
Rs. 8,000
Rs. 3,490
Rs. 2,850
Overheads
Rs. 2,520
Rs. 2,400
Rs. 3,820
Sale of scrap per ton
Rs. 80
Rs.60
Rs. 120
The product of three processes is dealt with as follows:
Sent to warehouse for sale 25% 50% 100%
Sent to next process 75% 50%.
In each process, of total weight is lost and is scrap. Prepare process cost accounts.
22. Prepare cost sheet from the following information:
Particulars
Rs.
Stock on hand on 1st December 2010- Raw material
25,000
Stock on hand on 1st December 2010- Finished goods
17,300
Stock on hand on 31st December 2010- Raw material
26,200
Stock on hand on 31st December 2010-Finished goods
15,700
Purchases of Raw materials
21,900
Carriage on purchases
1,100
Work- in progress on 1st December 2010
8,200
Work- in progress on 31st December 2010
9,100
Sale of finished goods
72,300
Direct wages
17,200
Non productive wages
800
Direct expenses
1,200
Factory overheads
8,300
Administrative overheads
3,200
Selling and distribution overheads
4,200