DISTANCE EDUCATION
B.Com. (CA)/B.Com. (Lateral) DEGREE EXAMINATION,
MAY 2016.
COST ACCOUNTING
(2005 onwards)
Time Three hours Maximum 100 marks
PART A — × 8 40 marks)
Answer any FIVE questions.
1. What is cost accounting? What are its objectives?
2. Discuss different methods of pricing material issues.
3. What are the characteristics of a sound wage system?
4. Find Labour turnover under Replacement method.
Number of employees in the beginning 240
Number of employees in the end 310
Number of employees resigned 26
Number of employees discharged 5
Number of employees replaced 25
5. What are the important features of process costing?
6. What is variance? Write the classification of variances.
7. What are the reasons for the differences in profit or loss
between cost and financial accounts?
Sub. Code
33
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8. From the following information, calculate profit as per
financial accounts.
Profit as per cost accounts Rs. 1,50,300
Works overhead charged in excess in financial
accounts Rs. 8,000
Administrative expenses charged in excess in cost
accounts Rs. 3,000
Interest Rs. 990
Dividend Rs. 200
Provision for income tax Rs. 000.
PART B — × 15 60 marks)
Answer any FOUR questions.
9. Explain the different classification of cost.
10. Calculate Reorder level, Maximum level and Minimum
level from the following data.
Reorder quantity 500 units
Reorder period 4 to 6 weeks
Maximum consumption 400 units
Normal consumption 300 units
Minimum consumption 250 units
11. Ascertain the wages to be paid to workers X and Y under
Taylor's Differential Piece rate system.
Standard time allowed 40 units per hour
Simple time rate was Rs.4 per hour
Differentials to be applied
75% of piece rate when below standard
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125% of piece rate when above standard. The workers
have produced in a day of
8 hours as follows
X 250 units
Y 420 units.
12. What are the essentials of a good costing system?
Examine the difficulties in the installation of such
system.
13. Product A is obtained after passing through three distinct
processes. Prepare process account from the following
information
Process
I II III

Materials 5,200 3,960 5,924
Wages 4,000 6,000 8,000
Production overheads 18,000
In process 1,000 units were introduced for Rs. 6,000
Production overheads to be distributed at 100% on wages.
Actual output Normal loss Scarp value per unit
(units)
Process I 950 4
Process II 840 10% 8
Process III 750 15% 10
14. Calculate material variances
Material SQ SP AQ AP
X 10 5 12 4
Y 8 4 7 4.5
Z 6 3 5 3.25
24 24
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15. From the following figures, prepare a Reconciliation
statement.
Rs.
Net profit as per financial books 63,780
Net profit as per costing books 66,760
Factory overhead under recovered in costing 5,700
Administration overhead recovered in excess 4,250
Depreciation charged in financial books 3,660
Depreciation recovered in costing 3,950
Interest received but not included in costing 450
Income tax provided in financial books 600
Bank interest credited in financial books 230
Stores adjustment 420
Depreciation of stock charged in financial accounts 860
Dividends appropriate in financial accounts 1,200
Loss due to theft provided only in financial books 260