DU Cost Accounting Question Paper 2018 [Dibrugarh University BCom 4th Sem]

 Dibrugarh University BCom 4th Sem Cost Accounting Question Paper


Dibrugarh University B.Com 4th Semester 

Cost Accounting Question Paper’ 2018

COMMERCE (Honours Core / Regular)

Paper: COM – HC – 4016 / COM – RC – 4026

(Cost Accounting)

Full Marks: 80

Time: Three hours

The figures in the margin indicate full marks for the questions.


Cost Accounting Question Paper 2018 (May)
Dibrugarh University B.Com 4th Sem CBCS Pattern
Commerce (General/Speciality)
Course: 401
Full Marks: 80
Time: 3 Hours

1. (a) Fill in the blanks:                                   1x4=4

1)        Fixed cost per unit _____ when volume of production increases.

2)        In printing industries, the method of _____ costing is applied.

3)        In process costing, the output of the each process in the _____ of the next process.

4)        In Cost Accounting, _____ is the combination of indirect material, indirect labour and indirect expenses.

(b) Choose and write the correct answer:                             1x4=4

1)        Under the ABC analysis of material control, A stands for low value/moderate value/high value items.

2)        In a chemical industry, the method of process costing/contract costing is applied.

3)        Variable overhead cost is a period cost/an output cost.

4)        Cost of abnormal idle time and overtime is transferred to costing Profit and Loss Account/General Profit and Loss Account.

2. Write on the following (any four):                                       4x4=16

a)        Distinction between Cost Accounting and Financial Accounting (any four points)     

b)        Causes of labour turnover.

c)         Allocation and absorption of overheads.

d)        Reconciliation of Cost Account and Financial Account.

e)        Perpetual inventory system.

3. (a) The following data have been extracted from the books of M/s, ABC Industries Ltd. For the calendar year, 2017:

(Rs.)

Opening stock of raw materials

Purchase of raw materials

Closing stock of raw materials

Carriage inwards

Wages: Direct

Indirect

Other direct charges

Rent and rates: Factory

Office

Indirect consumption of materials

Depreciation: Plant

Office Furniture

Salary: Office

Salesman

Other factory expenses

Other office expenses

Managing Director’s remuneration

Other selling expenses

Travelling expenses of salesman

Carriage and freight

Sales

Advance income-tax paid

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25,000

85,000

40,000

5,000

75,000

10,000

15,000

5,000

500

500

1,500

400

2,500

2,000

5,700

700

12,000

1,000

1,100

1,400

2,50,000

15,000

2,000

Managing Director’s remuneration is to be allocated in the ratio of 2 : 1 : 3 for factory, office and sales departments respectively. From the above information, prepare the different phases of cost and net profit.    14

Or

(b) What do you mean by material control? What are its techniques? Discuss its significances.               3+3+8=14

4. (a) The following are the information in respect to a worker who has manufactured 240 articles during the last week of December 2017:        4+5+5=14

Working hours during the week are 48 hours, standard rate Rs. 5 per hour and standard time to manufacture an article is 15 minutes.

Calculate his gross wages for the week according to –

1)        Piecework with guaranteed weekly wages;

2)        Rowan Premium Bonus Plan;

3)        Halsey Premium Bonus Plan;                                                           

Or

(b) (1) Describe the essential characteristics of a good system of wage payment.                        7

(2) Describe with illustration the salient features of Rowan Plan and Halsey Plan.   7

5. (a) From the following information, compute machine hour rate of a machine in a shop consisting of 3 machines occupying equal floor space. The estimated working hours per year are fixed at 2500 hours in which normal idle time is estimated at 20% of the standard time:    14

Rent and taxes of the shop per annum – Rs. 3,600

General Electricity for the shop per month – Rs. 200

Repairs and maintenance expenses for the machine per annum – Rs. 600

Rate of power charges for 100 units (the machine consuming 10 units per hour) – Rs. 3

Foreman’s salary for supervising all the machines per month – Rs. 750

Indirect labour cost – Rs. 2 per hour for the machine.

The machine cost – Rs. 1,30,000.

Scrap value is estimated at Rs. 10,000.

Estimated life is 10 years. The foreman devotes equal attention for each machine in the shop.

Or

(b) What factors would you consider for determining the overhead absorption rate? Explain the causes of over and under-absorption of overheads.             7+7=14

6. (a) A product of a manufacturing concern posses through two processes A and B and then to finished stock. It is ascertained that in each process 5% of the total weight is lost and 10% is scrap, which from processes A and B realizes Rs. 80 per tone and Rs. 200 per tone respectively.

The following are the figures relating to both the processes:

Process – A

Process – B

Materials (tones)

Cost of materials (Rs. Per tone)

Wages (Rs.)

Manufacturing expenses (Rs.)

Output (tones)

1,000

125

28,000

8,000

830

70

200

10,000

5,250

780

Prepare the Process Cost Accounts showing cost per tones of each process. There was no work-in-progress in any process.       14

Or

(b) (1) Define job costing. Where is it applied?      2+2=4

(2) Under what circumstances, we need to prepare Reconciliation of Cost Account and Financial Account and how is it prepared?     10

(OLD COURSE)

Full Marks: 80

Pass Marks: 32

1. (a) Fill in the blanks:                                   1x4=4

1)        _____ is the combination of direct material, direct labour and direct expenses.

2)        Fixed cost per unit _____ when volume of production increases.

3)        In Cost Accounting, depreciation is the _____ expenses.

4)        In process costing, the output of the each process is the _____ of the next process.

(b) Choose and write the correct answer:                         1x4=4

1)        Variable cost per unit remains same/increases/decreases due to increase in production.

2)        Rent of factory building is a variable cost/fixed cost/semi-variable cost.

3)        A high labour turnover increases/decreases the cost of production.

4)        Standard costing is a method/technique of Cost Accounting.

2. Write on the following (any four):                                       4x4=16

a)        Distinction between Cost Accounting and Management Accounting.

b)        Economic Order Quantity (EOQ)

d)        Apportionment and absorption of overheads.

e)        Reconciliation of Cost Account and Financial Account.

3. (a) The Accounts of ABC Manufactures Ltd. For the year ending 31st December, 2017 shows the following:

(Rs.)

Stock of raw material on 1.1.2017

Materials purchased

Material returned to suppliers

Direct labour

Direct expenses

Factory expenses

Office and administrative expenses

Selling and distribution expenses

Stock of materials on 31.12.2017

Profit

6,720

1,50,000

2,000

50,000

15,300

20,000

8,000

7,900

7,720

10,000

Find out –

Or

(b) What are elements of cost? Classify costs according to elements, function and variability and give two examples of each.       3+8=11

4. (a) Compute the reorder level, minimum level, maximum level and average stock level for components A and B based on the following data:     11

A

B

Maximum consumption per week

Average consumption per week

Minimum consumption per week

Reorder period

Reorder quantity

150 units

100 units

50 units

8 to 12 weeks

400 units

150 units

100 units

50 units

4 to 8 weeks

600 units

Or

(b) Describe the various methods of pricing materials issued for production and point out their advantages and disadvantages.                                                  11

5. (a) From the following data, ascertain the total earnings of each worker separable under (1) Halsey scheme (50%) and (2) Rowan scheme:                                                11

Name of Worker

Time allowed

Actual time taken

Basic rate of wages per hour

Amal

5 hours

4 hours

Rs. 3.00

Bimal

5 hours

6 hours

Rs. 3.00

Or

(b) What is labour turnover? What are its causes? How can it be reduced?                        3+5+3=11

6. (a) From the following details, compute the hourly rate of a machine installed in a shop: 12

(Rs.)

Cost of machine

Installation charges

Estimated scrap value

Rent and rates p.a.

General lighting of the shop p.m.

Insurance premium for the machine per quarter

Repairs and maintenance p.a.

2,00,000

20,000

10,000

7,200

800

720

3,000

Power consumption 20 units per hour, rate of power per 100 units is Rs. 20, estimated working hours of the machine 2300 hours per year, shop supervisor’s salary per month Rs. 1,800.

The machine occupies 1/4th of the total floor area of the shop. The supervisor is expected to devote 1/5th of his time for supervising the machine. Normal idle time is expected to be 300 hours per annum.

Or

(b) Define overhead. State the different methods of classification for determining overheads.  4+8=12

7. (a) Assam Construction obtained a contract for the building of an office for Rs. 6,00,000. Construction work commenced on 1st April, 2017 and at the end of the financial year they received payment of Rs. 2,40,000 representing 80% of the amount of work certified. The following information in available from the books of the contractors:

(Rs.)

Material issued

Materials of land on 31.3.2018

Wages paid

Plant installed at site

Direct Expenses

Overheads allocated to the contract

Work finished but not yet certified at cost

Plant to be depreciated at 10%

1,20,000

5,000

1,60,000

1,20,000

22,000

11,000

10,000

Prepare the Contract Account for the year ended 31.3.2018 and show your calculation of the amount adjusted to the credit of Profit and Loss Account.     11

Or

(b) Distinguish between:                                        6+5=11

1)        Job Costing and Process Costing.

2)        Cost Audit and Financial Audit.

***

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