Sunday, January 13, 2013

Dibrugarh University - Cost Accounting 2011


1.       (a) Enumerate the main objectives of introduction of a cost accounting system.
Or
(b) “Cost Accounting has come to be an essential tool of the management.” Comment.

2.       (a) “The perpetual inventory system is an integral part of material control.” Discuss this statement by bringing out briefly the salient features and advantages of    this system.

Or

(b) From the following information, prepare a cost sheet showing the cost and profit:           

Rs
Opening raw material
29,500
Closing raw material
36,000
Opening work-in-progress :
     Material
     Wages
     Works overhead

13,600
11,000
6,600
Closing work-in-progress :
     Material
     Wages
     Works overhead

12,000
16,500
9,900
Opening finished goods – 200 units @ Rs 84
Closing finished goods – 1600 units

Rs
Purchase of raw material
1,90,000
Carriage on purchase
1,500
Sale of scrap of raw material
5,000
Wages
2,97,000
Works overhead @ 60% of direct labour cost
Administration overhead @ Rs 12 per unit produced
Selling and distribution overhead @ 20% of selling price
Sales – 7600 units at a profit of 10% on sales price.

3.       (a) What is reconciliation statement? Why is it prepared? State the reason for the difference between the profit shown in the cost accounts and those shown in the financial account of an industrial organization.

Or

(b) What do you mean by allocation and apportionment of overhead to cost centres? What are the bases of overhead apportionment utilized in manufacturing concern?

4.    (a) What is idle time? Discuss its causes. How is it treated in cost accounts?

Or

(b) From the following particulars, work out the earnings for the week of a worker under –
(i) straight piece rate system;
(ii) differential piece rate system;
(iii) Halsey premium system;
(iv) Rowan system.

Number of working hours per week – 48 hrs
Wages per hour – Rs 3.75
Rate per piece – Rs 1.50
Normal time per piece – 20 minutes
Normal output per week – 120 pieces
Actual output for the week – 150 pieces
Differential piece rate – 80% piece rate When output is below standard and 120%  When output is above standard.

5.       (a) What are the fundamental principles of process costing? Distinguish between job costing and process costing. Point out the advantages of process costing.
Or
(b) The following was the expenditure on a contract for Rs 6,00,000 commenced on 1st  April, 2009 :
                                                                Rs
Material                                    1,20,000
Wages                                    1,64,400
Plant                                       20,000
Business charges                      8,600
Cash received on account to 31st March, 2010 Rs 2,40,000 , being 80% of work certified; the value of material in hand on 31.3.2010 was Rs 10,000. Prepare contract account for the year showing profit to be credited to the  year’s profit and loss account. Plant is to be depreciated at 10%.