Wednesday, April 01, 2015

Dibrugarh University Question Papers - Cost Accounting (May' 2014)

2014 ( May)
COMMERCE
( General / Speciality )
Course : 401
( Cost Accounting )
Full Marks : 80
Pass marks : 32
Time : 3 hours

The figures in the margin indicate full marks for the questions.
1.    (a) Fill in the blanks :                                                                                       1x5=5
(i)      LIFO method is suitable in times of ____ prices.
(ii)    Material control aims at achieving effective material ____.
(iii)   Cost audit is concerned with the ____ of Cost Accounts.
(iv)  When actual loss is more than the estimated loss, then the difference is considered to be ____.
(v)    Depreciation is ____ expenses in cost.


(a)    Select the appropriate answer for each of the following questions :                         1x3=3
(i) Which of the following is not a method of costing?
(1)    Contract Costing
(2)    Operating Costing
(3)    Batch Costing
(4)    Marginal Costing
(ii) Specify the method of costing suitable to a toy-making unit
(1)    Process Costing
(2)    Operating Costing
(3)    Batch Costing
(4)    Multiple Operating Costing
(iii) In which of the following contracts Contract Costing is applied as a specialized system of Job Costing?
(1)    Short-term contract
(2)    Long-term contract
(3)    Medium-term contract
(4)    Continuous processes


2.    Write short notes on (any four) :                                              4x4=16
(a)    ABC analysis
(b)   Merit rating
(c)    Idle time
(d)   Time and motion study
(e)   Job card

3.    (a) Define costing. Discuss the essentials of an Ideal Cost Accounting System.            4+8=12
Or
(b) Following details relate to ATEACO Ltd. for the year ending 31.03.2013 :


01.04.2012
31.03.2013

Units
Rs.
Units
Rs.
Stock of Raw Materials
1000
12,000
800
10,000
Work-in-progress
800
16,000
1000
20,000
Stock of Finished Goods
6000
-
10000
-

Expenses during the year in Rs.
Direct Wages
6,00,000
Purchase of Raw Materials (97000 units)
11,14,000
Other Materials
36,000
Carriage Inward
5,640
Carriage Outward
3,000
Wages to Foremen
48,000
R & D Expenses
30,000
Other Wages
6,000
Manager’s Salary
72,000
Employee’s State Insurance
6,000
Power and Fuel
54,000
Office Expenses
36,000
Printing and Stationery
12,000
Counting House Salary
12,000
Sales of Scraps
1,640
Income Tax
22,000
Donation to Charity
5,000

Selling and Distribution expenses Rs. 1 per unit. Units manufactured during the year are 96000 Finished stock is valued at current cost. Prepare Cost Sheet showing the following :                        2x6=12
a)      Materials consumed
b)      Prime cost
c)       Factory cost
d)      Cost of production
e)      Cost of goods sold
f)       Total cost of sales

4.    (a) Sunshine Electronics manufactures picture tubes for TV. Details of their operation during the year are given below :
Average monthly market demand – 2000 tubes
Ordering cost – Rs. 100 per order
Inventory carrying cost – 20% per annum
Cost of tubes – Rs. 500 per tube
Normal usage – 100 tubes per week
Minimum usage – 50 tubes per week
Maximum usage – 200 tubes per week
Lead time to supply – 6 to 8 weeks.
(i) Compute economic order quantity. If the supplier is willing to supply quarterly 1500 units at a discount of 5%, is it worth accepting.                                                                                      5
(ii) Compute the following :                                                         2x3=6
(1) Maximum level of stock
(2) Minimum level of stock
(3) Reorder level
Or

(b) What do you mean by material control? Discuss its objectives.                       4+7=11

5.    (a) A workman has taken 15 hours in performing a job. The standard hours fixed for the job are 20 hours. He is paid hourly payment @ Rs. 4. He is allowed to be paid 40% of the time saved. In addition, he also gets a dearness allowance of Rs. 2 a day of 8 hours.  Calculate his total earnings under –
(i) Halsey Premium Plan;
(ii) Rawan Premium Plan;                                                          5½+5½=11

Or
(b) What do you mean by labour turnover? What steps should be taken to check the increasing rate of labour turnover? Discuss.                                           4+7=11

6.    (a) Assam Engineering Works has three production departments A, B, C and one service department S. From the following particulars, calculate labour hour rate for each of the production departments. Expenses for the period of 12 months :               
Particulars
Rs.
Rent
36,000
Power
  8,250
Indirect Wages
  5,200
Depreciation on Machinery
22,000
Electricity
  5,600
Canteen Expenses
  6,500

Additional information :

A
B
C
S
Light points
7
7
9
5
Floor space (sq. m)
300
250
450
200
Horsepower of Machine (HP)
65
30
30
40
No. of workers
2
3
6
2
Direct wages (in Rs.)
12,000
14,000
18,000
8,000
Cost of machine (in Rs.)
50,000
60,000
80,000
10,000










Working days – 200 days of 8 hours each. Service rendered by service department S to production departments A, B and C are 30%, 20% and 50% respectively.
Or
(b) Define overhead, How are overheads classified? State four reasons of over-absorption or under-absorption of overheads.            2+5+4=11

7.    (a) From the following particulars, prepare Contract Account for the year ended on 31st  December, 2013 :                                     11

Rs.
Materials sent to site
1,90,000
Wages paid
1,20,000
Wages outstanding
5,500
Direct expenses
60,000
Establishment charges
52,000
Special plant installed at cost
2,00,000
Cost of work not certified
25,000
Value of special plant of 31.12.2013
1,70,000
Materials at site on 31.12.2013
21,000
Total contract price
12,00,000
Cash received
5,94,000
Retention – 10% of work certified Sale of scrap
2,000
General plant costing Rs. 1,20,000 was used for 3 months. Depreciation on that is to be provided at 15 % p.a.
Or
(b) What do you mean by ‘Cost Audit’ and ‘Cost Management’? Discuss the functions of a Cost Auditor.                                                               3+3+5=11

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