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## 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 –

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

 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