Thursday, March 30, 2017

Dibrugarh University Question Papers: Cost Accounting (May' 2016)

2016 (May)
COMMERCE
(General/Speciality)
Course: 401
(Cost Accounting)
Time: 3 hours
The figures in the margin indicate full marks for the questions
(NEW COURSE)
Full Marks: 80
Pass Marks: 24
1. (a) Choose the correct answer:                                             1x4=4
a)      The method of costing used in a refinery is process costing/job costing.
b)      The practice of charging all costs to product is absorption costing/batch costing.
c)       Administration expenses are mostly fixed/variable.
d)      Variable cost per unit remains same/increases when the volume of production increases.

(b) Fill in the blanks:                                        1x4=4
a)      Fixed cost per unit ____ with rise in output and ____ with fall in output.
b)      Under the ABC analysis of material control, A stands for ____ items.
c)       Muster roll is necessary for the preparation of the ____.
d)      Fixed overhead cost is a ____ cost.

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

a)      “Classification of cost plays a vital role in ascending cost.” Explain this statement.
b)      Give five differences between Cost Accounting and Financial Accounting.
c)       Give four reasons of under-absorption and over-absorption of overheads.
d)      What is ABC analysis? How is it differ from VED analysis?
e)      Give four differences between Job Costing and Process Costing.

3. (a) From the following information, prepare a Cost Sheet showing the cost and profit:                                               14
Particulars
Rs.
Opening raw material
Closing raw material
Opening work-in-progress:
      Material
      Wages
      Works Overhead
Closing work-in-progress:
      Material
      Wages
      Works overhead
29,500
36,000

13,600
11,000
6,600

12,000
16,500
9,900
Opening finished goods – 200 units @ Rs. 84.
Closing finished goods – 1,600 units
Particulars
Rs.
Purchase of raw material
Carriage on purchases
Sale of scrap of raw material
Wages
1,90,000
1,500
5,000
2,97,000
Works overhead @ 60% of direct labour cost; Administrative overhead @ 12 per unit produced. Selling and distribution overheads @ 20% of selling price. Sales 7,600 units at a profit of 10% on cost price
Or
(b) “The perpetual inventory system is an integral part of material control.” Discuss this statement by bringing out the salient features and advantages of this system.                                      14

4. (a) From the following particulars, work out the earnings for the week of a worker under the –                                             14
Particulars
Rs.
                                 i.             Straight piece rate system;
                               ii.             Differential piece rate system;
                              iii.             Halsey premium system;
                             iv.             Rowan system:
Number of working hours per week
Wages per hour
Rate per piece
Normal time per piece
Normal output per week
Actual output for the week
Differential piece rate:
80% piece rate when output is below standard 120% when output is above standard.





48 hours
3.75
1.50
20 minutes
120 pieces
150 pieces

Or
(b) What is idle time? Discuss its causes. How is it treated in Cost Accounting?                  4+6+4=14

5. (a) From the following details, compute the hourly rate of a machine installed in a shop:          14
Particulars
Rs.
Cost of Machine
Installation charges
Estimated Scrap value
Rent and rates of the whop p.a.
General lighting of the shop p.m.
Insurance premium for the machine per quarter
Estimated repairs and maintenance cost of the machine p.a.
Power consumption of the machine
Rate of power per 100 units
Estimated working hours of the machine per year
Shop Supervisor’s salary per month
2,00,000
20,000
10,000
7,200
800
720
3,000
20 units per hour
20
2,300
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. What do you mean by absorption of overheads? Discuss the different methods of absorption of overheads.                                                         4+2+8=14

6. (a) The product of a manufacturing concern passes through two processes A and B and then to finished stock. It is ascertain that in each process normally 5% of the total weight is lost and 10% is scrap which realizes Rs. 80 per tonne and Rs. 200 per tonne from processes A and B respectively. The following are the figures relating to both the processes:
Particulars
Process – A
Process – B
Materials (in tonnes)
Cost of material per tonne (in Rs.)
Wages (in Rs.)
Manufacturing expenses (in Rs.)
Output (in tonnes)
1,000
125
28,000
8,000
830
70
200
10,000
5,250
780
Prepare Process Accounts showing cost per tonnes of each process. There was no stock of work-in-progress in any process.                                                               14
Or
(b) Under what circumstances, an enterprise needs to reconcile of Cost Accounts and Financial Accounts? State the reasons for which profit from Cost Accounting and that of Financial Accounting do not tally.                         5+9=14


(OLD COURSE)
Full Marks: 80
Pass Marks: 32
1. (a) Choose the correct answer:                                             1x4=4
a)      Prime Cost/Production cost is the combination of direct material, direct labour and direct expenses.
b)      In ABC analysis, A indicates less value/moderate value/high value material.
c)       Fixed cost per unit remains same/increases/decreases when volume of production increases.
d)      Standard costing is a method/technique of Cost Accounting.

(b) Fill in the blanks:                                    1x4=4
a)      In process costing, output of every process is the ____ of next process.
b)      FIFO method, if pricing issue of material is suitable at the time of ____.
c)       Prime cost under abnormal condition is to be debited to ____.
d)      Under Rowan plan, bonus is always in ____.

2. Write short notes (on any four):                                           4x4=16
a)      ABC analysis.
b)      Cost of idle time.
c)       Reconciliation of Cost Accounting and Financial Accounting.
d)      Classification of Cost.
e)      Machine hour rate.

3. (a) The following are the data taken from the Cost Accounts of a manufacturer in respect of the month of March, 2014:                                                                 14
Particulars
Rs.
Stock in hand on 01-03-2014:
      Raw Materials
      Work-in-progress
      Finished goods
Purchase of Raw materials
Sales of finished goods
Direct wages
Stock in hand 31-3-2014:
      Raw Materials
      Work-in-progress
      Finished goods
Non-productive wages
Works Expenses
Office and Administrative expenses
Selling expenses

25,000
8,220
17,360
21,900
72,310
17,150

26,250
9,100
15,750
830
8,430
3,160
4,210
Prepare a Cost Sheet showing the following:
a)      Cost of materials consumed.
b)      Cost of production.
c)       Cost of goods sold.
d)      Profit for the month.
Or
(b) Define Cost Accounting. Briefly explain different methods and techniques of Cost Accounting. 4+4+6=14

4. (a) during the first week of January, 2015, a worker Mr. Ashok manufactured 300 articles. He received wages for a guaranteed 48 hours week at the rate of Rs. 4 per hour. The estimated time to produce one article is 10 minutes and under the incentive scheme, the time allowed is increased by 20%. Calculate his gross wage according to –
a)      Piece work with a guaranteed weekly wages;
b)      Rowan premium bonus;
c)       Halsey premium bonus 50% to workman.                                     4+5+5=14

Or

(b) (i) Define labour turnover. Explain its reasons.
(ii) Discuss the essential features of an ideal wage payment method.                           4+3+7=14

5. (a) From the following data, calculate the machine hour rate of a machine:                         14
Particulars
Rs.
Cost of machine
Scrap value
Estimated life
Effective working days:
      200 days of 8 hours
      100 days of 6 hours
Maintenance and repairs
Stores consumed
Power consumption
Insurance premium
Supervision expenses
Estimated idle time
35,500
2,500
12 years



7.5% of cost of machine
1,000
2 per operating hour
1% of cost of machine
7,500
10%
Or
(b) Define overhead. How are overheads classified? Explain four reasons of over-absorption and under-absorption of overheads.                                                         4+5+5=14

6. (a) A product passes through three processes P, Q and R. The Normal wastage of each process is as follows:
Process P = 5%, process Q = 6%, and process R = 10%. Wastage of process P was sold at Rs. 2 per unit, that of process Q at Rs. 5 per unit and that of process R at Rs. 10 per unit. 1,000 units were issued to process P in the beginning of April, 2015 at cost of Rs. 2 per unit. The other expenses were as follows:

Process

P
Q
R
Raw materials (in Rs.)
Wages (in Rs.)
Direct expenses (in Rs.)
Actual output (in Rs.)
2,000
5,000
1,550
950
3,000
8,000
2,946
910
1,000
6,000
3,738
810
Prepare Process Accounts of P, Q and R assuming that there were no openings or closing stocks.                                              14
Or


(b) What do you mean by Cost Audit and Cost Management? Explain how a cost auditor works in conducting cost audit.                 4+4+6=14

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