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;
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