KCLAS 2019

KUMARAGURU COLLEGE OF LIBERAL ARTS AND SCIENCE

Affiliated to Bharathiar University
Saravanampatti :: Coimbatore – 641 049
2nd Continuous Internal Assessment: September 2019
Programme(s) Course Code(s) Title
B.Com PA 33C Cost Accounting
Time: 2 Hrs Max. Marks: 50
No. of Pages: 04
Section A
Answer all questions (10 x 1 = 10)
1 Compute Sales: Cost of ales Rs. 2,50,000 & Profit 20% on cost
A Rs. 3,00,000 C Rs. 2,08,333
B Rs. 50,000 D Rs. 2,00,000

2 Reorder quantity may be measure in

A LIFO C FIFO
B Standard cost D Weighted average cost

3 Material analysis sheet is also known as

A Bill of materials C Materials abstract
B Purchase requisition note D Material requisition note

4 Find the value of stock under FIFO method

Opening Stock: 500 units @ Rs. 10 per unit ; Purchases: 600 units @ Rs. 11 per unit : Issue: 580 units
A Rs. 5,720 C Rs. 6,600
B Rs. 5,440 D Rs. 5,880

5 Wage sheet is prepared by

A Cost accounting department C Personnel department
B Payroll department D Time-keeping department

6 In which of the following incentive plans of wage payment, wages on time basis are not guaranteed?
A Gantt’s task and bonus system C Rowan plan
B Halsey plan D Taylor’s differential piece rate system

7 Which of the following is a system, which combines both time and piece rate system?
A Emerson’s system C Halsey system
B Merrick’s differential system D Bedaux System

8 Selling and distribution overheads are absorbed on the basis of:

A Rate per unit C Percentage of selling price of each unit
B Percentage of works cost D Any of the above

9 Which one of the following is a cost of seeking to create and stimulate demand and of securing orders?
A Distribution cost C Administrative cost
B Selling cost D Research cost

10 Number of workers employed is used as a basis for the apportionment of

A Personnel department expenses C Time office costs
B Canteen expenses D Selling overheads

Section B
Answer All questions (4 x 5 = 20)

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11 A A factory produces a standard product. The following information is given to you; from which you are
required to prepare a cost sheet for January 2013:
Raw materials consumed 91,000
Direct wages 29,000
Other direct expenses 11,000
Factory overheads 80% of direct wages
Office overheads 10% of works cost
Selling and distribution overheads Rs. 2 per unit sold
Units produced and sold during the month 10,000
Also find the selling price per unit on the basis that profit mark-up is uniformly made to yield a profit
of 20% of the selling price. There was no stock or work-in-progress either at the beginning or at the
end of the period.
OR
B Consider the following data pertaining to the production of a company for a particular month:
Opening stock of raw material Rs. 11,570, Closing stock of raw material Rs. 10,380, Purchase of raw
material during the month Rs. 1,28,450, Total manufacturing cost charged to product Rs. 3,39,165,
Factory overheads are applied at the rate of 45% of direct labour cost. What is the amount of factory
overheads applied to production?

12 A Calculate the earnings of workers A and B under Straight piece rate system and Taylor’s differential
piece rate system from the following particulars:
Normal rate per hour Rs. 1.80
Standard time per unit 20 seconds
Differential rates to be applied:
80% piece rate below standard
120% of piece rate at or above standard
Worker A produced 1,300 units and worker B produced 1,500 units per day of 8 hours.
OR
B From the following data ascertain the labour cost per day of 8 hours.
Basic pay: Rs. 200 per month
Leave pay: 5% of basic pay
Employer’s contribution to PF: 8% of (i) and (ii)
Employer’s contribution to E.S.I 2.5% of (i) and (ii)
Pro-rata amenities: Rs. 17.95 per head per month
Working hours in a month: 200

13 A ABC Ltd. is having 400 workers at the beginning of the year and 500 workers at the end of the year.
During the year 20 workers were discharged and 15 workers left the organization. During the year the
company has recruited 65 workers. Of these, 18 workers were recruited in the vacancies of those
leaving, while the rest were engaged for an expansion scheme. What is the labour turnover rate under
separation method?
OR
B From the following data calculate the labour turnover under replacement method and flux method
Number of employees at the beginning of the month 200
Number of employees at the end of the month 240
Number of employees resigned 20
Number of employees discharged 5
Number of employees replaced 18

14 A From the following particulars compute the machine hour rate

Cost of machine Rs. 11,000
Scrap value Rs. 680
Repairs for the effective working live Rs. 1,500
Standing charges for 4 weekly period Rs. 40
Effective working life 10,000 hours
Power used: 6 units per hour at 5 paise per unit
Hours worked in 4 weekly period: 120 hours.
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OR
B What is Machine hour rate? How is it computed?

Section C
Answer All questions (2 x 10 = 20)
15 A The Bangalore Ltd., supplies you the following information and requires you to prepare a cost sheet:
Particulars Amount (in Rs.)
Stock of raw materials 1st Sept 2018 75,000
Stock of raw materials on 30th Sept 2018 91,500
Direct wages 52,500
Indirect wages 2,750
Sales 2,00,000
Work-in-progress on 1st Sept 2018 28,000
Work-in-progress on 30th Sept 2018 35,000
Purchase of raw materials 66,000
Factory rent, rates and power 15,000
Depreciation of plant and machinery 3,500
Expenses on purchases 1,500
Carriage outward 2,500
Advertising 3,500
Office rent and taxes 2,500
Travelling wages and commission 6,500
Stock of finished goods on 1st Sept 2018 54,000
Stock of finished goods on 30th Sept 2018 31,000
OR
B Two components A and B are used as follows:
Normal usage – 50 Kgs per week each
Minimum usage – 25 Kgs per week each
Maximum usage – 75 Kgs per week each
Re-order Quantity – A – 400 Kgs per week each ; B – 600 Kgs per week each
Re-order period – A – 4 to 6 weeks ; B – 2 to 4 weeks.
Calculate for each component
i. Re-order level ii. Maximum level iii. Minimum level iv. Average stock level

16 A XYZ Ltd., has five departments A, B, C, D and E of these A, B and C are production departments while
D and E are service departments. The overheads incurred during the year 2017 were:
Rent 10,800 Rent and taxes 3,000
Depreciation on Building 54,000 Lighting 12,800
Depreciation on other assets 42,000 Power 16,500
Insurance on Building 9,600 Stores Overheads 5,400
Insurance on Plants 8,400 Subsidy to Canteen 5,600

Apportionment of costs to the department after taking into account the following further information:
Departments
A B C D E
Area (in Sq. ft) 300 4,000 4,000 2,000 2,000
Number of employees 80 110 60 30 20
Value of assets other than building
(in Rs.) 1,50,000 1,90,000 1,80,000 1,00,000 80,000
Number of light points 15 10 7 5 3
Horse power of machines 400 300 200 200 ---
Value of materials consumed (in Rs.) 90,000 80,000 60,000 --- 40,000
If service departments D and E given the service in the ratio of 3:2:1 and 2:2:1 respectively to the
production departments A,B and C, and Machine Hours produced as 1000, 1500 and 750 hours in the
production departments A,B and C respectively, compute Machine Hour Rate.
OR

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B A company has three production departments and two service departments. For the period ended 31st
December 2018 the department distribution summary has the following data:
Production Departments Rs.
P1 3,200
P2 2,800
P3 2,000
Service Departments
S1 800
S2 1,200
10,000
The service departments costs are proposed to be charged on percentage basis as given below:
P1 P2 P3 S1 S2
S1 20% 40% 30% - 10%
S2 40% 20% 20% 20%

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QP Setter Reviewer IQAC

4 Department of Commerce / September 2019