Bachelor of Commerce 3rd Semester

COST ACCOUNTING
Time : Three Hours] [Maximum Marks : 80
SECTION-A
Note. Students are required to attempt four parts from this Section. Each part carries 5 marks.
1. (a) Write a note on Allocation and Apportionment of overheads to cost centres.
(b) Compute the (i) re-order level (ii) minimum level (iii) maximum level (iv) average stock level
for the component X and Y based on the following data :
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Maximum consumption per week (units) 450 450
Average consumption per week (units) 300 300
Minimum consumption per week (units) 150 150
Re-order period (weeks) 3 to 5 2 to 4
Re-order quantity (units 1800 2500
(c) Calculate the earnings of worker A and B under straight piecerate system and Taylor's
differential piece-rate system from the following data :
Normal rate per hour Rs. 1.80, standard time per unit 20 seconds. Differentials to be
applied as follows : 80% of piece rate below standard and 120% of piece rate at or above
the standard piece rate. Worker A produces 1,200 units per day and worker B produces
1500 units per day.
(d)
m
Determine the fixed and variable overheads and find out total manufacturing overheads for

o
an activity level of 5,00,000 machine hours using the following data :

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Maximum machine hours 9,00,000; Minimum machine hours 4,00,000; Manufacturing
overheads for 9,00,000 hours Rs. 60 lakhs and for 4,00,000 hours Rs. 40 lakhs.
(e) Calculate machine hour rate from the following data :
(i)
(ii)
p e
Purchase price of the machine : Rs. 1,95,000.
Incidental and installation charges : Rs. 5,000.
m
a o
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(iii) Repair : 40% of depreciation.
(iv)
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Consumption of power : 10 units per hour @ 12 paise per unit.
(v)
(vi)
b
Lubricating oil : @ Rs. 2.80 per day of 8 hours.
Consumable stores : Rs. 12 per day of 8 hours.
p e
(vii)
a
Wages of machine operator : Rs. 4.25 per day of 8 hours.

p
(f)
(viii)
Write a note on Integral Accounting.
b r
Working life of machine: 40,000 hours e is no residual value of the machine.

SECTION-B
Note. Students are required to attempt two questions from this Section. Each question carries 15 marks.
2. Define Cost Accounting and explain its scope and advantages.
3. Discuss the proceedure normally followed by the purchase department to buy materials.
4. The receipts and issues of material for the month of January 2016 are given below :
Receipts :
Jan. 1 Opening Balance, 500 units @ Rs. 4.25
Jan. 5 200 units @ Rs. 4.30
Jan. 12 150 units @ Rs. 4.15
Jan. 20 3 00 units @ Rs. 4.00
Jan. 25 400 units @ Rs. 4.26
Issues :
Jan. 4 -250 units, Jan. 10 - 300 units, Jan. 15 - 100 units, Jan. 19 - 100 units, Jan. 26 - 200 units,
Jan. 30 - 350 units. Issues are to be priced on the principle of FIFO. Write out the Stores Ledger
Account.
 5. Calculate the hourly rate of wages under Halsey Premium Bohus system from the data given
below:
Standard time allowed 60 hours.
Hourly rate of guaranteed wages Rs. 0.75 per hour.
Actual rate that worker gets under Rowan Premium Bonus System because of saving in time Rs.
0.90.
SECTION-C
Note:- Students are required to attempt two questions from this Section. Each question carries 15 marks.
6. Prepare Cost Sheet from the following data :
Particulars
Opening Stock :
(a) Raw Materials 1,50,000
(b) Finished Products 25,000
Purchases 2,00,000
Factory Wages 3,70,000
Factory Overheads 80,000
Office Overheads 45,000
Closing Stock :
(a) Raw Materials 19,000
(b) Finished Goods 1,61,000
Sales 7,70,000
At the end of the year, units produced 4,000
Increase in the price of raw material 15%
Increase in the price of labour 10%

profits on cost will be made.

7.
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Prepare (a) Cost Sheet (b) Profit and Loss Account and (c) Reconciliation Statement from the
following data :
(i)
(ii)
p e
Works overheads are 50% of wages
Office overheads are 30% of works cost
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o
(iii) Materials consumed Rs. 2,00,000, wages Rs. 1.50,000, Factory expenses Rs. 1,00,000,

(iv)
p a
Office expenses Rs. 85,000.

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10% of the output is in stock at the end and sales are Rs. 5,36,000.
8.
9.
b r
Explain the meaning and methods of the classification of the manufacturing overheads.

e
What is the meaning of reconciliation of cost and financial statements ? Discuss the methods of
reconciliation.

a p
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b