22n504 Cost Accounting 20ucom317

GURU NANAK COLLEGE (AUTONOMOUS), CHENNAI – 42.
NOV 2022
22N504
MAX. MARKS: 100
TIME: 3 HRS.
SECTION - A (10 X 3 = 30 MARKS)
(Answer Any TEN Questions)
1. Define the term Cost.

2. Give the meaning of Cost Centre.
3. What is meant by Tender Price?
4. From the following details, Calculate Prime Cost
Number of Units produced: 10,000 Units; Opening Stock of Raw Materials
Rs. 3,00,000; Purchase of Raw Materials Rs. 8,00,000; Closing Stock of Raw
Materials Rs. 1,00,000; Carriage Inward Rs.8,000; Wages Rs. 1,00,000;
Chargeable Expenses Rs.50,000.
5. List any two examples of Indirect Materials.
6. From the following information compute the Material turnover ratio of Material
X and also ascertain such turnover in no. of days.
Opening stock of Material X Rs.14,000
Purchases of Material X Rs.2,30,000
Closing stock of Material X Rs.10,000
7. Write a note on 'idle time'.
8. Calculate Standard Time: Standard Output of Product Z:20 Units in a day of 8
Hours; Actual Output = 25 Units.
9. The output of a worker X is 100 Units in 40 Hours per week. Time rate is Rs.4
per hour. Ordinary Piece Rate is Rs. 2 per unit. Show the earnings of the worker
under time rate and piece rate system.
10. Define Overheads.
11. What is Apportionment of Overheads?
12. Calculate Direct Labour rate from the following:
Factory overheads Rs.11,400; Number of Labour hours worked =2,28,000
hours.
SECTION - B (5 X 6 = 30 MARKS)
(Answer Any FIVE Questions)
13. What are the limitations of Cost Accounting System?
14. Explain the objectives of Preparation of Cost Sheet.
Page 1 of 4
15. The following are the costing information related to XYZ Company Ltd for
three months ending 31st March.
Raw Material 1st Jan: Rs.5,500
31st March : Rs.4,000
Work-in-Progress: 1st Jan: Rs.14,200
31st March: Rs. 15,000
Purchases of raw material Rs.30,000; Direct wages Rs.31,500; Rent, rates and
works on cost Rs.17,000; Carriage inwards Rs.2,000; Factory Supervision cost
Rs.12,000; Administration cost Rs.31,000; Sales Rs.1,80,000. Prepare a cost
sheet and find out the costing profit.
16. PQR Limited produces a product which has a monthly demand of 52,000 units.
The product requires a component X which is purchased at Rs. 15 per unit. For
every finished product, 2 units of Component X are required. The Ordering cost
is Rs. 350 per order and the Carrying cost is 12%p.a. Calculate the economic
order quantity for Component X. Also find out the number of orders per
annum. Compute the frequency of ordering to be followed by the company?
17. Two components X and Y are used as follows:
Minimum Usage: 50 units per week each
Maximum Usage: 150 units per week each
Normal Usage: 100 units per week each
X – 600 units
Ordering Quantities: Y – 1000 units
X – 4 to 6 weeks
Delivery period Y – 2 to 4 weeks
Maximum reorder period for emergency purchases X : 2 weeks, Y: 2 weeks.
Calculate for each component:
a) Reordering level; b) Maximum level; c) Minimum level; d) Danger level
18. From the following information calculate the labour turnover rate under three
methods:
Number of workers at the beginning of the period: 3800
Number of workers at the end of the period: 4200
During the year, 40 workers left while 160 workers are discharged. 600
workers are recruited during the year; of these 150 workers are recruited to
fill up vacancies and the rest are engaged on account of an expansion
scheme.
19. Calculate Machine Hour Rate of a machine:
Consumable Store Rs.600; Repairs Rs.800; Heat and Light Rs.360; Rent
Rs.1200; Building Insurance Rs.4800; Machinery Insurance Rs.800;
Depreciation on Machines Rs.700; Room Service Rs.60 and General Charges
Rs.90; Additional Information : Machine Hours 10,000
Page 2 of 4
SECTION - C (2 X 20 = 40 MARKS)
(Answer Any TWO Questions)
20. The following details are available from the company's books.
Particulars Rs. Particulars Rs.
Opening Stock of Raw Closing Stock of Raw
12,800 28,000
Materials Materials
Purchases During the year 2,92,000 Production Wages 1,98,800
Works Overhead 43,936 Sales of Finished Goods 5,92,000
Office and general
Sale of Factory Scrap 200 35,547
Expenses
Opening Stock of Finished Closing Stock of Finished
13,600 30,000
Goods Goods
The Company is about to send a tender for a large plant. The Costing
department estimates that materials required would cost Rs.20,000 and wages
for making of plant would cost Rs.12,000. Tender is to be made keeping net
profit of 20% on selling price. State what would be the amount of tender, if
based on usual percentages.
21. Draw a stores ledger card recording the following transactions under FIFO
method.
2010 July 1 Opening stock 2,000 unit at Rs.10 each
5 Received 1,000 units at Rs. 11 each
6 Issued 500 units
10 Received 5,000 units at Rs. 12 each
12 Received back 50 units out of the issue made on 6th July
14 Issued 600 units
18 Returned to supplier 100 units out of goods received on 5th.
19 Received back 100 units out of the issue made on 14th July.
20 Issued 150 units.
25 Received 500 units at Rs 14 each.
28 Issued 300 units
The stock verification report reveals that there was a shortage of 10 units on
18th July and another shortage of 15 units on 26th July.
22. The three workers Govind, Ram and Shyam produced 80, 100 and 120 pieces
respectively of a product 'X' on a particular day in May in a factory. The time
allowed for 10 units of Product X is 1 hour and their hourly rate is Rs.4.
Calculate for each of these three workers the following:
I. Earnings for the day and
II. Effective rate of earnings per under (a) Straight piece-rate, (b) Halsey
Premium Bonus and (c) Rowan Premium Bonus.
Page 3 of 4
23. In a factory, there are three production departments and two service
departments. In December, 2021, the departmental expenses were,
Production Department Service Department
P1 Rs.1,30,000 S1 24,000
P2 Rs.1,20,000 S2 20,000
P3 Rs.1,00,000 - -
The service department expenses are allocated on a percentage basis as follows:
Particulars P1 P2 P3 S1 S2
S1 30 40 15 - 15
S2 40 30 25 5 -
Prepare a statement showing the distribution of service department expenses to
the production department by using the repeated distribution method.
******
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GURU NANAK COLLEGE (AUTONOMOUS), CHENNAI – 42.

1. Define the term Cost.

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