COST ACCOUNTING 2002 (Regular/ Private)
Time : 3 Hours Max. Marks:100
Instructions: Attempt any FIVE questions.
1.(a) What are the objectives of Cost Accounting? (10+10)
(b) Differentiate between Managerial and Cost Accounting
2. From the following information determine
(a) PRIME COST (b) CONVERSION COST (c) COST OF GOODS SOLD
(d) COST OF GOODS MANUFACTURED for the month of November.2002.
|Product A||Product B|
|Production||10,000 Units||8,000 Units|
|Beginning Inventory||1,000 Units||900 Units|
|Ending Inventory||2,000 Units||100 Units|
Unit Cost ppIicab1e to Inventories and Production:
|Direct Material||Rs. 4 per unit||Rs. 3 per units|
|Direct Labour||10 per unit||20 per units|
|Factory over head||7 per unit||14 per units|
Actual factory over head was Rs.1 82,400, under or over applied factory over head is to be adjusted In C.G.S.
3. The following transactions relates to Decent Corp. for the month of June 30, 2002
(i) Materials purchased on account Rs. 170,000
(ii) Materials arid Labour used on Jobs were as under
|Direct Materials||Direct Labour|
|Job No.1||Rs. 11400||Rs. 14000|
|Job No2||Rs. 5000||Rs. 7000|
|Job No.3||Rs. 17200||Rs. 18400|
Indirect Material Rs.3800
Indirect labour Rs.5500
(iii) Other factory overhead cost incurred Rs.6850
civ) Depreciation on Machinery Rs.3000
(v) Factory overhead is applied at 80% of Direct Labour.
(vi) Jobs No.1 and 2 were completed and customers were belied with Rs. 50000 and Rs.26000 respectively.
Prepare the necessary entries to record the above transactions
4. FACTORY LEDGER & GENERAL LEDGER:
NOT INCLUDED IN THE NEW COURSE
6. LABOUR COSTS:
NOT INCLUDED IN THE NEW COURSE
7.(a) What is meant by EQUIVALENT PRODUCTION?(05)
7(b) SHAFIQLJE & COMPANY has one department and uses a process cost system. The following data related to its process: (15)
Units in process November 1 Units 1.000
(40% complete as to material and 60% complete as to conversion costs).
Cost of units in process November.1 Rs.12,700
Units placed in production
During November Units 4,000
Cost of Material placed in production Rs.68,700
Direct labour cost incurred Rs.28,000
Factory overhead applied Rs.50,400
Units in process November 30 (75% complete as to Material and 80% as to conversion costs) Units 1500
(i) Equivalent production units.
(ii) Unit cost for November.
(iii) Total cost of Units completed.
(iv) Cost of units in process on November 30.
8.(a) What are various classifications of cost? (20)
8.(b) What are the three basic types of manufacturing cost?
8.(c) Explain the distinction between product costs and period costs
8.(d) Why Is it important for management to understand cost volume profit relationship?
9. A Manufacturer uses a standard cost system. The per unit cost of production, assuming a normal volume of 1000 units per month is as follows: (20)
Direct Material 10kg @ Rs.13 per kg Rs. 130
Direct Labour 5 hours @ Rs.8 per hour Rs. 40
Factory overhead applied:
Fixed cost (15000÷1000) Rs. 15
Variable cost Rs. 7
Total = Rs.192
During the month the products were produced at the following actual cost.
Direct Material, 11kg Rs.12 per Kg Rs. 132.00
Direct labour 5112 hours @ Rs.780 per hour Rs. 42.90
Factory overhead Rs18480 for 800 units … Rs. 23.10
(a) Compute: Material Price & Quantity, Labour Rate & Efficiency & Factory overhead controllable & volume variance.
(b) Prepare Journal entries to record variances.