COST ACCOUNTING 2003 (Regular/ Private)
Time : 3 Hours Max. Marks:100
Instructions: Attempt any FIVE questions.
1.(a) Describe briefly the Scope of Cost Accounting.
1.(b) Differentiate between Financial and Cost Accounting.
2. Rahat and Co. have the following data during the month of June 2003.
Units started in production 5000
Units finished 3000
Units still in process:
(60% as to material and 40% as to Conversion) 1500
Balance is lost in process (Normal loss)
Material Cost Rs. 11700
Direct labour Cost 14400
Factory Overhead Cost 18000
Calculate the cost of finished Goods.
3. Atique Company’s Department TMB” cost for January, 2003 were as follows:
Cost from Department “A” Rs. 5000
Cost Added in Department “B”
Material Rs. 20,000
Factory Overhead 33,600
The quality schedule shows 10,000 units received during the month from Department “A”, 6000 units were transferred to finished goods: and 4000 units in process at the end of January were 100% complete as to material and 50% as the conversion cost.
REQUIRED: Prepare Cost of Production report.
4. FACTORY LEDGER & GENERAL LEDGER:
NOT INCLUDED IN THE NEW COURSE
5. Record of Nasir and Mazkoor Corporation show the following information.
Sales (500 T.V. sets) Rs.100,000
Material purchased 30,000
Director labor ?
Factory overhead (2/3 of director labor) 20,000
Selling Expense 5% of Sales
General Expense 10% of Sales.
INVENTORIES JANUARY 1, 2003
Material Rs, 5000
Finished Goods (50 T.V. Sets) 7000
INVENTORIES DECEMBER 31, 2003
No unfinished work on hand
Finished Goods (70 TV. sets)
Material Rs. 7000
(i) The number of units manufactured.
(ii) An income statement for the period ended Dec.31, 03.
(iii) Unit cost of TV manufactured.
(iv) Finished Goods ending inventory-using FIFO flow of cost.
(v) Gross profit per unit sold.
6. The Aslam and Asghar Corporation had the following data:
|Inventories||Jan.1, 2003||Jan.31, 2003|
|Material||Rs. 10||Rs. 20|
|Work in process-material||5||15|
|Work in Process-labor||20||15|
|Work in process-F.O.H.||30||15|
During January, the company purchased materials for Rs.200, Direct labor cost incurred was Rs.100 of which Rs.75 was paid. Factory overhead applicable to production was 150% of the direct Material Cost.
T account showing the flow of the cost of goods manufactured and sold, Using three accounts of work in process.
7. The A.M. Company uses job order costing. At the beginning of June, two Jobs were in process:
|Job 101||Job 102|
|Applied factory overhead||8000||4000|
There was no inventory of finished goods on June 1, During June job 103, 104, 105, 106, 107 and 108 were started.
Material requisitions for June totaled Rs.30,000 direct labor cost Rs.45000.
Factory overhead is applied 80% of direct labor cost.
The only job still in process at the end of June 30 is No.108 with cost of Rs.4000 for Material and Rs.7000 for the direct labor.
Job 107, the only finished job on hand at the end of June, has total cost of Rs.8,600
(1) Calculate work in process inventory on June 30 (Job no.108)
(2) General journal entries to record.
(a) Cost of goods manufactured
(b) Cost of Goods sold.
(c) Closing of over or under applied factory overhead.
8. Following data is available from the accounting record and reports of the Bakhtiar & Sattar Manufacturing Company.
* Estimated factory overhead Rs. 8.10,000
* Estimated direct labor hours 90,000
* Further analysis indicates that 1/3 of the rate is variable- cost oriented.
During the year, the worked 95.000 direct labor hours.
* Actual factory overhead was Rs.8,35,000.
REQUIRED: Calculate the spending and idle capacity variance and record the variances in Journal.
9.(a) Differentiate between wages based on the straight piecework plan, the 100 percent bonus plans, and the group bonus plan.
9.(b) Some portion of the monthly maintenance cost of Imran and Ansari Mfg. Co. is fixed and that some portion of this cost varies with the level of the production. During the first six months. year 2003, the level of production and maintenance cost is given below:
|Month||Equivalent full units or production||Maintenance cost|
(i) Calculate variable cost per units, using high-low method.
(ii) Calculate fixed cost per month.
NOT INCLUDED IN THE NEW COURSE