COST ACCOUNTING 2003 (Regular/ Private)

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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

 

REQUIRED:

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

Labour 25,200

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

 

REQUIRED:

(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
Finished Goods 50 15
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.

 

REQUIRED:

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
Material 3500 4700
Direct Labour 10000 5000
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

 

REQUIRED:

(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 
January 17200 14990
February 17000 14800
March 17700 15200
April 18400 15430
May 19000 15800
June 18600 15600

 

REQUIRED:

(i) Calculate variable cost per units, using high-low method.

(ii) Calculate fixed cost per month.

NOT INCLUDED IN THE NEW COURSE

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