B.Com V Semester Degree Question Paper Gulbarga University Cost Accounting

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B.Com V Semester Degree Examination

COMMERCE (Group-A)

Paper – 5.7 : Cost Accounting – I

 Instruction : Figures to the right indicate full marks.

 SECTION-A

Note : Answer any ten questions:                                              10x2=20

1.         a)         What is the meaning of variable costs?

            b)         Write the formula of Halsey plan of wage payment.

            c)         What do you mean by cost audit?

            d)         What is the meaning of labour turnover?

            e)         Define overheads.

            f)          On what bases you divided the following expenses?

                        1) Rent             2)         Depreciation.

            g)         What is meant by ideal order quantity?

            h)         Write the meaning of time-keeping.

            i)          Define fixed costs.

            j)          What do you mean by inventory control?

            k)         Name any two methods of apportionment of overheads.

            l)          What do you mean by piece rate system of wage payment?

 

SECTION-B

2.                  Define cost accounting and explain steps involved in ‘cost control’.

3.                  Calculate the earnings of Mr. Prabhakar under

a)                  Time rate and

b)                  Piece Rate, from the following information: Norma wages per day of 8 hours Rs. 24 Actual hours worked by Mr. Prabhakar 12 hours Standard output per day of 8 hours 20 units. Actual output turned out by Mr. Prabhakar 32 units.

4.                  Calculate :

a)                  Average stock level and

                                                                           i.      Opening stock 16000 units.

                                                                         ii.      Closing stock 12000 units.

                                                                        iii.      Maximum usage 15000 units per week.

                                                                       iv.      Maximum delivery time 2 weeks.

5.                  Calculate :

a)                  Labour hours rate.

b)                  Labour cost rate in percentage and

c)                  Machine hour rate from the following:

                                                                           i.      Overheads of dept. X Rs. 40,000

                                                                         ii.      Labour hours worked in dept. X, 800 hours.

                                                                        iii.      Labour cost of dept. X Rs. 1,60,000

                                                                       iv.      Machine hours of dept. X 500 hours.

6.                  Narrate five points of distinction between cost accounting and financial accounting.

SECTION – C

Note : Answer any three questions:                                                                   3x15=45

7.                  From the following information prepare stores ledger under “Weighted Average Method”.:

1-1-2008                  Opening stock 600 units at Rs. 3 per unit.

4-1-2008                  Purchases 1200 units at Rs. 4 per unit.

6-1-2008                  Issued 1000 units.

10-1-2008              Purchases 1400 units at Rs. 4 per unit.

15-1-2008              Issued 1600 units.

20-1-2008              Purchases 600 units at Rs. 5 per unit.

25-1-2008       Issued 200 units.

8.                  Standard time fixed is 72 hours.

Time taken in 60 hours.

Wage rate Rs. 4 per hour.

Calculate total wages and hourly rate of earnings under:

1.      Time rate method.

2.      Halsey plan and

3.      Rowan plan.

9.                  The following information were collected from MAYTAS Co. Ltd.:

Minimum usage 200 units per week

Maximum usage 400 units per week.

Re-order period or delivery time: Minimum 2 months.

Re-order period or delivery time: Maximum 4 months.

Re-order quantity 8000 units

From the above, calculate:

1.                  Re-order level

2.                  Maximum stock level and

3.                  Minimum stock level.

10.              The following data are collected from the departmental distribution summary of Sangameshwar Industrial Unit:

Production Departments:                       Overheads (Rs.)

            A                                 10,000

            B                                    9,000

            C                                   8,000

            D                                   7,000

Service Departments:                Overheads (Rs.)

            Transport                     5,500

            Power supply               3,800

The service dept.  expenses are charged out on percentage basis as given below:

Departments	A	B	C	D	Transport	Power supply
Transport Expenses	10%	30%	20%	20%	-	20%
Expenses	30%	20%	30%	10%	10%	-

Prepare secondary distribution summary by following “simultaneous equation” method.

 

11.              Calculate machine hour rate for machine No. 4. which is in a production department of a factory. The following information relates to machine No.4. Normal working hours per annum 1800.

Fixed charges:

1)         Rent and Taxes             Rs. 1,200 p.a.

2)         Supervisor’s salary                   Rs. 3,000 p.a.

3)         Electricity charges                     Rs. 4,000 p.a.

4)         Insurance                                  Rs. 1,000 p.a.

5)         Operator’s wages                     Rs. 2,000 p.m.

6)         Other departmental overheadsRs. 3,000 p.a.

Variable charges:

a)                  Charges for oil, cotton waste etc. Rs. 600 per annum.

b)                  Repairs and maintenance Rs. 720 per annum.

c)                  Depreciation based on the following information:

                                                                           i.      Cost of the machine Rs. 42,000

                                                                         ii.      Estimated scrap value at the end of working life of 10 years Rs. 4,000.

 

 

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