T Y Be-t ', 5 a'n V

QP Code : 73966

(2% Hours) I Totat Marks : 75

I{: B. : (1) AII questions are compulsory(2) Figures to the right indicate full rnark allotted to the question.

(3) Working notes wherever necessary should form part of your

arulwer.

(4) Calculate figures up to two decimai points wherever required.

Nover^A e-t, 24) 16']5 : 25 :* fv)

CoST A-c-a U NT lN 6

U

$

$ts

-'.1. (a) . Select the most appropriate option and rewrite the full sentence. ^.f

(any eight) ^

U

1. CostAccounting is directed towards the need of--' C. Government ,^,\i-. External users {il'

,.-r lnternal users -S-'Shareholders 1$"

2. Cost of Production is equal to

-

. $",.{Factory

cost + Administrative overheads

. Adminislrative overheads + Selling oveft${ds

.. Prime cost + Selling overheads .#3. Variable cost increases in total due

,2{ircrease in sales ^}' Increase in profit -#' Increase in volume of prod{U'tion

' All of the above <h'4. Tenders and Quotationl$usually based on_- '

' Cost statement "rfl+'. Profit alone A". Futire estim-dN

u"'Prcvr,r, ffi6', cost adjusted for future forecasts'

5. Labour fugnover is caused bY-'' Dissfii&action with job

' I*4i,$ugoupXcharge i

drAll of the above

{

1.F

""PJPts/s

d';t-Gon&'**)-s

,4378.16.

I TURN OVER

QP Code : Zg9666' stores departrnent issues materiar to the production departmentbasedon%. '

. Purchase order"' . Goods received note

. Material transfer note

.$, ;*:'#i;::I1I:l,lJ'.'"o* ro_ ^\b-' Quantity to be used economicaliy t"

'rhe quantiry.f;;;.rt#;;;*tained ^.fv,The quantity of materials to be record.ed "rf. The quantitv of r,naterials to be ordered at a tii.ne ,4iV8. Time-booking means

^=gr'fime spent by workers to record their entry into the facttirk. A technique to analyse time spent by workers io n*$E^'. Time spent by workers on their job, .&. All of the above St

9' Appropriate basis of apportionment of materiS\,r,ilairrg chargesis- . ^+u

------i

. Material consumed ^.y\L-'Material in opening stock

^bd l

*s

^*D.\

(b)

. Material in WIp ^$". Material in closing stock ^\) Y

10. Warehouse expenses is an .*ampd of--- .. Selling overhead ,{r,. Distibution overhead .4,t. Production overhead .S'. None of the abov6ap'

state whether the a-Hu[-- sratements are True or Farse. (any seven)

I ::rlAccounting[Vused only in manufacturing industry.2. High Labour q$dover rate denotes good human relations.3. Under a:sfilrriT of overheads decreases prgfit in costing books.

l- *r:nu_.so,, cost rs equar to direct wages plus factory overheads.

5. Bin SdA is same as Stores Ledger.

! W*EF3 are paid for idte time.

1 ffil* Ledger is maintained by rhe srores department.^{:Overheads are first charged to the deparbnent where they are incurred.

^C'9 Transfer to Generar Reserve is an item of cost accounts.

;{y l0- power is a machine expense.c^V

3p' t ruRN ovER

^ d'or-Gon.4378-{ 6.

"O')'

2.

: qp Code : 73966

Calculate the earnings of Rakesh and Ramesh from the following particulars lsfor the month of March 2016 and allocate the labour cost to each JobNo. i00 and Job No. 10I. $Particulars Rakesh RameshBasic wages

D.A. (On Basic)Employees Contriburion to p.F. (On Basic)Employees Contribution to E.S.I. (On Basic)Overtime hours

Expenditure on aqenities (per month)

? 15,000

80olo

L0%

3%

18

r 19,000

80%ta%3%

15

740r!"he Norrnal working hours for the month are

$fs\b

+r9#

225. Overtime is naiag!double the total of basic &D-A. Employer's contribution to state hsulaq*(E.s.L) and P.F. are at equal rate with employees, contribution. rn"r$&"r.two workers employed on Job No. 100 & Job No. 101 in the fttilEwing

on.

Name of Worker Job No. 100 Job No. 1011Rakesh

Ramesh40%

,za%60Yotu

saPf)/'

O

Overtime was done on Job No. 100.

working

oR ,8'2. (a) A Machine costs Rs. 12,00,;0; and is o$bra to have a scrap value I

of l0% at the end of its effectivq ltft'(I2 years). ordinarily themachine is expected to run for l,8Off*iours per year but it is estimatedthat 200 hours of the time wAflk 6e lost for normal repairs andmaintenance. Other details in $|ect of machine shop are as under :

Details ^\\a" Amount (T)

Hri ff?r; ::H,T: ol$o" tund contribution

(each operator ir i"-cf,qgQ of rn .. maclines) 1,50,000Rent of shop per yeq$ I,)0,000General lighting$ft. shop per month 6,000Insurance premiyift-for one machine per annum 2g,000Shop SuperS$&'s monthly remuneration 15,000cost of Reaxlrs and mainteriance per machine per quarter 6,000other Fptb.y overheads attributable to the shop per annum 96,000PowqlConsumption of machine per hour 15 units @ T 6 per unit - L B 8. 6lTH"aresixideaticalmachinesintheshop.The^supervisorisexpected

-tb devote one-fifth.of time for supervising the machine.

jf,rCompute the machine hour rate from the above details.

ns - *. t ruRN ovER

)$' oF'con.4378'16

\ \6{b5o cost

4 QP code : 73966

(b) The following are the details as regards a worker who worked for Job 7No.444 and i55.

Job No. Time allowed Time taken"' 444 26 hours 20 hours ^.19555 30 hours 20 hours -.i\'

His normal basic rate of wages was T g0 per day of g hours and his JSdearness allowance was T 24a per week of 4g hours. .$"

Calculate the amount payable to him. ^.}-i) On Time basis \ / ,

ii) on Halsey Plan basis (Bonus at 50%of Time saved) and ^.,9iii) On Rowan plan basis ar+,

;;ff:* are the purchases and sates of materials in the month

:f,@r, t5

Prepare Stores Ledger showing valuation of stock on the uusis-o$io andWeightedAverage Cost(Perpetual) Method ;$'

$

3.

Date (2016)-'Purchases

(Units) Rate (t) $ples (Unirs)lst March .

6th March7th March12th March20th March25th March29th March31st March

1,200

600

400

8oo ^{-arv

3.80 .S-84,Qb

^P*4.20.D/ 4.4A

;

200

;

300

of purchases on March zqarloo units were returned to the supplierOut of pur,

March 9th.on

^6r,

o$tr\r

I TURN OVER

ds?'N

4P or-cor.4378-{6.

;. (a) From the fotiowing informa,,.::;1.1,",, ur"r::,, ":.:

-:;t'and Number-"|o:0.* to be praced in the y"a, .."ording to FormuraMethod and Taburar Method. real .,uv$

(b)

' A Company manufactures a product from raw materiar which is o.?bpurchased at f 80 pr^r Ig. rne company incurs a cost of pracing an ^.i\'order of 1250 prus freitht of T i,iro per order. rh. increm.ntat

^"s'ffffiffi:T:';ffl"I';]ilTffi?*11*ll*rannum flinventory of raw.matTiai is T 5 p., tg per arurum ;tm# ^lfi:H::l$T:Hl: s 0, 000,oii, *is',",* I'l .uffi".ffiilf

KVD Ltd. has five.departments; p, e, R and S are produc*#, 7departments and s-r is u ,"*io, J*parrnent. rt " *r*iJJ##J

't

follows: __r--*..v*!. rrirr aulua, a

^6'Cfsupervision

o,o*$Thrsurance on stockLighting 'lUi0'000Employer's Iiahititv ,.'rahhr^..^^-, r -fl{so'ooo

Rent

Depreciation.

The following infonnation is

60,000

3,50,000

2,50,000

4,20,000

respect of the flve

ti'Pt a statement showing Primary Distribution of overheads.+

""uf.&t

^a.P' t ruRN ovER

Orf,.'oF-Gon. 43Tg-16,

Particulars

No. of workers

50,000Value ofplant nbr 2,00,000 160,000 1,00,000No. of light pd

I,50,000 1,00,000

"' Particulars ?

Materials:

ine stock

ng stock

tom duty

Haulage charges

Loose toois written off (Works Manager's saiary P o

Cost of rectificatiou V0

Q.IVg*t

0 $,/

f)-,"

i,00,0008,45,000

40,0005,000

2,00,0001,00,000

10,00qs20"qq,0'

i,esuroo

;Q5,000

Office ovsrheads 10% of works overheads r)sSelling expenses ? 4 Per unit sold

Finished Goods = '"-'

^$Opening stock 1,000 Units (T 1dS9\920)

Produced during the year 10,000 Units u.,Q'

,Closing stock 2,000 Unitsr.,$-

,ptofit desired on cost 25oZ

6 QP Code : Zg966

4. Bharat Electronics Ltd. produces a standard product and provides you the

following information for the year ending 3 ist March 2016.

15

$

^.+b.\I*bf'

")

^$r)

,9?'o0{ ?'".nl

' .,no0

..o X!u

\0" \Doo

P*p-rr C*t Sh*t strowing the varioul$(ements of cost both in total and

per unit and also find out total profi?ftd per unit profit'

Forowing is rhe summarise, ,xS;- Loss Account of Govind Industries

Ltd. for the year ended 31-tr{d016' , ^< ^ ^A, z

154.

\iacVr)

0$o

o./^;vrY

Profit & Loss for the year ended 314-2}rc'

Particulars S Y Particulars

to Direct material \\-To Wages ..1To Factory over^ti+ads

To Office opryhlads

To Selling$ Distribution

overhe$!'fo tftdtlst on loan

T{$come tax

rto'Net profit

20,000

7,540

5,460

5,254

9,600

1,400

7sa34,300

By Sales (6,000 units)

By Closing Stock

(Finished Goods 1,500 units)

By Interest on Investments

By Profit on sale of furniture

48,000

6,600

fi,7A012,000

84,300 84,300v

".&t oF'Gon.4378'{6'

I TURN OVER

QP Code : 73966

The Cost accounting records for the above period showed the following'

1) Direct material @ r 5 per unit produced'

2) ''Direct wages @ { 6 per unit produced'

3)Factoryoverheadswereabsorbed@25YaafcombinedcostofDirect materiai & Direct wages' I

4)Administrativeoverheadswereabsorbed@r2'5petunitproduced'.$b5)Selling&Distributionoverheadswereabsorbed@<3,5perunit^f

sold. f'you are r-equired to prepare the detailed Cost Sheet for the year ended

^#3l-3-20t6 and a Statement of Reconciliation' .{+'

s7(a) Explain the importance of Cost Aqcounting

""t*Oi B"pf.i, AgC Clottification osyfi-*

of Inventory Control'

^$'

f,

lMrite short notes on (any three) $ry 15a) LabourTurnover \*-b) Purchase Order

^9c) Material Turnover Ratio $'d) Limitations of Financial Accounting

- .$'.. ,i Cuurm of Over and Under Absorption !f,€Stttt"uat

.Lo_-\^-

#^pns'$

nA'{u

\t

$

"'?"D.t

5.

^.f.b.t

*8t9+

^dv&'s,'

^di*- Gon.4378'{6'

ad

t ruRN OVER