CBCS/B.Com./Hons./2nd Sem.

/FACACOR03T/2022

WEST BENGAL STATE UNIVERSITY

B.Com. Honours 2nd Semester Examination, 2022

FACACOR03T-B.COM. (CC3)
COST AND MANAGEMENT ACCOUNTING-I
Time Allotted: 2 Hours Full Marks: 50
The figures in the margin indicate full marks.
Candidates should answer in their own words and adhere to the word limit as practicable.
All symbols are of usual significance.

GROUP-A
Answer any two questions from the following 10×2 = 20
1. (a) What is meant by Cost Accounting? 2+8
(b) Distinguish between Cost Accounting and Financial Accounting.

2. (a) What is ABC Analysis? 2+8

(b) S. Ltd. furnishes you the following information:
Average usage per month 1,000 units
Re-order quantity 3,000 units
Maximum usage per month 1,200 units
Minimum usage per month 800 units
Time lag for procurement of materials:
Maximum 6 months
Minimum 2 months
Compute:
(i) Average Stock Level
(ii) Re-ordering Level
(iii) Minimum Stock Level
(iv) Maximum Stock Level

3. (a) From the following information prepare a Reconciliation Statement: 7+3

As per Financial As per Cost
Details
Records (Rs.) Records (Rs.)
Closing Stock 8,160 8,560
Factory Expenses 24,260 21,000
Office Expenses 10,680 10,000
Selling Expenses 14,200 15,000
Depreciation 2,200 1,600
Rent Received 5,200 --
Net Profit 40,600 39,540

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(b) Briefly explain the reasons for preparation of Reconciliation Statement between
Cost Accounts and Financial Accounts.

4. (a) Mention two methods of computing Labour Turnover with formula. 4

(b) The following information are available for MS. Ltd. in 2021: 6
No. of employees at the beginning of 2021 360
No. of employees at the end of 2021 646
No. of employees resigned 42
No. of employees discharged 65
No of employees replaced 58
Calculate Labour Turnover under three different methods.

5. A transport company supplies the following details in respect of a truck of 5 ton 7+3
capacity:
Cost of truck Rs. 90,000
Estimated life 10 years
Diesel, oil, grease Rs. 15 per trip each way
Repairs and maintenance Rs. 500 per month
Driver’s wages Rs. 500 per month
Cleaner’s wages Rs. 250 per month
Insurance Rs. 4,800 per year
Taxes Rs. 2,400 per year
General Supervision Charges Rs. 4,800 per year
The truck carries goods to-and-from the city covering a distance of 50 km each
way. On upward trip freight is available to the extent for full capacity and on
return only to the extent of 20% of capacity.
Assuming that the truck runs, on an average, 25 days a month, work out:
(i) Operating cost per-ton-kilometre.
(ii) Rate per ton per trip that the company, should charge, if a profit of 50% on
freightage is to be earned.

6. Write short notes on the following (any two): 5×2=10

(i) Economic Order Quantity
(ii) Job Costing
(iii) Opportunity Cost
(iv) Absorption of overhead.

GROUP-B
Answer any two questions from the following 15×2 = 30
7. The Accounts of SB Co. Ltd. shows for 2021: 9+6
(`)
Material used 1,80,000
Manual and Machine Labour Wages directly chargeable 1,60,000
Work overhead expenditure 40,000
Establishment and General Expenditure 19,000
(i) Show work cost and total cost, the percentage that works overhead cost
bears to the manual and machine labour wages and the percentage that the
establishment and general expenses bears to the work cost.

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(ii) What price should the company quote to manufacture a machine, it is

estimated will require an expenditure of `8,000 on material and `6,000 on
wages so that it will yield a profit of 25% on total cost?

8. (a) Distinguish between allocation and apportionment of overhead. 5+10

(b) Compute machine hour rate of a machine in a shop consisting of 3 machines
occupying equal floor space. Following details are supplied for the machine of
which estimated working hours per year are fixed at- 2,500 hours in which
normal idle time is estimated at- 20% of the standard time.
Rs.
Rent and taxes of the shop per annum 3,600
General Electricity for the shop per month 200
Repairs and maintenance expenses for the machine per annum 600
Rate of power charges for 100 units 3
(the machine consuming 10 units per hour)
Foreman’s salary for supervising all the machines per month 750
Indirect labour cost Rs. 2 per hour for the machine
The machine costs Rs. 1,30,000 and scrap value is estimated at Rs. 10,000 and
estimated life is 10 years.
The foreman devotes equal attention to each machine in the shop.

9. A product pass through two process A and B. During the year 2021, the input to 15
Process A of basic raw material was 8,000 units @ Rs. 9 per unit.
Other information for the year is as follows:
Particulars Process-A Process-B
Output units 7,500 4,800
Normal Loss (% to input) 5% 10%
Scrap Value per unit (Rs.) 2 10
Direct Wages (Rs.) 12,000 24,000
Direct Expenses (Rs.) 6,000 5,000
Selling Price per unit (Rs.) 15 25
Total overheads Rs. 17,400 were recovered as percentage of direct wages. Selling
expenses were Rs. 5,000. These are not allocate to the processes. 2/3 of the output
of Process A was passed on to the next process and the balance was sold. The
entire output of Process B was sold. Prepare Process A and Process B Account.

10. Prepare Contract Account from the following details: 15

Rs.
Materials sent to site 1,50,000
Wages 1,80,000
Outstanding wages 3,000
Other expenses 26,000
Plant sent to site 2,00,000
Materials returned to store 5,000
Closing stock of materials 8,000
Material stolen 10,000
Insurance claim received for stolen materials 7,000
Work uncertified 11,000
Cash received 3,60,000

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Depreciation @ 10% is to be charged on Plant and Cash has been received to the
extent of 90% of Work Certified. Assume that the contract is 70% finished.

11. The following are the particulars of the receipts and issues of materials in a 15
factory during January 2022:
January 2 Opening balance 1,000 kg @ Rs. 30
3 Issued 140 kg
4 Issued 200 kg
8 Issued 160 kg
13 Received from Vendor 400 kg @ Rs. 35
15 Return of surplus from a work order 30 kg @ Rs. 28
16 Issued 360 kg
18 Received from Vendor 600 kg @ Rs. 32
20 Issued 550 kg
22 Received from Vendor 400 kg @ Rs. 34
24 Issued 250 kg
29 Return of surplus from a work order 40 kg @ 32
30 Received from Vendor 200 kg @ Rs. 36
You are required to prepare a Stores Ledger under FIFO principles.

12. Write short notes on (any three): 5×3=15

(i) Integrated Cost Accounting
(ii) Semi Variable Cost
(iii) Treatment of Idle Time in Cost Accounting
(iv) Composite Unit
(v) Retention Money.

N.B. : Students have to complete submission of their Answer Scripts through E-mail / Whatsapp
to their own respective colleges on the same day / date of examination within 1 hour after
end of exam. University / College authorities will not be held responsible for wrong
submission (at in proper address). Students are strongly advised not to submit multiple
copies of the same answer script.

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