IB4M21480 (Pages: 5) Reg. No:..

******* ****

Name: *********''*******''*.

FAROOK COLLEGE (AUTONOMOUS), KOZHIKODE

Fourth Semester BCOM/BCOM CA Degree Examination, March/April 2021
BCM4B05/BCC4B05 - Cost Accounting

(2019 Admission onwards)

Time:2 hours Max. Marks: 80
PART A
Answer all questions

1. Compute the economic batch quantity for a company from the following information.
Annual demand for the component -2,000 units; Setting up cost -Rs.100;
Cost ofmanufacturing one unit - Rs. 200; Rate of interest per annum -5%

2. What is out of pocket cost?

3. State any two objectives of cost accounting.

4. Distinguish between cost centre and profit centre.

5. What is ABC analysis?
6. Distinguish between scrap and spoilage.
Standard time-8 hours; Wage rate
7. Compute the earnings of worker under Halsey plan:
6 hours
per hour-Rs.10; Time taken
-

8. List the mechanical

methods used for recording of time of workers

9. What is Notional cost?

10. What is meant by absorption of overheads?
Materials issued -1000 units @Rs.150/unit; wages-Rs.30,000;
11. Prepare process account:

overheads-Rs.10,000; Normal loss-5%

of input; Actual output-900 units

12. What is abnormal effectiveness?

13. What is composite cost unit?

14. What is meant by ZBB?

variance?
15. What is labour efficiency

(15 x 2 30, Maximum ceiling 25 marks)

 PART B
Answer all questions

16. Indian industries Lid is the

manufacturer of LED bulbs. The following data
manufacture of bulbs during month of March relate t
2015
Raw material consumed
20000
Direct Wages 12000
Machine Hours Worked 9500 hours
Machine hour Rate Rs 2
Office overhead 20% of Works Cost
Selling Overhead 0.50 per unit
Units produced
20,000
Units Sold 18000
units@Rs.5 per unit. Prepare a Cost sheet
profit. showing cost per unit and
17. Prepare stores ledger under LIFO method
2020
Purchases
January 3 400 kg at Rs. 2.10 Issues
per kg
7 800 kg at Rs. 2.40
January 5 600 kg
per kg
17 9 500 kg
400 kg at Rs. 2.50
The stock per kg
on 1st
January was 500 kg priced at Rs. 2.00 25 500 kg
stores on
January 12 of 200 kg from a job and per kg. There was a return to
this had been
The stock
verification on 27" January charged at Rs.2.00 earlier.
18. With the revealed a loss of 5
kg
help of following
under Taylor's system
information, ascertain the wages
paid to workers X and Y
Standard time allowed
10 units
Normal wage rate per hour
Re. I per hour
Differential rated to be
applied: -

75% of piece rate when

below standard
125% of piece rate when
at or above
The
standard
workers have produced in a day of
8 hours as follows: X-60
units, Y 100 units
 having three departments X, A and B.
19. A company is Y and 7. and 2 service departments
The expenses incurred by the departments during March 2020 are as follows:

Production departments
2,00,000
1,50,000
Z ,00,000
Service departments
A 1,17,000
B 1,50,000
The expenses of service departments are apportioned to production departments on the

following basis:

X Y B

A 20% 40% 30% 10%

B 40% 20% 20% 20%

Apportion the service department costs to the production departments using Repeated
Distribution Method

20. A started a contract on 1 Jan 2020, the price being Rs. 6,00,000. Following particulars

relate to the contract during the year 2020

Rs

Materials 50,000

Wages 60,000
Other expenses 10,000
Materials returned to stores 5,000

Plant at cost 60,000

Plant at site at the close 54,000

Cash received from contractee 1,00,000

Work certified 1,25,000

Work uncertified 60,000

Prepare Contract account and

Work-in Progress Account

21. What are the advantages and limitations of standard costing?

 cash budget from July to September 2020.
22 Prepare a
Sales Purchases Wages
2,40,000 1,80,000 26,000
June

2,60,000 1,90,000 27,500

July
2,00,000 1,44,000 22,500
August
1,80,000 1,50,000 23,000
September
1) 50% of the sales are for cash and 50% for credit. The credit sales are realized in the

month following sale

the month month of purchase
Creditors are paid in following the
2)
3) Plant costing Rs.20,000 is to be purchased in July, 50% of the same is paid in the

month and remaining 50% in the next month

Cash balance on
4) 1 July is Rs. 8000
23 Distinguish between by-product, main product and joint products.
(8 x5 40, Maximum ceiling 35marks)

PART C
Answer any two questions
24. Three.contractors commenced work on 1s January, 1 July and 1 October 2020
respectively. Their accounts on 31 Dec 2020 showed the following position:
Contract 1 Contract 2 Contract 3
Contract Price 4,00,000 2,70,000 3,00,000

Expenditure:
Materials 72,000 58,000 20,000
Wages paid I,10,000 1,12,400 14,000
General charges 4,000 2,800 1,000
Plant installed 20,000 16,000 12,000
Materials in hand 4,000 4,000 2,000
Wages accrued 4,000 4,000 1,800
Work certified 2,00,000 1,60,000 36,000
Cash received in respect thereof 1,50,000 1,20,000 27,000
Work finished but not credited 6,000 8,000 2,100
 was installed on the date of commencement of each contract: depreciation
The plant
taken at 10% p.a.
thereon is to be
in the balance
contract account in tabular form and show how these figures appear
Prepare
December 2020
sheet as on 31 relate
obtained after it passes through three processes. Following particulars
Product X is
25.
to the processes.
Process II Process IIT
Particulars Total Process
8500 25700
Materials (Rs.) 49200 15000
8000 12000 16000
Dircct Wages (Rs.) 36000
Production overheads (Rs.) 36000
750
950 840
Actual output(units)
10% 15%
Normal loss 5%
16 20
8
value per unit (Rs.)
Scrap

introduced into Process I.

Production overhead isto be
1000 units Rs 12 per unit were

accounts.
apportioned as 100% on direct wages. Prepare process
data relate to
is the manufacturer of LED bulbs. The following
26. Indian industries Itd
March 2020
manufacture of bulbs during month of
Raw material consumed 20000

Direct Wages 12000

Machine Hours Worked 9500 hrs

Machine hour Rate Rs 2

Office overhead
20% of Works Cost
0.50 per unit
Selling Overhead
20,000
Units produced showing cost per
Cost sheet
per unit. Prepare
a
Units Sold 18000 units@Rs.5

unit and profit Describe the various

methods of

21. What do you understand by absorption of overheads? scientific?

these methods is
more
overheads. Which of
absorption of factory (2 x 10 2 0 marks)