BCom In Accounting & Finance (BCAF) SEM I ATKT COST ACCOUNTING I Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 A) the blanks with the correct option: (Any 8) is not a costing system 8 marks
   • i. Marginal costing
   • 2) The cost which remains constant irrespective of output upto capacity limit is
   • i. Fixed cost
   • i. Maximum inventory. to be kept
   • ii. Minimum inventory to be kept Average inventory to be kept
   • iv. the above
   • 4). Sugar used in a ice cream is
   • i. Indirect cost
   • 5) is allocated on the basis of
   • i. H.P of machines
   • ii. Cost of machines ili. Machine hours of machine
   • 6), The cost which is not actually incurred or to be incurred in future but assumed is called
   • i. Notional cost
   • Q. P. Code:-24468
   • 7) The objectives of material control is
   • i. Overstocking of material
   • ii. Understocking of material
   • iv. None of the above
   • 8) When the amount of overhead absorbed is less than the amount of overhead incurred itis
   • i. Under absorption of overheads
   • ii. Over absorption of overheads
   • iii. Allocation of overheads
   • iv. None of the above
   • 9) The method under which service centre overheads are distributed to production department
   • i. Primary distribution
   • iii. Apportionment
   • iv. None of the above
   • 10) The cost of wood ina chair is
   • i. Marginal cost
   • iv. All of the above
2. Q1 B) the following statements are True or False: (Any 7) 7 marks
   • ii. Materials not forming part of the finished product are known as indirect materials ili. Stores ledger is maintained by store keeper
   • iv. Material control is application of the controlling function to the area of material management Vv. The term inventory includes loose tools
   • vi. Dearness allowance is linked with cost of living index
   • vii. Staff salary is an administrative overheads
   • viii. All overheads are the cost, but all cost are not the overheads
   • ix. Machine hour rate is not suitable for absorption of overheads if the work is done mainly by
   • x. Costing system helps in measuring profit
   • Q. P. Code:-24468
3. Q2 A) Prepare stores ledger A/C on the basis of FIFO method using the following March 14 Returned to stores 150 units @ Rs.24 per unit On 15" March there was a shortage of 50 units 8 marks
4. Q2 B) The following information is available: Normal consumption (in units) 8000 Minimum consumption (in units) | 4000 Maximum consumption (in units) Re-order quantity (in units) 48000 Re-order period (in months) Emergency. purchase period (in 2 Calculate for each component: 7 marks
   • i) Reordering level
   • v) Danger level
   • Q. P. Code:-24468
5. Q2 A) The inventory records for the year 2016 shows the following figures: Calculate the material turnover ratios regarding each of these materials in no. of days the 8 marks
6. Q2 B) Calculate EOQ from the following information. Also state the no. of orders to be placed in a year Consumption of material per annum 10000 kg Storage cost 8% on average inventory Cost per kg of raw materials Rs.2
7. Q3 A) The following information is supplied from the costing records of a company Employers contribution to P.F No.of workers 24 16 12 8 Cost of machinery 24000 18000 12000 6000 Stock of goods 15000 9000 6000 8 marks
   • Q. P. Code:-24468 Prepare a statement showing apportionment of costs to various departments (7)
8. Q3 B) Calculate the earnings of a worker under Halsey Premium plan and Rowan Premium plan for executing a piece of work in 60 hours against 75 hours allowed. His hourly rate is 25.paise per hour and under Halsey system he is to be paid a bonus of 50% on time saved. In addition he gets a dearness allowance of Rs.1 per day of 8 hours work
9. Q3 A) A manufacturing concern has three production departments and two service departments. In July 2016, the departmental expenses were as follows: (8) Expenses of service department X & Y are apportioned as under: statement of secondary distribution under repeated distribution method
10. Q3 B) On the basis of the following information, calculate the earnings of Mr. A and Mr.B on the straight piece rate basis and Taylors Differential Piece rate system. (7) Differential to be applied: 80% of Piece rate below standard 120% of Piece rate at or above standard Ina 9 hour day, produces 54 units and Mr.B produces 75 units
    • Q. P. Code:-24468
11. Q4 A) Calculate the machine hour rate for the month of January 2016 to cover the overhead expenses relating to a machine. (8) Rent of the department (1/5" area is occupied by machine) | 780 p.a Lighting (Out of 12 points, 2 are for this machine) 288 p.a Foremans salary of this machine) 6000 p.a Cost of the machine 9200 It is assumed that machine will work for 1800 hours p.a. and that it will incur Rs.1125 for repairs and maintenance for life. It is further assumed that.5 units of power should be used per hour @ 6 paise per unit. The life of machine will be 10 years
12. Q4 B) The following information is extracted from the budget of ABC Ltd for 2016. You are required to workout overhead application rates by using the following methods of overhead 7 marks
    • iv. Prime Cost in %
13. Q4 The production department of a factory furnishes the following information for the month of Hours of machine operation 30000 Overheads chargeable to the department | Rs. 36000
    • Q. P. Code:-24468 For an order executed by the department during the period the relevant information was as under: Hours of machine operation | 4800 You are required to calculate the overhead charges chargeable to the job by the following methods Also prepare a comparative statement of cost of this order by the above methods
14. Q5 A) Explain cost structure 8 marks
15. Q5 B) Distinguish between allocation, absorption of overheads 7 marks
16. Q5 Write short notes on: (Any 3) 15 marks
    • a) Objectives of cost accounting
    • d) control
    • e) Under-Absorption and Over- Absorption of overheads

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