B.Com. (Accounting and Finance) SEM III 2017 2018 Nov 2018 COST ACCOUNTING Question Paper - Mumbai University | munotes

Questions asked in this paper

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• 2. Figures to the right indicate full marks

1. Q4 Working should form part of answer
   • A) Write the following sentences, filling up the blanks with suitable words. (Any Eight, 1 08
2. Q1 Cost of primary packing material is a part of li) If works cost is Rs 100,000 and Factory overheads is Rs 10,000 then the prime cost is iil) If cost of sales is Rs 80,000 and Profit is 20% on sales then amount of sales is Rs
   • iv) Interest paid on loan appears only in------------- account
   • v) Notional remuneration to owner appears only in ------------- account (cost account/ profit and loss account) 07
   • vi) The percentage of work certified to contract price is up to 25% the portion of notional profit transferred to profit and loss account is vil) Cost of material lost or destroyed is ----------------- to contract account The sale value of scrap is ----------- to process account COST ACCOUNTING (METHODS OF COSTING) II
   • Q.P. Code :20856
   • B) Write the following sentences stating whether these are true of false (Any Seven 1 Mark
3. Q1 Costing system helps in measuring profits li) Freight on raw materials purchased is an indirect cost ili) The cost which remains unaffected even though there is change in the level of output is called as direct cost
   • iv) A cost sheet and income statement is one and the same
   • v) Income tax paid is an example of costing expense V1) Notional rent of self-owned factory is an example of financial expenses
   • vii) Material at site at the end of the year is debited to contract account vili) | Contract costing is useful for a Flyover project
   • ix) Normally the output of first process becomes input of third process
4. Q10 Normal losses are avoidable losses
5. Q2 Following information for the year ending March 2016 is taken from the books of Abby Ltd which manufactures cycle: During the year ending March, 2016 1500 cycles were produced and sold Following estimates have been made for the year ended March, 2017 15 marks
   • a) Production and sale of cycles will be doubled
   • b) Direct materials cost per unit will rise by 50%
   • c) Direct wages per unit will increase by 25% COST ACCOUNTING (METHODS OF COSTING) II
   • Q.P. Code :20856
   • d) Direct expenses per unit will be in the same proportion to direct wages as in the previous
   • e) Total factory overheads will be in the same proportion to prime cost total Administrative overheads in the same proportion to works cost and total selling and distribution overheads in the same proportion to cost of production as in the previous year
   • f) The management desires to charge profit on sales price in the same proportion as in the You are required to prepare
   • a) Cost sheet for the year ending 31“ March 2016 showing total cost and cost per unit and also total profit and per unit profit
   • b) Estimated cost sheet showing total cost and cost per unit for the year ending 31“ March 2017 with project selling price and profit
6. Q2 Bhavna Ltd’s Trading and Profit and Loss Account is as follows: Purchase 37,815 Sales 75,000 units @ Rs 1.50 each | 112500 Less: closing stock 6,120 Profit on sales of machinery 3900 The profit as per cost accounts was Rs. 29,655 Prepare reconciliation statement to reconcile cost profit with financial profit after preparing cost sheet. Further information as per cost accounts 15 marks
7. Q1 Closing stock was takes at Rs 6,420
8. Q2 The works expenses were taken at 100% of Direct wages
9. Q3 Selling and Administration expenses were charged at 10% of sales and Rs 0.10 per unit
10. Q4 Depreciation was taken at Rs. 1,200 COST ACCOUNTING (METHODS OF COSTING) II
    • Q.P. Code :20856
11. Q3 Makaan construction under took a contract for Rs.5,00,00,000 on August 2015. The contract was complete on March, 2017. The contractor closes his Accounts on March. The details of the contract are as follows The plant and machinery purchased on 1/8/2015 for the contract was Rs.84,25 and the estimated scrap value of plant and machinery at the end of the contract was Rs.4,25 it realized on completion of contract at its estimated scrap value You are required to prepare contract Account for the period ended March 2016 and Contract account for the year ended March, 2017 15 marks
12. Q3 M/s Sundar contractors and Builders have obtained a contract for constructing a Housing complex The contract work commenced on I“ July, 2014. The year ending of the company is 31“' March The contract price was Rs. 800 lakhs. The contractee agrees to pay 90% of the value of the work done as certified by the Architect immediately machine costing Rs. 60,00,000 was specially bought and used for the contract. The residual value of the machine on 31* January 2017 was Rs.29,00,000. Depreciation is to be effected straight line basis. 15 You are provided with the following information Uncertified work at the end of the year Money received from the contractee 1,80,00,000 3 COST ACCOUNTING (METHODS OF COSTING) II
    • Q.P. Code :20856 As per the policy of the company, no profit is to be considered unless the certified work completed exceeds the total contract price. Thereafter, profit is to be taken credit for in the same proportion as the cumulative received bears to the contract price Prepare Contract Accounts for all three years
13. Q4 Aman Ltd. Is manufacturing a product which passes through three consecutive processes. Process —I , Process-II and The following figures have been taken from their books for the month ended on 31* Jan 2017 Basic Raw Material at Rs 10 Per 25 000 Output during the month(kgs) 24,000 23,200 24250 Direct wages 80% of process 70% of process 60% of process Factory Overheads 80% of direct 90% of direct 75% of direct Normal Overheads (% on input) 2% 4% 4% You are required to prepare process accounts COST ACCOUNTING (METHODS OF COSTING) II 15 marks
    • Q.P. Code :20856
14. Q4 M/s Mahesh Enterprises Ltd. Provides you the following for the month of December, 2016 about Raw material introduced in the 20,000 3480 2875 Cost of Raw material per unit 12 15 18 Normal Loss (% on total no of 4% 5% 6% Output Transferred to the next 60% 50% Output sold at the end of the 40% 50% 100 Selling price per unit of the Sold at the end of the process 30 35 55 You are required to prepare process , “Y’ and accounts indicating clearly profit and loss in 15 marks
15. Q5 What are the different components of cost sheet? Explain. Explain the reasons for differences in profit as per financial account and cost account. 07 8 marks
16. Q5 Write short notes on following (any three 5 marks each) 15 marks
    • i) Direct cost
    • v) Retention money

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