BCom In Accounting & Finance (BCAF) SEM III 2019 2020 Oct 2020 COST ACCOUNTING Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 A) State whether following statements are True or False. (Any 8) 8 marks
   • 1. Administrative cost are mostly variable cost
   • 2. Cost Accounting is a branch of financial accounting
   • 3. Preliminary Expenses written off appears only in Financial Accounts
   • 4. Fixed cost per unit remained fixed irrespective of level of output
   • 5. Underabsorption of overhead decreases profit in costing books
   • 6. Loss on sale of Fixed Assets is included in cost sheet for calculating profit
   • 7. Invisible waste has no sale value
   • 8. Normal loss is controllable
   • 9. ifacontract is iess than 25% compiete, entire profit is credited to the profit & loss
   • 10. Cash Received on contract is credited to Contract Account
   • B) Match the following. (Any 7) 7
   • 1) Interest on loan a) Having significant value
   • 4) Profit on Sale of Asset d) Included in cost Accounts
   • 7) Joint product g) credited to contract A/c
   • 9) Material lost i) shown in Financial Accounts only Following details are furnished by Mark of expenses incurred during the (15) Purchase of Raw Materials 4,80,000 Cost of catalogue 34,200 Depreciation on plant 38,000 Cost of plant purchased 2,50,000 Opening stock of Raw Materials 50,000 Repairs of Office furniture 25,000 Interest on loan 12,000 Closing stock of Raw Materials 30,000 Loss on sale of furniture 10,000 Depreciation on office equipment 20,000
   • 1) Stock of finished goods at the end of the year 1,006 units to be valued at cost of
   • 2) No. of units produced during the year were 20,6000 units
   • 3) Profit desired on sales is 20% Prepare cost sheet showing various elements of cost both in total and per unit and also
2. Q2 B) Rini Ltd has furnished the following information from the financial books for The year ended March, 2018 To Raw Materials By closing Stock(Finished 5,00,000 The following information is revealed from the cost records for the year ended March, 2018 15 marks
   • 1) Raw Materials consumption is Rs 49 per unit of production
   • 2) Direct wages are 70% of Direct Materials
   • 3) Factory overheads are recovered @50% of Direct materials
   • 4) Administrative overheads are taken @20% of work cost
   • 5) Selling Expenses are recovered Rs 15 per unit
   • 6) Opening stock of finished Goods is valued at Rs 101.80 per unit
   • 7) Closing stock of finished Goods is to be valued at cost of production
   • 8) Selling price is recorded at Rs 125 per unit
   • 1) Detailed cost sheet showing total cost, per unit cost and profit
   • 2) Statement of Reconciliation
3. Q3 A) The following information relates to a building contract undertaken by Arjun Ltd for Rs10,00,000 and for which 80% of the value of work certified by the architect is being paid by the contractor Material at site 8,000 The value of plant at the end of I, II, & III year was Rs 1 1,200, Rs 7,000 & Rs 3,000 respectively. Prepare Contract Account for these three years 15 marks
4. Q3 B) Virat Ltd obtained two contract viz A& B. Contract A commenced on 1“ October 2017and Contract B started on December, 2017. F ollowing information was extracted from their books for the year ended March, 2018. (15) Direct material at the site at the end of the period 73,000 54,000 Provide depreciation @20% p.a. on the original cost of plant Prepare Contract A & Contract B Account for the period ended March, 2018
5. Q4 A) Product ’A’ is obtained after it is processed through process X,Y & Z. The following cost information is available for the month ended March, 2017 No. of units introduced in process Rate per unit of units introduced Normal loss(% of units introduced in each process 25% output in units There is no stock in any process You are requested to prepare the Process Accounts, 15 marks
6. Q4 B) Reliable Ltd manufactures a yarn product. The product passes through three consecutive Processes F.Y, S.Y and T.Y. Relevant details for the month of March, 2017 are as follows:- (15) Quantitative information in kg Output during the month stock of process 1,950 1,925 1,679 Value of opening stock 3,880 6,720 2,800 Closing stock is to be valued at the respective cost of each process Prepare process Accounts, process stock Accounts, Abnormal loss and Abnormal Gain
7. Q5 1) Explain different components of cost sheet. 8 marks
   • 2) Explain advantages and disadvantages of process costing. Write short notes (any3) (15) 7
   • 1) Concept of work certified & work uncertified
   • 2) Abnormal loss
   • 3) Treatment of profit in Contract A/c
   • 4) Direct cost
   • 5) Need of Reconciliation statement

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