B.Com. (Accounting and Finance) SEM III 2022 2023 2023 COST ACCOUNTING Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 (A) State whether True or False: (Any Eight) 8 marks
   • b. Secondary packaging cost is not production but distribution cost
   • c. Administration cost is not included in the cost of work-in-progress
   • d. Cost of production is equal to prime cost plus work cost
   • e. Cost of Production = Works Cost + Administrative Overheads
   • f. Notional Rent is shown in Cost Accounts
   • g. Need for reconciliation arises because of the difference in valuation of stocks in cost and financial accounts
   • h. Abnormal loss is charged to costing profit and loss account
   • i. Under the physical unit method of apportionment of joint cost, joint cost is divided by total units of joint products produced While making an Estimated Cost Sheet, Administrative Overheads can be recovered as a percentage of Works Cost
2. Q1 (B) Match the Column: (Any Seven) 7 marks
   • (a) Normal Cost Normal Output
3. Q3 Direct Material + Direct Wages + Direct | (c) Amount certified but not paid Expenses (d) Input x % of Normal Loss
4. Q6 Haulage on Machinery (g) The person who undertakes the contract
5. Q8 Legal charges (i) Selling and distribution overhead
6. Q10 Retention money
7. Q2 A) A product passes through three processes and 40,000 units were introduced in Process A at cost of 30,000. The following further information is available: (15) % of Normal Wastage 4% 5% 10% SYBAF 2%HRS. MARKS 75 The closing stock in each process is valued at respective Process Prepare Process I, II and III Accounts and Process I, I] and III Stock A/cs
8. Q2 B) A product passes through three processes. The following data have been extracted from the books of a company. (15) 4,000 units were initially introduced in Process X at a cost of 13,560. There was no stock of material or work in process at the beginning or at the end. The output of each process passes directly to the next process and finally to finished stock. The following additional data are Percentage of Normal Loss to Input | Value of Scrap per Unit
9. Q3 A) The following is the summary of the entries in a Contract Ledger as on 31st December 2021 in respect of Contract No. 444: Materials from store 5,000 Common Plant sent to site 50,000 The further information is as follows:
   • a. Accruals on 31st December 2021 were: Wages 1,0U0 und Direct Expenses 3,009
   • b. The cost of work uncertified was Rs. 8,000
   • c. Rs. of materials were destroyed by fire
   • d. Materials costing Rs. 3,000 were sold for Rs. 4,000
   • e. Depreciation till 31-12-2021 on the plant was Rs. 12,000
   • f. Materials at site were Rs. 6,000
   • g. Cash received from the Contractee was Rs. 1,40,000 being 80% of work certified VCD SYBAF ACCOUNTING 2%HRS. MARKS 75
   • h. Contract price was Rs: 2,50,000
   • i. Transfer 2/3rd profit on cash basis to P & L A/c
10. Q3 B) Tukya contractors undertook a contract for 15,00,000 on Ist July, 2019. The contract was completed on 31st March, 2021. The contractor prepares his accounts on 31st March The details of the contract are: (15) Materials returned to stores 22,000 15,000 Material at site 20,000 8,000 Material lost by fire - 5,000 Provide depreciation @ 20% p.a. on plant Prepare Contract Accounts for the years ended 31st March 2020 and 31st March 2021
11. Q4 A) From the following prepare a cost sheet showing the compcnents of total cost and profit for the year ended 31st March, 2022. (15) Stock of finished goods on 1-4-2021 6,000 Stock of finished goods on 31-3-2022 15,000 Stock of raw materials on 1-4-2021 40,000 Stock of raw materials on 31-3-2022 50,000 Work in progress on 1-4-2021 15,000 Work in progress on 31-3-2022 10,000 Purchases of raw materials 4,75,000 Sales for the year 8,60,000 Interest on debentures 10,000 Transfer to Sinking Fund 20,000
12. Q4 B) Following is the Profit and Loss Account as per financial records of M/s Niyati Enterprises for the year ended 31st March, 2021. (15) To Opening Stock (Finished 2,50,000 | By Sales 30,00,000 To Direct Materials consumed 12,00,000 | By Closing Stock 2,20,000 To Carriage Outward 30,000 | (Finished Goods 2,000 units) To Direct Wages 8,00,000 | By Dividend Received 10,000 To Demonstration Expenses 30,000 To Legal Charges 40,000 To Haulage of Machinery 20,000 To Depreciation (Plant & 1,50,000 To Printing and Stationery 40,000 To Advertisement Expenses 60,000 To Other Indirect Expenses To Drawing Office Expenses 60,000 To Audit Fees 40,000 To Preliminary Expenses w/off 1,00,000 To Net Profit 1,70,000 For the same period, Cost Accounting records showed the following: Depreciation on Plant and Machinery was recorded at Rs.49,000
13. Q2 Opening Stock of Finished Goods has been at Rs.2,00,000
14. Q3 Closing Stock of Finished Goods has been valued at cost of production Detailed cost statement for the year ended 31st March, 2021 showing total cost (excluding
15. Q2 Siatement of Reconciliation of Profits (Starting with Profit as per Cost Sheet) unit) and profit VCD SYBAF SEM-IIICOSTACCOUNTING 2%4HRS. MARKS 75
16. Q5 (A) State Advantages and Disadvantages of process costing 8 marks
    • (B) Describe the different costing methods used in different industries. 7
17. Q5 Write short notes on: (Any Three) 15 marks
18. Q1 Features of process costing
19. Q2 Retention money
20. Q3 Work certified
21. Q4 Material consumed
22. Q5 Importance of reconciliation statement

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