B.Com In Investment Management SEM III ATKT INV. MGT COST ACCOUNTING Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 A] True or False (any 8) 8 mrks
   • 1. Overheads include all the variable expenses
   • 3. Interest is not shown in the cost sheet
   • 4. Profit as per Financial account is the same as the profit as per the cost accounts
   • 5. Goodwill written off appears only in Financial accounts
   • 6. Reconciliation is done as the profits are different under two set of books
   • 7. A.bnormal loss can be avoided = 8. Normal loss is treated as normal cost of production
   • 9. BEP can be obtained in units only
   • 10. normal loss is charged to costing profit and loss account
2. Q1 B] Match the following columns. (any 7) 7 mrks
3. Q2 A]Suzuki motors Ltd. manufactured and sold 2,000 motors in the year ending March, 2018. The summarised accounts are set out below: Trading and Profit and loss A/c For the year ending 31 March 2018 To Cost of Materials 1,80,000 By Sales 5,00,000 To Direct Wages 1,20,000 To Manufacturing Cost 50,000 To Gross Profit 150,000 To Management and 60,000 By Gross Profit 1,50,000 To Rent, Rate 10,000 To Selling Expenses 20,000 To General Expenses 80,000 To Net Profit 1,50,000 1,50,000 For the year ending March, 2018 it is estimated that: 3 marks
   • a) Output and sales will be 4,000 motors
   • b) Price of materials will rise by 20% on the previous year level
   • c) Wages per unit will rise by 5%
   • d) Manufacturing cost will rise in proportion to the combined cost of material and
   • e) Selling expenses per unit will remain unchanged
   • f) Other expenses will remain unaffected by the rise in output Prepare cost statement in total as well as per unit, showing price at which the motors should be marked so as to show profit of 10% on selling price
4. Q2 B] from the following particulars prepare:
   • a. A statement of cost
   • b. Profit & loss A/c
   • c. Statement reconciling the difference in profit & loss as per cost & financial record Opening stock of raw material 144000 Opening stock of finished goods 288000 Purchase of raw materials 864000 Closing stock of raw materials 216000 Closing stock of finished goods 72000 Calculate factory overhead at 20% on prime cost and office overheads at 80% on factory overheads. Actual Factory overheads amounted to Rs. 254000. Office expenses amounted to Rs. 160000. Selling price was fixed at a profit of 20% on cost
5. Q3 A] The product of a company passes through three distinct processes for completion These processes are known as X, Y and Z. from the past experience, it is ascertained that wastage is incurred in each process as under: Process X — 2%, Process Y — 4% and Process Z The wastage of each process possesses scrap value. The wastage of processes X and Y is sold at Rs.2.50 per unit, and that of process Z at Rs.5.00 per unit. The output of each process immediately to the next process and finished units are transferred from process Z to stock. The following information is obtained 40,000 units were put in process X at accost of Rs.10 per unit. The output of each process is as follows: Process X — 38,750 units, Process Y — 37,000 units and Process Z — 32,000 units There is no stock of work in progress in any process. Prepare process account, abnormal gain account and abnormal loss account Q no 3 (b) The standard hours and time rate for unit component A are given below : Actual data and related information are as under : Calculate (a) Labour cost variance, (b) Labour efficiency variance, and (c) Labour Q (a)Calculate the P/V ratio and Break-even point from the following particulars : (8) Q no4 (b) From the following information, calculate the break-even point and turn over required to earn of profit of Rs.30,000. (7) If the company is earning a profit of Rs.30,000, express the margin of safety available to it Q No 4 XY Ltd., manufacturers of product P, uses a standard cost system. Standard product and cost specification for 1,000 kg. of product P are as follows : Consumption in Jan Actual finished production for the month of January is 2,00,000 kg
6. Q5 A] Explain standard costing and calculation of variances. 8 marks
   • B] Explain the various Costs calculated in the Cost sheet. QS. Write shorts on: (Any 3) (15) 7
   • 2. P/V Ratio
   • 4. Process costing

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