BCom In Accounting & Finance (BCAF) SEM III 2016 2017 Sep 2017 COST ACCOUNTING Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 Cost which is relevant for decision-making is
2. Q2 Variable cost is also known as :) 3. Primary packing is a
3. Q4 Dividend paid on share capital is
   • a. Debited to costing profit & loss a/c b. Credited to costing profit & loss a/c Debited to financial profit & loss a/c ) 5. Over absorption of overheads in costing
4. Q6 The work done & certified by the architect is
5. Q3 7, Sale of plant from site is
   • a. Credited to contract Debited to Profit and loss a/c
6. Q8 Abnormal gain arises due to ) a. Increase in efficiency Increase in loss ) 9. Abnormal gain is valued at
   • a. Cost of input b. Cost of output c. Standard cost ) 10. Cost of output is calculated at each process
   • B] State whether the following statement is TRUE FALSE and rewrite the sentence (Any
7. Q2 Lubricants are direct materials
8. Q3 Contract price is equal to work certified
9. Q4 Work certified is a part of W.LP
10. Q5 No. separate a/c is maintained for each process,
11. Q6 Normal loss a/c is debited to process a/c
12. Q7 Abnormal loss is non controllable,
13. Q8 Overvaluation of closing stock in financial a/c increases profit
14. Q9 Contract costing is a unit costing,
15. Q10 Cost sheet is prepared to determine the cost of product manufactured ABC shoes co. manufactures 2 types of shoes A and B. Production costs for the year ended 31" march,2015 were: (15) There was no work in progress at the beginning or at the end of year. It is ascertained that:
    • a) Direct material in type a shoes consists twice s much as that in type B shoes
    • b) The direct wages for type B shoes were 60% of those of type A shoes Production overhead was the same per pair of A and B type
    • d) Administration overhead for each type was 150% of direct wages Selling cost was Rs 1.50 per pair
    • f) Production during the year was: Type A 40,000 pairs of which 36,000 were sold, Type B 1,20,000 pairs of which 1,00,000 were sold
    • g) Selling price was Rs 44 for Type A and Rs 28 For the Type B per pair Prepare a statement showing cost and profit Q — 2 From the following figure preps Reconciliation statement: 15 Net loss as per financial records 2,08,045 Net loss as per costing records 1,72,400 Works overhead under-recovered in costing 3,120 Administrative overhead recovered in excess 1,700 Depreciation charged in financial records 11,200 Depreciation recovered in costing 12,500 Interest received not included in costing 8,000 Obsolescene loss charged in financial records 5,700 Income provided in financial records 40,300 Bank interest credited in financial books 750 Value of opening stock in: Value of closing stock in: Interest charged in cost accounts but not in financial accounts 6,000 Preliminary expenses written off in financial accounts 800 Provision for doubtful debts in financial accounts 150 Q — 3 Profit and Loss account of Chetan Ltd. for the year ended 31.12.2014 was as under: To Office Expenses 39,200 | By Gross Profi 60,950 To Selling Expenses 23,000 By Interest on Deposit 2,500 To Loss on Sale of Machinery 1,250 By Dividend 3,450 To Depreciation on Machinery 1,800 By Net Loss 1,850 To Depreciation on Building 2,300 To Debenture Discount 400 To Preliminary Expenses 800 As compared to Cost Account, Office indirect expenses are 12% more in Financial accounts while Selling indirect expenses are 8% less Depreciation on machinery was over-estimated by Rs.350, while depreciation on building was under-estimated by Rs.150 Prepare (1) Statemeat of Cost and Profit/Loss and (2) Statement showing reconciliation of Profit or loss of Cost Accounts with that of Financial Accounts The following is the summary of the entries in a Contract Ledger as on 31% December, 2015 in respect of Contract No. 007: (15) Materials (from Stores) 52,00,000 Sale of Scrap 40,000 You are given the following information:
    • (1) Accruals on 31-12-2015 are: Wages Rs. 1,60,000 and Direct Expenses Rs. 2,00,000
    • (2) Depreciation on plant up to 31-12-2015 is Rs. 10,60,000
    • (3) Included in the above summary of abstract are wages Rs. 2,00,000 and other expenses Rs, 3,00,000 since certification. The value of the material used since certification is Rs
    • (4) Materials on site on 31-12-2015 cost Rs. 2,00,000
    • (5) Work certified was Rs. 3,00,00,000
    • (6) Cash received is 80 % of work certified Prepare Contract Account No. 007 and show the profit or loss should be taken into profit and loss account for the year 31" December, 2015 Product ‘A’ is obtained after it is Processed through process X, Y and Z. The following cost information is available for the month ended 31* March, 2015. (15) Number of Units introduced in the process 10,000 Rate per unit of units introduced (Rs.) 04 Cost of Material 52,000 4,000 20,500 Normal Loss (% on units introduced in each 10% 20% 25% Value of Sc: r unit Outputs in units There is no stock in any process You are required to prepare the Process Accounts Q—4 The product of the company passes through three process A, B and C. The normal loss at Process A—2 %, Process B— 5 %, Process C — 10 The normal loss is sold as a scrap Scrap value is Process A and B Rs. | per unit and Process C Rs. 4 per unit. In July 2015 company introduced 2,000 units of Raw material is introduced in process A account at a cost of Rs.8 per unit. Further details for month of July 2015 are as follows. (15) Stock Valuation on July | per unit Stock on 31* July, 2015 are to be valued at cost as shown by months production accounts Q-5 A) Explain the Features of Process Accounts in Detail (08)
    • B] Explain the Need of Reconciliation statement Short Notes (Any 3) (15) 7
16. Q1 Treatment of Profit in contract account
17. Q2 Classification of cost
18. Q3 Importance of Cost Sheet
19. Q4 Work certified and Retention money 8 5. Joint process and By-product

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