BCom TY BCom Sem 5 2023 2024 Oct 2024 FINANCIAL ACCOUNTING & AUDITING PAPER VIII COST ACCOUNTING Question Paper - Mumbai University | munotes

Questions asked in this paper

• e Figures to the right indicate full marks allotted to the questions

1. Q1 a) Select the most appropriate option and rewrite the full sentence (Any Ten)
2. Q1 In production of furniture wood is a material
3. Q2 In fashion industry, fabric thread and buttons are material for making clothing
4. Q3 The cost of using a company vehicle for a personal trip is the revenue the company could have earned by renting it out
5. Q4 The level is the ideal quantity to order to minimize both ordering and holding
6. Q5 In ABC analysis, items typically represent items with moderate or intermediate value and significance compared to A items but more than C items
7. Q6 assumes that the oldest inventory is sold first and that the newest inventory is left in stock
8. Q7 In , employees are compensated based on the quantity or number of units they produce or tasks they complete
9. Q8 The is a labour payment plan that considers both quantity or output and time efficiency
10. Q9 Royalty paid is a part of Paper Subject Code: 23107 Financial Accounting and Auditing VIII - Cost Accounting
11. Q10 Store keepers salary is a part of
12. Q11 Net profit as per cost records is Rs.15000 Interest on Investment not recorded in cost books is Rs. 3000. Calculate profit as per financial records
13. Q12 Net profit as per cost records is Rs.15000. Bad debts debited in financial records is Rs. 3000 Calculate profit as per financial records
14. Q1 (b) Match the Columns (Any 10). 10 marks
15. Q3 Ordering Cost
16. Q6 Rowan Premium Plan f) Excluded in cost book
17. Q11 Upkeep of delivery Vans k) Size of purchase order
18. Q12 Loss by Fire 1) Factory Overheads M/s. Ashish Manufacturing Company manufactures two types of products viz. M and N. The information for the year ended on March, 2022 is as under:
19. Q1 Factory expenses are charged at 20% of prime cost
20. Q2 Office expenses are charged at 25% of works cost
21. Q3 6,000 units of product M were produced of which 4,500 units were sold and 15,000 units of product N were produced of which 13,500 units were sold Paper Subject Code: 23107 Financial Accounting and Auditing VIII - Cost Accounting
22. Q4 Selling expenses are Rs.45 per unit for product M and Rs.60 per unit for product N
23. Q5 Company charges a profit at 20% on sales for both the products Prepare a cost sheet showing the cost and profit in total as well as in per unit From the following information value closing stock as on 30-9-2023 applying Weighted Average Calculate the machine hour rate to cover the overhead expenses related to a machine Cost of the machine Rs 950000 Installation charges of the new machine Rs 75000 Estimated scrap value of the machine Rs 25000 Oil and Lubrication Rs 7500 per quarter 6 Consumption of electric power per hour Rate of electric power per unit Rs 0.50 (1/6" for this machine) 9 Cotton waste etc. Each Machine (Per Quarter) Rs 5000 It is estimated that the life of the machine is 10 years and will work for 10000 hours per Paper Subject Code: 23107 Financial Accounting and Auditing VIII - Cost Accounting
24. Q1 The Purchase Department of your organisation has received an offer of quantity discounts on its order of materials as under: [10 Marks] Price per tonne Order (in tonnes) Rs.2,800 Less than 1,000 Rs.2,760 1,000 but less than 2,000 Rs.2,720 2,000 but less than 4,000 Rs.2,680 4,000 but less than 6,000 Rs.2,640 6,000 and above The annual requirement of the material is 10,000 tonnes. The delivery cost/ordering cost per order is Rs.1,800 and the annual stock holding cost/carrying cost is estimated at 20 percent of the average inventory. The purchase department wants you to consider the following purchase options and advise which among them will be the most economical ordering quantity, presenting the relevant information in a tabular form. The purchase quantity options to be considered are 800 tonnes, 1,000 1i) Inventory records of Shrinidhi Ltd. Shows the following information: (10 marks) Material in hand on 1.4.2022 1,00,000 Material in hand on 31.3.2023 50,000 75,000 Material purchased during the year 4,50,000 5,75,000
25. Q1 Material turnover ratio regarding each of these materials
26. Q2 Express in number of days the average inventory held
27. Q3 State which of the two materials is slow moving material The following data was obtained from the books of Space Ltd. for the year ended 4 Value of Plant and Machinery 450000 ; 850000 350000 | 200000 | 150000 Number of Employees Paper Subject Code: 23107 Financial Accounting and Auditing VIII - Cost Accounting 6 Value of Stock (Rs.) 12000 15000 8 Number of Light Points Departments A, B and C are Production Departments Departments D and E are Service Departments Contribution to Provident Fund 16250 Insurance of Plant and Machinery 15000 Depreciation of Building 56250 You are required to prepare Primary Overhead Distribution Summary for the departments showing clearly the most suitable basis of apportionments wherever necessary RS Ltd. showed net loss of Rs 2,30,500 as per their financial accounts for the year ended 31st March, 2022. However, cost accounts disclosed net loss of Rs 2,45,000 for the same period. On scrutinising both the set of books of accounts the following information were revealed: Distribution overheads under recovered 20,000 Administrative overheads under recovered 27,500 Depreciation over charged in Cost Accounts 34,000 Bad debts w/off in Financial Accounts 14,500 Preliminary expenses w/off in Financial Accounts 4500 Interest credited during the year in Financial Accounts 7,000 Notional Salary charged in Cost Accounts 10,000 Prepare a reconciliation statement reconciling losses shown by the financial and cost accounts by taking costing net loss as base Paper Subject Code: 23107 Financial Accounting and Auditing VIII - Cost Accounting Calculate the earnings of A and B from the following particulars for a month and allocate the labour cost to each job X, Y and Z: The normal working hours for the month are 400. Overtime is paid at double the total of basic wages and dearness allowance. Employer’s and Employee’s contribution to State Insurance and Provident Fund are at equal rates. The two workers were employed on jobs X, Y and Z in the following Overtime was done on job Z at the request of the customer Standard output per hour 250 units. Actual output in a 180 hour week is 50,000 units. Wage rate is Rs.300 per hour. Dearness allowance is Rs. 30 per hour. Calculate Total Earnings under:
28. Q1 Time Rate Gantt Task Bonus System (20 marks)
    • A. State the Functions of cost accounting? 10
    • B. What are the factors considered in fixation of stock level? 10
29. Q5 Write Short Notes (Any Four out of Six) 20 marks
30. Q2 Gantt’s Task
31. Q3 Idle Time
32. Q4 Factory Overheads
33. Q5 Causes of disagreement between costing profit and financial profit
34. Q6 Limitations of cost accounting Paper Subject Code: 23107 Financial Accounting and Auditing VIII - Cost Accounting
    • a) ara got (10 a b. c. is the ideal
35. Q6 Al Paper Subject Code: 23107 Financial Accounting and Auditing VIII - Cost Accounting
36. Q8 are St das
    • b. Ge c wel Paper Subject Code: 23107 Financial Accounting and Auditing VIII - Cost Accounting
37. Q1 20% ATA TAT Paper Subject Code: 23107 Financial Accounting and Auditing VIII - Cost Accounting
38. Q3 de ae Paper Subject Code: 23107 Financial Accounting and Auditing VIII - Cost Accounting

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