Bachelor of Management Studies (B.M.S.) SEM II 2016 2017 Feb 2017 ATKT COST ACCOUNTING Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 Solve any two out of three. (7.5 marks each) 15 marks
   • a) From the following data prepare a stock ledger by FIFO method
   • b) Kismat Itd., a manufacturing unit has three department A, B, and C and two service departments X and Y. The following estimates of expenses are available for a period: Rent and rates 64000 Insurance on building 32000 Insurance on machinery 120000 Allocate the above expenses. The other technical details about the departments are as under: Nos. of workers 100 20 | 30 | 30 10 | 10 Horse power of machines 200 60 | 40 | 50 30 | 20 Cost of machines (Rs. Lakhs) 20 12 4 2 2 0
   • c) Explain advantages and disadvantages of Cost Accounting
2. Q2 Solve any two out of three. (7.5 marks each) 15 marks
   • a) From the following data prepare a cost sheet for the year 2016 Opening stock of raw material 300000 Purchase of raw material 800000 Closing stock of raw material 100000 il) Custom duty paid for purchase of raw material | 500000 Custom duty paid for purchase of plant 50000 Direct salary is to be allocated to factory, office and selling in the ratio of
   • b) Mr. Vinay the following data relating to the manufacturing of one standard product during the month of April 2016 Opening stock of raw material 30000 Closing stock of raw material 20000 Administration overheads 10% on works cost You are required to prepare a cost statement showing:
   • 1. The cost per unit
   • 2. Profit per uni* sold and profit for the period What are overheads? Explain administrative overheads and selling and distribution overheads
3. Q3 Solve any two out of three. (7.5 marks each) 15 marks
   • a) Prepare a reconciliation statement from the following date: Net loss as per the cost accounts 34480 Net loss as per financial accounts 43209 Works overheads under-recovered in cost accounts 624 Depreciation overcharged in cost account 260 Admin overheads recorded in excess in cost books 340 Interest on investments 1750 Goodwill written off in financial books 1140 Store adjustments (credit in financial books) 95 Depreciation of stock charged in financial books 1350
   • b) Profit disclosed by company’s cost account for the year ended March 2016 was Rs. 100000 whereas Net profit as disclosed by the financial accounts was Rs. 59500. Following information is
   • 1. Work has commenced during the year on a new factory and expenditure of Rs. 60000 was incurred. Depreciation was provided at 5% for 6 months in the financial account
   • 2. Directors fees shown in financial account was Rs. 4000
   • 3. Share transfer received during the year were Rs. 2000
   • 4. Provision for income tax was Rs. 30000
   • 5. The company allocated Rs. 10000 as provision for doubtful debts
   • 6. O/hs as per cost A/c were estimated at Rs. 17000. The charge for the year shown by the financial A/c was Rs. 14000
   • c) Explain Cost- Volume — Profit Analysis
4. Q4 Solve any two out of three. (7.5 marks each) Require to compute: 15 marks
   • 1. P/V ratio
   • 2. Fixed cost
   • 3. BEP sales and units
   • 4. MOS for 2015 and 2016
   • b) Information of Joshi and company is given below: Budgeted sales are 12500 units @ Rs. 20 per unit. Find:
   • 1. P/V ratio
   • 3. Profit at budgeted sales
   • 4. Margin of safety at budgeted sales
   • 5. Profit if actual sales increases by 5% from the budgeted sales
   • c. Explain various types of budgets Riddhi Ltd. is a Tube light starter manufacturing company. Siddhi has approached Riddhi with the proposal to sell the company a component which is used in its Tube light starter at a price of Rs. 120000 for 40000 units. Riddhi is currently making these components in its own factory The following costs are associated annually with this part of the process when 4000 units are produced, Manufacturing overhead (fixed and variable) 68000 All but Rs. 30000 of the manufacturing overhead costs will not continue if Riddhi discontinues making the components. Riddhi will be able to eliminate machine rental of Rs. 18000 per year if the components ere no longer manufactured
   • a. How much will be the incremental cost or savings if Riddhi outsources? Use the incremental approach to justify your answer
   • b. What is amount of avoidable costs if Riddhi buys rather than makes the components?
   • c. Should Riddhi Make or Buy the components ? Briefly justify your answer

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