2010 University of Allahabad Commerce Allahabad University, B.Com. (Part-II) Examination, Cost Accounting University Question paper
B.Com. (Part-II) Examination, 2010
Time Allowed: Three Hours] [Maximum Marks: 100
Note: There are two parts. Attempt all questions from Part-'A' and attempt any three questions from Part-'B'
Note: Attempt all eight questions. Answer in not more than 100 words. Each question carries 5 marks.
1. What do you mean by factory cost?
2. A firm manufactures a single type of product. For manufacture of the product 5 units of raw material are consumed. Assume that the firm manufactures 10.000 units per year. Cost of placing an order is Rs.150 and carrying cost per unit is Rs. 5 per annum. You are required to calculate E.O.Q.
3. What is the purpose of an incentive wage plan?
4. Rohan furniture house manufactures stools, chair and tables. Total factory overheads for the month of November, 2008 were Rs. 50,000. you are required to find out the amount of overheads chargeable to each product assuming that one table is equivalent to four stools and one chair is equivalent to two stools. The production during this month was 100 stools, 500 chairs and 125 tables.
5. What is meant by FIFO?
6. Calculate the Cost of material consumed-
Opening stock of material Rs. 24,000
Material purchased Rs. 1, 20,000
Carriage on material purchased Rs. 200
Defective material returned to supplier
at cost price. Rs. 2400
Closing stock of material Rs. 80000
Material sold Rs. 4000 (Cost price Rs. 3000).
7. What do you mean by 'cost plus contracts'?
8. Distinguish between controllable and uncontrollable variance.
Note: Attempt any three questions in maximum 600 words. Each question carries 20 marks.
9.Prepare a cost sheet from the following particulars showing the cost per unit sold and profit:
Direct wages 12,000
Machine hours worked 9.500
Machine hour rate Rs. 2
Office overhead 20% of works cost
Selling overheads 50 paisa per unit
Output 20,000 units
Units sold 18,000 @ Rs. 5 per unit.
10. On the basis of given information, find out the profit as per Cost Accounts-
(i) Net profit as per financial accounts Rs. 1, 00,120.
(ii) Works overhead under recovered in Cost Accounts Rs. 4.000.
(iii) The administration expenses were under recorded in the financial accounts by Rs. 1500.
(iv) Depreciation charges were over recorded in the Cost Accounts by Rs. 1,000.
(v) The interest received on investments during the year amounted to Rs. 500.
(vi) The transfer fees amounting to Rs.120 were received during the year in connection with the registration of transfer of shares.
(vii) The provision for income- tax made in the financial accounts was Rs. 49,000.
11. In the course of manufacture of an article 'A'. a By- product 'B' is also produced. The By product has a commercial value. Following information have been obtained from the costing records of the factory –
Joint Expenses Separate Expenses
Materials 20,000 2,500 1,000
Wages 10,000 3,500 500
Overheads 4,000 2,000 500
Total 34,000 8,000 2,000
Selling prices are: A= Rs.40,000, B= Rs.15,000
Assuming that the profit on 'A' and 'B' was estimated 20% on selling price, prepare necessary accounts for the products.
12. What is work-in-progress and how it is calculated in contract account? Explain how this account will be shown in the Balance Sheet?
13. Write notes on:-
(i) Budgetary Control System
(ii) Methods of pricing of the issue of materials.
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