Cost Accounting(Major) — DU B.A.(Prog.) with Commerce (Entrepreneurship and Small Business) Previous Year Question Papers

1. (a) What is Cost Accounting. Differentiate cost accounting with financial accounting. (9) (b) Explain the following with suitable examples (1) Direct Cost (ii) Semi-Variable Cost (iii) Controllable Cost (3+3+3=9) (c) From the following information, prepare cost sheet Cost of material - Rs. 13 per unit Labour cost - Rs. 7.50 per unit Factory overhead - Rs. 45,000 General administration overhead - Rs. 48,175 Selling overheads - Rs. 2.50 per unit sold Opening stock of finished goods - 500 units @ Rs. 20.90 per unit Closing stock of finished goods - 250 units Sales - 10,250 units at a profit of 20% on sales 2. (a) Distinguish between periodic and perpetual inventory system. What are the advantages of perpetual inventory system. (9) (b) What is idle time? Explain its causes. How idle time is treated in cost accounting? (9) (c)S Ltd is a manufacturer of energy saving bulbs. To manufacture the finished product one unit of component 'LED' is required. Annual requirement of component 'LED' is 72,000 units, the cost being Rs 300 per unit. Other relevant information are as follows : Cost of placing an order - Rs. 2,250 Carrying cost of inventory - 12% of cost Maximum time - 20 days Minimum time - 8 days Average time - 14 days Maximum consumption - 400 units per day Minimum consumption - 200 units per day Average consumption - 300 units per day You are required to calculate (i) Reorder quantity (6) (ii) Reorder level (3) (111) Maximum stock level (3) (iv) Minimum stock level (3) (v) Average stock level (3) (b) A truck start with a load of 10 tonnes of goods from station P. it unloads 4 tonnes at station Q and rest of the goods at station R. it reaches back directly to station P after getting reloaded with 8 tonnes of goods at station R. the distance between kms and 80 kms respectively. Compute (e) The production department of ABC Itd furnishes the following information for the month of Direct materials R$ 5,00,000 Direct labour Rs 4,00,000 Labour hour worked 30,000 hours Machine hour worked 20,000 hours Production (units) 10,000 units During the month of December, the department undertook a special job containing 500 units. The relevant data for the special job is as follows Material used - Rs. 24,500 Direct wages - Rs. 20,500 Labour hours worked - 1,550 Machine hours worked - 975 Calculate overhead absorption rate for the production department, overhead chargeable to this special job and factory costs of the job when overhead are applied on the basis of: (i) Direct material cost method (ii) Direct labour cost method (iii) Labour hour rate method (iv) Machine hour rate method (18) 4. (a) What do you understand by "operating cost"? Describe its essential features. (9) (b) Explain the followings : (i) Key factor (ii) Margin of safety (c) A product passes through 3 process X, Y and Z. 10,000 units were introduced to process X at a cost of Rs. 10 per unit. The other information are given below Particulars Process X Process Y Process Z