13507 Fifth Semester B.Com. Degree Examination, November/December 2016 COMMERCE Paper — 5.4: Cost Accounting - 1 Time : 3 Hours Max. Marks : 80 SECTION-A ‘Answer any ten questions : (10x2=20) |. What is cost accounting 2 1. What is cost control ? 3. What is minimum stock level ? What is Bin Card ? 3. What is Labour Cost ? What is normal piece rate? ‘What is overhead ? ‘What is step Ladder method 7 What is reconciliation statement ? 10. What are the items considered in cost accounts ? 41. What do you mean by EOQ? 12. What do you mean by danger level ? SECTION-—B ‘Answer any-three questions : : (@x5=15) 13. What are the objectives of cost accounting ? 14, Calculate Economic Order Quantity from the following : a) Annual consumption 300 units. b) Ordering:cost Re. 6 per order. c) Carrying costs 10% of material price. 4) Material price per unit Rs. 10. eer errors13507 2 ‘nm 1. In a workshop where Halsey premium plan is in operation, Mr. Sunil takes: 24 hours to complete a Job which needs 36 standard hours. The basic wage rate is Rs. 20/- per hour. Find out Sunil’s earnings under Halsey plan (50% Halsey plan), 16. Calculate machine hour rate for the following : a) Cost of machine Rs. 23,500. b) Estimated scrap value Rs. 1,500. c) Repairs andmaintenance charges per month Rs, 150. d) Standing charges allocated to machine per month Rs. 70. €) Effective working life of machine 10,000 hours. ) Running time per month 166 hours. 9) Power used by machine 7 units per hour at 0.25 paise per unit. 17. List the items which are charged only in the financial accounts ? SECTION-C Answer any three questions : (@e15=45) 18. Prepare Stores Ledger account for Harish & Company under simple average method : Receipts: 1-4-2015 Opening stock 300 units at Rs. 3.50 per unit. 4-4-2015 Purchased 400 units at Rs. 4.00 per unit. 15-4-2015 Purchased 700 units at Rs. 4.30 per unit. 24-4-2015 Purchased 700 units at Rs. 3.80 per unit. Issues: a) 5-4-2016 issued 500 units, b) 18-4-2018 issued 700 units, C) 26-4-2015 issued 700 units.a 13507 19, The standard production in a factory is 10 units per hour for a day of 8 hours, The wagais Rs. 6 per day. Bonus rated on efficiency is paid according toa scale as follows : Level of efficiency Upto 60% of standard ‘Above 60% and upto 75% Above 75% and upto 90% ‘Above 90% but less than 100% At 100% of the standard Bonus Nil 5% 10% 15% 20% Foran Increase of every 1% efficiency beyond 100% the bonus also rises by 1%. The output of 6 workers on a day was as follows : 40 units, 50 units, 70 units, 75 units, 90 units and 100 units respectively. Tabulate the eamings of each worker under Emerson's efficiency Bonus plan. 20. The modern company is having 3 production Department A, B and C and one service Department D. The total annual expenses of different items are as follows + Factory rent Repairs to plant Depreciation Light Supervision Fire insurance Employer's Liabilities for insurance: Rs, 4,500 Rs, 1,200 Rs, 6,000 Rs. 500 Rs. 9,000 ‘The following information is available in respect of the four departments : A Areain Sq. Ft 1,500 Number ofemployees 20 Value of plant Rs. 48,000 Value of stock Rs. 15,000 Wages Fs. 6,000 600 150 8 c D 4,100 900 500 15 10 5 Fis.36,000 -As.24,000 —-Rs.12,000 Rs. 9,000 Rs. 6,000 =, Rs. 4,000 As. 2,000 —_As.3,000 Apportion the costs to the various departments on the most equitable.13507 + 21. From the following figures prepare a reconciliation statement : Rs. Net profit as per financial records 1,28,755 Net Profit as per Costing records 4,72,400 Works Overhead under recovered in costing 3,120 Administrative Overheads recovered in excess: 1,700 Depreciation charged in financial books 11,200 Depreciation recovered in cost accounting 12,500 Interest received but not included in cost accounting 8,000 Obsolescence loss charged in financial books 5,700 Income tax provided in financial books 40,300 Bank interest Credited in financial books 750 Stores Adjustment (Credited in financial books) 405 Depreciation of stock charged in financial books 6,750 22. From the following prepare a store Ledger and findout the closing balance under FIFO method. 2015 ‘Sept. 1 Balance of 250 units at As. 10each. 5 Purchased 3,000 units at Rs. 12 each. 8 Issued2,500 units. 10 Purchased 5,000 units at Rs. 14 each. 15 Retum to Supplier 200 units purchased 10” Sept. 16 Purchased 4,000 units ats. 11 each. 20 Issued 6,000 units. 22 Issued 2,000 units. 24 Purchased 5,500 units at As. 15 each. re) 30 Issued 3,500 units, Stock veritication reveals a shortage of 100 units.