Ahmedabad Arts and Commerce College, Vasna,

Ahmedabad
Subject : Cost Accounting – 1 Class – S.Y B.Com ( Sem – 3 )
Assignment – Year : 2022-23

Q 1 Explain the Cost Classifications with advantages and limitations of cost accounting
Q 2 From the following data of Shree Krishna Ltd. Find out
1) Reorder level
2) Maximum level
3) Minimum level
4) Average stock level
5) Danger point
6) Safety stock
Maximum time lag for immediate purchase is half week. Reorder quantity 1,200 units.

Particular Maximum Average Minimum

1. Reorder period 5 ? 3
( Weeks)
2. Usage ( units ? 70 60
per week )

Q 3 Vasundhara Ltd. has on 1st March, 2011 opening stock of 600 kgs of material “P” at Re. 1 per kg. The following
transactions of receipts and issues where made:

Date Particular Qty (Kgs) Rs.

2011
March 4 Purchase 800 960
" 14 Issue 400 -
" 22 Purchase 600 540
" 26 Issue 395 -
" 26 On verification shortage of 5 kgs was found

March 8 Issue 500 -

“ 18 Purchase 200 220
“ 24 Issue 150 -
“ 27 Issue 300 -
“ 28 Return back from production to stores ( 100 -
out of 08th April, ’07 )

Prepare stock register for Material ‘P’ as per FIFO and LIFO method
Q 4 From the payroll of Desai Ltd. following data of the workers for January, 2011 is available. On the basis
of the data, prepare a statement showing total wages for the month and the labour cost per day of 8 hours.
Contribution to the provident fund and the Employees State Insurance (E.S.I.) is calculated on Basic salary
plus Dearness Allowance. Find out the total salary for one month also.
1) Monthly salary basic Rs. 3,000
2) Dearness Allowance p.m. Rs. 3,000 (fixed)
3) Perquisite to each worker Rs. 80
4) Leave salary 10% of the basic pay.
5) Employer's contribution to provident fund 8 1/3%
6) Employer’s contribution to E.S.I. 2%
7) Number of working days in a month 25
8) Daily working hours 8

Q.5 In Arpit Co., the following particulars have been extracted for the quarter ended 31st March, 2007 :

Particula Production Department Service Department

r A B C X Y
Direct Rs.15,000 Rs.22,500 Rs. 30,000 Rs. 7,500 Rs. 15,000
Wages
Direct Rs.7,500 Rs. 15,000 Rs. 15,000 Rs. 11,250 Rs. 11,250
Material
No. of 750 1,125 1,125 375 375
Employee
Electricity 3,000 2,250 1,500 750 750
(kwh)
Value of Rs. 30,000 Rs. 20,000 Rs. 15,000 Rs. 5,000 Rs. 5000
assets
Light Point 5 8 2 3 2
Area (sq. 75 125 25 25 25
mtrs.)

The expenses for the period were :

Power Rs. 550 Stores overhead Rs. 400

Lighting . Rs 100 Staff Welfare Rs. 1,500
Depreciation Rs. 15000 Repairs Rs. 3,000
General Rs.6000 Rent and taxes Rs. 275
overheads

Apportion the expenses of department Y according to direct wages and those of department X in the
ratio of 5:3:2 to the production departments.
Compute the departmental overhead rate of each of the production department