\

-\ PARUL UNIYERSITY
FACULTY OF MANAGEMENT
SEMESTER 2: MID TERM EXAMINATION

Total Marks: 50 Date: 26t3t20lg

Time: 10.30 to12.30 pm Subject: Cost & Management Accounting

SECTION I-25 Marks

Question Question Type Marks

No.
Q 1.a MCQ's(One Mark Each) J

l.Which definition best describes Indirect Cost?

a) Indirect Cost are those cost which are not controlled directly by Managers
b) Indirect Cost are those cost which cannot be directly associated-with a
product or a service.
c) Indirect Cost are fixed in nature
d) None of the above
2. Fixed cost is a cost:
a) Which changes in total in proportion to changes in output
b) which is partly fixed and partly variable in relation to output
c) Which do not change in total dwing a given period despise changes in
output
d) which remains same for each unit of output
3.Total cost of a product: Rs. 10,000 profit: 25yo onselling price profit is:
a) Rs.2,500
b) Rs.3,000
c) Rs. 3,333
d) Rs.2,000

Q i.b Definition / Short Questions (One Mark Eu.h) J

1. Marginal Cost
2. Imputed Cost
3. Engineered Cost
Q.2 A shoe company manufactures two types of s 8
the year ended 31't March 2014 wele:
were:
Particulars Amount
Direct Materials 1500000
Direct Wagqs 840000
Production Overheads 360000
Total 2700000
There was no WIP at the beginning o
a) Direct material in type X shoe consist twice as much that in y,
b) The direct wages for type Y shoe was 60%o of those of type X shoe,
c) Production overhead was same for pair X & y,
d) Administrative overhead for each type was l5o% of direct wages.
e) Selling cost was Rs. 1.5 per pair,
0 Selling price: X- 44 &Y - 28 Rs per pair,
g) Production during the year:
 a
Prepare a Statement showing Cost & profit.
Q.3 "Management Accounting is concerned with accounting information that is useful to 6
management."- explain.
OR
Q.3 Discuss and differentiate between Time rate and Piece Rate System 6
Q4 The following Direct costs were incurred for Job No. 15 of a factory.

r
5

Materials - Rs. 6010

Labour Variable Overhead
Dept A - 60 Hours @ Rs. 30 per hr Dept A- Rs. 15000 for 1500 Labour hrs
Dept B - 40 Hours @ Rs. 20 per hr Dept B- Rs. 4000 for 200 Labour hrs
Dept C- 20 Hours @ Rr. 50 per hr Dept C- Rs. 12000 for 300 Labour hrs

Fixed Overheads are estimated at Rs. 40000 for 2000 hours. You are required to
calculate the cost of the Job and the price to be quoted which would give a profit of
20o/o on selling price.

lv
SECTION II-25 Marks

Questio Question Type Mark

n No. s
a
Q 5.a MCQ's(One Mark Each) J
l.When actual loss in a process is less than Anticipated Loss, the difference is
considered as
a) Abnormal Loss
b) Normal Loss
;rl c) Abnormal Gain ,.

,
d) Normal Gain
2. Describe the method of costing to be applied in case of Nursing Homd:

a) Oper4ting Costing
b) Process Costing
c) Contract Costing.
d) Job Costing
3.A transport company is running five buses between two towns, whi0h are 50 kms
apart. Seating capacity of each bus is 50 passengers. Actually passengers carried by
each bus wereTSYo of seating capacity. All buses ran on all days of the month. Each
bus made one round trip per day. Passenger kms are:
a) 2,81,250
b) 1,97,500
c)
5,62,500
d)
Nqne of the above
Q.s.b Definition / Short Questions (One Mark Each) J
l.Abnormal Gain
2. Normal Loss
3. Abnormal Loss
 A company follows Process Costing and Manufa
The work in progress at the end of each month and is vaiued according io FIF0
method. At the beginning of the month April 2015, the inventory of WIp showed
400 units,40% com leted, valued
valu as foll
o ow
Material 3600
Labour 3400
0verheads 1000
InthemonthofAprilmaterialofRs.6B500waspu
amounted to Rs. 79800 and 2'1.280 respectively. Finished production taken in to
stock in the month was 2500 units. There was no loss in the process.
At the end of the month the work in progress inventory,"as 500 units, 800/o
completed as regards material and 600/o completed as regards Labour and
overhead.
You are required to compute equivalent production and prepare a process
Account.

Mahindra machines have three production a

departments Y & Z. FromJ the following figures of the company prepare Overheads
distribution swnmary and calculate the overhead - rate' per hour.
0
Particulars Amount
Indirect material I 5000
indirec Wages 10000
Deprec ation of Machinery 25000
Depreciation of Buildings 5000
Rent, Rates & Taxes 10000
Electric Power for machinery 15000
Electric Power for Lighting 500
General Expenses 15000

Direct Materials

Value of

H.P of
Machines
No. of Light

The expenses o{ service Depaltmen

Particulars

OR
Distinguish between Job and Bu
these methods of costing are applicable.

Mr. Khan owns a fleet of taxis art

Number of taxis: l0
Cost ofeach Taxi: 20000
Salary of manager: 600 pm
Salary of clerk: 500 pm
Salary ofcleaner: 200 pm
Salary of mechanic: 400 pm
Garage rent: 600 pm
lnsurance premium: 5Yo per annum
Annual Tax: 600 per taxi
Drivers Salary: 200 pm per taxi
Annual Repairs: 1000 per taxi
Total life of the taxi is about 200000 kms. A taxi in all runs for 3000 km in a month,
out of which30% it runs empty. Petrol consumption is one litre for l0 kms @6.80 per
litre. Oil and other sundries are Rs 5 per 100 kms. Calculate the cost of running a ta:ri
per km.