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ANIL SURENDRA MODI SCHOOL 0F COMMERCE

AcademicYear:2017-2018
Year: I Semester :I
Program: B.Com. urons.)
Batch: 2017-2020
Subject: Cost Accounting-I
Date : 30 May 2018 Time: 11.00 am to 01.00 pin(2 Hrs.)

Marks: 60 No. of pages:i

RE EXAMINATION

Instructions:Candidatesshouldreadcarefullytheinstructionsprintedonthequestionpaper
and on the cover of the Answer Book, which is provided for their use.

1. Question 1 is compulsory.
2. Attempt any THREE questions from the remaining questions. Each question carries 15
marks.
3. In all FOUR questions to be attempted. Figures in brackets indicate full marks.
4. All sub-sections of each question must be attempted together.
5. Working notes must form an integral part of your answer.
6. Use of simple calculators is allowed.

Q.1. Following information is available in respect of DC Enterprises for the year ended on
March 31, 2016.

Financial Cost Accounts

Details
Accounts(Rs.) qis.)

0 enin Stock :
32,000 27,00034,500
Raw material
37,000
Workinpro essFinishedoodsClosinStock:
27,000 24,500

23,000 24,500
Raw materialWorkinpro ess
18,000 21,500
32,500 34,000
Finished GoodsPurchases
2,10,000
1,05,000
Direct Wa esIndirectwaesProductionoverheads
17,000
90,000 1,10,000

(absorbed
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Details Financial Cost Accounts
Accounts (Rs.)
Sales 6,00,000
Administration Expenses 16,000 13,500
(absorbed)
Selling Expenses 21,000 25,000
(absorbed)
Financial Expenses 11,000
Interest and dividends received 8,000
Transfer to Reserve 25,000
Dividends paid 50,000

Prepare Trading and Profit Loss account showing gross and net profits as well as appropriation
of profits, also prepare Cost sheet and Statement of Reconciliation for the year ended March 31, ky
2016 (15 marks)

Q.2. From the details furnished below you are requested to compute a comprehensive machine
hour. rate:

Details Amount (Rs.)

Original purchase price of the machine (subject to 3,00,000
depreciation @ 9% p.a. on original cost)

Normal working hours for the month (the machine 200 hours
works to only 75% of capacity

Wages to Machine man (per day of 8 hours) 120

Wages to Machine Attendant (per day of 8 hours) 80

Monthly supervision Charges appolfioned for this 1,500 ty

machine

Armual Insurance of plant and Building apportioned 13,200

Power Consumption p.in. 750

Electi.icity and Lighting p.in. 650

Repairs and Maintenance (machine) including 900

consumables stores p.in.

Other General Overheads p.a. 24,000

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Production bonus payable to workers in terms of award is 40% of the total of basic wages and
dearness allowance. Dearness Allowance has been fixed at @Rs. 300 p.in.

Add 10% of the total of basic wages and dearness allowance towards leave wages and holidays
with pay to arrive at a comprehensive labour wage to be debited to production. (15 marks)

Q.3. From the following details prepare Process Account showing necessary and detailed
working notes using FIFO method:

Opening Work in progress (units) 2,000

Matei.ials (100°/o complete) Rs. 7,500
Labour (60% complete) Rs. 3,000
Over.heads (60% complete) Rs.1,500
Introduced into the Process (Units) 8,000

There are 2,000 units in closing work in Progress and the stage of completion is estimated
to be :

Materials -100%, Labour -50%, Overheads -50%.

8,000 units are transferred to next process.

The process cost for the period are -Materials -Rs. 1,00,000; Labour -Rs. 78,000;
Overheads -Rs. 39,000. (15 marks)

Q.4. Grieshma Engineers Limited undertook several contracts during the calendar year 2016.
The following information related to contract No. 405 :

Particulars Rs.
Direct Materials 1,01,250
Direct wages 77,500
Stores Issued 52,500
Loose Tools 12,000
Tractor Expenses :
Rurming matei.ial 11,500
Wages of Driver 15,000
Other Direct charges 16,275

The contract took three months in its completion. The value of loose tools and stores returned at
the end of the period were Rs.1,000 and Rs.15,000 respectively. The plant whose original cost
was Rs. 1,00,000 was also returned after charging depreciation @ 5% on cost for the contract
period. The value of the tractor was Rs.1,00,000 and the depreciation was to be charged to the

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tractor @ 12.5% p.a. The administration and office expenses are to be provided at 10% on works
cost. Profit is to be charged at 20% of the total cost.

Prepare the Contract account assuming the balance of the contract was duly received from the
contractee. ( 15 marks)

Q.5. Write short notes for the following (Any three) : (3 x 5 marks each)

a) Difference between Cost accounting and Financial Accounting (any 6 points)

b) ABc technique
c) Idle time and it's treatment
d) Meaning and Advantages of Integrated system of accounting
•~

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