CYCLE TEST- II OCT - 2023

COST ACCOUNTING
Class : III B.Com CA / III B.Com Max. Mark : 50
Paper code : 21UCC09 / 21UCM12 Time : 2 Hrs
Section-A
I. Answer ALL the questions. (10 X 1= 10)
1. Classification of cost is useful to
a. Find gross profit b. Find net profit
c. To identify costs d. None of these
2. Elements of cost are
a. Three Types b. Two Types c. Four Types d. Five Types
3. Direct Expenses are also called
a. Major Expenses b. Sundry Expenses c. Over Head Expenses d. Chargeable Expenses
4. Factory overhead is also termed as Manufacturing overhead or
a. Office Overhead b. Selling Overhead c. Distribution Overhead d. Production Overhead
5. Warehouse rent is a part of
a. Prime Cost b. Distribution Overhead
c. Selling Overhead d. Factory Overhead
6. Indirect Material Scrap is adjusted along with
a. Prime Cost b. Works Cost c. In P & L A/c d. In Trading Account
7. Goodwill written off is a part of
a. Prime Cost b. Factory Overhead c. Office Overhead d. None of these
8. Sale of defectives is reduced from
a. Prime Cost b. Works cost c. Cost of Production d. Cost of Sales
9. Tender is an
a. Estimation of cost only b. Estimation of profit only
c. Estimation of selling price d. None of these
10. Cost of sales plus profit is
a. Selling price b. Value of finished goods
b. Value of goods produced d. Value of stocks
Section B
II. Answer ANY TWO questions: (2 X 5 = 10)
11. What are the Objectives of Cost Accounting?
12. During the year 2020, T Ltd., Produced 50,000 units of a product. The following
Particulars Rs.
Stock of raw material on 1.1.2020 10,000
Stock of raw material on 31.12.2020 20,000
Purchase 1,60,000
Direct wages 75,000
Direct expenses 25,000
Factory expenses 37,500
Office expenses 62,500
Selling expenses 25,000
13. Prepare a cost sheet showing Cost per unit and Total cost at each stage.
Normal usage - 300 units per week each
Maximum usage - 450 units per week each
Minimum usage - 150 units per week each
Reorder quantity - 2,400 units
Reorder period - 4 to 6 weeks
Calculate: a. Reorder Level b. Minimum level c. Maximum level d. Average Stock Level.
14. From the following particulars write up the stores ledger card under LIFO method
2021 January 01 Purchased 500 tons at Rs.2 per ton
10 Purchased 300 tons at Rs.2.10 per ton
13 Issued 500 tons
20 Purchased 400 tons at Rs.2.20 per ton
25 Issued 300 tons
27 Purchased 500 tons at Rs.2.10 per ton
31 Issued 200 tons
 SECTION – C
III. Answer ALL The Questions: (3 × 10 = 30)
15. a) From the following data, prepare a statement showing the cost per man- day or eight hours:
a. Basic salary and dearness allowance Rs.300 per day
b. Lease salary to the workman 6% of the basic and D.A.
c. Employer’s contribution to P.F. 6% of (a) and (b)
d. Employee’s contribution to P.F. 6% of (a) and (b)
e. Pro rate expenditure on amenities to labour Rs. 25 per head per month
f. Number of working hours in a month 200.
(or)
b) From the following particulars calculate the earnings of different workers under Taylor’s Differential
piece rate system.
Standard time per unit : 6 minutes
Normal Rate : Rs.5 per hour
Differential Piece rates:
80% of piece rate below the standard
120% of piece rate at or above the standard
In a day 8 hours, the production by different workers is as under:
Amar : 70 units, Balu : 80units, Chinna: 90 units, Dharan : 100 units
16. a) From the following particulars. calculate the machine hour rate for a machine.
Cost of the machine Rs.42,000
Estimated scrap value Rs.2,000
Estimated working life 20,000 hours
Running time for a 4 week period 150 hours
Estimated repairs for life Rs.10,000
Standing charges allocated to this machine for a week Rs.300
Power consumption per hour 5 units @ 10 paise per unit.
(or)
b) A company has 3 production departments and 2 service departments and for a period the departmental
distribution summary has the following details.
Departments
A Rs. B Rs. C Rs. I Rs. II Rs.
6,50,000 6,00,000 5,00,000 1,20,000 1,00,000

The expenses of the service departments are allotted on a percentage basis as follows:
A B C I II
I 30% 40% 15% - 15%
`
II 40% 30% 25% 5% -
Prepare a statement showing distribution of the expenses of the two services departments.
On a percentage basis by repeated distribution method.
17. a) From the following information given below prepare a cost sheet.
Particulars 01.01.2021 31.12.2021
Rs. Rs.
Cost of raw materials 30,000 25,000
Cost of work in-progress 12,000 15,000
Cost of stock of finished goods 60,000 55,000
Transactions during year:
Purchase of raw materials 4,50,000
Wages paid 2,30,000
Factory overheads 92,000
Administrative overheads 30,000
Selling & distribution overheads 20,000
Sales 9,00,000
(or)
b) The following transactions took place in respect of an item of material:
Date Receipts (Qty) Rate Rs. Issued (Qty)
2.3.2021 200 2.00 -
10.3.2021 300 2.40 -
15.3.2021 - - 250
18.3.2021 250 2.60 -
20.3.2021 - - 200
Record the above transactions in the stores ledger, pricing and issues at:
a. Simple Average Method b. Weighted Average Method