' ,.q'? ~ - ?

--
rarer I Subject Code: 44803 ( Cost Accounting -

Duration: 2.5 Hrs. v1arks: 75

NB : All workings should form part of the answer

Q. I A Fill in the blanks with the most appropriate option (Any 8) (08)

I. _ _ _ _ _ _ is a running charge in transport costing

a. Cost of diesel b. Rent of Garage
c. Insurance d. License Fees
2. The calculation of the cost per unit of service rendered by a vehicle, example : the
cost per passenger kilometre is in _ _ _ _ costing
a. Transpo1i b. Hotel
c. Hospital d. Electricity
3. In Integrated system, cash sale of goods is debited to _ _ _ __
a. Stores Ledger Control Ale b. Cash/Bank Ale
c. Wages Control Ale d. WIP control Ale
4. 1n Integrated system, Final profit as per Costing P&L Ale is credited to_ _
a. Cost Ledger Control Ale b. Profit & Loss Ale

-
c. Cost of Sales Ale d. Trading account
5. ln non-integrated system, cost ledger contains
- -- - -
a. all personal accounts b. all impersonal accounts
c. all nominal accounts d. Machinery
6. Process cost is based on the concept of _ _ __
a. Average cost b. Marginal cost
c. Standard cost d. differential cost
7. No1mal loss arises under - - --
a. normal conditions b. abnormal conditions
c. perfect conditions d. unfavourable conditions
8. Equivalent units are calculated by _ _ __
a. actual units x stage of completion b. fresh units x stage of completion
c. input x stage of completion d. fresh units + stage of completion
9. No. of inspections is an ____
a. Activity cost driver b. organisational cost driver
c. structural cost driver d. cost centre
10. Activity based management is the application of _ _ __
a. ABC b. Traditional costing
c. Operating Costing d. Target costing

Q .l B Match the following (Any 7) (07)

Column A Column B

I. Hospi ta l a. Credit Factory overheads control Ale

2. Fixed cost b. Changes with production leve l.
3. Abnormal loss c. Number of despatches
4. Passenger Transport cl . Debit Factory overheads Contro l Ne
5. Issue of direct materi al e. Remain unchanged with the
---

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' production level ch~a_n_gc_·s_ _ _.~~

16. RCtum
or
indirect material to f. Debit WIP Cc;~trol /\le
stores
, 7. Despatching costs_ . Unavoidable loss
8. Normal Loss h. Avoidable loss
9. Wa cs a lied to factor i. Per atient -Da
I0. Variable cost ·. Per assen er-km

Q.2. A Pass Journal entries for the following transaction of Moon Ltd ~,or h th of June 2022 (l 5)
t e mon
under the Integrated system of Accounting.

Transactions t
I. Material purchased from SPS & Co. 3,20,000
2. Material issued to production 2,50,000
3. Wages paid to worker 90,000
4. Wages applied to production 70,000
5. Factory overhead incurred 25,000
6. Material damage having no scrap value 10,000
7. Selling expenses incuned 30,000
8. Office expenses paid 15,000
9. Cost of goods produced 3,80,000
I0. Materials returned to SPS & Co 50,000
11. Sales to FR Ltd (60% on credit) 5,00,000

OR
Q.2 B The following information for XYZ Ltd is available for the month of July 2022
(15)
1. Opening Work-in-progress : 1,800 units at ~. 9,000
Degree of completion : material : I00%, Labour & Overheads : 60%
2. Input of materials : 18,200 units at ~- 54,600
Expenses: Labour:~- 24,600, Overheads:~- 16,400
3. Units scrapped : 2,400 units
Degree of completion: Material : 100%, Labour & Overheads: 70%
4. Closing Work-in-Progress : 2,000 units
Degree of Completion : Material : 100%, Labour & Overheads : 80%
5. Finished units transferred to next process : 15,600 units
6. Normal scrap : 10% of input (opening WIP + input) Scrap realized at ~-
3 per unit
Prepare : i. Statement of Equivalent Production using FIFO method
ii. Cost statement
iii. Statement of valuation
iv. Process Account

Q.3 .A ~r_ol_lo_w_i_n"'--ar_e_th_e_b_a_la_n_c_es_i_n_C_o_st_L
_e_d-"'--er_o_f_M
,a_n_u_fa_c_
tu_ri_n""---+--'---~:....::..i::..:1:...:.:·il:....:2022 . ( 15)
Particulars Debit(~.)
Finished Stock Ledger Control A/c 4,500
bctory overhead Control Ne 1,000
Work-ln-Progre'>'> Control A/c 2,400
Stores Ledger Control Ale:, 4,400
Cost Led ,er Control Ale 12,300
Following are the transactions for the month ending 30 th April 2022.

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 Paper / Subject Code: -UNOJ / Cost Acrnunting - Ill

Particulars Amt. (t}

Raw material Purchased 65,000
\i1atcrials issued to Production 51.500 i
; Direct wages 12,500 I
' Factory overhead incurred 8.000
Indirect labour 2,500
Factory overhead charged to production 11 ,500
Cost of sale 57,800
I Sales return at cost 1,000
Finished product at cost 67,500
Sales 70,000
Prepare the following cost control accounts:
I. Stores Ledger Control Account
2. Works Overhead Control Account
3. Work In Progress Ledger Control Account
4. Finished Stock Ledger Control Account
5. Cost Ledger Control Account
6. Trial balance as on 30 th April 2022 .
OR
e
Q.3. B Under ABC , Sharad Ltd Provided the followino information for the month of June· (15)
'"' Actual Actual Activity
Paiticulars Estimated Expected Activity
overheads overhead
Setups 72,000 50 setups 70,000 60 setups
Purchase orders 4,200 2100 purchase orders 2,400 2100 purchase orden
Product testing 14,000 700 tests 13.800 680 tests
Template etching 2,400 60 etchings 2,000 64 etchings
Facilities 80,000 8000 sq. feet 85,000 8000 sq . feet

What amount of overhead was applied to the product dming the June using ABC?

Q.4. A Layman Limited runs a Bus and requests you to suggest fare per passenger/kilometre (15)
from the foll owing information provided :
Purchase Price of Bus <. 30,00,000

•
Life of Vehi cle 5 years
Scrap Value t 70,000
Length of the route 28 kms
In terest on loan (per annum ) <. 8,400
Driver's Sa lary (per month) t 13,500
Conductor's Salary (per month ) <. 8,000
Administrat ive Charges (per annum ) t 2,800
Repairs and Main tena nce (per annum ) <. 11,200
Insurance (per annum) t l-l .000
Garage Rent (per annu m) ~- 70,000
Road Tax & Permit (per an num) ~- 3,500
Tire-tube repair~ (per annu m) ~- ~.800
Di esel and Oil (per km) t9

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 Pape r/ Subject Code: 44803 / ( •o, 1 1\ccou ntin g - Ill

The bus has 2'.' ~cats and 1\ is planned to make _. r .25 days in a month .
5 two-way ti 1P" 01
..\-;-,urnc Profit~' :?.0°o of total rc\Cnuc.

OR

Q.4. B Aqua ltd. produces a product' Jellybean' which ocesses before it is (15)
passes throug h two pr b
completed and transferred to finished stock. The
following data relates to Novem er,
2022
Particulars Process I Process II Finished
~- ~- Stock~-
Opening Stock 15,000 18,000 45,000
Direct Matetials 30,000 31,500
Wages 22,400 22,500
Overheads 21,000 9,000
Closing stock 7,400 9,000 22,500
Inter-process profit included in opening 3,000 16,500
stock
Output of process I ts transferred to process II at
25% profit on the Transfer Pnce.
Output of Process II is transfened to finished stock
at 20% profit on transfer price. Stocks
in process are valued at prime cost. Finished
stock is valued at the price at which it is
received from the process I. Sales during the perio
d are~. 2,80,000.
Prepare : Process I Account
ii) Process lI Account
iii) Finished Stock Account
iv) Calculate the actual realized profit

Q.5.A Explain the advantages and limitations of Integ

rated Accounting System
Q.5. B Explain the advantages of lnter-finn compariso (08)
n
(07)
OR
Q.5. C Write short notes on (any three)
1. General Ledger Adjustment Account (15)
11. Equivalent Units
111. Advantages & Disadvanta
ges of Process costing
1v. Features of Operating Costing
v. Disadvantages of ABC

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Time: 2 hours 30 minutes Marks: 75

N .B.: I ) Question No . I is Compul sory

2) All Workings should form the part of Solution.
3) Use of Simple Calculators is allowed .

Q. I )A) Fill in the blanks (Any 8) 8

1. The objective of ___ is to maximize profit.

2. _ _ __ is a technique of evaluating the performance of firms in an industry.
3. In service costing, salary of driver is _ _ _ cost.
4. In Non- Integrated system, purchase of material for cash is debited to _ _ _ Ale.
5. _ _ _ _ costing is used to ascertain the cost of providing a service.
6. In _ _ _ Ledger an account is maintained for each job.
7. Under Integrated system for recording depreciation on furniture, ___ Ale is debited.
8. _ _ __ is a costing method that identifies activities in an organization and assigns the
cost of each activity to all products and services according to the actual consumption by
each.
9. _ _ _ is the name of a system whereby cost and financial accounts are kept in the same
set of books.
I 0. _ _ _ _ is calculated by dividing equivalent cost by equivalent quantity

Q.1) B) State Whether the following statements are True or False. (Any 7) 7
I. Material lost is debited to Profit & Loss Ale in Integrated system of Accounts.
2. Fare in case of taxi is based on cost per km.
3. Uniform Costing helps to control cost.
4. Overheads can be over/under absorbed.
5. Normal loss is unavoidable.
6. Process Costing is a method of marginal costing.
7. Loss on sale of car is not recorded in Integrated system of accounting.
8. WIP Control Account will always have a credit balance.
9. Equivalent production is a method of Service costing.

• I 0. Stores Ledger Control Account is credited when material is returned to stores.

Q.2) A) CAS Ltd operates separate cost accounting and financial accounting system.
The fo llowing is the balance as on 301h September 2019 in the cost ledger 15
Tna. I Balance as on 30th September 2O19
Particulars Debit (Rs.) Credit (Rs.)
Stores Ledger Control Ale 45000
WIP Control Ale 180000
Finished Goods Control Ale 120000
Cost ledger Control Ale 345000
345000 345000
Transactions for the month of September 20 19 were as under :
1. Material purchased Rs. 95,000.
2. Wages paid (including indirect wages Rs.25,000) Rs.75,000.
3. Factory Overheads incurred Rs .70,000.
4. Material issued to Factory Rs.25,000.
5. Finished goods at cost Rs.2,05,000.

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6. Cost of goods sold Rs. l .90,000.

7. Material issued to Production Rs.1 ,20,000
8. Sales Rs.2,50,000.
9. Material damaged Rs.5000
10. Office expenses incurred Rs. 12,000
11. Selling overheads incurred Rs. l 0,000.
12. Office expenses & selling overheads to be transferred to costing P&L Ale.
You are required to prepare
1. Stores Ledger Control Ale.
2. WIP Control Ale.
3. Finished Goods Control Ale.
4. Cost ledger Control Ale.

OR
Q.2)B) Riya enterprises furnishes the following information for process for the month of August
2019. Units Introduced in process- 11,000 units at~ 22,360
-
Expenses debited to Process account
Material ~20,000
Labour ~ 20,800
Overheads ~ 10,400
Unit transferred to next process- 10,200 units
Closing WIP- 400 units
(Degree of Completion: Material-80%, Labour-60%, Overheads- 60%)
Units scraped- 400 units, scraped units were sold at ~l per unit
Expected loss- 4% of units introduced
Prepare
1) Statement of Equivalent unit
2) Statement of equivalent Cost per unit
3) Statement of Cost apportionment
4) Process account

Q.3) A) LPG LTD an oxygen producing company removes waste lime through following trucks:
"'
15
Number of trucks Capacity
10 3 tons each
15 2 tons each
25 4 tons each
20 1 ton each
Each truck takes 6 trips a day and m each tnp covers an average distance of 5 Kms. Each
truck carries waste lime 60% of its capacity. Taking an annual average, 20% of the trucks
remain held up for repairs, maintenance etc. every day.
The fol lowing are monthl y charges incurred for the month of Ju ne 20 19 on transport:
Salary of the superintendent Rs 4000
Salary of 3 foremen Rs I 000 each
Wages of 70 drivers Rs 300 each
Wages of l 40 workers Rs 150 each
Stores used Rs 32000
Petrol Rs 120000

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Lubricant Rs 30000
Stores consumption Rs I 0000
Rent of garage Rs 6000
Electric expenses Rs 12000
Miscellaneous expenses Rs 24000
Superintendent devotes 50% of his time for this job. This department has also to bear Rs
21000 p.m. for services bonowed from the other department.
Calculate cost per ton Km for removing waste lime taking a month of 30 days.

OR

Q.3) B) Pass Journal entries for the following transaction of Virat Ltd for the month of
August 2019 under Integrated system of Accounting. 15
Rs.
1. Material purchased from CA & Co. (cash 20%) 4,00,000
2. Material issued to production 2,50,000
3. Wages paid to worker 1,00,000
4. Wages applied to production 70,000
5. Factory overhead incurred 55,000
6. Material damage having no scrap value 15,000
7. Advertising expenses incurred 40,000
8. Printing and stationery expenses paid 15,000
9. Cost of goods produced 2,80,000
10. Wages applied to Factory 17,000
11. Sales to Aroma Ltd (70% on credit) 8,00,000

Q4.)A) KK Transport Co. owns a bus which runs between Mumbai to Nashik and back, for 15
15 days in a month. The distance between Mumbai to Nashik is 120 kms. The bus
completes the trip from Mumbai to Nashik and back on the same day. Remaining 15 days
bus runs between Mumbai to Pune . The distance between Mumbai to Pune is 150 kms.
The bus completes the trip from Mumbai to Pune and back on the same day
The following information is available :
Cost of bus Rs. 30,00,000
Depreciation Rate 25% p.a.
Salary of Driver Rs. 30,000 p.m.
Insurance 1% p.a.
Salary of Cleaner Rs.5 ,000 p.m.
Salary of Conductor Rs. 15,000 p.m.
Diesel consumption is 15 kms per litre of diesel and cost of diesel per litre is Rs.60.
Tax is Rs 84,000 p.a.
Lubricants is Rs 6 per 50 kms.
Repairs and maintenance Rs. 18,000 p.m.
Permit fees Rs. 24,000 p.m
Normal capacity of bus is 50 person.
The bus generally has 80% of its capacity occupied when it goes to Nashik and 75% of its
capacity occupied when it goes to Pune.
Calculate the Charges to be made if a profit at 25% is to be earned on his takings.

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OR
th
Q4) B) From the following information extracted from the books of Parle-G Ltd for e 10
month of June 2019,
1. Opening WIP as on 1st June 2019 2000 units @ Rs. 10 per unit.
Degree of completion: Material 100% Labour and Overheads 50%.
2. Inputs introduced during June 10,000 units.
3. Outputs transferred to the next process 11,000 units.
4. Closing WIP as on 30st June 2000 units
Degree of completion : Material 100% Labour and Overheads 60%.
5. Cost of Material Rs. 2,00,000 Labour Rs. 91,800, Overheads Rs. 61,200.
Prepare the following under FIFO Method
1. Statement of Equivalent Production.
1
2. Statement of Equivalent Cost per unit.
3. Process Account.

Q4.) C) Pass Journal entries (without narration) for the following transaction of CSR Ltd for the
month of July 2019 under Non-Integrated system of Accounting. 5
Rs.
1. Material purchased from A & Co 4,00,000
2. Wages applied to Factory 1,00,000
3. Paid for purchase of pen , pencil and files 20,000
4. Material damage having no scrap value 10,000
5. Sales promotion expenses incurred 30,000

Q.5) (A) What are the features oflntegrated System of Accounting? 8

(B) What is Inter-firm comparison and its advantages and limitation? 7
OR
(C) Write short notes on (Any 3) 15
1. Non-integrated system of accounting.
2. Cost Drivers.
3. Abnormal Wastage.
4. Inter Process Profit.
5. Running Cost.

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2,-H , 1 I')A.iJ g
!Time: 2 ½ Ilours]
N.B. I. Q. 1 is compulsory. [Marks: 75]
2. Q.2 to Q.5 are compulsory with internal choice.
3. Figures to the right indicate full marks.
4. Workings should form a part of your answer.
5. Use of simple calculator is allowed.
QI) A) Match the Following (Any 8) [8]
A B
1 Machine setup costs a Actual output less normal output
11 Units costs b Per patient day
iii Hospital C Running expenses
IV Payment of wages d Indirect cost
V Library e Number of machine shops
vi Records issue of material for use f Normal cost + Normal output
vii Ordering costs g Debit Wages control
viii Abnormal gains h Per member book
IX Overhead 1 Material acquisition
X Cost of fuel for a car J Number of orders

Ql) B) State whether following statements are True & False (Any 7) [7]
1. Uniform costing is a distinct method of costing
2. Work in progress ledger contains accounts of individual jobs
3. Over absorbed and under absorbed overheads is transferred to overhead adjustment account
4. Finished Goods Control Account is opened in the cost ledger
5. When raw materials are purchased the work in process control account is debited
6. For a passenger transport the composite cost unit is passenger k.m.
7. Invisible waste has no sales value
8. ABC leads enhanced control overhead costs
9. Abnormal loss is debited to Costing profit & loss account
10. Inter firm comparison does not maximize profitability
-_ Q2) Journali se the following transactions under Integrated system [15]
Raw material purchased 25,000
Di rect Material issued to product 12,000 )
Direct Wages paid (30% indirect) 15,000
Direct Wages charged to production 9,000
Manufacturing Expenses incurred 75,000
Manufacturing Expenses charged to production 84,000
Selling & Distribution Cost 24,000
Finished Products at cost 21,000
Sales 32,000
Closing Stock Nil
Co ll ection from Debtors 5,800
Payment to Creditors 9,900
OR

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Q2) The budgct cd over 1ea( s ancl [15] 0

-
cost l ri vers vo ume o f ABC I-' td arc as follows
Budgeted Overheads Budgeted
Cost Pool (Rs.) Volume
Cost dri ver
Material procurement 580,000 1,100
No. of orders
Material handling 250,000 680
No. of movements
Set up
415 ,000 No. of set up 520
Maintenance
970,000 Maintenance hours 8,400
Quality Control
176,000 No. of inspections 900
Machinery
720,000 No. of machine hours 24,000
The company has produced a batch of 2600 components of GW-95 , its matenal cost was Rs. 26 0,000
and labour cost was Rs. 490,000. The usage activities of the said batch are as follows
Material orders
52 Maintenance hours 1,380
Material movements 36 Inspection
setups 56
I 50 Machine hours 3,600
Ascertam the cost driver.rates and also compute the cost of batch of component using ABC
Q3) Bharat Ltd. is engaged in process engineering industry. During the month of April 2018 [15]
I
2000 units were introduced in Process X. The normal loss was estimated at 5% of input. At the end
of the month 1400 units had been produced and transferred to Process Y, 460 units were incomplete
and 140 units, after passing through fully the entire process had to be scrapped.
The incomplete units had reached the following stage of completion
• Material 75% completed
• Labour 50% completed
• Overhead 50% completed
Following is the further information on the Process X
• Cost of the 2000 units Rs. 58,000
• Additional Direct Materials Rs. 14,400
• Direct Labour Rs. 16,000
• Overheads Rs. 19,000

•
Units scrapped realised Rs. 10 each
Prepare
1) Statement of Equivalent Production Statement
2) Statement of Cost
3) Process X Account
OR
Q3) A product passes through two process I & II and then transferred to finished stock
[15]
Following information is given below
Process I Process II Finished Stock
Opening Stock (Rs.) 15,000 18,000 45 ,000
Direct materials Cost (Rs.) 30,000 31,500
Direct Wages (Rs.) 22,400 22,000
Factory Overheads(Rs.) 21,000 5,000
Closing Stock 7,400 5,000 22,500
Inter process profit in opening stock 3,000 16,500

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I
Output of Process I is transferred to Process II at 25% profit on the transfer price. Output of Process
II is transferred to Finished goods at 20% profit on transfer price. Stocks in process arc value at
prime cost. Finished Stock is valued al the price at which it is received from the process II. Sales
during the period are 300,000/-. Prepare Process accounts and Finished Goods Account showing the
profit element at each stage.
Q4) Marcopolo Transport Company maintains a fleet of bus as under [15]
• 20 busses with carrying capacity of 60 passengers each
• 10 busses with carrying capacity of 40 passengers each
Each bus makes 4 trips a day, covering a distance of 20 kilometres in each trip. On an average 80%
of the seats are occupied in each trip and 5 busses are under repairs every day.
Following are the details available
Particulars Rs.
Salary of 30 drivers 3,000 each per month
Salary of 30 cleaners 1,000 each per month
0 Diesel expenses
Oil, grease etc.
400,000 per month
5,000 per month
Tyres & Tubes etc. 2,000 per month
Repairs & Maintenance 30,000 per year
Garage Rent 40,000 per year
Road Licenses 20,000 per year
Taxes 5,000 per half year
Interest 25,000 per year
Salary to Operating Manager 5,000 per month
General Supervision Charges 20,000 per year
Assuming that the company operates its fleet daily (all 365 days), Ascertain the operating cost per
passenger kilometre.
OR
Q4) Nitco Manufacturing Ltd. provides the below costing records with balances as on 1-1-17 [15]
Rs in '000 Rs in '000
~ Stores Ledger Control Ale 2,480
Work-in-progress Ledger Control Ale 1,250
Finished Goods Ledger Control Ale 2,480
Production Overheads Ale 168
Administration Overheads Ale 240
Selling & Distribution Overheads Ale 125
General Ledger Adjustments A/c 6,263
6,503 6,503

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Following are the transactions for the year ended 31 -12-2017

Particulars Rs in '000
Material purchased 9,602
Material issued to Jobs 9,548
Material to Works Maintenance 824
Material to Administration Offices 68
Material to Selling Office 144
Wages - Productive 2,986
Wages - Non-productive 1,300
Transportation expenses for incoming materials 168
Production Overheads incurred 4,845
Absorbed Overheads Production 7,182
Administration Overheads incurred 1,480
Administration Overheads absorbed to Finished Goods 1,354
Sales Overheads incurred 1,284
Sales Overheads absorbed 1,640
Finished Goods produced 19,168
Finished Goods sold 19,842
Sales Realisation 24,860
Make up the various accounts as you envisage in the cost ledger and prepare a trail balance
as on 31-
12-2017

QS) A) What are the objects and requisites of Unifonn Costing

[8]
B) Distinguish between Activity Based Costing and Activity Based Management
[7]
OR
QS) Short Notes (Any 3)
[15]
1. Cost driver
2. Abnormal Cost
3. Equivalent Units
4. Works Overhead
5. Inter firm Comparison

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