Maharaja Agrasen Institute of Management Studies

Affiliated to GGS IP University, Recognized u/s 2(f) of UGC

Recognized by Bar Council of India, ISO 9001: 2015 Certified Institution
Sector 22, Rohini, Delhi -110086, India; www.maims.ac.in

Department of Business Administration Academic Year: 2022-23

Semester: 2nd Assignment No.-2 (Unit No. -3 &4)

Course/ Subject Code: BBA 102

Course/ Subject Title: Cost Accounting
Issue Date: 02nd April 2024
Last Date of Submission: 30th April 2024

Note:
1. The student should attach a proper cover page for each assignment mentioning the
Student’s complete Name, University Enrolment No., Program, Semester, Class,
Section, Assignment Number, and Subject Title. The format of the Cover page is
attached herewith.
2. Each assignment should be prepared by the student individually in his/her handwriting.
3. A4 size ruled sheets should be used for writing the assignment.
4. Black or Blue pens should be used for writing the assignment.
5. Assignment pages should be serially numbered at the bottom of the page.
6. The student should use examples and illustrations to support the answers.

Questions CO
No.
Q1 Attempt any four: CO6
(a) Escalation Clause
(b) Process vs Job Costing
(c) Abnormal Loss
(d) Job vs Batch Costing
(e) Chargeable expenses

Q2: The following information was received from the books of the company for the CO 5
quarter ending 31st March 2020
Stock of material 70,000 Expenses of stationery 11,350
(31.3.2020)
Stock of 1,00,000 Travellers’s Salary & 9,000
material(01.1.2020) commission
Purchase of material 8,03,290 Depreciation on office 700
furniture
Traveling expenses 5,100 Director’s fees 8,000
Carriage inwards 4,500 Fuel, Gas & Water 17,900
Carriage Outwards 9,150 Manager’s Salary 18,000
Drawing office salaries 7000 Income tax paid 12,000
Depreciation on plant 8,000 Donations 4,600
Factory rent, rates & 11,200 Office expenses 5,000
insurance
Office rent, rates & 29,100 Air-conditioning 4,000
insurance charges
Showroom expenses 9,000 Labor welfare charges 7,200
Productive wages paid 2,27,000 O/s Productive wages 33,000
 Maharaja Agrasen Institute of Management Studies
Affiliated to GGS IP University, Recognized u/s 2(f) of UGC
Recognized by Bar Council of India, ISO 9001: 2015 Certified Institution
Sector 22, Rohini, Delhi -110086, India; www.maims.ac.in
Repairs of machine, 10,000 Sales 13,70,000
Plant & tool

Prepare a cost sheet assuming that the manager devotes 2/3 of his time to the factory.
OR
The cost of sale of production ‘A’ is made up as follows:-
Material used in manufacturing Rs. 5,500
Material used in packing material Rs.1,000
Material used in selling the product Rs. 150
Material used in the factory Rs. 175
The material used in the office Rs.125
Labor required in production Rs. 1,000
Labour required for supervision in factory Rs. 200
Expenses direct factory Rs. 500
Expenses indirect factory Rs. 100
Expenses office Rs.125
Depreciation of office building Rs. 75
Depreciation on factory plant Rs.175
Selling expenses Rs. 350
Freight on material Rs. 500
Advertising Rs. 125
Assuming that all products manufactured and sold, what should be the selling price be
fixed to obtain a profit of 25% on the selling price?

Q3) CO6
A Transport Co. charges 120 per ton for a 5-ton lorry load from A station to B And
station. The charges for a return trip are 110 per ton. In July 2006, a truckmade 10 CO5
outward journeys with full load out of which 3 tons were unloaded twiceat C station
on the way. It returned without any load once only from C station to A station.
The expenses incurred were:
Annual fixed charges Rs. 38,400
Annual maintenance Rs. 19,200
Monthly running charges Rs. 2404
You are required to find out the cost per ton-kilometer (absolute) and the profit for July
2006, assuming that no concession is made for delivery at the intermediate stations.
The distance from A station to B station is 210 km, and from A to C station is 120 km.
The truck carried a load of 8 tons 5 times in the month while returning from B
station butwas once caught by the police and was fined 2,000.
OR
 Maharaja Agrasen Institute of Management Studies
Affiliated to GGS IP University, Recognized u/s 2(f) of UGC
Recognized by Bar Council of India, ISO 9001: 2015 Certified Institution
Sector 22, Rohini, Delhi -110086, India; www.maims.ac.in

Q4. Alcon Construction Company Ltd. commenced its business construction on 1-1-2021. The trial
balance as of 31-12-2021 shows the following balances
Dr. Cr.
CO 6
Paid-up share capital — 1,00,000
Cash received on account of contract — 1,20,000
(80% of work certified)
Land and Buildings 30,000
Machinery at 40,000
cost (75% at site)
Bank 4,000
Materials at site 40,000
Direct Labour 55,000
Expenses at site 2,000
Lorries and vehicles 30,000
Furniture 1,000
Office equipment 10,000
Postage and telegrams 500
Office expenses 2,000
Rates and taxes 3,000
Fuel and power 2,500
2,20,000 2,20,000
 Maharaja Agrasen Institute of Management Studies
Affiliated to GGS IP University, Recognized u/s 2(f) of UGC
Recognized by Bar Council of India, ISO 9001: 2015 Certified Institution
Sector 22, Rohini, Delhi -110086, India; www.maims.ac.in
The contract price is Rs.3,00,000 and the work certified is Rs.1,50,000. The work
completed since certification is estimated at Rs.1,000 (at cost). Machinery costing
Rs.2,000 was returned to stores at the end of the year. The stock of material at the site on
31-12-2021 was valued at Rs.5,000. Wages outstanding were Rs.200. Depreciation on
machinery at 10%.
You must calculate the profit from the contract and show how the work-in-progress will
appear in the Balance Sheet as of 31-12-2021.
OR
The contract price is Rs. 20,00,000. On 31st March 2018, 90% of the work had been
completed and certified by the architects. The costs incurred up to 31st March 2018 on
this project amounted to Rs. 16,00,000. It was estimated that another 80,000 would have
to be incurred further to complete the project. The contractee paid 75% of the value of the
work certified. Work not certified is Rs. 1,00,000. Find out the profit to be taken to the
profit and loss account.