ST.

JOSEPH’S COLLEGE FOR WOMEN (AUTONOMOUS), VISAKHAPATNAM

II B.COM DEGREE EXAMINATION AT THE END OF IV SEMESTER – JUNE, 2022
IV END SEMESTER COMMERCE Time: 3 hrs
COM 4104 (4) COST AND MANAGEMENT ACCOUNTING Marks: 60
J/22/AH
SECTION – A
Answer ALL the questions: 4X8=32

I (a) Distinguish between financial accounting and management accounting.

(OR)
(b) The following transactions occur in the purchase and issue of a material.
June.1 purchased 6,000 units @Rs. 6. 00 per unit
10 purchased 500 units @Rs. 5.00 per unit
July.5 Issued 3,000 units
12 purchased 5,000 units @Rs. 5.00 per unit
18 Issued 3,000 units
Aug.3 Issued 1,000 units
8 Issued 3,000 units
15 purchased 5,500 units @Rs. 5.50 per unit
25 Issued 3,500 units
From the above prepare the Stores Ledger Account, using LIFO method.

II (a) Briefly describe the methods of Labour remuneration and also describe any two
Incentive plans.
(OR)
(b) Discuss the purposes of financial statements.
III (a) What do you mean by Comparative Balance sheet and Profit and Loss account? Explain.
(OR)
(b) The following direct costs were incurred on Job no. 415 of Standard radio company:
Materials: Rs.4, 010
Wages:
Dept. A -- 60 hours @ Rs 3 per hr.
B -- 40 hours @ Rs 2 per hr.
C -- 20 hours @ Rs 5 per hr.
Overhead expenses for these three departments were estimated as follows:
Variable overheads:
Dept. A Rs 5,000 for 5,000 labour hrs.
B Rs 3,000 for 1,500 labour hrs.
C Rs 2,000 for 500 labour hrs.
Fixed overheads:
Estimated at Rs. 20,000 for 10,000 normal working hours.
You’re required to calculate the cost of job 415 and calculate the price to give profit of 25%
on selling price.
 IV (a) What is P/V ratio? Explain its uses.
(OR)
(b) (A) A company has fixed expenses of Rs. 90,000 with sales at Rs. 3,00,000 and
a profit of Rs. 60,000. Calculate the profit / volume ratio. If in the next period the company
suffered a loss of Rs. 30,000, calculate the sales volume.
What is the margin of safety for a profit of Rs.60,000?

SECTION – B
Answer any SIX from the following questions: 6X3=18

V. Write any three differences between cost and financial accounting.

VI. Define indirect materials. Give examples.

VII. Calculate contribution in each of the following independent situations:

(i) Fixed cost Rs.8,000, profit Rs. 5,600.

(ii) Variable cost Rs.7,000, sales Rs,11,000.

VIII. What is meant by B.E.P?

IX. Give three disadvantages of price rate system.

X. Calculate Economic batch quantity for the following information.

Annual demand of the product: 2,000 units.

Set-up cost per batch Rs.10.

Carrying cost per unit per annum Rs.1.

XI. Simple average price.

XII. Selling price -- Rs.150 per unit.

Variable cost -- Rs.90 per unit.

Fixed cost -- RS.6,00,000 (Total).

What is break-even point?

SECTION – C

XIII. Answer ALL questions: 5X2=10

1. Overhead,
2. What is scrap?
3. Marginal costing.
4. Variable cost.
5. Batch costing.
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