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Examination:- B. Qqm. IlaaRoll No.aaat

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Subject: Cost Accounting TIPlE ALLOWED:3 hrs,

PAPER: BC-406 MAX.MARKS:1咀

AttemptanyFIVEquestions.Altquestionscarryequalmarks.
for the year ended I)ecember
Q.l From the tbllowing infonnatiol prepare an income statement
3t,2413.
Rs.65,000
Beginning inventory (at sales price)
Rs.450,000
Purchases during the year (at cost)
Rs. 75,000
Closing inventory (at sales price)
Rs. 590,000
Sales (at sales Price) to
general administrative expenses amounted
Selling expenses amounted to 3o/, ofsales and
2% of sales.
REQUIRJDD: An income statement for the year 2013'
system' Costs of department 2 for the
Q.2 Khubaib manufacturing company uses process cost
month of June were as under:
Rs. 20.000
Cost from Preceding dePartment
Cost added:
Materials Rs' 21'816
Labour B.s'7'776
Factory overhead Rs'4'104 Rs'33'696
quantity schedule:
The following information was obtained from the department's
Units received 5,000
Units transferred out 4,000
Units still in process 1,000
The degree of completion of work in process was:
50% of the units were 40%o complete,
20% of the units were 30% complete, and
Balance of the units were 20% complete'
for June'
REQLIIRED: prepare cost of production report of department 2
Gujranwala Enterprises received an order for manufacture
of 500 units of their ploduct "y"
Q.3
from Lahor. *o*pu"V. Following costs were incurred for filling
the order;
Direct Materials cost Rs'25'000
Direct Labour cost Rs'50'000
Factoryoverheadappliedwas50%oofdirectlabourcost.
were as follow:
Additional cost incurred for rework on 50 units found defective
Direct Materials cost Rs'2'000
Direct Labour cost Rs'2'000
FactorY overhead at aPPlied rate'
order when:
REQUIRED: prepare journal entries to record completion of the
[1 loU is c-harged with the cost of defective work'
(2) Cost is not so charged'
Also calculate cost per unit in both of the cases'
service departments A & B'
Q.4 A company has three production departments x, y & z, artdtwo
the incurred by them during the month are:
go,o00, ,;Rt. 70,000, z Rs' 50,000, A Rs' 23'4aa'B Rs' 30'000'
"*perrr"*
X Rs.
Expenses of service departmentr-*" uiportioned
to the production and to the co-service
departrnent on the following basis:
xYZAB -
Expenses ofA 20% 19Y: 30% 10%

Expenses ofB 40% 20% 20Yo 2Aoh

REQUIRED:ApportionexpensesofA&Bdepartmentstox,y&Zdepartmentswiththe
helpofsimultaneousequation,*ethodandcalculatetoldfactoryoverheadcostofthe
production departments.
G.T.O.)
 Q.s Following figures are taken from annual budget of ABC manufacturers for the year 2013: ri'
Fixed factory overhead Rs. 4,000,000
Factory overhead absorption rate Rs. 70 per direct labour hour
Variable factory overhead rate Rs. 30 per direct labour hour
Following are a few figures of actual results of year 2013
Capacity attained 110,000 hours
Factory overhead Rs. 8,000,000
REQUIRED: (a) Budgeted capacity that was used to compute factory
overhead absorption rate.
(b) Analysis of under or over absorbed factory overhead into volume and
budget Variences.
Q.6 Abdullah and Ahmad are two workers in assembling department of a manufacturing
concern. During each day of previous week their hours worked are as under:

Days Hours worked

Abdullah Ahmad
Monday 10 9
Tuesday ll 10
Wednesday 9 9
Thursday 8 10
Friday 9 8
Saturday 8 4

REQUIRED: Normal and overtime wages of Abdullah and Ahmad for the week if:
(a) Normal working hours are 8.
(b) Normal rate is Rs. 80 per hour.
(c) workers are paid at double the normal rate for overtime.
Q.7 Following transactions are related to Marium manufacturing company, Lahore" Factory is
situated at Gu-grat. Total payroll cost for the month Rs.SOO,OOO, Lrnpioy..s, income
tax
withheld Rs.40,000, deduction for the provident funrd at the rate of t6X-of gross payroll,
voucher for net earnings of employees was prepared and paid. Payroll analysis ^
revealed the following information:
rt..i
Direct Labour Rs.450,000
Indirect Labour Rs.100,000
Sales Salaries Rs. 150,000
Office Salaries Rs.100,000

Note: Employees . Provident fund contribution by the employer is at the same rate
as the
rate of deduction, rate of social security fund contribution by employ
er is 5yo of gross pay.
REIUIRED: Prepare journal entries to record the above transactions in general office
books and factory office books.

Q.8 Explain the following:

(a) Process cost Method.
(b) Perpetual inventory system.
(c) First in first out method.
(d) Expenditure Varience.
 UNIVERSITY OF THE PUNJAB
PART - II 5/2014
Examination:- B. Com. :Roll No.¨ …..¨ …… ¨¨
●
.・
・・ :
.........● ● ● ● ● ● ● ● ● ● ● ● ● ●・●

SutteCt COSt Accounting TIIIIE ALLOWED:3 hrs.

PAPER:BC¨ 406 ■lEAX.MARKS:100

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Rccords of Sangam Cold rettgerator company show the following info.11latiOn for
the thtte inonths ended March 31,2014

ルlo"Fiは,P119Ⅲ ゃ91… …………………………………

… Rs l,946,700
1nventoFiCS,Jan11カ ryl,2014
Finished goods (100 refrigerators) Rs 43,000
Materials Rs 2`lpQQ_____… …
Direct labour Rs 2,125,800
Factory overhead Rs 764,000
Marketing expenses Rs 516,000
Gencral and administrative exPens,ユ … Rs. 461,000 。
…………… ………… … …… ……… ……… …
…… ………… … ・・…・
・
g■
シ̈い (1■ 4∞ 19単 攣 )… ……………………………………………………………… Rs. 6,634,000
Inventories,ヽ 4arch 31,2014
No unfinished work on hand
Finished goods (200 refrigerators), costed at Rs.395 each
Materials 167.000
Required:
1 An income statement for the period.
2 The number of units manufactured.
3 The unit cost ofrefrigerators manufactured.
4. The gross profit per unit sold.
5 The income per unit sold.
6 The ratio of gross pr',cfit to sales.
7 The incomc to sales percentage.
／′

Question No.2
During the month of March the following costs were incurred in department No. 2 of
Mian Paints Industry:
Materials cost Rs 9,000
Labor cost Rs 4,250

Iryl::y..q-'qtq4."91! ... .1t:1,-1-99-

During the month 20,000 units with a total cost of Rs.38,000 were transferred into
departrnent from Department No. l.
Of these 15,000 units were completed and
transferred to department No. 3 and 4,000 units were in process on 31't March being
% complete as to materials, % complete as to labor and factory overhead.

Required: A cost of production report of department 2 for the month of March.

Question No.3
Predetermined factory overhead absorption rate computed by Ahsan Industries is Rs.6 per
machine hour. Budgeted factory overhead for activity level of 150,000 machine hours is
Rs.800,000 and for activity level of 100,000 machine hours it is Rs.700,000. Actual factory
overhead incurred during the year is Rs. 710,000 at an actual volume of 120,000 machine hours.

Required: (i) Variable factory overhead absorption rate.

(iD Budgeterl tixed tactory overhcad.
(ii| Budgeted activity level on which the absorption rate is based.
(iv) Over or under absorbed factory overhead.
(") Vr.llume variance. (P.T.0.)
(vi) iipending variance.
Question No.4
Following estimates relate to material "Alpha"
l:.sr,l.'qr:.{.[g-tl:.{.T:ryH
Silg.
"..... 9999 vrlt:
99.:tLq.plry-'T.9"'-q-"r.
Unit cost Rs.4.80
-.-----------:

Q"*r!rc.igi!. . ....... . .... ........... .

Required:
.. 1'/: " 1.

1. Calculate economic order quantity.

2. Currently the company is purchasing this material in lots of,4,000 units. How
much can the company save by buying in the most economical quantities.

Question No.5
a- A company had following inventorics at the bcginning and end of the month:
SePtember 1
SePtember 30
Materials Rs.2o,ooo Rs'25,ooo --,
..yb.*.isiiie-qe!.q;.,It?it"t"i!........................:...:i:,.e.p99........r,.t*ig----
_wo_rk_in-pl999!_s---_:Jplggf_-. ._.-__.----_[:,19..99-9.--- .-$:1-Q.999-...
_WttК ttp聖 9翌 三119■ _… … Rs.5′ 000 Rs. 6,000
EⅢ 典 _______ Rs.12′ 000 Rs.25,000

"_毀 "■
Dtring the month of September the cost of raw materials purchased was Rs.60,000; direct labour
cost incurred was Rs.80,000 and factory overhead applied to production was Rs.30,000.
Required: Prepare the necessary journal entries on September 30 to transfer the cost of
goods manufactured and sold to proper summary accounts.
(
b- Pass journal entries for sales retum with your own figures.
Question No.6
Four direct workers are engaged in an operation for which standard production time per piece is
determined as 48 seconds. Standard hourly rate of the workers is Rs.33.75. During a 40 hours
week output of the four workers is as follow:
A : =

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2,800 pieces B 2,900 pieces
C : 3,000 pieces D : 3,200 pieces
Wages of the workers are computed under straight piece rate but time rate earnings are
guaranteed to the workers.
Required:
l. Compute wages earned by each worker.
2. Compute distribution of wages between work in process and factory overheads.

Question No.7
Define cost accounting and differentiate between cost accounting and financial accounting.

Question No.8
What are the various methods of stock valuation. State advantages and disadvantages of each
method.

,
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 UNIVERSITY OF THE PUNJAB
.●
●●●000● ●●●0000000● ●●●0%
PART― II A/2015
Examination:‐ Bo Com. :Roll No。 "… … ¨...・ …・
“ ・:
・ ● ● ● ● ● ● 0● ● ● ● ● ● ● 00 0● ● ● ● ● ●・●

SutteCt:COst Accounting TIME ALLOWED:3 hrs.

PAPER:BC‐ 406 MAXo MARKS:100
NOTE: Attempt any FIW questions. All questions caty equal marks.
rcfrigcratOr company shOw the fol10wing infollllatiott fOr
March 31,2014.
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…… 191製 ュ PI撃 曽1… …………… ………… ………
……………
……… …………………・
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二
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……1221127QQ¨
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…Finicllρ
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99.輛 憂赫 IIIIIIIIIIII:棘 III鷲

… ………………………………………………………
…… 毅 9坐“ 。
月行 /1∩ A..IIIIIIIIIIIて ・・・……………………

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Direct labour

N9uni亜 shed w5rk・ 3五 I菰 こ

f1+is.h*.-e-e.e..9:.(?90.'"r'is.*ei$,..e_q!64ui.i.3is ;;;i " --"-' :'---"-"'

l. An income statement for the period.

2. The number of units manufactr-rred.
3. The unit cost of refrigerators manufactured.
4. The gross profit per unit sold.
5. The income per unit sold.
6. The ratio of gross profit to sales.
7. The income to sales percentage.

toFinishing department of Asia Manufacturing

]:t」 s.
overhead cost
品
温 F高
璃 語爾 亜 囀 Ⅲ ^月 `^ _:_■ 面 .輌 空 ■
ξ脇 機 島轟 需 翫 .

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Required:A cOst Ofproduction repo■

fOr Department No。 2 forthe mOnth OfMay,

RcluiroJ:(i) Variable factory overhead absorption rate.

(五 ) Budgeted fixed factory overhead.
(iii) Budgeted activity level on which the absorption rate is based.
(iV) Over or under absorbed factory overhead.
(V) Volume variance.
(Vi) Spending variance.
(P・ T・ 00)
Q。 4 Consumption forecast ofa particular material is givcn hercllnder:
Maximum daily consumption 600 units
Average daily consumption 500 units
Minimum daily consumption 400 unitS
Lead time 4 to 8 days
Time to get emergency supplies 3 days
Economic order quantity 5,000 units
Rcquired: Determine (a) order level, (b) Minimum level, (c) Maximum level, (d)
Danger level.

Q.5 A company had following inventories at the beginning and end of the month:
September 1 September 30

,--
Y-eIiE pl-q99-t!-:::-s_tt9ti+ll--- - .._ ---B:,__9,-99g -_ -. -E!,-_t,oog .
Rs.16,000
--Yg,tEf_rl_pl_99_elf_:::_l-?h_9ll{___-_--_-
---'-'R;.-s,-ot Rs.10,000
----'-'i;.-6;oij0--
_ Yqr|i.l]r plqsg!l-:::-lgE_---------- ' 0
'ri;.1r,0i,0 '"'"''i;.21;o'do'--
-

t!r{qh.q4 geq+q -.. _ ......-.....". r.

During the monih of septemu;I ii; ;;;i ;T;;il fii;ii;E pffih;s;J ;;,
Ri.ob,-rjoo ;
direct labour cost incurred was Rs.80,000 and factory overhead applied to production
was Rs.30,000.
llcquired: a. Prepare the necessary journal entries on September 30 to transfer the cost
of goods manufactured and sold to proper summary accounts.

一
 ″
b. Pass journal entries for sales retuun with your own figures.

Q.6 Abdullah and Ahmed are two workers in a department of a manufacturing concern.
During each day of the previous week they worked as follow:
Hours Workcd
Days
Abdullah Ahmed
Monday 10 9
Tuesday 11 l0
Wednesday 9 9
Thursday 8 . 10
Friday 9 8
Saturday 8 4
Requircd: Normal and overtime wages of Abdullah and Ahmed for the week if:
(a) Normal working hours are 8.
(b) Normal rate is Rs.80 per hour.
(c) Workers are paid at double the normal rate for overtime.

Q.7 Define cost accounting and differentiate between cost accounting and financial
accounting.

Q.8 Explain in detail the functional classification of cost.

 UNIVERSITY OF THE PUNJAB
, 0● ●
。 ●●●●●●●●●●●●●o● ●●●●●
.
PART― Ⅱ S/2015
Examination:‐ Bo Com. ・:
:Roll No.¨ ¨..“ ¨¨ "¨・ .・

SutteCt:COst Accounting TIME ALLOWED:3 hrs,

PAPER:BC_406 MAX.MARKS:100
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Q。 l Dllring thc mOnth Of July shahab COrpOration put into prOcess Rs.75,000 0f raw
materials. Thc Mixing Department used 10,000 1abollr hours at a cost OfRs.50,000_
and Finishing Dcpartincnt used 4,000 1abour hOurs at a cost Of Rs.10.00 per hOur.
Factory Ovcrhcad is applied at a rate Of R.3.00 per labour hour in the Mixing
Departrnent and Rs.6 00 per labor hOur in the Finishing Departlllent.
・ InventOrics:
M高 面: ‐ 1-― 一
― ――一一―塾:工 1____IIly ll___
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… …
・―― ―…… ……―
J｀ __2⊇ Q9_… 1■ ___1%Ω9p_
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Rcquired: 4 sChedule sho"ing cOst 6fwOrk putin process,cOst of goods manufactured

and cost Of 8oods sOld.Also ind Out unit cOst Of iaterials,labOur and
overhead for the July productiOn.

Q=2 F0116wing cOsts were charged tOFinisiling dcptttmcnt 6f Asia Manufactu」 ng

Colllpany during thc n10nth Of NIlay:

・
理胤ド 219"Ⅲ&J"響聖■_____― ―――一二―
…｀ ,9p_ 2■

、
還 踊轟豪島覆i壷1血
a哩
識 請
f協
:驚
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瑞 鷺∬Tl盤 貯讐R篤∬Ъ
器:鳳「 :A胤 囃￡
converted.
Rcquired:A cost OfproductiOn rcport fbr Departl■ cnt No.2 1br the nlollth Of
Ⅳlay.
Q。 3 A Company estimatcd its factOry Overhead fOr the next pc五
〇d at Rs.200,000.It is
認朧:f蹴 11盤 L増 Oy‖ ょ
l駅 鳳餞
t認『堪ettt鳩 還::&:::
Thc nlachines will run abOut 25,000 hours.
Itcquircd: 1. Factory OvOrhead rate that rnay be used in applying factOry ovcrhead to

露 ::rri謂
高電 ittP庶 富盤精漱 rl庶 i8
2.TOtal cOst Of JOb No.616 oonsisting of loo llnits by cach rat6 in(1)
above.oOb NO.616:direct matcrials Rs.16,000;dircct labor Rs.
38,000;direct labor hOurs 3,000;and inachinc hOurs l,975.

2。 グ 0。
 Q.4 ConsumptiOn fOrecast ofa particular material is given hcreunder:
Maxilnum daily collsumptiOn 600 units
Averagc daily cOnsumption 500 units
Minimllm dally conSЩ lptiOn 400 11n■ s
Lead time 4t08 days
Time to get emergency supplies 3 days
Economic order quantity 5,000 units
Required: Determine (a) order lever, (b) Minimum level, (c) Maximum level,
(d) Danger level.

Q'5 a: Following transactions are related to Fazal Manufacturing

Company, Lahore. Factory
is situated at Gujrat. Total payroll cost for the month
Rs.800,000, employees, income て
tax withheld Rs.40,000, deduction for provident fund at the rate
of 10% of gross payroll,
voucher for net earnings of employees was prepared and paid. payroll
Analysis Sheet
revealed the following information:

Ｒ一
ｓ． ｓ。一Ｓ．
Direct labor

Ｒ Ｒ
Indirect labor

Oftice salaries Rs.

‐
Note:Emメ oycCS'Pro宙 dこ ntttm ё olltil“ 覆品 藤
に c,Ъ ジ ざU品 ri8'こ 11:‐ 曹
葛 the Lme

hcquircd: Prepare journal entries to record the above transactions in general

office books and factory offrce books.
a: which accounts are generally maintained in the factory books?
Qj6 Abclullah and Ahmed are two workers in a department of a manufacturing conccrn.
Dr-rring each day of the previous week they wbrked as follow:

Days Hours Worked

Abdullah Ahmed
Monday 10 9'
Tuesday 11 10
Wcdnesdhy 9 9,
Thr,rrsday 8 10
Friday 9 8
Serturday 8 4
llequircd: Normal and overtime wages of Abdullah and Ahrned for the week if:
(a) Normal working hours are g.
(b) Normal rate is Rs.BO per hour.
(c) workers are paid at double the normal rate for overtime.

Q'7]\tl is process costing? Under what circumstances process costing

is applied?
Differentiate between process costing and job order iosting. :
Q.8 Explain in detail the functional classification of cost.
 UNIVERSITY OF THE PUNJAB 000● ●●●●●000● 000● ●0● ●00%
。
PART― II A/2016
Examillation:― B,Com. :Roll No。 ..¨ ...."¨・
・ ・¨
“・
●. . . . . . . . . ● ●●●● ●●●● ●●●●
:
●●
'

Subject: Cost Accounting TIIⅦ E ALLOWED:3 hrs.

F PAPER: BC‐ 406 MAXo MARKS:100
NOTE: Attempt any FIVE questions, All questions catfy equal marks.
Q. 1: The records of Bel Cotd Refriserator Comnanv show the following information for the three months
ended March 31,2015.
Materials purchased Rs. 1:946,700

Lnyentories. Januarv 1
Finished goods (100 refrigerator) --------- 43,000
Materials 268,000
Direct labour 2,125,800
Factory overhead 7,64:000
Marketing expenses 5116i000
General and Administrative. Expenses ... ... ... 4,61,000
Sales (1 2,400 refrigerators) ...... 66,34,000
lnventories. March 31. 2015:
No unfinished work on hand XXXXXX
Finished goods (200 refrigerators), cost at Rs. 395 each
Materials.… .… ..・ ・… …・ ・
・… ・
・・…・… … …・… ・・
・… 167,000

REQUIRED: 1 . An income statement for the peioil.

2. Tlrc numbq of units maru(actuteil.

3 .The unit cost of refrigerator marurfactureil'
4. Tlrc gtoss Profit Pet urit sold'
5, The incotne Per wtit soltl,
6. The ratio of gross Profit to sale.
ご 7. Tlrc ittcome to sales petcentage.

Q.2 on May 31.2OOg a fire broke out in factory premises of Al-Musawwer Manufacturing cofiIqany .

Limited. Consequently the processing building and the in process inventory were completely
destroyed but the storeroom could be saved.
After the fire a physical inventory was taken. Raw materials were valued at Rs.30,000, finished
goods at Rs.50,000 and supplies at Rs.5,000.
Inventories on January 1,2009 consisted of:
Raw Materials Rs'2o,ooo
w;ii.inpiijqaq-.--....-'..........-...................

. .. .__?,q00._
The finanCial staiements reveal following flgures of sales and gross profit for the last five years:
Sales Gross Pront
200A Rs.650,000
200B Rs 700,000 Rs 230,000
200C
200D
Ｏ 一
Ｅ
２ 一
〇
Ｓ
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ａ
ｅ
ｓ

months of 200F were materials

five months

Q.3 Rs.3 per hour.

for 16,000 hours per month is
and actual volume is 15,000

(1) Variable factory overhead rate.

(2) Budgeted fixed factory overhead.
(3) The capacity hours at which factory overhead applied rate is computed.
(4) Applied factory overhead.
(5) Under or overapplied factory overhead.
(6) Budget variance.
(7) capacity variance. P.T。 0.
 Q.4: Ihe book and record of the Satman Manufacturins Co. present the following data for the month of
February:
Direct Labour cost Rs. 16,000 (100o/o of F.O.H)
Cost of goods sold Rs. 56,000
lnventory accounts showed these opening and closing balances:

ヽ
February 01"t February 28h
Materials Rs.8,000 Rs.8=600
Work in process 8,000 12,000
Finished qoods 14,000 18,000
Marketing expenditure S%of sales.General expenses and Admin. Expenses 10 o/o
af sales,
salesRs. 75,000.
REQUIREDL{n Income statemeni with supporting scheilule showiug cost of goods
manufactured and solil statement.
Q. SThe standard time. for the completion of a certain job is flxed at 200 hours. Normal wages
are paid to the workers according to time rate which is Rs. 25 per hour. lf the job is corirpleted in
iesser time a bonus is paid to the worker calculated on the following tines:
Upto first 20% saving in time
10% of the corresponding saving in time.
For and within. next 20% saving in time
25% of the corresponding saving in time.
, For and within next 30% saving in time
5A% of the corresponding sa\./ing in time.
For and within next 30% saving in time
30% of the corresponding saving in time.
Required: Conrpute the total earning and earning per hour of the following workers:
Workers TimeTaken
(Hours)
Arshad 210
Amjad 160
Nazar 120
iJaheed EA

. a, 6 Dttring the year 2012 shammusdeen & co. Ltd. Produced 750,000 units. At this
activit.y level factory overhead cost were Rs. 1
,100,000.
Before the start of 2012 accountant of the company estimated annual
activity level as g50,000
units and factory overhead as Rs.1 ,275,00a. Thus-factory overhead appliedrate
per unit 60%_of factory overhead applied rate is composed
was Rs.1.S0
of variable cost.
Required: (1) Budgeted fixed factory overhead.
(2) Under or overapplied factory overhead.
(3) Volume variance.
(4) Budget variance.
Q'7 An operator engaged in machining certain components receives an ordinary day rate of Rs. 160 /
day of 8 hours, the standard output for machining the components has been fixed at g0 pieces per
hour (time as fixed for premium bonus). On a certain day the output of the worker
on this machine is
800 pieces' Find labour cost per 100 pieces and the wages that would have been
actually earned by
the workman under the following :
a)' lf paid for on straight piecework basis at the standard rate.
b). lf Halsey premium bonus system is being adopted.
c)- lf a bonus of Rs. 23 is paid per 100 units of the extra output.
Q.8 Explain the difference between periodic inventory system and perpetual
inventory system.
Which of these two systems is better?
 UNIVERSITY OF THE PUNJAB
PART― Ⅱ S/2016
Examination:‐ Bo Com. 三
。191∬ 911・ :∵ :∵ :∵ :∵ :∵ :I.f

SutteCt:COst Accounting TIME ALLOWED:3 hrs.

PAPER:BC-406 MAX.MARKS:100
NOTE: Attempt any FIW questions. AII questions cany equal marks.
Q # I The following data was taken from the book of the Sitara Manufacturing Company for the
year ended 31't December 2001

Units Cost(Rs.)
Salcs during thc ycar 2400 ,

OPENING INVENTORY
Work in process
Finlshed Goods 540 4374
CLOSING INVENTORY

３
０

，
Work in PrOcess

；
６
０
０
Finlshed Goods

・
ⅣIANUFACTURING cOs:「

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ｏ
０
Direct Material

６
ｏ
ｏ
０
Direct Labour

４
８
０
０
Factow Overhead
The foreman has submitted the following cost estimate for the closing work in process inventory.
Direct Material Cost Rs. gl0
Direct labour Cost Rs.300
Factory Overhead ,
The company past experience shows that Factory overhead cost tends to fluctuate closcly in
proportion to Direct labour Cost.
Required
1) Calculate number of units manufactured during the year
2) Calculate the value of closing work in process inventory
3) Prepare Manufacturing Statement
4) Calculate per unit cost
5) Calculate cost of sale and value of finished goods according to FIFO method.
Q # 2 The sale price of home appliances is Rs.280. The Company is realizing a gross profit of
2-5Yoof Cost of goods sold. The Cost of Goods Sold comprisis of 40% Mateiial and Factory
overhead l5%o.The company sold 2000 of these appliances last year.
During the coming year, it is expected that material and labour cost will each increas eby 25o/o and
Factory Overhead will increas eby 12 %o/o.To meet these rising costs a new selling price of Rs.325
has been tentatively set.

Required
Compute the number of units that must be sold to realizing the same total gross profit in the coming
year as was realized last year.

Q # 3 A Company uses process costing in its two departments. In Department '2' Material are
added at the beginning ofthe process.
During September 5000 units were received from Department ol' atacost of Rs.50000. Cost
incurred by Departments '2' during September were:
Material Cost Rs.32000
Conversion cost Rs.36000
4500 units were completed and transferred to finished goods inventory. The 500 units still in
process were 3/5 complete as to Conversion cost.
Required
Prepare a Cost of Production Report of Departmetrt'2'.

PoT。 0.
 Q # 4 Tlre Zaria Co. prodr"rces many varieties of screws. One order, which was for Arslan t

Manufacturing Company. The cost upon completion of this order were:

Material Cost Rs.1000
Labour Cost Rs.700
Manufacturing Cost Rs.300

Rs.2000
Inspection however, reveals that a certain part of tE w6ik-is ciefective. The defective was

一︻
remedied at the following cost:
Material Cost Rs.400
Labour Cost Rs.200
Manufacturing Cost Rs.100

Rs.700
REOUIRED: Prepare journal entries to record theTo@l-etion of order.
1. When the job is charged with the cost of defective work
2. When the job is not charged with the cost of defective work.
Q # 5 The Murtaza Manufacturing Company has its journal Office in Lahore but its Factory at
Sheikhupura. That's why General Office and Factory Office prepare accounts separately.

l) Purchased Material amounting to Rs.15000 on terrn 2 I l0; n / 30.

2) Analysis of the payroll made by the General Office shows:
Direct Labour Rs.6000
Indirect Labour Rs.2000
Salesman Salaries Rs.1500
Salaries
Administrative Office Rs.500
Rs.10000
The General Office deducts lOYo for staff provident fund, 5oh for lncome Tax and SYo for
Social Security Fund. The employer also contributes towards Provident Fund and Social
Security Fund in equal pr_oportion.
3) Requisition received and material issued as follows:
Direct Material Rs.9000
Indirect Material Rs.2000
Shipping (Selling) Supplies Rs.500
Adm. Office Supplies Rs.300
4) Material purchased and directly issued to factory Rs.500.
5) Various Factory Overheads totaled Rs.3500 including Rs.500 for depreciation on the
factory machinery.
6) Factory Overhead Applied @ 100% of Direct Labour Cosr.
7) Goods completed totaled Rs.18000 consists of material Rs.8400; labour Rs.4800 and
Overheads Rs.4800
8) Goods costing Rs.15000 were sold for Rs.17500
9) Goods returned by customer amounting to Rs.700 whose cost was Rs,600

Required: Prepare Factory' Book and Main Office Book.

Q # 6 Calculate the normal and overtirne wages payable to a workman from the following data:

DAY HOURS WORKED

８ ０

Monday
︲ ９ Ｈ ９ ４

Tuesday
Wednesday
Thursday
Friday
Saturday (Half Dav)

Normal working hours was 8 per day. Normal rate was Rs. l0 per hour. Overtime rate were as
follows:
Upto t hours in a day at single rate and over t hour in a day at double rate OR upto 48 hours at
single rate and above it at double rate which is more beneficial to the workman. マ =

Q # 7 The estimated capacity of the company is 200000 units. At this level of capacity the fixed
overhead is Rs.400000 and variable at Rs.350000. During the year the company produced
220000 units and the actual factory overhead cost incurred totaled Rs.790000.
REQUIRED:
1. Applied Factory Overhead
2. Budgeted for Capacity Attained
3. Under or Over Applied Factory Overhead
4. Budget and Volume Variance
0 # 8 Differentiate between Cost Accounting and Financial Accounting in detail?
 UNⅣ ERSITY OF THE PUNJAB 000● ●0● ●●●0● 00%
●°
・ ・・・・・・・
PART - TI N2017
Examination:- B. Com. :Roll No。 ......“ "● ●
● "●
●
● :
…●●
。。。..。 。..● ●●●●●●● ●●●● ・●

SutteCt:COst Accounting TIME ALLOWED:3 hrs.

pIAXo MARKS:100
PAPER:BC‐ 406
NOTE: Attempt any FIW questions, All questions carry equal marks.
Q.l A company manufactures computer bags. The following information was taken from the record of the
company for the year ended December 31, 2010.

Material inventory was decreased by Rs 20000 and the remaining inventories were as follows
Inventory Beginning Ending

Material in process Rs 10000 Rs 15000

Labour in process 4000 8000

FOH in process 3000 6000

Finished goods 000 unitS) 116000 (100 units) ?

Purchases during the year were Rs 410000 whereas purchases retums were Rs 10000. FOH were 600/o of
direct labour cost. Cost of material used was 70% of manufacturing cost The number of finished units sold
during the year was I100.
At the end of the year, it was ascertained that actual FOH were Rs 90000
Required:
l- Prepare cost of goods manufactured and sold statemenl
2- Calculate per unit cost for the current year.
3- Find out per unit cost ofthe last year.

Q 2 Saqib Manufacturing Company produces a single product and uses process costing. The cost incuned by the
Blending Department during the month of May 2010 was as follows;
Cost
Direct Material Rs 70000

Direct Labour Cost Rs 48000

Factory Overheads Rs 33000

The quantity schedule provided the following information;

Units received from previous departrnent 15000@Rs 10.5 each

Units completed and transferred 8000
Units completed but in hand 2000
Units in process 4000
Units lost during the process 1000
Units i1 process were 50oZ complete as to labour and25o/o as to FOH. All materials were put in process at the
beginning of the process.

Reouired:
Prepare a cost of production report for the Btending Department for the month of May, 2010.

Q.3 The following budgeted figures are available for the coming period.
Factory overheads Rs.100,000
Direct material cost Rs.200,000
Direct labour cost Rs.100,000
Direct labour hours 20000
Machine hours 10000
Units of output 5000
Required:
-- a) Calculate FOH applied rate based on direct material cost, direct labour cost, direct labour
hours, machine hours, units of output and prime cost'
is
b) During the period, an order for 500 units was received. The following further information
available for this order.
Direct material cost Rs.20,000
Direct labour cost Rs. 7,000
Direct labour hours 2000
labour hours
Calculate the cost of this order using FOH rate based on direct labour cost, direct
and prime cost. P.T。 0。
Q.4 ZamanManufacturing Company produces u proAr.rl f .O.H. variance analysis-is carried out monthly. The cost
accountant wants to calculate the variances for the month of March where 12,000 units were produced and the
actual of F.O.H. were Rs. 190,000.
The following further information is available.
During the month of January 10,000 units were produced incuning Rs. 160,000 of actual F.O.H. There was a
spending variance of Rs. 10,000 Dr. with no capacity variance. ,

During February, the actual output was 15,000 units and actual F.O.H. were Rs. 185,000. Spending variance
of Rs. 15,000 Cr. and capacity variance of Rs25,000 Cr. were recorded during the month.
Reouired:
l. Overall variance of March
2. Spending variance for March
3. Capacity variance for March
4. Verify your overall variance for March
5. Verify capacity variance for February
6. Define Normal Capacrty
7.

Q.5 (A) The payroll sheet of a company shows the following information:
Direct labour cost Rs. 500,000
Indirect labour cost Rs. 200,000
Sale salaries Rs. 400,000
Office salaries Rs.300,000
Deductions are made as follows
Provident fund l0%
Income tax 5oA
Employer contributes an equal amount towards provident fund.
Reouired:
a) Record the journal entries for the payroll.
b) When sold goods are returned, what entries are passed?
c) Under what circumstances separate looks for factory and head office are
maintained.

Q'6 (A) A company purchases a certain material in lots of 900 units which is one quarter supply.
The cost to place an order is Rs. 100 and carrying cost is l}yo. The cost pei '
unit of tiri
material is Rs. 20.
Required: How much the company can save per year by following the Economic Order
Quantiry.
(B) Define lead time.

Q'7 Four workers are engaged in an operation for which standard production time per piece
is determined
as 48 seconds- Standard hourly rate of the workers is Rs. 33.7i. during a 40 hours week
output of the
four workers was as follow:
A 2,800 pieces B :2,900 pieces
B = 3,000 pieces D 3,200 pieces

Wages of the workers are computed under straight piece rates but time
rate earning are
guaranteed to workers.
Reouired: (i) Compute wages earned by the worker,s.
(iD compute distribution of the wages between work in process and factory
overhead.

Q.8 Discuss the various classification of cost.

士士士
 UNIVERSITY OF THE PUNJAB aa aaa
aa alataaaatit aaaaaaaa
PART-II: Annual - 2017
2nd Ot
a!
Examination: B. Com. I noll No..........
ta l o t t a t t t t tl
:
a a a a t a'
a aa aaa

Subject: Cost Accounting TIME ALLOWED:3 hrs.

PAPER: BC-406 MAX. MARKS: 100

Note: Attempt sny FIVE questions. All questions corry equal morks.
Q.1

Ｒ 一
Ｓ 一Ｓ 一 Ｓ
Material

Ｒ 一
VVork in Process

Ｒ
Finished(3oods
During the rnonth of March rnaterials worth Rs.180,000 were purchased.Direct labour
c6stlncurred vvas Rs.400,000 and factory overhead was applied to production atthe
rate of 15A% or direct labour cost.
The company had following inventories as on March 31:

Metelet Rs. 25,000

Work in Process Rs. 40,000
Finished(3oods Rs. 80,000

Required: Pass necessary journal entries to record flow of cost through inventory accounts.
Q.2 Following are the data related to operations of Al-Qaabiz Pharmacy for the accounting year
ended as on March 31,20_'-:
Changes in inventory:
Rs.

."Wql[.i,r.pr-o.e9-rq 9."._.t9_?q9q
qy ..... . 9,.3.!q..
riiw miidiiSiJincieased by .1?'YP
t . R?o,ais.,:'sie-p[i-"he1.eq"....
p-yrqf,.eqq
-....
ell-ery-enqs9- .-
265,655
.1z,ioo
t-e!-ql[9--eN .
Purchase discounts . 1.q,9.9.9

-Tre.rwq(atiqn il . .q,17.q
Directlabour cost 45,200
Manuf_a_cLgtllg- _qy_etge4 qqq[9.9 37,370
--C6-si _--..
Required: oT go6da mtnufactured and sold statement.

e.3 Department No. g376 of Ameen lndustrial Company received 13,000 units from preceding
department at a unit cost of Rs.8.32 and transferred out 12,2O0 units. 600 units were in process
at the end of month. Degree of completion of in process units was estimated as: 112 units 1/6
complete, 1/3 units lt4 iomplete and 1/6 units 1t2 complete. Remaining units were lost during
processing.

During the month the department added direct materials costing Rs.70,395 and incurred direct
labour cost of Rs.44,46O. Factory overhead applied rate for the department was 2/3 of direct
labour cost.
;.equired: Cost of Production Report.

P.T.O.
 Corporation
Q.4 The inventory on December 2016 ofa particular class of merchandise of B
1,
cost nf
a ancr
at'i a of Pc ?o Prirchases
Rs.20. Purchases durinq
du the month were as follow:
consisted of 180 units
Date Quantity UnI COSt
Dec. 6 50 Units Rs.20
Dec.12 100 Unlts Rs.19
Dec.14 70 Units Rs.21
Dec.18 40 Units Rs.22
Dec.23 110 Units Rs.23
ヽ
・ ｀
30 per unit except 200 units'
upto December 31't allthe inventory was sold at Rs'
Required: (i) The value of closing inventory gtry
(a) Weighted averige (b) FIFO (c) LIFO
(ii) 6.". p-r.otit using Weighted average method only'
50,000 units of a
e.5 rt is estimated that during the coming year Khubaib Auto rndustry will buy
storage cost per unit is estimated as
certain component at a price oinr.s"o'per unit..Annual
15% iiterest on capital invested in
Rs.1.90 per unit. lt is policy of the company to lTlure
pJr order. Presently the company buys in
inventory. ordering cost is .*p."t"d to be Rs.4OO
four quarterly orders of 12,500 units'

Required: (i) Economic order quantitY.

in economic order quantity'
(ii) saving for the coming year if the company buys

are two workers in assembring department.of a manufacturing concern'

Q.6 Abduilah and Ahmedprevious week their hours worked are as under:
During .a"1, Jay of
Hours Worked
Days Abdullah Ahmed
Monday 10 9
Tuesday 10
WedneqdaY 9 9
ThursdaY 8 10
Friday 9 8
Satり 鰹壁 8 4

Ahmed for the week if:

Required: Normal and overtime wages of Abdullah and
(a) Normalworking hours areQ'
iui Normal rate of Rs' 80 Per hour'
(c) wort<eis are paid at double the normal rate for overtime.
e.7 ft;
Following figures are taken ;;;;al budget of Meena Manufacturers for the year 2016:
Rs'4'000'000
Fixed factory overhead' per labour hour
Factory oveihead absorptionrate"' "'Rs' 70
per
direct
direct labour hour
'
Variable factory overhead rate" " ' ' ' "Rs' 30
of year 2016:
Following u;;;few figures of actual results
' 110'000 hours
Capacity attained.. " "'Rs'B'000'000
Factory overhead'
factory overhead
Required: (a) Budgeted capacity that was used to compute
absorption rate.
(b) Ar;iy:i of under or overabsorbed factory overhead into
volume and budget variances'

Q.8 Differentiate betWeen JOb COStlng and process coSting.

I
 UNIVERSITY OF THE PUNJAB
° ●●0● ●●● ,00● ●●
・ 。
●・・・ ・・ ・・ ・ .

PART-II: Annual - 2018

:Roll No。 ¨¨......・・¨・
・¨" :
Exa4ination: B. Co4, ●
..。 ...。 ..● ● 00● ● ● 0● ●● ●●● 0°

Subject:Cost Accounting TIME ALLOWED:3 hrs.

PAPER:BC-406 MAX.PIARKS:100

NOTE: Attempt any- FIVE questions. All quelions ca-rry eW! ynyks.

l. Zesh.aan Limited manufactures al electric light that is sold for Rs. 280 each. Last year the company
sold 2,000 of these lights, realiztng a gross profrt of 25Yo of the cost of goods sold. Of this totalcost
of goods sold, materials accountedfor 40Yo of the total and factory overhead l5%.

During the coming year, itis expected that materials and labor costs each will increase by
25%o and factory overhead by I2.5%.
To meet the rising cost, a new selling price must be set.
Required: Compute the number of units that must be sold out to realizp the same total gross
profit in the coming year as was realized last year, if the new price per unit is set at (a) Rs.
325 and (b) Rs. 350.

2. A worker takes t hours to complete a job on daily wages and 6 hours on a scheme of payment by
results. His day rate is Rs. 7.50 per hour. Materials cost of the product is Rs. 400 and overheads are
recovered at I 50%o of total direct wages.
Required: Calculate factory cost of the product under:
a) Piece Work Plan
b) Halsey Plan
c) Rowan Plan
●Ｊ

In June, the volume variance of the Ali Processing Co. was zero and the budget variance showed a
debit of Rs. 6,000. In July, volume variance was a debit of Rs. 8,000 but the budget variance was
zero.
In June, actual factory overhead was Rs. 70,000 for an output of 8,000 tons. In July actual factory
″ " overhead was Rs. 56,000 and the output was 6,000 tons. In August, the output was 9,000 tons and
actual factory overhead was Rs. 71,000.1
Required:
↓ り＞

Budgeted factory overhead for 9,000 tons.

Applied factory overhead in August.
ｃ   ４．

Budget variance and volume variance for August.

During the month of September Department No. M- 40 of Wajahat Industry received 20,000 units
from preceding departrnent. To the units received in materials are added resulting in an increase of
80% in number of units. At the end of month 3,000 units were in process in the departrnent. Stage of
completion of in process units is estimated as: 100% materials, 50% labour and 40%o overhead.
During processing 1,000 units were lost. The loss is regarded as unavoidable.
FoHo wrng costs were charged to the depaftment dur the month:
Cost from preceding department Rs.175,000
Direct materials Rs.166,250
Direct labour Rs.117,250
- Rs. 58,100

Required: Cost of Production R.eport.

5. A job order calling for 50 motors was sent through the factory. The cost elements per motor were
Materials Rs.H0
Labour Rs.175 P.T.0.
′一ぎ

Predetermined Factory overhead Rs.125

ヽ
 After the nlotors had been manufacturcd, finai inspcction discovered that 2 motors were spoiled and would
have to be sold as seconds at a price of Rs. 100 each, whereas, one motor was defective which would require
Rs. 50 of additional materials, and Rs. 50 and Rs. 25 of additional labour and factory overhead.
Required:
Prepare Journal entries
a)
When the loss is charged to specific job.
b)
When the loss is not so charged.
c)
Also calculate per unit cost in both the cases,

' 6. Shahid ltd, had the following inventories at the beginning and end of the month.
September I September 30
Materials ____聰 .201QQQ_… ……__RSt_21,000
Work_:■ _prOαttS_._.興 ■
10rialS______… ……‐
―一――RS・ 30,QQQ.____… …_Rsi 34,000
Work_1■_区 ∝ ぃ 豊._.labQI_____一 Rユ 15,000 :・ __… 聰 =_鯛
pQQ_____― 1‐
一 一
W91■ .ln_pr∝■ 19騒 pv`却lΩ 製 _… .… ………………Rユ ‐
■1.1_.ね Ω 50pQQ_… Ⅲ …… _… …Iも 1.46,000
Finished Goods ._¨ ¨¨.Rミ 125,Ω Qp.__¨ ¨¨――――・1lS=‐ 盈 QQQ

During the month of Septemberthe cost ofraw materials purchased was Rs.125,000;direct labour cost
incllrred was Rb.80,000 and factory overhead applied to production was Rs.100,000.
Requlred:
→ Prepare thc nccessaryjoumal entrles on Septembc1 30 to transfer the cost ofgoods manufactured and
sold to proper sllllmary accollnts.
b)PaSS JOllrnal entries ofsales retum with yollr own igllres?

7. The following information has been extracted from the books and records of Httsヽ 4anufacturing
company:

′、
Employer's provident firnd contribution
40/O sening and
yttli燿
■ 望 Y」 _7全 ― ― ‐ … ― ― ― ‐ ‐ ‐ ‐ ― 」 ― ____」 ヽ シ _l′ 三 W_1_… … … … … ― 一 一 ― 一
―
― 一 一 一 … … 一 ― ― 一 一 ― ― ― ―

Miscellaneous factory overhead costs

=______―
l Rs.550 1 Rs.22,850
PК dd∝ 面 ned ovttead rttα 60%ofdК ∝ 励 o‐ cは ￨.]Ⅲ
_■ 9_"」 IⅢ ■ 11"illgilyento五 ￨ es were:
II」 I肇 Ⅲ III
, Mate五 als =翌 _1________一 一‐ ■―。 ヽ 1129∞ _l___』 ,_´ ′
∞Q_
一― 一―
Work in process I Rs 6,000 1 Rs 4,000
Finished goods I Rs.18,0001 Rs.21,000

Required: From the foregoing information prepare the cost of goods manufactured and sold statement,
with over under applied adjustment.

Define Cost Accounting and explain fully the advantages to a manufacturing company of
maintainin g Cost Accounts
ヽパ〓
γ
 UNⅣ ERSITY OF THE PUNJAB 0%
PART― Ⅱ 82nd Annual-2018 ●
°°°°°°
・
°° 0000● ●●●●●●●●

Examination:B.Com.
1191,91∵ :∵ :1::∵ :∵ :∵ :1.f
SutteCt:COst Accounting TIME ALLOWED:3 Hrs.
PAPER3BC‐ 406 MAX.MARKS:100
NOTE: Attempt ony FIW questions. All questions cafiy equal marles.

Q. No.1. Following is summary of transactions that take place at Khubaib Manufacturing ComPanY
Limited during the month of April 2016'.
(a)
(b)
(C)
(d)
(e)
to storeroom

(f)
ω■

(i) Factory overhead is applied at the rate of 70% of direct labor cost.
0) Goods costing Rs.625,000 were completed.
(li) Goods costing Rs.590,000 were sold for Rs.950,000 (Rs.200,000 for cash).
Required: pass journal entries in the factory office books and general office books
Q. No.2. Following data have been taken from the records of Al-Khaliq Corporation:
Dec.31

lnventories: Rs. Rs.

Raw materials 15,000 20,000

Work in process 31,500 28,400

Finished goods 1341000

Other information:
Raw materials purchased 295,000

Direct labor cost 106,000

Freight in 4,000

Purchase discount 21000

ニ

Factory overhead is applied @V5% of direct labour cost.

- -.- - - -;
':
-.
Finished goods inventory on January 4,000 unrts and December 31, 3,500 units. Sales during
the year, 14,000 units at Rs.52 per unit.
Required: 1. Number of Units manufactured.
2. Cost of goods manufactured.
3. Cost per unit manufactured.
4. Cost of finished goods inventory on 31't December.
5 Cost of goods sold.
6. Gross profit --- total and per unit.

P.T.00
 Q,
工[aり littI,J_"_ff9甲 _19Pll里 91■ _NΩ L」
55,000 Units
_I[9:り 員i,I=91_Qり 1_!909Partmenl_Np」
_1 39.500∪ nits

β ｌ．
Required: A cost of production report for department 2
Q. No.4. A job order calling for 50 motors is sent through the factory. Cost elements per nrotor are
Materlal Rs 110
- !:aoour RS.
Labour 17 s
nrecigl_e1mi1qql_iiCtory oveineio n; ili
After the-moiois hao ueen manuiactuib?, tin;l inspeiiion iiG-Co"ured ir;;iZ-rai;rs
were spoited
and would have to be sold as seconds at a price of Rs. 100 each, whereas, one motor was
defective which would required Rs. 50 of additional materials, and Rs. 50 and
Rs. 25 of
additional labour and factory overhead.
Required: Preparejournalentrils:
(a) Whiei.r the loss is chargecj io specific- joL;.
(b) When the loss is,not s-o cnarged. '--
Q.5 Abdullah and Ahmrrd =ra trarn rarnrrzaro i^ ^^^-
︲
１
︲
［
︲
０

_]ge!gey_-.-
一９

Wednesdav
Thursday 8 10
Ш 9 8
Saturday 8 4
Required: Normal and overlime wages of Abdullah and Ahmed for the week if:
(a) Normal working hours areg.
(b)
.

Normal rate of Rs. g0 per hour.

(q) Workers are paid at double the normal rate for overtime.

Q' No'6' A Company estimated its factory overhead for the next period at
Rs.300,000. lt is estirnated
that 40,000 units will be produced at a materials cost oi Rr.+oo,0oo. production
50'000 man hours at an estimated wage cost of Rs.600,000. The
will require
machines will run about
25,000 hours.
Required: (1) Factory overhead rate that may be used in applyirig factory overhead to
procjuction on each of the following basis:
(i) direct materials cost, (ii) direlt labor hours,
(iii) direct labor cost and (iv) machine hours.
(2) Total cost of Job No. 616 consisting of 100 units
by each rate in (1) above.
(Job No.616: direct materials Rs.24,00b; direct labor Rs.45,000; I
direct rabor hours 3,500; and machine hours 2000)
Q' No'7' Factory overhead burden rate of Kings chemical lndustries is Rs.2.25 pr
hour. Budgeted
overhead at two activity levels is as undLr
Factorv overhead
ulb
l」 ,υ υり :lυ
‐一一―一―‐ ――………――――一一―――‐― 一 ‐ -5'1`p!Q99
35,000 hOurs
― ― ―
丁 .‐
.― ― r ■ ‐ ‐
一 ――一――……――………― ― ……――――― Rs.60,000
nctua-iiidlorv oveinedo iorinJ p;iioii w;i iii.+g,8do;;d;-Ciuii v<jiumdilt"ffiO
hours
'Required: (i) Variable overhead burden rate. (ii) Budgeted fixed overhead.
(iii) Budgeted vorume at which the burden rate'is computed
(iv) Applied overhead. (v) Under or overapplied overhead.
(vi) vorume variance. (riil spending variance.
Q' No'8' Explain the difference betrareen Financial accounting and cost accounting.
 ０赫
UNIVERSITY OF THE PUNJAB
Cost Accounting
BoCom.Part― II
Paper: BC-406
Annual Exaln-2019 iふ1111二il
Time:3Hド . Marks:100

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bcri
Q#l The Enterprise Manufacturing Company had the followmg l■ ventories on lSt Oじ tё

Raw materials Rs.33,000

1n竺 二 L… .I聖 堅
ユJゴ 蜃
…… ・
____― ― Rs.12,000
lW望上壼』聖墜 f二 上堕虹_■ __二 ___ ‐
∵T ' Rs.16p00
, 薇 rr西 ― 丁
'一
』 墜
rk in pr9ceSSI‐ factottyerh'4___=___¨
一
―
― 一
「
5碩
― 一
―
―

F聾 塾ed g"螢 ___… …

一

Rsl1 8,000
一 一 一 一 一 ― 一

……_― 一―
―一―……
During the moⅢ h of OCtOberthe 9。 st ofraw mtelals pllrchased was Rs.75,000;direOt labOr cost
incurred was k,90,000 and factory overhcad appliedto prodtlltiOn was Rs.60,000:
Invcntories on 31St October werei

Rs.28,000

Required: Prepare the necessar.v journal entries on 3l't October to show flow of costs tiuough
proper srunrnary I control accounts.

accognting
Q # 2 Latino Toois Co. Ltd. provides following incomplete information at the end of its

Sales for
Cost sold for tlle

Inventories
Materials
WOrk in

--:*---.*--."..--
Dil;t""ilI;tr nr"d a;;i;g the #ariG iq-ua to zO'A of cost of goods sold. Factory ovethead is
2/3'd of direct labour cost. Selling expenses arc7 .So/oof sales and administrative expenses arcZ3Yo
of sales.
Required: prepare com.plete income staterrrerrt from the incomplete information given above.

Q # 3 The Star Manufacturing Company uses process cost system Costs of Departrnent 2 for the
month of May were {N under:
Rs.20,o00
_￡ 21:む ■_竪 整整塾建」霊堅雙理晏
1
Cost added:
Materials Rs.21,816 1 :
路一

Labor
Ｒ
Ｓ
´

&g1g-ry-s.v-":!se4
へ
ヽ
 イ￨'￨ .
' .. 1,

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・
1

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■
,1 .: ■::il_
― ￨1111:、 ￨■ 1■ l l il■
■ ■ ■ ■

■■ ￨二 :11■ inlfOll中
朗
直彦infOImat'事 ■ 響
,￨ ・｀ 111:it ilil.I It赫 ぶ轟癬轟壼 議
・ 1 _1 , ・ .1 1 17● 11● L‐o、ol,und , ,「・1:: :

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essiwas: , 1
「「耳
i:1・ : :ii・ じ
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iil:::::lli 11(￨l lγ 〔i Vl l∵ γ'“ ■∵ ∵
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l i^:￨_:
1 lJ管 ,IWCl,294,ompl彎 11■
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:・

"'1'':響
. q4C'koauctionof-jnorder:consistingS0o:unitbrequires;direott'raferials'ofRs,350,OOO.,and'airect
llbour of Rs.250,000: Faciory overtieaa is apptiea at the rate of 80% of airect taUoui cost. Aftet
compledon of-the crder, i 6 units at'e tilassified asspoiledwhich can be sold for'xs-,4,090. Custoper
$11-{etivery of remaining'784'good uirits and pda ii cash the contrd:cted price 4t the rate of
Rs.1,250iper:uait.s,Eoiledraritsareso1dandRs:4,000receiv.ediajcaSh,,',.
tir the ordec. ,, ,
Requiretl: (1) Jou:nll entries, if tlid'loss ir ' ,' . ti ' ' : :

: i O)」 OmalⅢ "lr"rgea

す thel,,Si,Ⅲ 寧。 07 0Verhead.'II I
‐′ 11 t i l.: llヽ lt,申
19#5FOu甲 Ⅲ
gdataareavaiiabll補 正轟
speご to:古 Ⅲ
Ⅲ:: =￨￨::、 11
:,

"1111Ⅲ
A.naual irtterest rdtb
::Annual c颯 billgicOst:
1,li :・ ￨■ ITTT― ‐
T==∵ ■雛 10%::1_: :111 11 1 .
ヽ
:
、 r :1: :ム
‐ :・
Ptt u■ itあ St
lcI
I、 : :・ ￨￨■ I:Ⅲ IITT丁 ■■ Rs.5o ・ :

R19■ rbⅢ : 1 1111 '1 1 ｀ 1 .

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:r.・ ・ ・
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 UNIVERSITY OF THE PUNJAB : Ro‖ No.......。 .・・
・・・
・・・ :
B.Com.Part‐ ―‖ 2nd Annual Exam-2019 1...... ..● ●●●●●●●●●● ●●

Subject: Cost Accounting Paper: BC{06 Time: 3 Hrs. Marks: {00

- ,VOTE: Attempt any F|VE guesfions. All quesfions carry equal marks.

1. Follow抽嚇inforlnatio■ suttma轟 2eS aCtivity oFAbdul Hadi Manufactu轟 ng COmpany du職 ヨ

略 the month of
M
Raw materiats Rs,4101000
面 ￢蕩面高孫轟轟葛再雨写こ5雨 葛面罵direct ttateritts of Rs. rrere used itt
productio漱
「 "

FoT F菫 ぼorv overhead cost durltt Jan面 詩 :

、 、12,000
. !::::::-:r:;, rL _ 一 Rs.24β 00
Factorv rent naletrle
Insurance cxnired Rs.4.000
I}.nror*iqtinn *f nlant- Rs.10.000

Dtrect labor Rs(230,00

Inatrect inhor Rs.401000
Oross oav■oll Rs.270Ю 00
Emolovees nrovident fund contribution Rs,13,500
-'E::r.
Net arnount paid も .265,600
s Provident fund'
ヽappli“ おp●d面堕 @整 墜 二
聾壼21 1aborCOSt=

澱1鍬認 麟

salcs、 翅臨on cガ じdit.

R● quircdt you ttc required to pass genera:entri∝ in factory ofrtce b00ks and geneFa1 0籠 ce books.

2. Ali R'力 Co.Ltd.Provides following incomplete info― tion atthe cnd ofits a“ ountttg y“ r:

cOstOF彙 00dふ s01d for tte vear ____RsJ堅 コm

つ
Materials nurchascd durins the vear
う:轟 iabO岳 L.1∞ .000
Cost or

lnvc琳 ま く頑 s __ ____一 塾 虫 堕 重 国 L__二 壼 趣 翼

一 ― 一 一
― 一 一

lwOrkil=藤 轟轟 : .60.000 ,Rs,75.000

A dircct ttaternal used du轟 ng thc ycar is equal lo 75%ofcost oFgoods soldo Factory ovetead iS 50%ofdircct
lab● ur lostt Sellin3● xpensc雛 100/O orsales tt admintttittve expenses are 3%orsalcs.
Rcquircふ ome statement from the incomplete inforn3● 餞●職given ab●vι
Prepare complete t● ●

碑 depl霧
s procぃ si4 h由
謝おt讃 鶴1謂圏脳臨 梅響鳴還
L A ttductttq麒
units Rceived from pre宙 ous department,As l 糧
“
hcぉ 嶽だby 75%.Ъ e folbwね 3 data“ latetotteoperationoFDepament 2forthemonthofMay:

:螂:搬
The balancc o「 units wcrc stil!in proccss(!00° / 淵 撫 轟 轟轟II轟事

Labor cost

Direct Lalmur Costt i

聰 qttired: A cost ofPK離 uction RcPort,

Page l of2 P,T.0.

 亀
轟鑑鐵‰:li獣冨轟 織勝辮認蹴 翼t群 燎 織 鰐慇 ￨∫

mmmun叫 轟remttt d耐 ●3 any tth面 o“ sttH機 け 機 ml機 10w50,p驚

Iむ quired: You arc asked to ttx minimum and ntal 轟 鴫 Lvel.Assme織
熱 nomic o“ erqua雛 :tyto be S do“ ns.If2 daysFtt wttdmt o receive emergency mpply.■ x aiso tte danger
ievel.

5`Zcshaan is a rwin3 machine opemtor in tt shoe tttory.Du薔 ng the w● 漱 cach day he perFomed a
dirercnt His dataお ars givEn belolr:
the wuek are
forFthe
Monday Tuesday Wed■esday Thursday Fridav Satwday
lieces Produccd :“ 00 504 2,000 880 855 1,125
durins I hours)
Standard 27 50 18 45 40 24
Production '[ime
Per Piece
(Seconds)
Zcttaan
tan is ciassirled in scale of Rs. 24 per hou and is 1000/opttmium plan,
驚●■ trod:Calculatc his draily earning and total eaming forthe week.
“

`6鯛 障鰤 脚 躙
i魚

240』ЮO of whiCh Rs,60,000 is Flxed and Rs,1

150,000 hours.The acti洒 颯 capacity amined d
ovcrhead was Rs.:80.000.

R● quircd:

饉am Capactt and■ omtt capac貯

絨露欄脱慧ly覇胤調寵織凛
.

based on tte used by the company`

(C)Budgttt variance and volume variance

7.町 shan itd“ prowide you the folttng dtta Forthe month ofJune 2019:

_J壁
Manufactuttng costs for the mOth are as follow:
轟誕::福 議ぷLここ 5%=爾
・
Direct labour:

Ass● mu詭 g depament@警 139,01Ч ttrectlabourhour

' hour
Finishing Dcpartmcnt @ Rs 50.00 pcr dircct labour
llcquired: (a) prepie u .ort of g;ds manufacturcd arrd sold statement for &e month.
' ibi Catulate unit cost of materials labo,r and factory ovgthcad lry t
production of June assuming that 12.000 units wire produccd duringthe nironth.

8. "lixplain in details the functional classification of Cost"' ?

Page 2 of 2
 ●●●●●●●●●●●●●●●●●●●●t.
UNIVERSIttY OF THE PUNJAB : Ro‖ ・
No....`....・・・・
・・・ :
Associate Deoree in Commerce′ B`Com.Part― ‖Annua:Exam-2020 %。 .● .0● ●●
・
●● 00● ●●●●●●

Subject: Cost Accounting Paper:8C408 Time:3 HBo Mark3:100

Ⅳ07E:Д ttb“ ρf a"y FryE 9“ es“OrTs.ハ 〃q“ es“ o■ s ca″y eq“ a′ marks.

Q.l HCad Of「 Ice ofA卜 Wakeel Wood Works L in Lahoreand tt Factory is in Cttrat・ Fo1lowing
infomation pertains to its payro‖ ofa ceFtain month:
Direct hbore… … … ……・ … ……
… … … ………… Rs.500,000
1ndirect iabor..マ ._..・・・・
・・・
・・・●●,0'“ 。・・・・・
・・・・・・。・
・ ・・・Rs. 50,000
,。 (・

Sales salaries.… ".… ..…・。 ・

…… ・ ・ ・ ・
・ … ・"・ ……・ ・・"・・Rs,100,000
0露 ce salttlest… … … 。 ,… … … … …… …… ……… Rs,5∝000
Total..・ ..・・ ・
“"・・・・・
・・・・“●
・ "● ●
・
・・・"o● “●●""・ 。Rs.700.000

Dttuction bFinёome tax oFemployeeslbr the month totaled Rs。 100000。 Proヤ 耐mtFund atthe rate of
7%and WelFare Fund at the mte oF 30/0 1s deductedう に 澪n gross emings of all errtployeest I〕 Inployer also
contributes to Provident Fund and WelFare Fund at the same rates as the rates oFdeductions.Net amount of
sataries and wages payable to employees is pald.
Required:Prepare,oL3mal ertt轟 es to韓oord the above transacttons h騨 ral o籠 ce b∞ ks and Factory
ofFIce books, “

Q。 2A卜 Mけ qtadir ManuFactuttng COncerm provides Fo1lowing data re:ating to tts operattons,っ 田
Janu田 り層to June 30:
Changes En lnVentory:
Finishcd goods deoreased by ........,.,..r..,...ri.....,)+. Rs. 60,000
Work in process decreased by ............. .....,,,.,.{..r. Rs. ,000
Raw materials increasd by .........r,....., Rs. 24400
“
鳳Ｒ

Raw matertals plrchased.… ・

・・・…
...… ・
・
・・・・・………・ 。
・"…・………`"… …・・"・ 473,300
ｓ．Ｌ 臨 ﹂ に

Purchases FetuFnS and allowances.… ・・

・
"..・・ … ………“・・
・・ …"'… …・…・。 "●
,・ 15■ 00
Purchase discounts,… ...… ・・`… …………
.,・ ,,(,。
・
・・ ●
・。……● ●
・…う。・
・・
・…… ・●●
・ ● `'・
0■ 8,700
Transportation in。 _…
……"… ."… "… "… …
"・
,“
・……・…“ ●
……`… ……`` 17,700
Direct iabour∞ st″ ……………・ …。
(・,,…
… 。
・・…・
・
1,。ヽ
“ … ・
・ ・
・・ ・
・
・……・ ・・
・
''・ `,。 `・ `・
,・ 316,300
Manuね cturh3 0鴇 由ead,… ……………………………`… ……… 141,100
…
Requirodg From the above inforrnation compute the Fo‖ owing:
(a) Total current rnanufacturing cost.
(b) Cost of goods manufastured.
(c) Cost of goods sold.
Q' 3 Yaqoob Yarn F&ctory re?orts following produotion data for its Department No. 2:
Transfened in from Department No. L....... 50,000 Units
Transfend out to Departmcnt No. 3 .,...,,..r.... 44,000 Units
Normal loss in pro€ess ..,.....,r..r...r......r..r.,.,.r.,.,r,*,...,..t*..t.,.,.,,..,.,..... 2r0@ Units
Remaining units are in prccess and l/l complete.
costing departmont c,ollects fullowing datra as to costs in Department No.2:
Perunitcostofunits from DepartmentNo. I ............... Rs. 12.00
Labor cost in Department No. 2 .....*....,.,..r.,... Rs.2t6,000
Manufhcturing overhead in Departmsnt No. 2 ............., Rs. t21,500
All materials are put in process in Depanment No, I
Requiredr A cost of production repo* for department 2.

Page 1 ot2 P.T。 0.

 transactions"late to an鐵 臓 ofmttattcoded asT‐ 29 used by Hashir
Q。 4 Fo‖ owing
Handi薇」 b in tt manuf熟 腱轟 ng opemtions:
Nov.1“ ………… Bdance b/d… …………………… … ……… … 200 uni瞥 @Rs.25
Nov.5"… ………Puttase… …………………………………300 uniわ @Rs.27
Nov,8,… ………… ・ISsue....… ………………………
・ ・
・・◆
・
・
・・・
・・………・
・ ・・… 250 uni"
Nov・ 12… …"… …Pu“ hase… ………………
………Ⅲ … ………200 uniも @Rs。 28
Nov.i4… …… 。 “Return to supplieF,pttFChお ed on Nov.5… … 。 50 units
.`・

Nov。 20,...・ い・ ・。 ・…… ●

ISsue,......・・
...。 00(● ・ ●
・
・・
・・●●●●
● ●`…
● ●
●・
・・
・・
・・‐0… 250 units
'● `●
￨●
`●
0,●

Nov.22… …… ".・・ ・Remm tostOnOom… … り … ....・ "… ……… 20■ nits :・

Novi26… …“ “…"Pu“ h観 ふ "… ……"… …Ⅲ

“ Ⅲ …………… 300 uni“ @Rsc 30
Nov.30。 ...… `… …
・・ISsuat… … 。
.。
'… ……・
・・…・
・・
・・…●
・
...ャ ●●…。……・・“…・。250 units ,・

R● q● 油雌8 Prepm perpetutt lnventory Cards and calculate cost oFmtterbl used and in ending
invetory uttdereach oFthe Followttg ttethodst
(→ First in,First out
(り 撚 卜:L FiFSt O鳴 and
(c)Average Costin3・
Q,5 From the books and reoords oFMobeen AE Prお s it is found that average dttly ttquirement of
20x30‐ 903m,art paper is 50-s.Maximum monthly reqじ i組nent ofthe art paper does■ ot exceed
:朧
硼 器漑酬8糧 i鞘
reams.
電階::脚 轟ヽ 躍撚昇
縦臨鳳乱‖ 」誂
RequiFed:Determine minimum and rnax:mum iimits alld also ord"tevel.:Fth“ Юdays a“ sul開 cient to
Melve emergmcy supp幌 detmhe dangerlevdぼ so。

Q.6 A workertakes 9 hot3S tO∞ mpl(海 ajtt on dalけ wages and 6 ho韓 僣 on a mheme oFpayment
by esultst Hお day轟 出 is Rst7.50 per houn Materhis oou ofthe productお Rs議 00 and oveneads are
recovered at i500/● oFtotal direa wages.

Requ鮨 v Caiclll議 無 tory∞ st oFthe product under:

“ (l)Pi∝ 海WOrk Phn.
(2)Halsey Pian,
(3)Roun Plan.

Q.7 A Factory prepares Following budget as toお Factory overhead.

Fixed tctory OVerh∝ だ per monthぅ 。 ,`… ・ ●

………………… ・・……………… Rs,300,000
・ ,・
`。

Variable factory overhead.… ……………… ・

・・`… …… ・
・"・ ………… ・`…・
・ ・・"・ Rs.40 per mit
Nol■tal volume per month.… ..`・・
・・・
・“・・・ …… ● "```… ……・
■
・…・Ⅲ……………
0● ・ 15,000 units
'●

Foltowing data oFl縛 籠繊 :● ∝uits are collected雛 載 略end ofmonth:

Total factory overhend.… …… ・ ………・ ・
・……………… .・
・・………・・ ・・
・・…… Rs,990,000
・ `・

Totai output t… …… ..`… ・

…… …………………
r… ・ ・
・
・・。。
Ⅲ…………
・ ・
・'… …・"" 1…
'。 17,500 untts
Required:(→ Factory ovemad absorption畑
".Ove轟
(り Under Or over absorbed FactoFy 瀬 `

O BudrtVttian".
C)Capacity vぶ ance。
Q.8 Explain the followings:
(1)PrOduction depamttt
〔i)Service department
ol)Al:ocation oFFactory overhead.
(iv)Applied Factow Ove畑

Page 2 of 2