QP CODE: 20100106 Reg No : .....................

20100106
Name : .....................

BCOM DEGREE (CBCS ) EXAMINATION, FEBRUARY 2020

Fifth Semester
Core Course - CO5CRT14 - COST ACCOUNTING - 1
B.Com Model II Computer Applications ,B.Com Model II Finance & Taxation,B.Com Model II
Logistics Management,B.Com Model II Marketing,B.Com Model II Travel & Tourism,B.Com Model
III Computer Applications,B.Com Model III Office Management & Secretarial Practice,B.Com Model
III Taxation,B.Com Model III Travel & Tourism,B.Com Model I Finance & Taxation,B.Com Model I
Co-operation,B.Com Model I Computer Applications,B.Com Model I Marketing,B.Com Model I
Travel & Tourism
2017 Admission Onwards
C7D560FC
Time: 3 Hours Maximum Marks :80
Part A
Answer any ten questions.
Each question carries 2 marks.

1. Distinguish between costing and cost accounting.

2. What is Committed Cost?

3. What is Absorption Costing?

4. What is Direct material ?Give two examples .

5. What is perpetual inventory system?

6. What is weighted average price?

7. What is Merrick’s multiple piece rate system?

8. From the following particulars ascertain the labour cost per day of 8 hours.
a. Basic salary : 4000 per month
b. Dearness Allowance : 5% of basic salary
c. Employer’s contribution to provident fund : 8% of(a) and (b)
d. Employer’s contribution to ESI : 2 ½ % of (a) and (b)
e. Pro- rata amenities on labour : 179. 5 per head per month
f. Working Hours in a month : 400

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9. Distinguish between fixed and variable overhead?

10. List out the factors to be considered while selecting a suitable method of overhead
absorption.
Explain the terms :
11.
a)Primary distribution

b)Secondary distribution

12. Give two items of expenses which are included only in financial accounts.
(10×2=20)
Part B
Answer any six questions.
Each question carries 5 marks.

13. What is cost centre? What are the different types of cost centres?

14. Calculate the inventory turnover ratio from the following details: Material X Material Y (Rs)
(Rs) Opening stock 25000 87500 Closing Stock 15000 62500 Purchases 190000 125000
Determine the fast moving material

15. What is Overtime? Explain the treatment of overtime premium in Cost Accounts.

16. Distinguish between Time Rate system and Piece Rate system.

17. What do you mean by departmentalisation of overhead? List out its advantages.

18. “Overhead which is common to two or more dept. or cost centres are required to be
apportion among these depts. It has to be made on some equitable basis” Explain the
important bases for apportionment of overhead.

19. The following particulars relate to machine for one month

Rent and rates per month - Rs 6000
Lighting and heating per month Rs 2750
Supervisor’s charges per month Rs 4000
Wages of machine operator per month- Rs 2000
Insurance of the machine per annum -Rs 3000
Depreciation of machine per annum- Rs 9000
Repairs and maintenance of machine per annum-Rs 3600
Power used per hour – 5 units @ Rs 4
Lubricants , cotton waste etc per month-Rs 150
The machine worked for 300 hours during the month .Calculate machine hour rate

20. Prepare a production account with imaginary figures.

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21. The net profit of a manufacturing company for the year ended 31.03.2016 was
Rs.5,15,020 as shown by financial books and Rs.6,89,600 as per cost books.
Administrative overheads Over recovered in cost accounts-Rs.6,800; Loss due to
obsolescence charged in financial accounts-Rs.22,800; Depreciation charged in financial
accounts-Rs.44,800; Depreciation recovered in cost accounts-Rs.50,000; Loss due to
depreciation in stock value charged only in financial accounts-Rs.27,000; Interest on
investment-Rs.32,000; Income tax paid- Rs.1,61,200; Bank interest received-Rs.4,900;
Stores adjustment (credit in financial books only)-Rs.200; Works overhead
underabsorbed in cost books-Rs.12,480. .Prepare reconciliation statement.
(6×5=30)
Part C
Answer any two questions.
Each question carries 15 marks.

22. “Cost accounting is a tool of managerial planning and control.” Do you agree with this
statement? Explain.

23. A manufacturing Co. has two production depts. & three service depts. The departmental
distribution summary showed the following expenses.
Production Depts.
Dept. X – Rs.32,000
Dept. Y – Rs. 20,000
Service Depts.
Time keeping Dept. – Rs. 16,000
Stores Dept. – Rs. 5000
Maintenance Dept. –Rs 3,000
Additional information

Base Production Dept. Service Dept.

X Y Time Stores. Maintenance.
Keeping
No. of employees. 40 30 - 20 10
No. of stores 24 20 - - 6
requisitions
Machine hours 2400 1600 - -

Apportion the overheads of service dept. to production dept., by using step ladder
method.

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24. What is cost sheet? Explain its preparation. Prepare an imaginery cost sheet showing the
various elements of cost and the profit.

25. Following are the particulars for the production of 20,000 cellphones of XL Co. Ltd. For
the year 2018. Cost of Materials-Rs.1,75,000; Wages-Rs.2,50,000; Manufacturing
expenses-Rs.1,00,000; Salaries-Rs.1,25,000; Rent & rates- Rs.25,000; Selling expense-
Rs.40,000; General expense-Rs.40,000; Sales-Rs.10,00,000. The company plans to
manufacture 4,000 mobile phones during 2019. You are required to submit a statement
showing the price at which phones would be sold so as to show a profit of 15% on Selling
price.Additional information: (a) Price of material is expected to rise by 15%. (b) Wages
are expected to show an increase of 10% (c) Manufcturing expenses will rise in
proportion to the combined cost of materials and wages. (d) Selling price will remain the
same. (e) Other expenses will remain unaffected by the rise in output.
(2×15=30)

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