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    Cost Accounting: Time Allowed: 3 Hours Marks: 100

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    muhammad sami ullah khan
    The document contains 7 questions related to cost accounting principles and calculations. The questions cover topics like distribution of overhead expenses, income statement preparation, journal entries for manufacturing transactions, variances, cost of production reports, and different payment schemes. Students are asked to attempt any 5 questions out of the 7 provided.

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    Cost Accounting: Time Allowed: 3 Hours Marks: 100

    Uploaded by

    muhammad sami ullah khan
    196 views3 pages
    The document contains 7 questions related to cost accounting principles and calculations. The questions cover topics like distribution of overhead expenses, income statement preparation, journal entries for manufacturing transactions, variances, cost of production reports, and different payment schemes. Students are asked to attempt any 5 questions out of the 7 provided.

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    paper of cost accounting

    Original Title

    Cost Accounting a

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    The document contains 7 questions related to cost accounting principles and calculations. The questions cover topics like distribution of overhead expenses, income statement preparation, journal entries for manufacturing transactions, variances, cost of production reports, and different payment schemes. Students are asked to attempt any 5 questions out of the 7 provided.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    196 views3 pages

    Cost Accounting: Time Allowed: 3 Hours Marks: 100

    Uploaded by

    muhammad sami ullah khan
    The document contains 7 questions related to cost accounting principles and calculations. The questions cover topics like distribution of overhead expenses, income statement preparation, journal entries for manufacturing transactions, variances, cost of production reports, and different payment schemes. Students are asked to attempt any 5 questions out of the 7 provided.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Cost Accounting

    Time Allowed: 3 Hours B.Com II Marks: 100

    Note: Attempt any five questions. All questions carry equal marks.

    Question # 1
    What are the Principles Bases of the distribution of one head expenses among the departments?

    Question # 2
    Asad & Company Limited present I you the following facts concerning the company's operations for the years 2011.
    Beginning inventory (at sales prices) 37,500

    Purchases (at cost price) 52,500

    75,000
    Sales (at sales price)
    Ending inventory (at sales price) 50,000

    16,000
    Marketing expenses

    Administrative expenses 6,000

    Required: An income statement for the year 2011

    Question # 3. AI-Raheem Fabrics, during the month of January 2011, completed the following transactions.

    (a) Materials purchased during January, 2011:


    Direct materials Rs. 90,000
    Indirect materials Rs. 10,000
    (b) Materials issued for use in production:
    Direct materials Rs. 80,000
    Indirect materials Rs. 5,000
    (c) Defective materials returned to supplier:
    Direct materials Rs. 4,000
    Indirect materials Rs. 2 000
    (d)Unused material returned by factory to store room:
    Direct materials Rs. 2,000
    Indirect materials Rs. 1 000
    (e)Payroll data for the month as follows:
    Direct materials Rs. 60,000
    Indirect materials Rs. 10,000
    Salaries of marketing staff Rs. 30,000
    Salaries of administration staff Rs. 20,000
    Deduction (Less from total) of provident fund@ 10% of gross earning Rs. 12,000 Net amount paid Rs. 108, 000
    Employer also contributes an equal amount towards provident fund.
    (f) Factory overhead cost incurred during the month:
    Bill for utilities Rs. 12,000
    Factory rent Rs. 16,000
    Depreciation of plant Rs 4,000
    Insurance of plant expired Rs. 2,000
    (g) Factory overhead is applied to production @ 50% of direct labour cost.

    (h) Cost of finished output during the moth Rs.150, 000.

    (i) Finished goods costing Rs. 130,000 were sold for Rs.170, 000. Sales of Rs. 70,000 were for cash and of Rs.
    100,000 were on credit.
    Required:
    Pass entries in general journal form to record the above transaction

    Question # 4
    Production of an order consisting 800 units requires direct materials of Rs. 350,000 and direct labor or Rs. 250,000. Factory overhead
    is applied at the rate of 80% of direct labor cast. After completion of the order, 16 units are classified as spoiled which can be sold
    for Rs. 4,000. Customer takes delivery of remaining 784 good units and paid in cash the contracted prices at the rate of Rs. 1,250 per
    unit. Spoiled units are sold and Rs. 4,000 received in cash.

    Required:
    a) Journal entries, if the loss is charged to the order.
    b) Journal entries, if the loss is changed to factory overhead

    Question # 5
    Annual estimated factory overhead of a company for an expected of 1, 80,000 pounds of a product was as follows:
    Fixed overhead Rs 36,000 Variable overhead 1, 08,000
    Output was 10,000 pounds in June and actual overhead expenses were 7,700.

    Required:
    A. The Overhead Rate per unit
    B. Spending Variance.
    C. Idle Capacity Variance.

    Question # 6
    Following costs were charged to 2nd department of Muddesser Corporation during the month of September. Cost of units
    received from 1 department Rs. 364,000, materials Rs. 327,500, and labor Rs. 221,970, overhead Rs.
    80,360.

    During the month 2nd department completed operations on 4,700 units and transferred these units to 3 rd department, 200
    units were lost during processing, the loss is considered as unavoidable. At the end of month 300 units were in process,
    these units were 2/3 converted. All materials are added in 2nd department at the beginning of manufacturing operations.

    Required: Cost of production report

    Question # 7
    A worker takes 9 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 coast of the product is Rs. 400 and overheads are recovered at 150% of total direct wages.

    Required: Calculate factory cost of the product under:


    1. Piece work Plan.
    2. Halsey Plan.

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