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C 41152 (Pages : 4) Name.........................................

Reg. No.....................................

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FOURTH SEMESTER (CBCSS—UG) DEGREE EXAMINATION
APRIL 2023

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B.Com.

BCM 4B 05—COST ACCOUNTING

(2019 Admission onwards)

Time : Two Hours and a Half Maximum : 80 Marks

Part A

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Answer all the questions.
2 marks each.
Max. 25 Marks.

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1. Define cost Accountancy.

2. What is Activity Based Costing ?

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3. What are direct costs ?

4. What is standard costing ?

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5. What is composite cost unit ?

6. What is danger level ?

7. What is EOQ ?

8. What is FSN analysis ?

9. Who are casual workers ?

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10. What is apportionment of overhead ?

11. Define contract costing.

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12. What is Normal loss ?

13. What is Budgeting ?

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14. What is Variance ?

15. What is Labour cost variance ?

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(15 × 2 = 30 Maximum Ceiling - 25 Marks)

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Part B

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Answer all the questions.
5 marks each.

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Max. 35 Marks.

16. What do you mean by VED analysis ?

17. Write a note on ascertainment of profit on incomplete contract.

18. Briefly write about the characteristics of Process costing

19. What are the techniques of costing ?

20. A manufacturing company uses 12,000 units of materials per year. The cost of placing an order is

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12 per order. Cost of material per unit is 1. Inventory carrying cost is 24 %. Find EOQ.

21. From the following particulars, prepare the Stores Ledger Account under Simple Average Price

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method :

Stock on 1-1-2022 400 units @ Rs. 10 per Unit

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Purchased on 2-1-2022 100 units @ Rs. 11 per Unit

Issued on 4-1-2022 400 units

Purchased on 8-1-2022 600 units @ Rs. 12 per Unit

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Issued on 10-1-2022 500 units

Purchased on 13-1-2022 500 units @ Rs. 13 per Unit

Issued on 15-1 -2022 600 units

Purchased on 17-1-2022 800 units @ Rs. 14 per Unit

Issued on 20-1-2022 500 units

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Issued on 22-1-2022 200 units

Purchased on 25-1-2022 500 units @ Rs. 15 per Unit

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Purchased on 28-1-2022 300 units @ Rs. 16 per Unit

Issued on 31-1-2022 400 units

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22. Work out the machine hour rate for the following machine whose scrap value is nil :

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Cost of the machine ... 90,000

Other charges, freight and installation ... 10,000

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Working life ... 10 years

Working Hours ... 2000 hours per year

Repairs charges ... 50 % of depreciation

a) Power - 10 untis per hour, at 10 paise per unit.

b) Lubricating oil, at Rs. 21 per day of 8 hours.

c) Consumable stores at Rs. 10 per day of 8 hours.

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d) Wages of machine operator at Rs. 4 per day of 8 hours.

23. From the following information calculate the earnings of Geetha and Seetha, on Taylor’s differential

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piece rate system :

Standard Production ... 8 units per hour

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Normal time rate ... Re. 0.40 per hour

Differential to be applied ; 80 % of piece rate below standard. 120 % of piece rate at or above
standard. In a day Geetha produces 54 units and Seetha produces 75 units.

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(8 × 5 = 40 Maximum Ceiling - 35 Marks)

Part C

Answer any two of the following.

24. You are required to prepare Contract Account showing the profit on the contract on 30th April,
2022, from the following particulars :

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Contract price ... 1,00,000

Materials sent to site ... 32,250

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Labour engaged on site ... 27,400

Plant installed at site ... 5,650

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Work certified ... 71,500

Cash received from contractee ... 65,000

Value of plant as on 30th April, 2022

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... 4,100

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Cost of work done, but not certified ... 1,700

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Direct Expenditure ... 1,200

Cost of Establishment ... 1,625

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Wages outstanding at 30th April, 2022 ... 900

Material in hand on 30th April, 2022 ... 700

Direct Expenses outstanding on 30th April, 2022 ... 100

Materials returned to store ... 200

25. From the following information and the assumption that the balance in hand on 1st January 2022

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is Rs. 72,500, prepare a cash budget :

Month Sales Materials Wages Selling and Production Administration

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Distribution Cost Cost Cost

January 72,000 25,000 10,000 4,000 6,000 1,500

February 97,000 31,000 12,100 5,000 6,300 1,700

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March 86,000 25,500 10,600 5,500 6,000 2,000

April 88,600 30,600 25,000 6,700 6,500 2,200

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May 1,02,500 37,000 22,000 8,500 8,000 2,500

June 1,08,700 38,800 23,000 9,000 8,200 2,500

a) Assume that 50 % are cash sales.

b) Assets are to be acquired in the month of February and April. Therefore, provision should
be made for the payment of Rs. 8,000 and Rs. 25,000 for the same.

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c) An application has been made to the bank for the grant of a loan of Rs. 30,000 and it is
hoped that it will be received in the month of May.

d) It is anticipated that a dividend of Rs. 35,000 will be paid in June.

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e) Debtors are allowed one month’s credit.

f) Sales commission at 3 % on sales is to be paid.

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g) Creditors (for goods or overheads) grant one month’s credit.

26. Briefly explain the steps in the overhead accounting.

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27. What is time keeping and time booking ? Discuss the various methods of time keeping and time
booking.

(2 × 10 = 20 marks)

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