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NP - 968
lll Semester B.B.A. Exami-nation, February/March 2024
(NEP) (F+R)
BUSINESS ADMINISTRATION
3.1 : Elements of Cost Accounting
Time : 2Tz Hours Max. Marks : 60
lnstruction : Answers shoutd be written in English only.
SECTION _ A
1. Answer any 6 of the following sub-questions. Each sub-question carries
marks. (6x2=12)
2 -#-Lam,
a) Define Cost Accounting.
b) What are indirect materials ? Give example'
c) Name any 4 techniques of lnventory Control'
d) What is Idle Time ?
e) What is meant bY Labour Turnover ?
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f) Give 4 examples of fixed overheads.
g) State any 4factory overheads.
h) What is imPlicit cost ?
SECTION _ B
Answer any 3 of the*{ollowing questions. Each question carries 4 marks. (3x4=12)
2. Explain the objectives of Cost Accounting (any 4)'
3. Calculate materials consumed
{
Opening Stock of Raw Materials 50,000
Purchase of Raw Materials 30,000
Closing stock of Raw Materials 17,000
Carriage lnwards 3,000
Expenses on Purchases 1,500
P.T.O.
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4. Component A is used for production in XYZ Co. Ltd.
Normal Usage 50 units per week
Minimum Usage 25 units per week
Maximum Usage 75 units per week
Reorder Quantity 300 units
Reorder Period 4-6 weeks
Calculate :
a) Reorder Level
b) Maximum Level.
5. From the given information, calculate earnings.of each worker under Rowan Plan.
Standard Time Allowed - 10 hours
Actual Time Taken by Worker A - 12 hours
WorkerB-07hours
Hourly rate of wages { 2.00
6. A Ltd. requires 1,500 unitsof a material per month, each costing < 27. Cost per
t
order is 150 and the cafrying charges is 20% of the average inventory. Find .
out the economic order quantity and the number of orders per year.
SECTION _ C
Answer any 3 of the foltdrving questions. Each question carries 12 marks. (3x12=36)
7. From the following prepare a cost sfieet showing :
i) Cost of materials consumed
ii) Prime cost
iii) Production cost
iv) Total cost
v) Profit.
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Stock of raw materials - 1't Jan. 2019 30,850
Work in progress - 1'tJan.2019 60,850
Purchases of raw materials 1,43,250
Direct wages 1,78,500
Production overhead 1,42,900
General overhead 1,12,700
Stock of raw materials - 31.t Dec. 2019 37,700
Work in progress - 31stDec. 2019 67,750
Sales for the year 8,60,625
8. Prepare a Stores Ledger Account adopting "First ln First Out" method of pricing
issues of materials and 'Last in First Out' method.
Jan. 1 Opening Stock 200units@<3each
Jan.2 Received 300units@{4each
Jan.4 lssued 250 units
Jan.6 Received 100units @<2each
Jan.7 lssued 50 units
Jan. 8 Received 300units@t3each
#i
Jan.10 lssued 200 units
9. A workman's wages for a guaranteed'44hour week is Re. 0.75 per hour. The
estimated time to produce one article is 30 minutes and under an incentive
plan, time allowed is increased by 20%. During a week, a worker produced
100 articles. Calculate his wages under each of the following methods :
a) Time Rate
b) Rowan system
c) Halsey System
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NP - 368
10. cD Ltd. has three production departments A, B and c and
two service
from the records
departments D and E. The following figures are extracted
of the company.
5,000 General Lighting 600
Rent and Rates
1,500 Power 1,500
lndirect wages
Machinery 10,000 Sundries 10,000
Depreciation of
The following details are available :
3,000 2,000 500
Floor space (sq. ft.) 10,000 2,000 . 2,500
60 10 15 20 10 5
Light Points
2,000 3,000 1,500 uo:
Direct Wages (t) 10,000 3,000
150 60 30 50 10
HP of Machines
2,50,000 60,000 80,000 1,00,000 5,000 5,000
Value of Machinery
equitable basis'
Apportion the costs to various departments on the most
11. a) classify and explain overheads according to
functions'
b) Prepare a stores Ledger Account from the following
details using weighted
average method of Pricing.
1 April Opening stock 500 units @ < 20 each
4 April Purchases 400 units @ < 21 each
6 April tssuo6o 600 units
8 April Purchases 800 units @ < 24 each
9 April lssued 500 units
13 April lssued 300 units
24 Purchases 500 units @ t 25 each
