23133387

QP CODE: 23133387 Reg No : .....................

Name : .....................

B.COM DEGREE (CBCS) REGULAR / REAPPEARANCE EXAMINATIONS,

OCTOBER 2023
Fifth Semester
CORE COURSE - CO5CRT14 - COST ACCOUNTING - 1
Common for all B.Com Degree Programmes
2017 Admission Onwards
C2BE5555
Time: 3 Hours Max. Marks : 80

Instructions to Private candidates only: This question paper contains two sections. Answer SECTION I
questions in the answer-book provided. SECTION II, Internal examination questions must be answered in the
question paper itself. Follow the detailed instructions given under SECTION II

Part A
Answer any ten questions.
Each question carries 2 marks.

1. Define Cost Accountancy.

2. What are Common Costs?

3. What is Job costing?

4. What is lead time?

5. What are the important functions of a stores keeper?

6. What is spoilage?

7. What is Over time?

8. What is Piece Wage system?

9. Explain objectives of costing of overhead.

10. Define cost allocation & cost apportionment.

11. What is over absorption and under absorption of overhead?

12. What is works on cost?

(10×2=20)

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 Part B
Answer any six questions.
Each question carries 5 marks.

13. What is cost reduction? Discuss the advantages of cost reduction.

14. Explain the FIFO and LIFO methods of pricing of material issues.

15. What are the merits of Rowan plan?

16. Calculate normal, overtime and total wages payable to a worker from the particulars given
below-
Days Hours worked
Monday 10
Tuesday 9
Wednesday 8
Thursday 12
Friday 9
Saturday 4
Normal working hours – 8 hrs per day
Saturday – 4 hrs per day
Normal rate – 50 per day
Overtime rate – upto 9 hrs per day at single rate; and beyond
9 hours a day at double rate
“Overhead which is common to two or more dept. or cost centres are required to be
17.
apportion among these depts. It has to be made on some equitable basis” Explain the
important bases for apportionment of overhead.

18. A company’s expenses for the month of June 2018 is given below:-
Rent – Rs12500
Insurance –Rs1050
Depreciation-- 15% of value of machinery
Power—Rs3800
Lighting– Rs1250
Additional information relating to the company:

Production departments Service departments

Items
P1 P2 P3 Office Service workshop
Direct wages 20000 25000 30000
Direct material 30000 35000 45000
Indirect material 2000 3000 3000 1000 2000 2000

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 Indirect wages 3000 3000 4000 10000 10000 5000
Area in square metres 200 250 300 150 100 250
Value of machinery 30000 35000 25000 -- -- 15000
Horse power of machines 15 20 25 -- -- 5
Machine hours worked 10000 20000 15000 -- -- 5000

Prepare an overhead primary distribution summary statement for the departments

showing clearly the basis of apportionment where necessary.

19. The monthly budget of a department is as follows:

Direct Materials - 45000 , Direct wages - 60,000 , Factory overhead-90,000 , Direct
Labour hours- 15000 hrs , Machine hours-30000 hrs Budgeted output-10000units
Calculate overhead recovery rate on the basis of:-
a) Direct material cost method
b) Direct labour cost method
c) Prime cost method
d) Labour hour rate method
e) Rate per unit of production method

20. Prepare a cost sheet for the year 2019. Opening Raw material:Rs.1,50,000; Closing Raw
material:Rs.2,50,000; Raw material purchased:Rs.5,00,000; Direct Labour:Rs.2,00,000;
Direct Expense:Rs.25,000; Works overhead:Rs.75,000; Administration
overhead:Rs.25,000; Selling and distribution overhead: Rs.40,000. Profit @ 30% on
Sales.

21. From the following prepare reconciliation statement.

Profit as per financial books-Rs.64,450; Over recovery of administrative overheads in cost
accounts-Rs.850; Loss due to obsolescence charged in financial accounts-Rs.2,850;
Depreciation charged in financial accounts-Rs.5,600; Depreciation recovered in cost
accounts-Rs.6,000; Loss due to depreciatiion in stock values-2,000; Interest received
-4,000; Income tax provided in financial accounts-Rs.20,000; Bank interest credited in
financial accounts-Rs.250; Stores adjustment credited in financial books-240; Preliminary
expenses written off-Rs.1,350; Works overhead underrecovered in cost books-Rs.1,550.
Profit as per cost books-Rs.86,460.
(6×5=30)
Part C
Answer any two questions.
Each question carries 15 marks.

22. What are the steps in installing a costing system?

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

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

24. Prepare a comparative cost sheet. The Cost of manufacturing a sewing machine is as
under.
Materials-Rs.100; Wages Rs.50; Variable overhead-Rs.25; Fixed overhead-Rs.75. The
firm earns a profit of 20% on Cost. Number of Machines produced and sold-30,000,
capacity is 40,000 machines. Should we accept an export for 5,000 machines at Rs.150
per machine?

25. What is a reconciliation statement? Why is it necessary to reconcile the profit shown by
cost and financial accounts? Explain the main sources of differences which would enter
into such a reconciliation.
(2×15=30)

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