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B.COM DEGREE (CBCS ) SPECIAL REAPPEARANCE EXAMINATIONS, MARCH

2024
Fifth Semester
CORE COURSE - CO5CRT14 - COST ACCOUNTING - 1
Common for 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, B.Com Model II
Computer Applications ,B.Com Model II Finance & Taxation,B.Com Model II Logistic
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
2021 Admission Only
C683153A
Time: 3 Hours Max. Marks : 80

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

1. Define Cost Accounting.

2. Define Profit Centre.

3. What are the advantages of cost accounting to the workers?

4. What is JIT?

5. What is Double Bin system?

6. Mention two advantages of FIFO method of pricing of material issues

7. What is a Pay roll?

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

9. What is selling and distribution overhead ?Give exmaples

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10. List out the factors to be considered while selecting a suitable method of overhead
absorption.

11. What is Machine hour rate?

12. How will you deal with under or overvaluation of stocks in cost a ccounts while preparing
reconciliation statement.?
(10×2=20)
Part B
Answer any six questions.
Each question carries 5 marks.

13. Explain any three techniques of costing.

14. Distinguish between normal and abnormal loss of materials .How they are treated ?

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

16. What are the merits of Rowan plan?

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.
K Ltd has 3 production departments A,B and C and 2 service departments D and E
19.
Following figures are extracted from the records of the company
Rent and rates – Rs 5000
Indirect wages – Rs 1500
Depreciation of machinery—Rs 10000
General lighting --- Rs 600
Power --- Rs1500
Sundries --- Rs 10000
Following further details are available:
A B C D E
Floor space (sq.metres) 2000 2500 3000 2000 500
Light points 10 15 20 10 5
Direct wages 3000 2000 3000 1500 500
H P of machines 60 30 50 10 --
Value of machinery 60000 80000 100000 5000 5000

Apportion the costs to various departments on the most equitable basis by preparing a
primary distribution summary

20. Prepare a cost sheet for the year 2018. Opening Raw material:Rs.40,000;Closing Raw
material:Rs.25,000; Raw material purchased:Rs.2,00,000;Direct Labour:Rs.50,000; Direct

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 Expense:Rs.10,000; Works overhead:Rs.10,000; Administration overhead:Rs.5,000;
Selling and distribution overhead: Rs.5,000.

21. The following are the estimated cost of producing 20,000 units. Raw materilas-
Rs.1,00,000; Direct wages-Rs.75,000; Direct expense-Rs.25,000; Machine hours worked
1,000 hours. Machine hour rate-Rs.10. Office overhead-20% of works cost. Calculate cost
per unit.
(6×5=30)
Part C
Answer any two questions.
Each question carries 15 marks.

22. Explain the different classification of cost.

23. The following particulars relate to a manufacturing company with 3 production

departments X, Y and Z and 2 service departments S1 and S2 The following details are
distributed to the departments as per primary distribution summary
Dept X Rs18900
Dept Y Rs 22200
Dept Z Rs 8400
Dept S1 Rs 13500
Dept S2 Rs 9000The service dept cost are shared as follows:

A B C S1 S2
S1 40% 30% 20% -- 10%
S2 30% 30% 20% 20% --

Find out the overhead of production departments on the basis of step ladder method

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

25. From the following particulars prepare: 1. A statement of cost of manufacture for the year
2017, 2.. A statement of profit as per cost accounts, 3. Profit and loss account in the
financial books, and 4.Show how you would attribute the difference in the profit as shown
by 2 and 3. Opening stock of raw materials Rs.30,000; Purchaseof raw materials
Rs.1,80,000; Closing stock of raw materials Rs.45,000; OPening stock of finished goods
Rs.60,000; Closing stock of finished goods Rs.15,000; Wages-Rs.75,000. Calculate the
factory expenses at 25% on prime cost, Office expenses at 75% on factory expenses.
Actual works expenses amounted to Rs.58,125 and actual office expense amounted to
Rs.45,750. The selling price was fixed at a profit of 25 % on cost.
(2×15=30)

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