PRACTICAL COSTING QUESTIONS -
1. Define cost accounting. Explain its objectives and advantages.
2. What do you understand by Inventory control? State its objectives and any two methods.
3. Write notes on:
(a) Normal wastage.
(b) Idle Time.
(c) Machine Hour Rate.
(d) Bin card.
(e) Overheads.
Q4. Show the stress ledger under simple average method and FIFO method.
|
|
|
Units
|
Price Rs.
|
|
April 1
|
Balance
|
300
|
2.00
|
|
April 2
|
Purchased
|
200
|
2.20
|
|
April 4
|
Issued
|
150
|
|
|
April 6
|
Purchased
|
200
|
2.30
|
|
April 11
|
Issued
|
150
|
|
|
April 19
|
Issued
|
200
|
|
|
April 22
|
Purchased
|
200
|
2.40
|
|
April 27
|
Issued
|
150
|
|
Q5. Bharat Engineering company manufactures and sold fans. The following details are obtained from the records.
|
|
Rs.
|
|
Stock opening
|
75,000
|
|
Direct wages
|
52,500
|
|
Closing stock
|
91,500
|
|
Indirect Wages
|
2,750
|
|
Sales
|
2,11,000
|
|
Work in progress opening
|
28,000
|
|
Work in progress closing
|
35,000
|
|
Purchase of raw material
|
66,000
|
|
Factory Rent
|
15,000
|
|
Depreciation
|
3,500
|
|
Expenses of purchase
|
1,500
|
|
Carriage outward
|
2,500
|
|
Advertising
|
3,500
|
|
Office rent
|
2,500
|
|
Selling Expenses
|
6,500
|
|
Stock finished good opening
|
54,000
|
|
Stock of finished goods closing
|
31,000
|
Required - Prepare cost sheet.
Q6. From the information given below calculate the earnings of each employee under:
(a) Halsey Plan
(b) Rowan Plan
(c) Halsey Weir Plan.
|
Employees
|
A
|
B
|
C
|
|
Time allowed-hours per 100 units
|
35
|
40
|
42
|
|
Wages per unit
|
Rs. 2
|
Rs. 3
|
Rs. 4
|
|
Hourly rate
|
Rs. 7
|
Rs. 8
|
Rs. 10
|
|
Actual time takes in hours
|
50
|
48
|
46
|
|
Actual units produced
|
200
|
150
|
125
|
Q7. You are required to show the overhead apportionment for the following information.
|
|
Production Departments
|
Service Departments
|
|
A
|
B
|
C
|
P
|
Q
|
|
Rent
|
2400
|
4800
|
2000
|
2000
|
800
|
|
Electricity
|
800
|
2000
|
500
|
400
|
300
|
|
Indirect Labour
|
1200
|
2000
|
1000
|
800
|
1000
|
|
Depreciation on Machinery
|
2,500
|
1,600
|
200
|
500
|
200
|
|
Sundries
|
910
|
2143
|
843
|
300
|
300
|
|
Estimated working hours
|
1000
|
2500
|
1400
|
|
|
Expenses of service Department P and Q are apportioned as under:
|
|
A
|
B
|
C
|
P
|
Q
|
|
P
|
30%
|
40%
|
20%
|
-
|
10%
|
|
Q
|
10%
|
20%
|
50%
|
20%
|
-
|
Q8. From the following information of Pankaj industries prepare reconciliation statement.
|
Trading and P and L a/c of Pankaj Industries - 31, March 2007.
|
|
|
Rs.
|
|
Rs.
|
|
To Materials
|
27,400,000
|
By Sales 120000 units
|
60,00,000
|
|
To Wages
|
15,10,000
|
By Finished goods (4000 units)
|
1,60,000
|
|
To Factory Expenses
|
8,30,000
|
By Work in progress Materials
|
64,000
|
|
To Administration expenses
|
3,83,000
|
Wages
|
36,000
|
|
To Selling Expenses
|
4,50,00
|
Factory Expenses
|
20,000
|
|
To Preliminary expenses written off
|
40,000
|
Dividend Received
|
18,000
|
|
To Goodwill written off
|
20,000
|
|
|
|
To Net profit
|
3,25,000
|
|
|
|
|
62,98,000
|
|
62,98,000
|
(a) The factory expenses have been allocated to production @ 20% on prime cost.
(b) Administration expenses @ Rs. 3 per unit produced.
(c) Selling expenses @ Rs. 4 per unit sold.
Q9. A product passes through three process A, B and C. The loss in each process are A - 2%, B - 5%, C - 10%. The loss of processes A and B is sold at Rs. 5 per 100 units, C is sold at Rs. 20 per 100 units.
|
|
Process A
|
Process B
|
Process C
|
|
|
Rs.
|
Rs.
|
Rs.
|
|
Materials
|
6,000
|
4,000
|
2,000
|
|
Labour
|
8,000
|
6,000
|
3,000
|
|
Manufacturing Expenses
|
1,000
|
1,000
|
1,500
|
|
Output
|
19500
|
18800
|
16000
|
|
|
units
|
units
|
units
|
20000 units were introduced in Process A at a cost of Rs. 10,000. Prepare Process Account and other necessary accounts.
Q10. (a) Calculate machine hour rate from the following information:
|
|
Rs.
|
|
Cost of the machine
|
19,200
|
|
Estimated scrap value
|
1,200
|
|
Repair and maintenance per month
|
150
|
|
Standing charges per month
|
50
|
|
Effective working life of the machine
|
10,000 hours
|
|
Running time per month
|
200 hrs
|
Power used 5 units at 18 paise per unit.
(b) Calculate EOQ from the following information:
Annual consumption 8000 units
Buying cost per order Rs. 7
Cost per unit of material Re. 0.30.
Storage and carrying cost 15% of average inventory.