ALLAMA IQBAL OPEN UNIVERSITY Level: Bachelor Semester: Spring 2009 Paper: Cost Accounting (186) Maximum Marks: 100 Time Allowed: 3 hrs Pass Marks: 40 Note: - ATTEMPT FIVE QUESTIONS. ALL CARRY EQUAL MARKS. QNo. : e . “The following data (1p thousand of dollar) have been taken fFoi the accounting record of ‘Davis Corporation for the just completed year. ‘Administrative Expenses 600 Direct Labour 00 480 ee $40 yy iri stes st oc a sat gag ae Purchase of Raw Materia 480 Raw material Beginning Inventory ‘ 160 ‘Raw material Ending Inventory 280° Sales 3,960 Selling Expenses 360 ‘Worle in Process Inventory, Beginning ae) Work in Process Inventory, Ending 200 Required: “A) Whet wis the cost of raw material use In production during the year? {B) What was the Cost of goods manufactured? ‘C) What was the cost of goods sold? 1B) What was the net income for the year? E) Which cost listed above for the Davis Company ate product costs? Period Costs? QNo2 ‘Brooke Inc uses process costing. The costs for department 02 for April were: ‘Cost from preceding department: Rs.20, 000, ' Cost added by thedepartment Material: RS.21, 816, Labour: Rs.7, 776, FOH: R33, 696 ‘The following information was obtained from the departmient quanity schedule Unit ceived: 3,000, Unit transfered ou: 4,000, Unit sil in proces: 1,000 ‘To degice completion ofthe work in oust , cost ning in department 02 was 50% of the unit ¢ ‘Were 40% vomplete, 20% were 30% complete, and the balance was 20% compl Requited: 3 “The Cost of Production Report for department 02 for April QNo3 ‘Normal operating capacity ofa company’s powerplant i estimated 10 be 4,750,000 Klowt- hours per aonth At is fevel of acivity fixed overhead is estimated to be $17.00) and variable our eyo 000, During Nowesaber, the powerplant produced 5000000 Klowahous,” Actual : overhead forthe month totalled $393,000. Required: . "A. Over or under applied dverhiend. BL. Spending and idle capacity variances. QNoa' ‘A Daw industry has developed the following data to assist in controlling one of its inventory items eonomnis Order Quantity Average dai use 0 se in oe) antimony Se % meaeee ‘Maximum daily use Uses bat Nuttin ica tebe QNos. “thie Kenicky Respiratory Clinic makes we Zliowing purses end tssues of replaceable tubes for potable respirator machines ee Inventory January.1 400 units @S1.40 MY Receipes Hamuary6 500 TT : 4 onary 10-200 12 i Fanwary. 25: 700 123: Issues Jahuary15. 600, ‘ January 27 300. ‘Required: ‘The odst of tubosiissued and the Gost aiaigned fo the January 31 ioventory bby each of these erp invenory costing methods : ) FO 2) LIFO- 193)" Average ete ©"). Moat recent burchaie pee. anes , ay ‘Enumertth varios lastetons of cont Explain with he examples inde Loo BN ag = ga ay big pian aia iy ieee mighapinmnrnR DENS : ON iF publ detin Separmbea? sabia ek ent? Give telons ech: eu ad itt