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10/12/2016

PastPaper2015BComPart2CostAccounting

PastPaper2015BComPart2CostAccounting
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CostAccounting2015Paper:BC406
TimeAllowed:3HoursNewCourseMarks:100
Note:Note:AttemptanyFIVEquestions.Allquestionscarryequalmarks.
Q.1.RecordsofBadarColdRefrigeratorCompanyshowthefollowinginformationforthethreemonthsended
March31,2014.
MaterialspurchasedRs.1,946,700
Inventories,January1,2014
Finishedgoods(100refrigerators)Rs.43,000
MaterialsRs.268,000
DirectlabourRs.2,125,800
FactoryoverheadRs.764,000
MarketingexpensesRs.516,000
GeneralandadministrativeexpensesRs.461,000
Sales(125400refrigerators)Rs.6,634,000
Inventories,MarchI,2014
Nounfinishedworkonhand
Finishedgoods(200refrigerators),
costedatRs.395each
MaterialsRs.167,000
Required:
1.Anincomestatementfortheperiod.
2.Thenumberofunitsmanufactured.
3.Theunitcostofrefrigeratorsmanufactured.
4.Thegrossprofitperunitsold.
5.Theincomeperunitsold.
6.Theratioofgrossprofittosales.
7.Theincometosalespercentage.
Q.2.FollowingcostswerechargedtoFinishingdepartmentofAsiaManufacturingCompanyduringthemonthof
May:1
CostfromprecedingdepartmentRs.94500
LaborRs.38468
FactoryoverheadcostRs.9617
DuringMay,FinishingDepartmentreceived18,000unitsfromprecedingdepartment.13,000unitsweretransferred
tofinishedgoodsstoreroom..2,500completedunitswereinFinishingDepartmentawaitingtransfer.Attheendof
May,2,000unitswereinprocessinFinishingDepartmentTheseunitswere40%converted.
Required:AcostofproductionreportforDepartmentNo.2forthemonthofMay.

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PastPaper2015BComPart2CostAccounting

Q.3.PredeterminedfactoryoverheadabsorptionratecomputedbyFazalIndustriesisRs.6permachnehour.
Budgetedfactoryoverheadforactivitylevelof150,000machinehoursisRs.800,000andforactivitylevelof
100,000machinehoursitisRs.700,000.ActualfactoryoverheadincurredduringtheyearisRs.710,000atan
actualvolumeof120,000.machinehours.
Required:
(i)Variablefactoryoverheadabsorptionrate.
(ii)Budgetedfixedfactoryoverhead.
(iii)Budgetedactivitylevelonwhichtheabsorptionrateisbased.
(iv)Overorunderabsorbedfactoryoverhead.
(v)Volumevariance.
(vi)Spendingvariance.
Q.4.Consumptionforecastofaparticularmaterialisgivenhereunder:
Maximumdailyconsumption600units
Averagedailyconsumption500units
Minimumdailyconsumption400units
Leadtime4to8days
Timetogetemergencysupplies3days
Econofnicorderquantity5,000units
Required:Determine(a)Orderlevel(b)Minimumlevel(c)Maximumlevel(d)Dangerlevel
Q.5.Acompanyhadfollowinginventoriesatthebeginningandendofthemonth:
September1September30
MaterialsRs.20000Rs.25000
WorkinprocessMaterialsRs.9000Rs.4000
WorkinprocessLabourRs.16000Rs.10000
WorkinprocessFOHRs.5000Rs.6000
FinishedgoodsRs.12000Rs.25000
DuringthemonthofSeptember,thecostofrawmaterialspurchasedwasRs.60,000directlabourcostincurredwas
Rs.80,000andfactoryoverheadappliedtoproductionwasRs.30,000.
Required:
(a)PreparethenecessaryjournalentriesonSeptember30totransferthecostofgoodsmanufacturedandsoldto
propersummaryaccounts.
(b)Passjournalentriesforsalesreturnwithyourownfigures.
Q.6.AbdullahandAhmedaretwoworkersinadepartmentofamanufacturingconcern.Duringeachdayofthe
previousweektheyworkedasfollow:
DaysHoursworked
AbdullahAhmed
Monday109
Tuesday1110
Wednesday99
Thursday810
Friday98
Saturday84
Required:NormalandovertimewagesofAbdullahandAhmedfortheweekif:
(a)Normalworkinghoursare8.
(b)NormalrateisRs.80perhour.
(c)Workersarepaidatdoublethenormalrateforovertime.
Q.7.Definecostaccountinganddifferentiatebetweencostaccountingandfinancialaccounting.
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PastPaper2015BComPart2CostAccounting

Q.8.Explainindetailthefunctionalclassificationofcost.

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