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COMM/BCMM

(For candidates admitted from 2006 onwards)


B.Com. DEGREE EXAMINATION, APRIL 2009.
III YEAR — V SEMESTER
Core Course
Major Paper XIII –– COST ACCOUNTING
Time : 3 hours Max. marks : 75
SECTION A — (5 × 6 = 30 marks)
Answer any FIVE questions.
1. Define Cost Accounting? Distinguish it from Financial
Accounting.
2. What is Merit Rating? Explain its importance.
3. Calculate the earnings of a worker under
(a) Halsey Premium Plan and
(b) Rowan Scheme
Time allowed = 48 hrs.
Time taken = 40 hrs.
Rate per hour = Re. 1.
4. From the following data given by the Personnel
Department, calculate the labour Turnover rate by
applying :
(a) Separation Method
(b) Replacement Method
(c) Flux Method.
Number of workers on the pay roll :
At the beginning of the month – 900
At the end of the month – 1,100.
During the month 10 workers left; 40 workers were
discharged and 150 workers were recruited. Of these
25 workers were recruited in the vacancies of those
leaving while the rest were engaged for an expansion
scheme.
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5. Find out the EOQ and the number of orders per year
from the following information :
Monthly consumption 3000 units
Cost per unit Rs. 54
Ordering Cost Rs. 150 per order
Inventory carrying cost 20% of the average inventory.
6. From the following data available find out
(a) Reorder level (b) Reorder quantity.
Maximum Stock level — 42,000 units
Budgeted consumption : Max : 7,500 units per month
Min : 4,000 units per month
Estimated delivery period : Max. 4 months
Min. 2 months.
7. Calculate Machine Hour rate :
Cost of the machine — Rs. 1,100
Scrap Value — Rs. 680
Repairs for the effective working life — Rs. 1,500
Standing charges for 4 weekly period — Rs. 40.
Effective working life — 10,000 hrs.
Power used 6 units per hour at 5 paise per unit. Hours
worked in 4 weekly period : 120 hours.
SECTION B — (3 × 15 = 45 marks)
Answer any THREE questions.
8. Explain the various classification of cost?
9. Using information given draft stores ledger account
showing quantities and value of receipts, issues and
balance in hand under LIFO method of pricing stores
issues :
Jan. 1 — Balance in hand 1000 units Re. 1 each
Jan. 4 — Received 500 units to issued on request from
Dept. X Rate Rs. 2 each.

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Jan. 15 — Received 3,000 units costing Rs. 3,300


Jan. 30 — Issued 2,000 units
Feb. 8 — Issued 500 units (Recd. On Jan. 4) to Dept. X
Feb 12 –– Received 2000 units costing Rs 2,400.
Feb. 27 — Issued 3,400 units.
10. The accounts of a machine manufacturing company
disclose the following information for the six month
ending 31st December 1978 :
Rs.
Materials used 1,50,000
Direct Wages 1,20,000
Factory Overheads 30,000
Administrative expenses 15,000
Prepare cost sheet for the half year and calculate the
price which the company should quote for the
manufacture of a machine requiring materials valued
at Rs. 1,250 and expenditure in productive wages Rs.
750 so that the price might yield a profit of 20% on the
selling price.
11. A company has Three Production Departments and
Two Service Departments , their respective xpenditure
are given below :
Production Service Departments
Departments
A — Rs. 800 X — Rs. 234
B — Rs. 700 Y — Rs. 300
C — Rs. 500
Service Departments give service in the following manner to various
departments :
Service A B C X Y
Departments
X 20% 40% 30% — 10%
Y 40% 20% 20% 20% —

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You are required to show the distribution of Service


Department O/H under simultaneous equation method.
12. Prepare a Reconciliation Statement from the following
details : [P.T.O.]
Rs.
Net loss as per Cost Accounts 3,44,800
Net loss as per Financial A/cs 4,32,890
Works overheads under recovered in costing 6,240
Depreciation overcharged in costing 2,600
Interest on investments 17,500
Administrative overheads over recovered in 2,600
costing
Goodwill written off 92,000
Stores adjustment in Financial books (Cr.) 950
Depreciation of stock charged in Financial Books 13,500

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