COST ACCOUNTING

ASSIGNMENT
Submitted by- Mugdha Sinha

Bcom(P) Section- A

18/63042

Answer 1:

Cost of Statement

Particulars Amount Amount

Direct Materials 45000
Direct Wages 33000
PRIME COST 78000
Work Overheads(6000*3) 18000
WORKS COST 96000
Administrative expenses(6000*1.5) 9000
COST OF PRODUCTION 105000

(Less) Closing Stock 21000

(105000/6000*1200)
COST OF SALES 84000
Profit 12000
Sales 96000

Units Produced:- 6000

Statements of Reconciliation
Profit as per cost 12000
Add: Administrative overhead 3000 15000
overcharged(9000-6000)
 Less: Factory overheads undercharged 6000
(24000-18000)
Closing stock undercharged 600 6600
Profit as per financial statement 8400

Question 2: What is integral accounting system? Differentiate between

integrated and non integrated acoounting system.
Answer:

Integral accounting system

Integral or Integrated system is a system of accounting under which only one set of account
books is maintained to record both the Cost and Financial transactions. The system implies
the merger of both cost and financial accounts in one set of books.

The two sets of account books merge into a composite system. CIMA, London defines
Integral system as a system in which the financial and cost accounts are interlocked to
ensure that all relevant expenditure is absorbed into the cost accounts.

Basic Features of Integral System:

(a) There is no need for cost ledger because all control accounts are maintained in the
financial ledger.

(b) There is no need to open a Cost Ledger Control Account because both the aspects
(i.e., debit and credit) of all transactions are recorded in respective accounts.

Difference between Integrated and Non Integrated accounting system

Integrated accounting system Non Integrated accounting system

Only one set of account books is maintained
to record both the cost transactions and
financial transactions..
Cost ledger is not maintained.
Control Accounts are opened in the General
Ledger.
There is only one figure of profit or loss 1.
because only one set of account books is
Two separate sets of account books are
maintained—one to record cost transactions
and the other to record financial trans-
actions
Cost ledger is maintained.
Control accounts are opened in cost ledger.
There are two figures of profit or loss
—one as per cost accounts and another as
maintained. per financial accounts.

There is no need for reconciliation because There is need for reconciliation of cost
there will be only one figure of profit or loss accounts and financial accounts because
as there is only one set of account books. there are two figures of profit or loss as
there are two sets of account books.