Final Exam (Take-Home) Fall - 2020

Student Name: Reg. ID:

Instructor: Fahim Qazi / Muhammad Asif Program : BBA
Subject: Cost accounting Max. Marks:25

Q. No. 1 2 3 Total
Total Marks 15 04 06 25
Obtained Marks

Department of Business Administration

Please follow the instructions carefully:

1. Write your answers in a Word file and upload the file before the due date on black
board .
2. Write your name and registration ID on the first page of your Word file.
3. Answer scripts can be uploaded on black board any time before its deadline.
Therefore, do not wait for the last hour to avoid any unforeseen problems.
4. Submission of answer copy will be considered acceptable through black board only.
Therefore, do not submit your document through email or any other medium.
5. Use 12 pt. font size and Times New Roman font style along with 1-inch page
margins.
6. Follow the requirements of the word limit and the marking criteria while writing your
answers.
7. Provide relevant, original and conceptual answers, as this exam aims to test your
ability to examine, explain, modify or develop concepts discussed in class.
8. Do not copy answers from the internet or other sources. The plagiarism of your answers
may be checked through Turnitin.
 9. Recheck your answers before the submission on black board to correct any content or
language related errors.

Q# 1 – A (3.5 marks)

Case 1 case 2 Case 3

Raw Material

Beginning inventory 24,600 8,000 45,000

Ending inventory 20,000 12,400 ?

Purchases 262,000 ? 248,400

Direct Material used ? 15,000 234,200

Work in process

Beginning inventory 11,600 12,560 ?

Ending inventory 12,000 12,560 85,200

Finished goods

Beginning inventory 254,200 2,800 334,480

Ending inventory ? 4,600 367,400

Cost of goods manufactured 679,200 58,000 1,518,220

Total manufacturing cost 679,600 58,000 1,526,800

Cost of goods sold 760,000 56,200 ?

Gross margin 328,000 13,400 1,874,600

Direct labor 173,000 23,200 ?

Manufacturing overhead 240,000 19,800 430,600

Sales 1,088,000 69,600 3,359,900

Determine the missing amounts in each of the following independent cases ( with out
computation answer will not be acceptable)
Q# 1 ( B )

A Hotel pays the phone company 100 per month plus .25 for each call made during January
6,000 calls were made in February 5,000 calls were made

Required

1. Calculate the hotel s’ phone bill for January and February

2. Calculate the cost per phone call in January and in February
3. Separate the January phone bill into its fixed and variable components
4. What was the average cost of a phone call in January (1.5 marks)

Q No.1-c ( 06 marks )

Raw material(1-1-03) Rs. 12,500 Raw material(31-12-03) Rs. 32,000

Work-in-Process(1-1-03) 6,300 Work-in-Process(31-12-03) 16,500

Finished Goods (1-1-03) 12,500 Finished Goods(31-12-03) 25,000

Sales 678,600 Direct labor 125,000

Sales return 15,000 Other factory overhead 17,600

Purchases of raw material 245,000 Repair and maintenance 10,000

Administrative expense 70,000 Insurance-factory 12,000

Marketing expense 55,000 Depreciation-factory 22,000

Indirect material 8,000

Indirect labor 4,500

Required:

1. Statement of cost of goods manufactured

2. Income Statement
Q# 1D – ( 04 marks)

The ASF Corporation manufactures one product and accounts for costs by a job orders cost
system You have obtained the following information for the year ended December 31 2010 from
the Corporations books and records

Total manufacturing cost added during 2010 was 1,000,000

Cost of goods manufactured was 970,000

Factory overhead was applied to work in process inventory at 75% of direct labor (applied
factory overhead for the year 27% of the total manufacturing cost)

Beginning work in process inventory January 1 was 80% of ending work-in – process inventory
December 31

Required

1. Prepare a formal statement of cost good manufactured

2. Prepare journal entries reflecting the above transactions

Q# 2-A

Job # Feb March

101 5,000  

102 7,500  

103 1,000 4,500

104 2,500 3,000

105   7,500

106   10,000

During the period job # 103,104,105 and 106 were completed and job # 101 and 105 were sold
with 20% above cost

Required

 Cost of work in process beginning

 Cost of work in process ending
  Cost of finished goods
 Cost of goods sold
 Cost of finished goods beginning
 Cost of finished goods ending
 Sales ( 05 marks)

Q.2-B ( 5 marks ) On March 01, 2009 HASF Engineering Works had two jobs in process as
follows.

……………………………………………… Job No. 18 ……….. Job No. 19

Direct Material ……………………………. . 50,000 ………………. 18,000
Direct Labour ………………………………. 36,000 ………………. 12,000
Direct Labour Hours …………………… . 10,000 ……………….. 8,000
Direct Machine Hours ………………… 3,000 …………………. 2,500
Applied Factory Overhead ……… .. Rs. 3 per direct …… Rs. 5 per direct
……………………………………… (Machine Hour) …….. (Labour Hour)

During March Job No. 20, 21, 22 and 23 were started. Direct materials of Rs. 37,500 and direct
labour of 1800 hours at an average rate of Rs. 15 per hour used during the month. Pre determined
FOH applied rate is Rs. 10 per direct labour hour on all jobs starting in March.
Job No. 23 was the only incomplete job at the end of March. Direct material of Rs. 15,000 and
direct labour of Rs. 9,000 were charged to job. At the end of month job No. 22 was the only
finished job on hand. It has accumulated total cost of Rs. 27,250.
There was no beginning inventory in finished goods. Jobs completed were sold on account at a
profit of 20% on cost.

Required:
Prepare journal entries to record
(a) Cost incurred on jobs started in the month of March
(b) Cost of goods manufactured
(c) Sales
(d) Cost of Sales.