 Past Papers Topic-wise Unsolved
 From 2000 – 2018
CSS
2019
Examination Topics
1. Cost Accounting Concepts
& Classifications.
2. Cost of Goods Sold and
Income Statement.
3. Cost Accounting Ledger
System.
4. Material Costing.
5. Labour Costing.
6. F.O.H. Costing.
7. Job & Batch Costing.
8. Process Costing.
9. Absorption & Marginal
Costing.
10. CVP Analysis & Decision
Making.
11. Budgeting.
12. Standard Costing &
Variance Analysis.
Email:asifgcma@gmail.com
Facebook/adamslearningcentre
whatsapp: 0321 9842495
Examination Structure According to 2015 Revised Syllabus
 CSS Accounting and Auditing is a subject of 200 Marks covered in 2 papers
consisting 100 Marks each, every paper has 20% weightage for MCQs and
80% weightage for Structured Questions.
 Paper – 1 has 2 sections each has 50% Weightage ie 50 Marks for each section.
 Section – A is for Financial Accounting (50%) in which a student needs to attempt
2 out of 3 questions of 20 marks each.
 Section – B is for Cost & Management Accounting (50%) in which a student needs
to attempt 2 out of 4 questions of 20 marks each.
CGS & Income Statement; Examination Importance
This topic is one which can be said the most important one not only in old syllabus
(before 2016) but also in new syllabus This topic is examined 10 times since 2001, it
is consecutively examined every year from 2015 to 2018. So considering its
importance, we can say that this topic has 100% probability to be repeated in CE 2019
examination.
Prof. Asif Masood [ACMA, MBA (Finance), M. Phil)] 0321 9842495
Asif Masood is the renowned teacher of CSS Accounting & Auditing, Business
Administrations and Mercantile Law. He is engaged with the profession of
teaching since 1999 and has been a part of faculty of various reputed educational
institutions including GCU, UCP, Superior University and AIOU for MBA, M.Com,
BBA classes. Moreover he is providing coaching to ACCA, CIMA, CPA, CMA, ICAP
and ICMAP students since last 20 years.
For CSS, Prof. Asif Masood is the most experienced and result producing teacher of the
subjects of Accounting & Auditing, Business Administration and Mercantile Law. He is
mentoring CSS Aspirants since 2005 and has hundreds of Aspirants who got coaching
from him and succeeded including the Top Position Holders in CE 2017, Mr. Awaid
Irshad (1st), Mr. Ahmad Faisal Ch, (42nd), Seyyad Ammar Akhtar (48th) and Miss Iqra
Shoukat (116th).
This bunch of past papers are distributed topic-wise and which includes commentary on
each topic regarding its Examination Importance, is for the help and guideline of the
Aspirants seeking to opt Accounting & Auditing as one of their optional subjects to
lite
maximize their aggregate marks in CSS. Good Luck
Prof. Asif Masood
ALC, Lahore
0333 4169258
CSS Accounting & Auditing CGS & Income Statement

Adam’s Learning Centre, Lahore

CSS Accounting & Auditing
Topic Vise Past Papers (Unsolved)
Cost of Goods Sold & Income Statement
Q. 1 (CSS – 2018, Paper # 2, Section – II, Q. # 5 (20 Marks)

Proprietor (Owner) of ABC Industries has limited knowledge of Cost & Managerial Accounting who prepared
Income Statement for his business for the year ended on December 31, 2016 that is given as under:
(Rs.) (Rs.)
Sales 675000
Less: Expenses
Direct Labour 137500
Indirect Labour 18000
Selling & Administrative Salaries 48000
Raw materials purchased 248500
Electricity bill 22500
Insurance expired 6000
Depreciation of factory equipment 33000
Depreciation of sales equipment 4500
Rent of Premises 75000
Advertising 81500 674500
Net Profit 500
The Owner has some doubts about the accuracy of the above statement and has requested you (as Professional
Accountant) to check over the statement and make necessary corrections based upon following additional
information.
(i) 80% of the electricity bill, 75% of insurance expired and 70% of Rent of Premises associated to Factory
operations and the remaining amounts are applicable to Selling and Administrative activities.
(ii) Inventories
Beginning Inventory Ending Inventory
(January 1, 2016) (December 31, 2016)
Finished Goods 50000 60000
Work in Progress 42500 30000
Raw Material 7500 18000
(iii) Factory overhead is applied @ Rs. 5 per machine hour. The total machine hours are 26400 during the
year. Factory overhead variance is charged to cost of goods sold, finished goods and work in process
ending inventories.
Required:
(a) Prepare cost of goods manufactured and cost of goods sold statement indicating cost of goods sold at
normal and at actual.
(b) Prepare revised income statement
(c) Explain the reason for difference between net profit as per Owner’s Income statement and revised
statement (prepared by you).

Q. 2 (CSS – 2017, Paper # 2, Section – II, Q. # 6 (20 Marks)

Valenko Company provided the following account balances for the year ended December 31
(all raw materials are used in production as direct materials):
Selling expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $215,000
Purchases of raw materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . $260,000
Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ?
Administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $160,000
Manufacturing overhead applied to work in process . . . . . .. . . $340,000
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CSS Accounting & Auditing CGS & Income Statement
Total actual manufacturing overhead costs . . . . . . . . . . . . . . . $350,000
Inventory balances at the beginning and end of the year were as follows:
Beginning of Year End of Year
Raw materials .. . . . $50,000 $40,000
Work in process . . .. . . ? $33,000
Finished goods . . . .. . $30,000 ?
The total manufacturing costs for the year were $675,000; the cost of goods available for sale total $720,000;
the unadjusted cost of goods sold total $665,000; and the net operating income was $35,000. The company’s
over-applied or under-applied overhead is closed entirely to cost of goods sold.

Required: Prepare schedules of cost of goods manufactured and cost of goods sold and an income statement.
(Hint: Prepare the income statement and schedule of cost of goods sold first followed by the schedule of cost of
goods manufactured.)

Q. 3 (CSS – 2016, Paper # 2, Section – B, Q. # 5(a)) (10 Marks)

The records of the Electronic Equipment Company show the following information for the year ended 31
December 2015:
( Rs.)
Material purchased 1,946,700
Inventories, January 1, 2015:
1) Finished goods (100 calculator) 43,000
2) Material 268,000
Direct labour 2,125,800
Factory overhead 764,000
Marketing expense 516,000
General and administrative expenses 461,000
Sales (14,200 calculators) 6,634,000

Inventories, December 31, 2015:

1. No unfinished work on hand.
2. Finished goods (200 calculators)
3. Material 167,000

Required:
An income statement for the period.
The number of units manufactured.
The unit cost of calculators manufactured.
The gross profit per unit sold.
The income per unit sold.
The ratio of gross profit to sales.
The income to sales percentage.

Q. 4 (CSS – 2015, Paper # 2, Part – II, Q. # 3) (25 Marks)

Following data was reported for Ibrahim Cottage Textile for the year ended December 31, 2014:
Administrative Expenses Rs. 150,000
Depreciation, factory equipment 19,000
Direct labor 70,000
F.G. inventory, beginning 20,000
F.G. inventory, ending 35,000
Indirect labor 30,000
Insurance, factory equipment 800
Maintenance, factory equipment 6,000
Purchases of raw materials 118,000
Raw materials inventory, beginning 7,000

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0321 9842495 0333 4169258
CSS Accounting & Auditing CGS & Income Statement
Raw materials inventory, ending 15,000
Rent, factory facilities 20,000
Sales 800,000
Supplies 4,200
Work in process, beginning 10,000
Work in process, ending 5,000

Required: Prepare a cost of goods sold statement.

Q. 5 (CSS – 2013, Paper # 2, Section – A, Q. # 2) (20 Marks)

Abbas Manufacturing Company submitted following information at 21st December 2011.

Inventories Opening Closing
Raw Material 100000 30000
Factory Supplies 2000 1000
Work in process 50000 15000
Finished goods 100000 _____?
Other Data
Direct labour 100000
Indirect labour 5000
Electric supply 2000
expenses
Heating and lighting 4000
Workmen’s 3000
compensation
Factory insurance 1000
Supertendence expenses 2000
Wages and rent factory 8000
Miscellaneous expenses 1000
Factory supplies 3000
purchase
Raw material purchased 230000
Tool expenses 2000
Finished goods inventory 1st January 500 units, sold during the year 2011, 5500 units @ Rs. 300 per unit and the
closing inventory of finished goods at 31st December 2011 was 550 units.
Required: (a) Cost of goods sold (b) An income statement for the year 2011

Q. 6 (CSS – 2012, Paper # 2, Section – A, Q. # 2) (20 Marks)

Following information related to AADIL manufacturing company for the year ended December 31, 2007:
Direct material (beginning) Rs.50,000
Direct material purchased 300,000
Direct material (ending) 20,000
Direct labor ?
Factory overhead (70% of conversion cost) 140,000
Work in process (ending) ?
Work in process (beginning-30% more than its ending) ?
Cost of goods manufactured is 8/15 of sales ?
Sales revenue (1000 units) 1,500,000
Finished goods (beginning) (25 units) 30,000
Finished goods (ending) (60 units) 80,000
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CSS Accounting & Auditing CGS & Income Statement
Administrative & general expenses 210,000
Marketing & selling expenses 20,000
REQUIRED:
1. Calculate all missing figures.
2. Prepare statement of cost of goods sold.
3. Income statement for the year ended December 31, 2007.
4. Units manufactured.
5. Per unit cost of goods manufactured.
6. Gross profit per unit sold.

Q. 7 (CSS – 2011, Paper # 2, Section – A, Q. # 2) (20 Marks)

The Balances in the perpetual inventory accounts of Sonny Manufacturing Co. at the beginning and end of the
current year are as follows:
End of Year Beginning of year
Inventory accounts:
Materials Rs. 25,800 Rs. 22,000
Work in Process 8,000 5,000
Finished goods Inventory 24,000 38,000
The total amounts debited and credited during the year to the accounts used in recording manufacturing activities
are summarized below:
Account: Debit Entries Credit Entries
Materials Inventory Rs. 410,000 Rs. ?
Direct Labour 189,000 192,000
Manufacturing Overhead 393,600 393,600
Work in Process Inventory ? ?
Finished Goods Inventory ? ?
INSTRUCTIONS
a. Using this data, state or compute for the year the amounts of: (10)
1. Direct materials purchased
2. Direct materials used
3. Payments of direct labour payrolls
4. Direct labour cost assigned to production
5. The overhead application rate used during the year, assuming that overhead was applied as a percentage of
direct labour costs
6. Total manufacturing costs charged to the work in process inventory account during the year
7. The cost of finished goods manufactured
8. Cost of goods sold
b. Prepare a schedule of the cost of finished goods manufactured. (10)

Q. 8 (CSS – 2009, Paper # 2, Section – A, Q. # 3) (20 Marks)

The records of MN Company show the following information for the year ending 30th June, 2008:
(i) Material used Rs. 880,000
(ii) Direct Labour 580,000
(iii) Indirect Labour 92,000
(iv) Light and Power 8,520
(v) Depreciation 9,400
(vi) Repair of Machinery 11,600
(vii) Misc. Factory overhead 58,000
(viii) Opening Wip inventory 82,400
(ix) Opening Finished Goods inventory 68,600
(x) Ending Wip inventory 85,000
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CSS Accounting & Auditing CGS & Income Statement
(xi)Ending Finished Goods inventory 63,000
During the year 36,000 units were completed.
Required: You are required to calculate:-
(a) A cost of Goods sold statement for the year ending on 30th June, 2008.
(b) The unit cost of Goods manufactured.
(c) The amount of over or under applied factory overhead if the company applies factory overhead on the
basis of 30% of direct labour cost.

Q. 9 (CSS – 2006, Paper # 1, Q. # 2) (25 Marks)

The Books of Safeer Manufacturing Co. engaged in assembling refrigerators showing the following information for
the six months ended on December 31, 2005.
Particulars Rs.
Material purchased ...................... 1,041,250
Stock-July 1, 2005:
Material ...................... 1,25,000
Finished goods (50 refrigerators) ...................... 20,575
Director Labour ...................... 1,025,000
Factory Overheads ..................... 435,050
Selling expenses ...................... 214,000
General & Admn. Expenses ...................... 241,500
Financial Management expenses ...................... 9,200
Sales (6000 refrigerators) ...................... 3,180,000
Stock – December 31, 2005:
Material ...................... 75,000
Finished goods (250 refrigerators)
You can calculate the amount of closing stock
Refrigerators at cost.
There was no work-in-process at the end of the year.
Required: (1) An Income statement.
(2) Number of Unites manufactured.
(3) Unit cost of refrigerators manufactured.
(4) Gross Profit and the Net profit per unit sold.

Q. 10 (CSS – 2004, Paper # 2, Part – A, Q. # 3) (20 Marks)

The following data relate to the Shirley Company.

Inventories Ending Beginning
Finished goods Rs. 95,000 Rs. 10,000
Work in process 80,000 70,000
Direct materials 95,000 90,000
Cost incurred during the period:
Costs of goods available for sale Rs. 584,000
Total manufacturing costs 584,000
Factory overhead 167,000
Direct materials used 193,000
Required:
Statement of cost of goods sold, including all beginning and ending inventories.

6|Page By: Asif Masood Ahmad Adam’s Learning Centre, Lahore

0321 9842495 0333 4169258