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that by attempting the paper for the course _________________________________, I will not be

involved in any kind of cheating/copying/plagiarizing in solving the short questions based paper

of Final Term Examination Fall 2020. I take full responsibility of my conduct and if I found

involved in any kind of such activity of cheating/copying/plagiarizing, then Institute reserves the

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 Fina
l Exam / Fall 2020 (Paper Duration 24 hours)
(Online Short Questions Based Paper)

Course No.: MGT-423 Course Title: Cost Accounting

Total Marks: 30 Dates of Exams:
Degree: BBA Semester: 3rd

Marks
Q. No. 1 2 3 4 5 6 7 8 9 10 Obtained/
Total Marks
Marks
Obtaine
d
Total Obtained Marks in Words:
Name of the Teacher: IMTIAZ ZAHID
Who taught the course: Signature of Teacher / Examiner:

To be filled by Student

Registration No.: Name:

(THEORETICAL/PRACTICAL EXAMINATION)

Note: Attempt All Questions

Question No. 01

(A) Differentiate between Job order costing and process costing. (04)

(B) (05)

The following production and cost record of Akmal Chemicals for the month of December, 2018 available
relating to Department-2.

Units received from Department-1 20,000

Units completed and transferred out to Department-3 15,000
Units still in process at the end of December (with 75% material, 50% labor and 25% FOH) 4,000
Units loss 1,000
The cost department collected these figures for Department-2
Total costs received from Department-1 Rs. 60000
Material cost in Department-2 Rs. 36000
Labor cost in Department-2 Rs. 25500
FOH cost in Department-2 Rs. 8000

Required:
 Prepare a Cost of production report with all supporting schedules for Department-2.

Question No. 02
(A) (04)
Waste is a part of raw material lost in the process of production having no recoverable value. Scrap is the
residue from certain manufacturing activities usually having disposable value. Spoiled and defective are the
two types of scrap, distinguish spoiled and defective units with accounting treatment.
(B) (05)
Beta Manufacturing Company manufactures appliances to be sold to an automobile industry. An order of
1,500 appliances was received at a sale price of Rs. 300 per unit. The cost per unit was as follows:-

Rs.
Material cost 30.00
Labour cost 20.00
Factory overhead cost 10.00
60.00
On completion of the order it was found that 100 units were imperfect and spoiled which could only be sold
out at a price of Rs. 30 per unit to a small manufacturing company, which would repair and sell them under
their own name. Delta Manufacturing Company decided to sell 100 spoiled units to this company at a price
of Rs. 30 each.

Required:

Prepare all necessary journal entries to record the following:

1. Putting the 1,500 units into process.

2. Placing the spoiled units in the inventory.
3. Completion and sale for cash 1,400 good units.
4. Sale for cash of the 100 spoiled units.
Use three works in process accounts and assure that:
a) Cost of spoiled is charged to the order
b) Cost of spoiled is not charged to the order and spread over entire production.

Question No. 03 (06)

The accounting relates to assortment, classification and measurement of cost for analyzing methods/
techniques and costing principles which is helpful for decision making. The establishment of budgets and
compare the standard costs with actual cost for proper use. Explain in detail the objectives, pros and cons of
such accounting.

Question No. 04

(A) What are different classifications of cost according to cost behavior and decision making? (03)
(B) (03)
The Junaid Company estimated its factory overhead for the next period at Rs. 160,000. It is estimated that
40,000 units will be produced at a materials cost of Rs. 200,000. Production will require 40,000 direct
labour hours at an estimated directed labour cost of Rs.80,000. The machines will run about 25,000 hours.

Required:

The factory overhead rate that may be used in applying factory overhead to production on each of the
following bases

1. Materials cost
2. Direct labour hours
3. Machine Hours