Seat No.: ________ Enrolment No.

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GUJARAT TECHNOLOGICAL UNIVERSITY

MBA Integrated - SEMESTER– III EXAMINATION – WINTER 2021

Subject Code: 2537101 Date: 29/12/2021

Subject Name: Cost Accounting
Time: 10:30 AM to 01:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.

Q.1 (a) Define Cost Accounting and explain functions of Cost Accounting in detail. 07
(b) Classify the following into factory overhead, office and administrative 07
overhead, selling and distribution overhead:
1. Factory supervisor salary 2. Printing and stationary
3. General Expenses 4. Consumable store
5. Market research 6. Delivery van maintenance
7. Travelling expenses 8. Depreciation of furniture
9. Depreciation of plant and 10. Motive power
machinery
Q.2 (a) Write a short note on Batch Costing. 07
(b) Mr. Arjun furnishes the following data relating to the manufacture of a standard 07
product for the month of January 2017.
Particular Rs
Materials 90,000
Direct wages 60,000
Depreciation of machinery 11,500
Power and consumable stores 12,000
Indirect wages at factory 15,000
Lighting of factory 5500
Cost of rectification of defective 3000
work
Sale of scrap 2000
Office and selling overhead 39000
Selling price 3,16,000
Prepare the cost sheet.
OR
(b) Write a short note on methods of costing. 07
Q.3 (a) Explain in detail methods of Remuneration. 07
(b) Bike LTD purchased 10 bikes during January and sold 6 bikes, details of which 07
are as follows:
January 1 Purchased 5 bikes @ Rs 50 each
January 5 Sold 2 bikes
January 10 Sold 1 bike
January 15 Purchased 5 bikes @ Rs 70 each
January 25 Sold 3 bikes
Calculate Value of inventory using FIFO method.
OR

1
Q.3 (a) Define labor and explain types of labor cost in detail. 07
(b) The following is the record of receipts and issues of a certain material in the 07
factory during a week:
April
1 Opening Balance 50 tonnes @ Rs 10 per tonne
1 Issued 30 tonnes
2 Received 60 tonnes @ Rs 10.20 per tonne
3 Issued 25 tonnes (stock verification reveals
loss of 1 tonne)
4 Received back from 10 tonnes (previously issued @ Rs 9.15
orders per tonne)
5 Issued 40 tonnes
6 Received 22 tonnes @ Rs 10.30 per tonne
7 Issued 38 tonnes
At what prices will you issue the materials? Using LIFO method.
Q.4 (a) The following data are available in respect of material X for the year ended 31st 07
March 2018
Opening Stock Rs 90,000
Purchase during the year Rs 2,70,000
Closing Stock Rs 1,10,000
Calculate: (A) Inventory turnover ratio
(B) Number of days for which average inventory is held.
(b) Write a short note on Contract Costing. 07
OR
Q.4 (a) Define Idle time and what are the causes of idle time explain in detail. 07
(b) From the following data given by the Personnel Department, calculate the labor 07
turnover rate by applying:
(a) Separation method
(b) Replacement method
(c) Flux method
No. of works on the payroll:
At the beginning of the month 900
At the end of the month 1,100
During the month, 10 workers left, 40 persons were discharged and 150 workers
were recruited. Of these, 25 workers are recruited in the vacancies of those
leaving, while the rest were engaged for an expansion scheme.
Q.5 (a) Define cost and explain classification of cost in detail. 07
(b) Difference between Cost Accounting and Financial Accounting. 07
OR
Q.5 (a) Write a short note on Techniques of Inventory Control. 07
(b) Calculate earnings of a worker under (a) Halsey Plan and (b) Rowan Plan from 07
the following particulars:
1. Hourly rate of wages guaranteed 0.50 paise per hour.
2. Standard time for producing one dozen articles 3 hours.
3. Actual time taken by the worker to produce 20 dozen articles.

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