Reg.

No: _____________
Q.P. CODE: 19CCU19
HINDUSTHAN COLLEGE OF ARTS AND SCIENCE (AUTONOMOUS)
B. Com MODEL EXAMINATIONS DECEMBER-2021
(Fifth Semester)
BRANCH: Computer Applications
Subject Name: Cost Accounting
Time: Three Hours Maximum: 70 Marks
SECTION - A (10x1=10 Marks)
Answer ALL Questions
ALL Questions Carry EQUAL Marks
Basic objectives of cost accounting is__________. K1
A. tax compliance. B. financial audit. C. cost ascertainment. D. profit
1 analysis.
Direct cost incurred can be identified with ________. K1
2 A. each department. B. each unit of output. C. each month. D. each executive.
Elements of costs are. K1
3 A. three types. B. four types. C. five types. D. seven types.
Selling and distribution expenses can be charged on the basis K1
4 of______________.
A. material cost. B. labour cost. C. prime cost. D. factory cost.
Operating costing is suitable for ___________. K1
5 A. job order business. B. contractors. C. sugar industries. D. service
industries.
Wages paid to a labour who was engaged in production activities can be K1
6 termed as.
A. direct cost. B. indirect cost. C. sunk cost. D. imputed cost.
Abnormal Loss of Material is treated as part of material cost (True/False) K1
7
Prime Cost = Direct Cost (True/False) K1
8
Classification of cost is useful ________________ K1
9
Direct expenses are also called ________ K1
10

SECTION - B (5x4=20 Marks)

Answer ALL Questions
ALL Questions Carry EQUAL Marks

K-Level
11 a) Explain the various functions of cost accounting? K2 (OR)
b) From the following particulars prepare cost sheet. K3
Direct materials Rs.8,000/-, Direct wages

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 Rs.6,000/-Direct expenses Rs.2,500/-,
Administrative overheads Rs.4,000/-, Factory
overheads Rs.5,000/-, Sales Rs.40,000/-.
12 Compuite stores ledger adjustment account under FIFO method? K3 (OR)
March Unit Price per Unit.
2 Purchase 200 200
4 Issued 150
6 Purchase 200 220
a) 10 Issued 100
16 Purchase 200 210
18 Issued 220
24 Purchase 150 230
25 Issued 190
28 Issued 30
Cost material is Rs.30 p.u. Total annual needs are K3
80 units. Annual return on investments is 10%,
b) Rent, insurance and taxes per unit, Per annum
Re.1. Cost of placing an order is Rs.100.
Calculate the Economic Order Quantity?
13 From the following particulars supplied by the personnel K3 (OR)
Department of a company, illustrate labour turn-over by
applying 1) Separation method 2) Replacement method and
3) Flux method.
a) Total number of employees at the beginning - 2,010
Total number of employees at the end - 1,990
Number of employees resigned - 30
Number of employees discharged - 50
Number of employees replaced - 40
From the following particulars compute the machine hour K3
rate.
Cost of the machine Rs.11000
Scrap value Rs.680
b) Repairs for the effective working life Rs.1500
Standing charges for 4 weekly period Rs.40
Effective working lofe 10,000 hours.
Power used:6 units per hour at 5 paise per units
Hours worked in weekly period :120 hours.

14 a) S & Co ., produced a products through two processes ‘J’ K3 (OR)

and ‘K’ .prepare the process accounts from the following
details relating to march 2007.
Process J Process K
Material 45,000 15,000
Labour 60,000 25,000
Chargeable expenses 5,000 10,000

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 The overheads amounting to Rs.17,000 are to be
apportioned on the basis of labour.
Show the process account from the following along with K2
abnormal loss account and normal loss accounts.
b) Material issue to process 1000 kgs at Rs.200 each. Wages
Rs.1,40,000 and overheads Rs.20,000. Normal loss 10% of
output. Actual output 800 kgs.
15 The following are the expenses of B & Co, in the respect of K3 (OR)
Contract which commenced on 1st January 2010.
Rs.
Material purchased 50,000
Material on hand 2,500
Direct wages 75,000
a) Plant issued 25,000
Direct expenses 40,000
The contract price was Rs.7,50,000 and the same was
duly received when the contract was completed in August
2010. Charge indirect expenses at 15% on wages. Provide
Rs.5,000 for depreciation on plant and compute the
contract accounts.
Predict how much profit any, you would allow to be K3
considered in the following case?
Rs.
Contract cost 11,20,000
b)
Contract value 20,00,000
Cash received 10,80,000
Uncertified work 1,20,000
Deduction from bills by way of security deposit is 10%.

SECTION- C (5x08=40 Marks)

Answer ALL Questions
ALL Questions Carry EQUAL Marks
K-Level
16 “Cost accounting is a tool of managerial planning and K2 (OR)
a)
control”. Explain the statement.
Distinguish between financial accounting and cost K2
b)
accounting?
17 a) The following is the record of receipts and issues of a K2 (OR)
certain material in a factory during a month.
March 2015
1 Opening stock 5000 units@ ₹10 per unit
5 Issued 3000 units
7 Received 6000 units@ ₹10.2 per unit
15 Issue 2500 units (stock verification reveals loss of
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 100units)
16 Received back from orders 1000 units (previously
issued at₹9.15 per unit)
17 Issued 4000 units
25 Received 2200 units @ ₹10.30 per unit
27 Issued 3800 units
Indicate at what price will you issue the materials according
to FIFO and LIFO methods using perpetual inventory
system?
Two types of materials, X and Y are used in a factory as K3
follows: Normal usage 600 units each per week.
Maximum usage 900 units each per week.
Minimum usage 300 units each per week.
b) Re-order quantity X : 4,800 units; Y : 7,200 units.
Re-order period X : 4 to 6 weeks; Y: 2 to 4 weeks.

Calculate for each material:

Re-order level 2) Minimum level 3) Maximum level 4)
Average stock level
18 From the following particulars calculate the earnings of K (OR)
workers A & B under straight piece rate system and 3
Taylor’s differential piece rate system.
a) Standard time allowed 25 units per hour
Normal time rate Rs.50 per hour.
In a day of 8 hours A produced 150 units and B produced
250 units.
Compute cost per running kilometer from the following data K3
of a truck Estimated life of vehicle 1,00,000 kms.
Annual running 15,000 kms
Cost of Vehicle 25000
Road Licence (Annual) 750
Insurance (annual) 700
Garage Rent (Annual) 900
Supervision & Salaries 2700
b) (Annual)
Drivers wages per hour 3.00
Cost of fuel per litre 3.00
Repairs and Maintenance 1.75
per km
Tyre allocation per km 0.90
Charge interest at 5% per annum on cost of vehicle. The
vehicle runs 20kms per hour on an average and one litre of
fuel gives 20 km.
19 a) Explain the methods to be adopted in the treatment of joint K4 (OR)
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 products and by-products in process account.
The following information relates to a building contract for K3
₹10,00,000 for two years i.e., 2014 and 2015.
2014 (₹) 2015 (₹)
Material issued 400000 89000
Direct wages 130000 100000
Direct expenses 22000 10000
Indirect expenses 6000 1400
Work certified 750000 1000000
Work uncertified 8000 -
Closing material at site 5000 7000
b) Plant issued 15000 3000
Cash received from 600000 1000000
contractee

The value of plant at the end of 2014 and 2015 was ₹8000
and ₹7000 respectively. Prepare Contract A/C and
Contractees A/C for two years 2014 and 2015 taking into
consideration such profit for transfer to profit and loss A/C.
Also show how work in progress will appear in the balance
sheet of the year 2014.

20 a) Ambuja Construction Ltd. entered into a contract to K3 (OR)

construct a building. The contract value was INR 1300000
to be realised in instalment on
the basis of value of work certified by the architect subject
to retention of 10%. The work commenced on 1.4.2008 but
it remained incomplete on
31.12.2008 when the final accounts are to be prepared. The
facts and figures of the contract are:
Materials issued to contract 360000 Wages paid 174000
Expenses incurred on the contract 77,500 Plant sent to site
on 1.4.2008 64000
Wages unpaid 6,300
Total establishment expenses amounted to INR 82000 out of
which 25% is attributable to the contract. Out of
materials issued to the contract; materials Costing INR
8,000 were sold for INR 12000. A part of the plant (cost
INR 4000) is damaged on 10, 2008
and scrap realised only INR 600. Plant costing INR 6000
was transferred to another contract on 11.12.2008. Plant is
to depreciated @ 10%p.a. Material
in hand on 31.12.2008 was INR 35000. Cash received from
the contractee was INR 612000. Cost of work yet to be
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 certified was INR 60000.
Prepare contract account and contractee account in the
books of Ambuja construction ltd.
The following figures are available from financial accounts K3
for the year ending 31" Murch 2003:
Rs.
Direct materials consumed 2,00,000
Direct wages 1,00,000
Factory overheads 75,000
Administrative overheads 2,25:000
Selling and distribution overheads 2,40,000
Bad Debts 30,000
Preliminary expenses written off 40,000
Legal charges 20,000
b) Interest on Bank deposit received 20,000
Sales (1,20,000 units) 18,00,000
Closing stock (30,000 units) 1,60,000
The cost accounts reveal the following:
Direct materials consumed 2,20,000; Direct wages Rs.
80,000; Factory overheads at 20% on prime cost.
Administration overheads at Rs. 2 per unit produced and
selling overheads at Rs. 2 per unit sold.
Compute:
(a) Statement showing cost and profit
(b) Financial profit and loss account
(c) Reconciliation statement

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