St.

Thomas College, Bhilai

Half Yearly Examination (2022-23)
B.Com Part II
Group II (Paper I)
Cost Accounting M.Marks –75

All questions are compulsory and each question carry equal marks.

Unit – I
Q1)What do you understand by Cost accounting? Explain its advantages.
Or
Calculate i) Re-Order level ii) Minimum Level iii) Maximum Level iv) Average Stock
level for Article A and Article B from the following data:
Normal Usage 10 Units per week each
Minimum Usage 5 Units per week each
Maximum Usage 15 Units per week
each
Re-Order Quantity A 60 Units and B 100 Units
Re-Order Period A 3 to 5 Weeks and B 2 to 4 Weeks

Unit – II
Q2)What is do you mean by allocation, apportionment and absorption of overheads? Explain.
Or
Calculate total wages paid to Mr. X under i) Time rate ii) Piece rate iv) Halsey Scheme
and v) Rowan Scheme from the following data:
Standard Time 40 hours
Actual Time Taken 30 hours
Wages are paid @ Rs. 1 per hour and dearness allowance is paid @ Rs. 0.50 per hour.

Unit – III
Q3)The following particulars are obtained from the cost records of a manufacturer:
Raw Material Rs. 64,000
Wages Rs. 56,000
Factory Overheads are 60% of Wages
Material Returned to Stores Rs. 800
Material Transferred to other jobs Rs.
400
10% of the production has been scrapped as bad and a further 20% has been brought up
to the specification by increasing the factory overheads to 80% of wages. If the scrapped
production fetches only Rs. 470, find out the production cost per unit of the finished
product if the total product be 100 Units.
Or
What is Contract Costing? Give its format and explain various items.
 Unit – IV
Q. 4 What is Operating Cost? What are its objects and in which industries is it used?
Or
A product passes through three processes A, B & C. the normal wastage in Process A, B
& C is 3%, 5% and 8% respectively. Wastage of Process A, B & C was sold at Rs. 0.25
per unit, Rs. 50 per unit and Rs. 0.10 per unit. 10,000 Units were issues to Process Ain
the beginning of October 2018 at a cost of Rs. 1 per unit. The other expenses were:
Process A Process B Process C
Materials 10,000 15,000 5,000
Labour 50,000 80,000 65,000
Direct Expenses 10,500 11,880 20,000
Actual Output (Units) 9,500 9,100 8,100
Prepare Process Accounts assuming that there was no opening or closing stocks.

Unit – V
Q. 5 Write a detailed note on Profit Volume Ratio, Break Even Point and Margin of
Safety with their calculation methods.
Or
Calculate the following when Fixed Cost is Rs. 1,60,000 and Variable Cost is 60% of
Sales:
i) P/V Ratio
ii) B.E.P.
iii) Margin of Safety when the sales are 8,00,000
iv) Profit for the sale of Rs. 4,40,000
v) Sales to earn a profit of Rs. 20,000

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