SVKM’S NMIMS

Anil Surendra Modi School of Commerce

Programme : B. Com – Ist Year, Semester I,
Academic Year : 2022-23

Subject : Cost Accounting – I Date : __________

Marks: 20 marks
Time : 1 hour
Mid Term Examination

Instructions : Candidates should read carefully the instructions printed on the question paper
and on the cover of the Answer Book, which is provided for their use.

NB:

1. All the questions are compulsory.

2. Answers to each new question to be started on a fresh page.
3. All sub-sections of each question must be attempted together.
4. Working notes must form an integral part of your answer.
5. Use of calculators is allowed.

Q1. Woodworks Manufacturing Pvt. Ltd. In engaged in making different types of furniture. The most
prominent segment which manufactures Stools, Chairs and Tables were told to submit a detailed cost
sheet to the Management for the Financial Year 2021-22. The following data was made available to
you :

Particulars Rs.

Total Raw Material Cost 4,62,000

Total Labour :

Cutting of wood 68,000

Smoothening of wood (as a % of Direct Labour) 27,200

Assembling of Furniture Rs. 50 per piece

Other information is as follows :

1. The general trend that has been observed is that 1 table is equivalent to 4 stools and 2 chairs
are equivalent to 1 table for the purpose of cost of Raw materials.
2. The direct labour applied in stools and Chairs each, is half of that applied in tables.
3. Over and above indirect labour, other production overheads are recovered based on the
previous year trend. The Direct Labour (Cutting) in the previous year was 54,000 and the
other production overheads amounted to Rs. 81,000.
4. The Administrative Overheads for the year amounted to Rs. 48,000 which are borne on the
basis of units produced among all three products.
5. The details of stock in nos. are as under :
 Particulars Stools Chairs Tables

Stock at the end of the year 50 40 10

Stock at the beginning of the year 40 @ Rs 600 35 @ 900 5 @ Rs.

p.u. p.u. 1700 p.u.

Sales for the year 590 295 55

6. The Selling and Distribution Overheads consist of Showroom Rent, which is Rs. 47,000 and
agent commission which is Rs. 10 per unit.
7. Please round off the Cost of Production per unit to the nearest rupee if necessary.

Being the Cost Accountant of the company, you are required to make the Product wise Cost Sheet in
the required format to present to the Management showing total cost and Sales Revenue if the
company earns a profit of 15% on Sales. (15 marks)

Q.2. Give the formulas of Halsey and Rowan Payment Plans. How will idle time due to tea/coffee
breaks be treated in cost Accounting? (2 marks)

Q.3. The EOQ of a particular Company during a particular year was 2100 units. The holding cost
comes to 2% p.a. The cost per unit of the raw material is Rs. 500. Calculate the Annual Ordering Cost
for the company for the given year.

Would you include Raw Material Cost while calculating the Machine Hour rate of the Department?
(3 marks)