3 a) 4 ») a) Department of Computer Science and Engineering B.Sc.(Engg.) Second Year First Semester Final Examination (Session: 2019-20) Course Cade: BUS 203D Credit: 3.0 Course Title: Cost and Management Accounting Time:3 Hours Full Marks: 100 (Answer any THREE questions from each group. Figures atthe right margin indicate fall marks.) Group A “Cost Accounting has become an essential tool of management” — Give your comment on the 5 statement. How can you explain the relationships among financial, management and cost accounting? 6 ‘What are the sources of ethical standards for Cost Accounting? 6 ly examine the need and importance of Cost Accounting with reference tothe i 8 of Financial Accounting. What are the elements of prime cost? 5 ‘The account of ABC Company shows the following information forthe year ended 31-12-2021. Ttems Taka ‘Opening Stocks (1-1-2021) of [Direct materials « [26000 | jork in progress © 74,000 Finished goods 120,000 Direct material purchased during the year¢ ———— 36,000, Direct Tabor during the year’ a 120,000 Indirect labor. | 44,000 Administrative Expenses © 11.60.00 Factory rent rates and insurance ¢ Depreciation on Factory equipment Selling Expenses » Factory power heat and ight € Sundry Factor overheads © Sales Closing Stocks(31-12-2021 [Direct materials © ‘Work —in progress < : Finished goods 20 Determine the followings: st (@ Prime cost (i) Works cost (ii) Production cost (iv) Cost of goods sold and (v) Net profit. Find the following particulars relating to inventor find out: 5025 (i) E0Q (ii) ROL (ili) Safety stoke level (iv) Number of orders to be placed in a year (e) Time log between two consecutive orders ( 360 days in a year). ‘Annual consumption 12000 units (in 360 days): Cost per unit Tk. 1.00; Per order cost Tk. 12; Inventory carrying cost 20%; Normal lead timé 15 da Safety stoke is equal to 30 days consumption Quantity to be supplied 3,000 liters of Oxide @ Tk 10 per liter. Rs Trade discount 20%; and cash discount 5% (terms 15 days). Sales tax chargeable @15%;, and Dock charge Tk. 5 per 100 liters. Freight Tk. 300 for the entire consignment ; and Insurance on the goods carried Tk.50 Delivery within 15 days in containers of 100 liters. Each container is chargeable @ Tk.20, but credit is allowed @ Tk. 13 on return within a month, ‘The order is delivered as per terms and conditions, payment was made on the 10 day and the container was retumed on the 23% day from the date of delivery. Requirement: Calculate the cost of material purchased in total and per liter. Group B What is BEP? What are assumptions of determining BEP? Draw a BEP chart, 10 Page tof 21b) Whirly Corporation’s most recent income statement is shown below: Particulars Total (in Tk.) _| Per unit(in Tk) Sales (10,000 units) | 350,000 35.00, Variable expenses | 200000 20.00, Contribution margin | 150000 15.00 Fixed expenses 135000 ‘Net operating income | 15000 Calculate BEP in units gag-dollar amount. 3 ) Calculate CM ratio, margin of safety ratio and margin of safety in dollar. BY Prepare a new contribution format income statement under each of the following conditions (consider each case independently): (@)The sales volume increases by 100 units, (b) The sales volume decreases by 100 units (6) The sales volume is 9,000 units 5. a) ENA Transport Lid. operates a fleet of delivery trucks in Bangladesh. The company has determined that if truck is driven 105,000 kilometers during a year, the average operating cost is 11.4 Taka per kilometer. Ifa truck is driven only 70,000 kilometers during a year, the average operating cost increases to 13.4 Taka per kilometer, Required: () Using the high-low method, estimate the variable and fixed cost elements of the annual 4 ‘cost ofthe truck operation. i) Express the variable and fixed costs in the form: y= at bx. 4 ) Ifa truck were driven 80,000 kilometers during a year, what total cost would you 4 expect fo be incurred? }b) Arden Company reported the following costs and expenses forthe most recent month Cost element | Amount in Tk. Direct materials | 80,000 Direet labor... 42,000 Manufacturing overhead. [19.000 Selling expenses 22,000 ‘Administrative expenses 35.000 Required: (4°2) 8 (What is the total amount of product costs? Gi) What isthe total amount of period costs Gi) What is the total amount of conversion costs? (iv) What is the total amount of prime costs? ©) What isthe difference produet and Period Costs 5 a) Discuss some of the major benefits to be gained from budgeting. b) Calgon Produets, a distributor of organic beverages, needs a cash budget for September. The 20 following information is available: * The cash balance at the beginning of September is $9,000, * Actual sales for July and August and ex; ted sales for September are as follows: July [August September | Cash sales $6.500_['$5.250 $7,400 Sales on account $20,000 _| $30,000 | $40,000 Total sales $26,500 | $35,250 | $47,400 Sales on account are collected over a three-month period as follows: 10% collected inthe Womth of sale, 70% collected jn the month following sal ‘The remaining 2% is uncollectable. * Purchase of inventory will total $25,000 for September. 20% of a month's inventory paid during the month of purchase, The accounts payable rema {otal $16,000, all of which will be paid in September. Joebing and administrative expenses are budgeted at $13,000 for September. OF this amount, $4,000 is lepreciation, {Eauipment costing $18,000 wil be puchasd for ens during September, and dividends ttn ‘$3,000 will be paid during the month. a * * The company maintains a minimum eash balance of $5,000. An open line of ert is av the company’s bank to bolster the cash position as needed, and 18% collected the second month follow purchases are ng from August’s inventory purchases te from Required (Prepare a schedule of expected cash collect i) Prepare a schedule of expected cash disbursem (ii) Prepare a cash budget for September. Indicate in the Financing section any borrowing that will bbe needed duting September. * for September, rents during September, Page 20f2