Amity University Haryana

B.COM(HONS.)
Fifth Semester End Term Examination December, 2014
Course Title Cost Accounting
Course Code:COM2551
Exam Dept. Ref.:
Time: 3 Hours
Maximum Marks: 70
Note: This question paper has three sections : Section A, Section B and Section C.
Attempt (i) Any FIVE from Sec.-A.
(ii) Any TWO from Sec.-B.
(iii) Section-C is compulsory.
Section A (any five)
(Each question carries 6 marks)

(30 Marks)

1. State and explain the main differences between Cost Accounting and Financial Accounting.
2. Distinguish between time wage system and piece wage system. State their relative merits and
demerits.
3. Explain with illustration the classification of fixed ,Semi-fixed and Variable Overheads.
4. Describe in brief the conditions which necessitate reconciliation of financial and cost records.
5. Write short notes on the following: BEP Chart
6. Job Costing is more accurate than Process Costing. Comment

Section B (any two)

(Each question carries 10 marks)

(20 Marks)

7. 600 Kgs. of a material was charged to process I at the rate of Rs4 per Kgs..The direct labour
accounted for Rs. 200 and the other departmental expenses amounted to Rs. 760. The normal loss is
10% of input and the net production was 500 Kgs. Assuming that process scrap is saleable at Rs.2 per
Kgs., prepare a ledger account of process I clearly showing the values of normal and abnormal loss.

8. Charlie Pump Company uses about 75000 valves per year and the usage is fairly constant at
6250 per month. The valves cost Rs.1.50 per unit and carrying cost is estimated to be 20% of
average inventory investment on an annual basis.The cost to place and order and to process
the delivery is Rs.18.
It takes 45 days to receive delivery from the date of an order and a safety stock of 3250 valves
is desired. You are required to determine:
i)
ii)

The most economical order quantity and frequency of orders

Ii) The reorder level

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9. Prepare stores Ledger Account from the following details using LIFO method of pricing the
issue of materials.
April
1. Opening balance
10850 kg@ Rs.130 per Kg
2. Purchased
20000 kg @Rs.134 per kg
3. Issued
6750 kg to production
5 Issued
8500 kg to production
6 Received back
550 kg from production being surplus
7. Purchased
17550 kg@ Rs. 128 per kg
8. Issued
11250 kg to production
9. Physical verification revealed a loss
250 kg
10. Issued
8950 kg to production
12. Issued
6300 kg to production
15. Purchased
10000 kg@ Rs.132 per kg
16. Issued
7750 kg to production

Section C (Compulsory)

20 Marks

10. Calculate the prime cost, factory cost, total cost of production and cost of sales from the
following particulars:
Raw materials consumed
Directly chargeable expenses
Wages paid to labourers
Grease, oil, cotton waste etc
Salary of factory manager and clerks
Insurance of stock of raw materials
Consumable stores
Printing and stationery:
Factory
Office
Sales deptt
Rent of office building
Depreciation:
Factory premises
Office furniture
Delivery vans
Power and fuel
Contribution to provident fund of factory employees
Salaries of administrative directors
Bank charges
Cost of Samples
Salaries of sales manger
Advertising
Packing material
Shortage in stocks of finished goods

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12000
500
2500
25
1750
300
400
50
200
100
150
200
50
75
500
1000
100
75
250
300
500
350
20

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