Q1Weighted average cost method, inventory management
0 marks easy
Arnav Electronics manufactures electronic home appliances. It follows weighted average Cost method for inventory valuation. Following are the data of component X: [Date, Particulars, Units, Rate per unit table with data from 15-12-19 to 31-01-20]
Q2Employee turnover calculation
0 marks easy
From the following information, CALCULATE employee turnover rate: No. of workers as on 01.01.2019 = 3,600; No. of workers as on 31.12.2019 = 3,790; During the year, 40 workers left while 120 workers were discharged. 350 workers were recruited during the year, of these 150 workers were recruited because of exits and the rest were recruited in accordance with expansion plans.
Q3Overhead absorption costing, service department reapportionm
0 marks easy
ABC Ltd. has three production departments P1, P2 and P3 and two service departments S1 and S2. The following data are extracted from the records of the company for the month of January, 2020: [table with overhead costs and departmental details including rent, lighting, wages, power, depreciation, insurance, along with machine horse power, cost of machinery, floor space, light points, and production hours data]
Q4Activity Based Costing method
0 marks easy
Following are the data of three product lines of a departmental store for the year 2019-20: [table with revenues, cost of goods sold, cost of bottles returned, number of purchase orders, deliveries, shelf-stocking hours, and items sold for Soft drinks, Fresh produce, and Packaged food]. Additional information related with the store includes activities and costs for Bottles returns (₹60,000), Ordering (₹7,80,000), Delivery (₹12,60,000), Shelf-stocking (₹8,64,000), and Customer Support (₹15,36,000).
Q5Cost of production calculation, cost sheet
0 marks easy
From the following data of Arnav Metallic Ltd., CALCULATE Cost of production: Repair & maintenance paid for plant & machinery ₹9,80,500; Insurance premium paid for plant & machinery ₹96,000; Raw materials purchased ₹64,00,000; Opening stock of raw materials ₹2,88,000; Closing stock of raw materials ₹4,46,000; Wages paid ₹23,20,000; Value of opening Work-in-process ₹4,06,000; Value of closing Work-in-process ₹6,02,100; Quality control cost ₹86,000; Research & development cost ₹92,600; Administrative cost for Factory & production ₹9,00,000 and Others ₹11,60,000; Amount realised by selling scrap ₹9,200; Packing cost ₹10,200; Salary paid to Director (Technical) ₹8,90,000
Q6Cost accounting system, control accounts, trial balance
0 marks easy
The following are the balances existed in the books of JPG Ltd. for the year ended, 31st March, 2019: Stores Ledger Control A/c ₹30,00,000; WIP Control A/c ₹15,00,000; Finished Goods Control A/c ₹25,00,000; Manufacturing Overheads Control A/c ₹1,50,000; Cost Ledger Control A/c ₹68,50,000. During the year 2019-20, the following transactions took place: [detailed list of transactions including finished product, manufacturing overhead, raw material purchased, factory wages, indirect labour, cost of sales, materials issued, sales returned, material returned, manufacturing overhead charged, and wages].
Q7Job costing, cost sheet preparation, pricing
0 marks easy
A factory uses job costing system. The following data are obtained from its books for the year ended 31st March, 2020: Direct materials ₹18,00,000; Direct wages ₹15,00,000; Selling and distribution overheads ₹10,50,000; Administration overheads ₹8,40,000; Factory overheads ₹9,00,000; Profit ₹12,18,000.
Q8Process costing, FIFO method, normal and abnormal loss
0 marks easy
Star Ltd. manufactures chemical solutions for the food processing industry. The manufacturing takes place in a number of processes and the company uses FIFO method to value work-in-process and finished goods. At the end of the last month, a fire occurred in the factory and destroyed some papers containing records. Opening work-in-process at the beginning of the month was 1,600 litres, 70% complete for labour and 60% complete for overheads, valued at ₹1,06,560. Closing work-in-process at the end of the month was 320 litres, 30% complete for labour and 20% complete for overheads. Normal loss is 10% of input and total losses during the month were 1,200 litres. Output sent to finished goods warehouse was 8,400 litres. Losses have a scrap value of ₹15 per litre. All raw materials are added at the commencement of the process. The cost per equivalent unit (litre) is ₹78 made up of: Raw Material ₹46, Labour ₹14, Overheads ₹18.
Q9Service costing, cost allocation, profitability analysis
0 marks easy
AD Higher Secondary School (AHSS) offers courses for 11th & 12th standard in three streams i.e. Arts, Commerce and Science. The Managing committee of the school wants to revise its fee structure for higher secondary students. The accountant of the school has provided detailed salary information: Teachers' salary (15 teachers × ₹35,000 × 12 months) ₹63,00,000; Principal's salary ₹14,40,000; Lab attendants' salary (2 attendants × ₹15,000 × 12 months) ₹3,60,000; Salary to library staff ₹1,44,000; Salary to peons (4 peons × ₹10,000 × 12 months) ₹4,80,000; Salary to other staffs ₹4,80,000; Examinations expenditure ₹10,80,000; Office & Administration cost ₹15,20,000; Annual day expenses ₹4,50,000; Sports expenses ₹1,20,000. Additional information includes number of students, lab classes, examinations, library time, principal's administration time, teacher allocation, and teacher sharing details.
Q10Standard costing, variance analysis
0 marks easy
ABC Ltd. had prepared the following estimation for the month of January: Material-A 800 kg at ₹90.00 = ₹72,000; Material-B 600 kg at ₹60.00 = ₹36,000; Skilled labour 1,000 hours at ₹75.00 = ₹75,000; Unskilled labour 800 hours at ₹44.00 = ₹35,200. Normal loss was expected to be 10% of total input materials and an idle labour time of 5% of expected labour hours was also estimated. At the end of the month the company has produced 1,480 kg finished product by using: Material-A 900 kg at ₹86.00 = ₹77,400; Material-B 650 kg at ₹65.00 = ₹42,250; Skilled labour 1,200 hours at ₹71.00 = ₹85,200; Unskilled labour 860 hours at ₹46.00 = ₹39,560.
Q11Marginal costing, break-even analysis, CVP analysis
0 marks easy
A Ltd. manufacture and sales its product R-9. The following figures have been collected from cost records of last year for the product R-9: Direct Material 30% of Cost of Goods Sold; Direct Labour 15% of Cost of Goods Sold; Factory Overhead 10% of Cost of Goods Sold with Fixed Cost of ₹2,30,000; Administration Overhead 2% of Cost of Goods Sold with Fixed Cost of ₹71,000; Selling & Distribution Overhead 4% of Cost of Sales with Fixed Cost of ₹68,000. Last Year 5,000 units were sold at ₹185 per unit. Assume that Administration Overhead is related with production activity.
Q12Budgeting, production budget, purchase budget
0 marks easy
A Vehicle manufacturer has prepared sales budget for the next few months: October 40,000; November 35,000; December 45,000; January 60,000; February 65,000 vehicles. To manufacture a vehicle a standard cost of ₹11,42,800 is incurred and sold through dealers at a uniform selling price of ₹17,14,200 to customers. Dealers are paid 15% commission on selling price. Four units of Part-X are required to manufacture a vehicle. The company holds stocks of Part-X at the end of each month to cover 40% of next month's production. 48,000 units of Part-X are in stock as on 1st October. There are 9,500 completed vehicles in stock as on 1st October and the company maintains stock at the end of each month to cover 20% of the next month's sales.
Q13(a)Cost accounting vs management accounting
0 marks easy
DIFFERENTIATE between Cost Accounting and Management Accounting.
Q13(b)Information technology impact on cost accounting
0 marks easy
DISCUSS the impact of Information Technology (IT) on cost accounting system.
Q13(c)Escalation clause in contracts
0 marks easy
DISCUSS the Escalation Clause in a Contract.
Q13(d)By-product costing methods
0 marks easy
DISCUSS the treatment of by-product cost in cost accounting.