Define cost accounting explain its objectives and advantage

Assignment Help Cost Accounting

Reference no: EM131698649

PRACTICAL COSTING QUESTIONS -

1. Define cost accounting. Explain its objectives and advantages.

2. What do you understand by Inventory control? State its objectives and any two methods.

3. Write notes on:

(a) Normal wastage.

(b) Idle Time.

(d) Bin card.

(e) Overheads.

Q4. Show the stress ledger under simple average method and FIFO method.

		Units	Price Rs.
April 1	Balance	300	2.00
April 2	Purchased	200	2.20
April 4	Issued	150
April 6	Purchased	200	2.30
April 11	Issued	150
April 19	Issued	200
April 22	Purchased	200	2.40
April 27	Issued	150

Q5. Bharat Engineering company manufactures and sold fans. The following details are obtained from the records.

	Rs.
Stock opening	75,000
Direct wages	52,500
Closing stock	91,500
Indirect Wages	2,750
Sales	2,11,000
Work in progress opening	28,000
Work in progress closing	35,000
Purchase of raw material	66,000
Factory Rent	15,000
Depreciation	3,500
Expenses of purchase	1,500
Carriage outward	2,500
Advertising	3,500
Office rent	2,500
Selling Expenses	6,500
Stock finished good opening	54,000
Stock of finished goods closing	31,000

Required - Prepare cost sheet.

Q6. From the information given below calculate the earnings of each employee under:

(a) Halsey Plan

(b) Rowan Plan

Employees	A	B	C
Time allowed-hours per 100 units	35	40	42
Wages per unit	Rs. 2	Rs. 3	Rs. 4
Hourly rate	Rs. 7	Rs. 8	Rs. 10
Actual time takes in hours	50	48	46
Actual units produced	200	150	125

Q7. You are required to show the overhead apportionment for the following information.

	Production Departments			Service Departments
	A	B	C	P	Q
Rent	2400	4800	2000	2000	800
Electricity	800	2000	500	400	300
Indirect Labour	1200	2000	1000	800	1000
Depreciation on Machinery	2,500	1,600	200	500	200
Sundries	910	2143	843	300	300
Estimated working hours	1000	2500	1400

Expenses of service Department P and Q are apportioned as under:

	A	B	C	P	Q
P	30%	40%	20%	-	10%
Q	10%	20%	50%	20%	-

Q8. From the following information of Pankaj industries prepare reconciliation statement.

Trading and P and L a/c of Pankaj Industries - 31, March 2007.
	Rs.		Rs.
To Materials	27,400,000	By Sales 120000 units	60,00,000
To Wages	15,10,000	By Finished goods (4000 units)	1,60,000
To Factory Expenses	8,30,000	By Work in progress Materials	64,000
To Administration expenses	3,83,000	Wages	36,000
To Selling Expenses	4,50,00	Factory Expenses	20,000
To Preliminary expenses written off	40,000	Dividend Received	18,000
To Goodwill written off	20,000
To Net profit	3,25,000
	62,98,000		62,98,000

(a) The factory expenses have been allocated to production @ 20% on prime cost.

(b) Administration expenses @ Rs. 3 per unit produced.

Q9. A product passes through three process A, B and C. The loss in each process are A - 2%, B - 5%, C - 10%. The loss of processes A and B is sold at Rs. 5 per 100 units, C is sold at Rs. 20 per 100 units.

	Process A	Process B	Process C
	Rs.	Rs.	Rs.
Materials	6,000	4,000	2,000
Labour	8,000	6,000	3,000
Manufacturing Expenses	1,000	1,000	1,500
Output	19500	18800	16000
	units	units	units

20000 units were introduced in Process A at a cost of Rs. 10,000. Prepare Process Account and other necessary accounts.

Q10. (a) Calculate machine hour rate from the following information:

	Rs.
Cost of the machine	19,200
Estimated scrap value	1,200
Repair and maintenance per month	150
Standing charges per month	50
Effective working life of the machine	10,000 hours
Running time per month	200 hrs

Power used 5 units at 18 paise per unit.

(b) Calculate EOQ from the following information:

Annual consumption 8000 units

Buying cost per order Rs. 7

Cost per unit of material Re. 0.30.

Storage and carrying cost 15% of average inventory.

Reference no: EM131698649

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