Cost Accounting TYBCOM Sem 6 Question Paper
April 2019
[Duration : 3Hrs] [Marks :100]
Please check whether you have got the right question paper.
- All Questions are compulsory
- Figures to the right indicate full marks alotted to the question
- Working Notes should form the part of your answer
Q.1 A) Select the correct alternative and Rewrite the sentence. — Any 10 (10 Marks)
1) If actual cost is more than standard cost variance is ________
a) Favourable
b) Adverse
c) Nil
d) All the above.
2) Subsidiary Ledger is ________ .
a) Stores ledger
b) Work in progress ledger
c) Finished Goods ledger
d) All of the above
3) Work done but uncertified is to be valued at __________ .
a) Contract price
b) Market Price
c) Material Price
d) Cost Price
4) Notional Profit is _________ .
a) Difference between value of work certified and cost of work certified
b) Profit of contract
c) differences between cash received and work certified
d) difference between retention money and cash received
5) Normal loss is debited to _________ .
a) Process account
b) Abnormal Gain
c) Abnormal Loss
d) None of the above
6) At break even Point the contribution is equal to _____________ .
a) Variable Cost
b) Zero
c) Fixed Cost
d) None of the above
7) Amount transferred to Profit and Loss Account out of 50% to 90% complete _____________ .
a) 2/3 X Notional Profit X Cash received
Work certified
b) 2/3 X Notional Profit X work certified
Cash received
c) 2/3 X Notional Profit X Cash received
Retention money
d) 2/3 X Notional Profit X Work certify
Retention money
8) When selling price decreases ,then break even point _____________ .
a) Increases
b) Decreases
c) No Effect
d) Can’t say
9) Sales are Rs. 150,000
Fixed cost Rs.40,000
Profit Rs.30,000
Variable cost is ___________ .
a) 80,000
b) 1,10,000
c) 25,000
d) 70,000
10) Margin of safety is _________ .
a) sales —contribute
b) Actual sales-Break Even Sale
c) Fixed cost — variable cost
d) Sales — Variable cost
11) Variances are difference between ____________ .
a) Standard and actual cost
b) Fixed and variable cost
c) Sales and Profit
d) Variable and semi variable cost
12) WIP Ledger balance shows __________ .
a) Cost of Finished Work
b)Cost of unfinished work
c) Cost of material
d) None of the above
Q.1 B) Match the column. (Any 10) (10 Marks)
| Group A | Group B |
| 1) Non integrated system | a) Activity Based Costing |
| 2) Plant issued to site | b) Benchmarked with company process |
| 3) Escalation Clause | c) Activity that generates cost |
| 4) Normal Loss | d) variable cost |
| 5) Joint product | e) First step in Benchmarking |
| 6) By Product | f) Benchmarking on global scale |
| 7) Marginal Cost | g) standard minus actual cost |
| 8) Cost Variance | h) Cost and Financial accounts maintained separately |
| 9) ABC | i) Debited to Contract Account : |
| 10) Cost Driver | j) Product emerging in process having insignificant value |
| 11) Planning | k) Inevitable Loss |
| 12) Global Benchmarking | l) Avoidable Loss |
| m) Covers increase in cost | |
| n) Additional product with significant value i |
Q.2 A) The Product of a company passes through three distinct processes to completion. They are known as A, Band C. (15 Marks)
From past experience, it is ascertained that Normal Loss is incurred in each process as under:-
Process A 2%, Process B 5% and Process C 10%. In each case the percentage of Normal Loss is computed on the number of units entering the process concerned.
Normal Loss of each process possesses a scrap value. The Normal Loss of process A is sold at 5 paise per unit and B is sold at 20 paise per unit an that of process C at 50 paise per unit.
Output of each process passes immediately to the next process and the finished are passed from process C into stock.
Following information is obtained: – Amount Rs
| Particulars | Process A | Process B | Process C |
| Material consumed | 6,000 | 4,000 | 2,000 |
| Direct Labour | 8,000 | 6,000 | 3,000 |
| Manufacturing expenses | 1,500 | 1,773 | 2,332 |
20,000 units have been issued to process A at a cost of Rs.10,000.
Output of each process has been as under:-
Process A 19,300, Process B 18,800, Process C 16,500
There is no work in progress in any process.
Prepare Process accounts and the calculations should be made to the nearest rupee.
OR
B) Asha Ltd manufactures a chemical which passes through three processes. The following particulars gathered for the month of December 2018 (15 Marks)
| Particulars | Process A | Process B | Process C |
| Basic Materials (in Kg) | 4,000 | 2,080 | 1,772 | |
| Cost of Basic Materials | 3,84,000 | 1,88,000 | 60,000 |
| Wages | 76,800 | 76,000 | 22,000 |
| Other Direct Expenses | 84,000 | 88,000 | 99,720 |
| Production overheads | 25,600 | 42,512 | 39,765 |
| Normal Loss(% on Total input) | 5% | 4% | 5% |
| Scrap sale value per Kg. | 2 per Kg | 3 per kg | 5 per Kg |
| Ouiput transferred to Next Process % | 40% | 50% | ———- |
| Output transferred to Warehouse % | 60% | 50% | 100% |
You are required to prepare process accounts.
Q.3 (15 Marks)
A) Mahesh Construction Company has three independent Contracts.
Following particulars are available for the year ended 31° December 2018
Amount Rs.
| Particulars | Contract A | Contract B | Contract C |
| Contract price | 5,00,000 | 12,50,000 | 3,75,000 |
| Material issued to Contract | 82,600 | 1,12,250 | 94,800 |
| Labour Charges Paid | 51,400 | 63,250 | 87,750 |
| Sub-Contract Charges | 36,400 | 32,950 | 14,250 |
| Supervision Charges | 6,000 | 9,000 | 7,500 |
| Architect Fees paid _ | 5,000 | 7,500 | 12,500 |
| Insurance Charges paid _ | 1,500 | 3,050 | 3,700 |
| Work Certified | 2,00,000 | 2,50,000 | 2,50,000 |
| Work Uncertified | 17,500 | 17,500 20,000 12,500 | 12,500 |
| Amount Received from Contractee | 1,60,000 | 1,60,000 2,25,000 1,87,500 | 1,87,500 |
| Closing balance Of material ) | 4,500 | 4,500 5,000 10,000 | 10,000 |
Note: 1) All the Contracts have commenced during the year
2) Total Depreciation on plant amounted to Rs. 5,600 Allocate the same to all the contracts in the ratio of work certified
Prepare Contract Accounts for all the contracts
OR
Q.3 B) Following information relates to a contract for Rs.1,00,00,000. The contractee pays 80% of the work in progress as certified by the architect. (15 Marks)
_ Amount Rs
| Particulars | 1st year | 2rd year | 3rd year |
| Material issued | 4,60,000 | 9,40,000 | 14,50,000 |
| Direct wages | 7,00,000 | 13,50,000 | 9,50,000 |
| Direct Expenses | 50,000 | 95,000 | 1,10,000 |
| Indirect expenses | 10,000 | 20,000 | 25,000 |
| Work certified(Cumulative) | 22,50,000 | 75,00,000 | 1,00,00,000 |
| Uncertified Work | 50,000 | 50,000 | —– |
| Plant Issued | 75,000 | —– | —– |
| Material on site at year end | 25,000 | 35,000 | 50,000 |
| Architect Fees % of Work Certified | 4% | 4% | 4% |
Value of plant at the end of 1% year, 20 year and 3″ year was Rs 60,000, Rs.45,000 and
Rs.37,500 respectively.
Prepare contract account for these three years and show the calculation of profit or loss to
be transferred to Profit & Loss Account for each year.
Q.4 (A) : Following balances are available from the books of Neel manufacturing company on 1% April, 2017. (15 Marks)
Amount Rs.
| Particulars | Dr. | Cr. |
| stores Ledger Control Account | 32,000 | |
| Finished Stock Ledger Control Account | 48,700 | |
| Work-in-Progress Ledger Control Account | 62,000 | |
| Cost Ledger Control Account | 1,42,700 |
| Particulars | Amount |
| Purchase of Materials | 3,00,000 |
| Stores issued to production | 2,76,000 |
| Wages(Direct) | 2,656,400 |
| Work Expenses | 2,69,600 |
| Cost of Completed Production | 8,38,080 |
| Cost of Finished Goods Sold | 8,85,600 |
| Selling Expenses | 22,680 |
| Office and Administration Expenses | 53,000 |
| Works overhead allocated to Production | 2,70,920 |
| Office Expenses Recovered | 52,600 |
| Sales | 10,00,000 |
Transactions for the year were as follows:
Prepare the following control accounts.
1) Cost Ledger Control Account
2) Work in progress Ledger Control Account
3) Finished Stock Ledger Control Account
4) Stores Ledger Control Account
5) Costing Profit & Loss Account
OR
Q.4 B) (1) From the following information relating to financial and cost records of a new
business, pass necessary entries in Cost-Journal. (08 Marks)
1) Purchase of Material — Rs. 45,000.
2) Direct labour charges — Rs. 42,000.
3) Factory overheads incurred — Rs.1,80,000.
4) Material issued to production — Rs.4,25,000.
5) Indirect wages allocated — Rs. 60,000.
Q.4 B) (2) From the following information you are required to calculate (07 Marks)
- Material Cost Variances
- Material Price Variances
- Material Usage Variances
Standard quantity for 35 units of product -Z
Material 70 kgs @ Rs.25 per. Kg.
Actual Production-40,000unit
Actual material used 95,000 unit: Actual rate Rs.28 per kg.
Q. 5) (A) From the following information calculate Material and Labour Variances:
(15 Marks)
For 5 units of Product A, standard data are:-
Material 40 Kg @Rs.25 Per Kg.
Labour 100 Hours@ Rs.4.50 Per Hour
Actual data
Actual production 1000 units
Material 7,840Kg @ Rs.27 per kg
Labour 19,800 Hrs. @ Rs.4.60 per hour
OR
Q.5 B) Selling price of a product was Rs.200 per unit. (15 Marks)
Its cost structure was as follow
Variable Cost Per Unit:
Material Rs.76
Labour Rs.28
Direct Expenses Rs.16
Fixed Overhead for the year:
Factory Overhead Rs.5,60,000 N
Office Overhead Rs.4,40,000
Selling Overhead Rs80,000
Number of units Sold 40,000units
Calculate :
1) P/V Ratio
2) Break Even Point in Units
3) Margin of Safety
4) Break Even sales – amount, if fixed Overhead is increased by 20%
5) Revised P/V Ratio when selling price is increased by 20%
Q.6 A) Write thee meaning of Break even Chart, What are the steps in drawing Break Even chart (10 Marks)
Q.6 B) Explain in short the meaning and benefits of standard costing. (10 Marks)
OR
Q.6 C) Write short note (Attempt any Four.)
1) Types of Benchmarking
2) Cost Plus Contract
3) Limitations of Marginal Costing
4) Advantages of Cost ledger
5) Abnormal Gain
6) Joint Product
Cost Accounting TYBCOM Sem 6 Question Papers 2019 pdf
TYBCOM Sem 6 Question Papers 2019
Related Posts :
FYBCOM Subjects
SYBCOM Subjects
TYBCOM Subjects
FYBCOM Syllabus
SYBCOM Syllabus
TYBCOM Syllabus
Tips to score good marks in TYBCOM Exam
- Don’t wait until the last minute to start studying: begin early. You’ll have more time to learn the topic and solve questions, the earlier you start.
- Remain arranged: Plan a study schedule and stick to it. Take time to rest and refresh during breaks.
- Regularly review your notes: Regularly reviewing back your notes will help you keep the content in your memory.
- Practice, practice, practice: By working through sample problems and completing sample tests, you can identify your areas of weakness and become familiar with the exam’s format.
- Ask for assistance if you need it: If you’re having trouble with the subject, don’t be shy to ask for assistance. You can seek advice from your teacher, a classmate, or a tutor.
- Get a good night’s sleep: The night before the exam, be sure to get lots of rest. A mind that has got enough sleep is better prepared to memorize and recall information.
- Arrive early on exam day: Arrive early on the day of the exam to give yourself time to settle your worries and mentally prepare.
- Stay focused during the exam: Avoid being distracted during the exam by remaining focused. Take a deep breath and return your attention to the activity at hand if you realize that your mind is roaming.
- Don’t waste too much time on any one question: keep an eye on the time. If you start to struggle, leave it and return to it later.
- Review your exam after you’re done: After you’re finished, review your paper for a while. By doing this, you’ll be able to correct any mistakes you may have made and provide any answers you’re not sure about.