Cost Accounting TYBCOM Sem 6 Question Paper
Cost Accounting TYBCOM Sem 6 Question Paper

Cost Accounting TYBCOM Sem 6 Question Paper

April 2019

[Duration : 3Hrs] [Marks :100]

Please check whether you have got the right question paper.

  1. All Questions are compulsory
  2. Figures to the right indicate full marks alotted to the question
  3. 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 AGroup B
1) Non integrated systema) Activity Based Costing
2) Plant issued to siteb) Benchmarked with company process
3) Escalation Clausec) Activity that generates cost
4) Normal Lossd) variable cost
5) Joint product e) First step in Benchmarking
6) By Product f) Benchmarking on global scale
7) Marginal Costg) standard minus actual cost
8) Cost Varianceh) Cost and Financial accounts maintained separately
9) ABCi) Debited to Contract Account :
10) Cost Driverj) Product emerging in process having insignificant value
11) Planningk) 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

ParticularsProcess AProcess BProcess C
Material consumed6,000 4,0002,000
Direct Labour8,000 6,0003,000
Manufacturing expenses1,5001,7732,332

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.


B) Asha Ltd manufactures a chemical which passes through three processes. The following particulars gathered for the month of December 2018 (15 Marks)

ParticularsProcess AProcess BProcess C
Basic Materials (in Kg)4,000 2,080 1,772 |
Cost of Basic Materials3,84,000 1,88,00060,000
Wages76,800 76,00022,000
Other Direct Expenses84,000 88,00099,720
Production overheads25,600 42,51239,765
Normal Loss(% on Total input)5% 4%5%
Scrap sale value per Kg.2 per Kg3 per kg5 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.

ParticularsContract AContract BContract C
Contract price5,00,00012,50,0003,75,000
Material issued to Contract82,6001,12,25094,800
Labour Charges Paid51,40063,25087,750
Sub-Contract Charges36,40032,95014,250
Supervision Charges6,0009,0007,500
Architect Fees paid _5,0007,50012,500
Insurance Charges paid _1,5003,050 3,700
Work Certified 2,00,0002,50,000 2,50,000
Work Uncertified 17,50017,500 20,000 12,50012,500
Amount Received from Contractee 1,60,0001,60,000 2,25,000 1,87,5001,87,500
Closing balance Of material ) 4,5004,500 5,000 10,00010,000

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


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 year2rd year 3rd year
Material issued 4,60,0009,40,00014,50,000
Direct wages 7,00,000 13,50,0009,50,000
Direct Expenses50,000 95,0001,10,000
Indirect expenses 10,00020,00025,000
Work certified(Cumulative)22,50,00075,00,000 1,00,00,000
Uncertified Work 50,00050,000—–
Plant Issued75,000 —–—–
Material on site at year end25,00035,00050,000
Architect Fees % of Work Certified4%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.

stores Ledger Control Account32,000
Finished Stock Ledger Control Account48,700
Work-in-Progress Ledger Control Account62,000
Cost Ledger Control Account1,42,700

Purchase of Materials3,00,000
Stores issued to production2,76,000
Wages(Direct) 2,656,400
Work Expenses2,69,600
Cost of Completed Production 8,38,080
Cost of Finished Goods Sold8,85,600
Selling Expenses22,680
Office and Administration Expenses53,000
Works overhead allocated to Production2,70,920
Office Expenses Recovered52,600

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


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)

  1. Material Cost Variances
  2. Material Price Variances
  3. 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


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)


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

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