TYBCOM Sem 6 Cost Accounting Question Paper April 2023

TYBCOM Sem 6 Cost Accounting Question Paper April 2023

[Time: 3 Hours] [Marks: 100]

N. B.
(1) All questions are compulsory.
(2) Figures to the right indicate full marks.
(3) Use of simple calculator is allowed.
(4) Working notes should form part of your answer.

Q1 A) Multiple Choice Questions: (Any 10) : (10 Marks)

1) In Contract costing loss of Material by Fire is credited to ________.
a) Financial Profit & Loss A/c
b) Costing Profit & Loss A/c
c) Contract A/c
d) Contractee’s A/c

2) Cost ledger contains _________.
a) All personal A/c
b) All impersonal A/c
c) All nominal A/c
d) All real A/c

3) If cash received is 80% of work certified which is Rs. 4,80,000, Work certified will be ____________
a) Rs. 4,80,000
b) Rs. 6,00,000
c) Rs. 6,20,000
d) Rs.3,40,000

4) If sales are Rs. 5,00,000; variable costs are Rs. 2,00,000, the P/V ratio will be
a) 60%
b) 40%
c) 20%
d) 45%

5) Normal loss is calculated at a certain percentage of the ________.
a) Units introduced in the process
b) Direct materials
c) Cost of input
d) Direct labour

6) Output is 2,500 units. Normal loss is 300 units. Abnormal loss is 200 units. The input is __________.
a) 2,000 units
b) 3,000 units
c) 1,500 units
d) 2700 units

7) If standard cost of labour is Rs. 96,000 & actual cost incurred on labour is Rs. 97,800, the labour cost varience is _________.
a) 1,800 F
b) 1,800 A
c) 1,93,800 A
d) 1,93,800 F

8) Process costing is applicable to ___________.
a) Paper Industry
b) Transport Company
c) Printing Press
d) Repair works

9) Stores ledger control account includes __________.
a) All overheads incurred in process
b) All wages incurred in process
c) All purchases of material for the stores
d) All indirect expenses incurred in process

10) An activity which generates cost is a ________.
a) Cost drivers
b) Cost unit
c) Cost pool
d) Cost centre

11) If contract price is Rs. 15,00,000, work certified is Rs. 9,00,000. The amount transferred to Profit & Loss A/c would be ______.
a) 1/3 of Notional profit* Cash received / Work certified
b) 2/3 of Notional profit* Cash received / Work certified
c) 60% of Cash price
d) 60% of work certified

12) In marginal costing, increase in selling price _____.
a) Does not affect BEP
b) Lowers the net profit
c) Increases BEP
d) Lowers the BEP

Q1 B) True or False (Any 10) : (10 Marks)

1. Contract price is equal to work certified.- False
2. Abnormal gain is credited to Process Account.- False
3. Margin of safety is the excess of Breakeven sales over actual sales.- False
4. Direct wages are debited to Wages Control Account.- True
5. Work certified is a part of WIP.- True
6. Process account is credited by scrap value of normal loss.- True
7. WIP ledger shows cost of goods unfinished.- True
8. Angle of incidence is angle between total sales line and total cost line drawn in Break Even Chart.-True
9. In Target costing, wasteful activites are eliminated.- True
10. A Variance Analysis is a difference between standard cost and actual cost.- True
11. Idle time variance is always adverse.- True
12. Non-integrated accounting is called Interlocking accounting system.- True

Q.2) Following information is related to a building contract undertaken by Moonlight contractors for Rs. 25,00,000 and for which 80% of work certified by the architect is being paid by the contractee.

Particulars	Year I	Year II	Year III
Material issued	3,00,000	3,62,000	2,10,000
Direct expenses	12500	42500	15000
Direct wages	275000	387500	275000
Subcontract charges	5000	6500	1250
Plant issued	35000	–	–
Material at site	5000	12500	20000
Work Certified (Cumalative)	587500	1875000	2500000
Work Uncertified	7500	20000	–

The value of plant at the end if year I,II,III was Rs.28,000, Rs. 17,500 and Rs.7500 respectively.
You are required to prepare Contract Account for all the three years.

OR

Q.2B) Twinlight Contractors Limited obtained two contracts C1 & C2. Following information was extracted from their books for the year ended 31^st March, 2023.

Particulars	Contract CI		Contract C2
Date, of Commencement	1″‘October, 2022		1″ December, 2022
Contract Price		1,05,00,000	22,50,000
Cash received		80% of WC	85% of WC
Work Certified		21,00,000	13,50,000
Work uncertified		78,000	42,000
Material issued		5,37;000	2,98,800
Material returned to stores		21,000	–
,Indirect Material		2,20,000	2,43,900
Direct wages		4,42,500	2,66,250
Direct expenses		2,04,750	46,050
Sub contract charges		41,250	33,750
Administratiye charges		4,08,750	2,21,250
Supervision Charges		95,550	–
Architect.fees		78,000	40,500
Electricity charges		73,200	–
Plant issued at the commencement		33,75,000	18,00,000
Material at site at the end		1,09,500	81,000

Provide depreciation @ 20% per annum, on the original cost of the plant.
You are required to prepare Contract Cl & Contract C2 Account for the period ended 31⁶` March, 2023.

Q.3) A product passes through three processes vitX, Y and Z.the following details are available from the books and records for the year ended 31_^st March 2023 (20 Marks)

Particulars	X	Y	Z
Unit Produced	32,000
Cost per unit	16
Sundry Materials (Rs.)	36,000	24,400	22,000
Direct Labour (Rs.)	10,000	14,000	13,200
Direct Expenses (Rs.)	20,800	10,000	7,500
Production Overhead	50% of sundry material	40% of direct Labour	6,800
Normal Loss (%)	5%	10%	12%
Scrap value Per unit (Rs.)	12	10	15
Actual Output	30,000	27,500	22,800

The output of each process passes directly to the next process and finally to the finished stock. You are required to prepare

1. Process account
2. Normal Loss Account
3. Abnormal Loss Account
4. Abnormal Gain Account

OR

Q 3) M/s. Flowers Enterprises Ltd provides you with the following information for the month of March,2023 about process A, B & C:                                                               (20 Marks)

Particulars	Process A	Process B	Process C
Basic Raw Material introduced ( unit)	20,000	4,000	2,000
Cost of Raw Material per unit (Rs.)	20	12	18
Actual output   ( unit)	18,500	18,000	11,000
Direct Expenses-(Rs.)	1,65,000	1,75,000	1,95,000
Direct Wages -(Rs.)	1,30,000	1,08,720	1,28,132
Indirect Material (Rs.)	21,500	9,200	6,500
Factory Overheads(Rs.)	68,500	50,210	80,000
Normal Loss ( as % of total No. of units input	5%	10%	12%
Scrap Value per unit  (Rs.)	6	4
Output Transferred to Next Process (%) –	70%	60%	—
Output Sold at the end of process (%).	30%	40%	100%
Selling price per unit of the output sold at the end of the Process     (Rs)      ,	44	55	90

You are required to prepare Process Accounts

Q 4) Following are the balances in Cost ledger of Amrit Manufacturing Company on 1″
April, 2022                                                                                                          (20 Marks)

	Debit(Rs)	Credit(Rs)
Stores Ledger Control Account	34,000
WIP control account	45,600
Finished Stock Ledger control Account	24,000
Cost Ledger Control Account		1,03,600

Following are the transactions for the year ending on 31″ March, 2023:

Particulars	Rs
Purchase of Raw material	1,00,000
Material issued to production	94,000
Direct Wages	1,40,000
Factory Overheads incurred	80,000
Selling & Distribution overheads incurred	32,000
Factory Overheads recovered	88,000
Selling & Distribution overheads recovered	31,500
Sales	4,00,000
Stock of WIP at end	50,000
Stock of Material at end	40,000
Stock of finished goods at end	30,000

You are required to prepare following Cost Control Accounts:

1. Cost ledger control Account
2. Stores Ledger Control’ account
3. WIP Control Account
4. Finished Stock Ledger Control Account
5. Costing Profit & Loss Control Account

OR

Q 4 A) From the following particulars, you are required to calculate:            (10 Marks)

1) Profit Volume Ratio
2) Break Even Point
3) Profit when sale is Rs.2,50;000
4) Sales required to earn .profit of Rs. 50,000
5) Margin of Safety in 2nd Year.

Year	Sales (Rs.)	Profit (Rs.)
I	3,75,000	25,000
II	4,50,000	40,000

Q.4 B) Calculate Material Cost Variance, Material Usage Variance, Material Price Variance from the following Data: (10 Marks)

Standard Quantity per 10 units of production
Material 70 kgs @ Rs. 5 per kg.
Actual Production for the month 12,000 Units
Actual Material price per kg @ Rs.5.5
Material used during the month 80,000

Refer for TYBCOM Sem 6 Cost Accounting Question Paper Solutions – Click Here

Q.5 A) Explain in detail about features of Contract costing. (10 Marks)
Q.5 B) What do you mean by Life cycle costing. (10 Marks)

OR

Q.5) Short Notes (Any 4) (20 Marks)

1. General Ledger Adjustment Account
2. Normal & Abnormal Loss
3. Labour Efficiency Variance
4. Significance of variance analysis
5. Marginal costing
6. Activity Bases Costing

TYBCOM Sem 6 Question Paper April 2023

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Tips to score good marks in TYBCOM Exam

1. 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.
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4. 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.
5. 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.
6. 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.
7. Arrive early on exam day: Arrive early on the day of the exam to give yourself time to settle your worries and mentally prepare.
8. 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.
9. 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.
10. 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.