TYBCOM Sem 6 Cost Accounting Question Paper April 2023
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.

ParticularsYear IYear IIYear III
Material issued3,00,0003,62,0002,10,000
Direct expenses125004250015000
Direct wages275000387500275000
Subcontract charges500065001250
Plant issued35000
Material at site50001250020000
Work Certified (Cumalative)58750018750002500000
Work Uncertified750020000

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 31st March, 2023.

ParticularsContract CIContract C2
Date, of Commencement1″‘October, 20221″ December, 2022
Contract Price 1,05,00,00022,50,000
Cash received 80% of WC85% of WC
Work Certified 21,00,00013,50,000
Work uncertified 78,00042,000
Material issued  5,37;0002,98,800
Material returned to stores21,000
,Indirect Material 2,20,0002,43,900
Direct wages  4,42,5002,66,250
Direct expenses   2,04,75046,050
Sub contract charges 41,25033,750
Administratiye charges4,08,7502,21,250
Supervision Charges 95,550
Architect.fees 78,00040,500
Electricity charges 73,200
Plant issued at the commencement 33,75,00018,00,000
Material at site at the end 1,09,50081,000

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 31st March 2023 (20 Marks)

ParticularsXYZ
Unit Produced32,000
Cost per unit16
Sundry Materials (Rs.)36,00024,40022,000
Direct Labour (Rs.)10,00014,00013,200
Direct Expenses (Rs.)20,80010,0007,500
Production Overhead50% of sundry material40% of direct Labour6,800
Normal Loss (%)5%10%12%
Scrap value Per unit (Rs.)121015
Actual Output 30,00027,50022,800

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)

ParticularsProcess AProcess BProcess C
Basic Raw Material introduced ( unit)20,0004,0002,000
Cost of Raw Material per unit (Rs.)201218
Actual output   ( unit)18,50018,00011,000
Direct Expenses-(Rs.)1,65,0001,75,0001,95,000
Direct Wages -(Rs.)1,30,0001,08,7201,28,132
Indirect Material (Rs.)21,5009,2006,500
Factory Overheads(Rs.)68,50050,21080,000
Normal Loss ( as % of total No. of units input5%10%12%
Scrap Value per unit  (Rs.)  64 
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)      ,445590

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 Account34,000 
WIP control account45,600 
Finished Stock Ledger control Account24,000 
Cost Ledger Control Account 1,03,600

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

ParticularsRs
Purchase of Raw material 1,00,000
Material issued to production94,000
Direct Wages1,40,000
Factory Overheads incurred80,000
Selling & Distribution overheads incurred32,000
Factory Overheads recovered88,000
Selling & Distribution overheads recovered31,500
Sales4,00,000
Stock of WIP at end50,000
Stock of Material at end40,000
Stock of finished goods at end30,000

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.

YearSales (Rs.)Profit (Rs.)
 I3,75,00025,000
II4,50,00040,000

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

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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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