Roll No. Total No.

of Pages: 03
Total No. of Questions: 07
B.Com. (Sem.-4th)
COST ACCOUNTING-I
Subject Code: BCOP-403
Paper ID: [B1142]
Time: 3 Hrs. Max. Marks: 60

INSTRUCTION TO CANDIDATES:
1) Section-A is Compulsory.
2) Attempt any four questions from Section-B.
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.r c SECTIONA
(10x2=20)
Q1. Write short notes:
a) Cost sheet
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b)
c)
a
Treatment of Idle time and over time cost
Give examples of batch level cost drivers

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d)
e)

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Material mix variance
Batch costing vs. job costing

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f)
g)

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h)
. Cash budget
Treatment of Abnormal loss
Give examples of direct-fixed cost and indirect-fixed cost .r c
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j)
Cost tracing vs. cost allocation
Methods of wage payments
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w SECTION-B
a
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Q2.
.b
What are the main uses of cost and management accounting information? Also
Differentiate between financial and cost accounting.

Q3.

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Alpha Ltd. Has three production departments A, B and C and two service departments D
and E. The following figures are extracted from the records of the company:
Rent and rates
General lighting
Indirect wages
w Rs. 5000
600
1500
Power 1500
Depreciation of Machinery 10000
Sundries 10000

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 The following are further details:
Total A B C D E
Floor Area(Sq. ft.) 10000 2000 2500 3000 2000 500
Light point(Nos.) 60 10 15 20 10 5
Direct Wages(Rs.) 10000 3000 2000 3000 1500 500
Horse power of 150 60 30 50 10 -
Machines
Value of 250000 60000 80000 100000 5000 5000
Machinery(Rs.)
Working Hours - 6226
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The expenses of service departments D and E are allocated using the repeated distribution
method as follows:
A B C D E
D
E
20%
40%
p e 30%
20%
40%
30%
-
10%
10%
-

p a
What is the total cost of articles if raw material cost is Rs. 50, labour c for cost Rs. 30 and

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it passes through departments A,B and C 4,5 and 3 hours respectively.

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Q4.
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st
An expenditure of Rs. 192000 has been incurred on a contract upto the end of 31 March,
2010. The value of work done and certified is Rs. 210000. The cost of work done but not

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yet certified is Rs.12000. It is estimated that the contract will be completed by 30 th

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June, 2010 and an additional expenditure of Rs. 18000 will have to be incurred to

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complete the contract. The total estimated expenditure on the contract is to include a

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provision of 12.5% for contingencies. The contract price is Rs. 280000and Rs. 168000
has been realized in cash upto 31st March, 2010. Calculate the proportion of profit to be

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taken to profit and loss account as on 31 st March, 2010 under different methods.

Q5.
.b
RKG Inc. is currently working at 50% and produces 10000 units. At 60% working raw
material cost increases by 2% and selling price falls by 2%. At 80% raw material cost
increase by 5% and selling price falls by 5%.

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At 50% capacity working the products costs Rs. 180 per unit and is sold at Rs. 200 per
unit.

Material
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The unit cost of Rs. 180 is made up as follows:
Rs. 100
Wages 30
Factory overheads 30 (40% fixed)
Administration overheads 20 (50% fixed)

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 Prepare a Marginal Cost Statement showing the estimated profit of the business when it is
operated at 60% and 80% capacity.

Q6. All budgets depend on sales budget. Do you agree? Explain.

Q7. Activity-based costing is the wave of the present and the future. All companies should
adopt it. Do you agree?

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