Download GTU MBA 2019 Summer 3rd Sem 2537101 Cost Accounting Question Paper

Download GTU (Gujarat Technological University) MBA (Master of Business Administration) 2019 Summer 3rd Sem 2537101 Cost Accounting Previous Question Paper

1
Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA (Integrated) ? SEMESTER ? 3 ? EXAMINATION ? SUMMER - 2019

Subject Code: 2537101 Date:13/05/2019
Subject Name: Cost Accounting
Time: 02:30 PM To 05:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.

Q.1 (a)
The accounts of ABC Ltd. Shows the following information for the year 2012.
Materials Rs.3,50,000; Labour Rs.2,70,000; Factory Overheads Rs.81,000 and
Administrative Overheads Rs.56,080.
What price should the company quote for a refrigerator? It is estimated that
Rs.2,000 in material and Rs.1400 in labour will be required for one refrigerator.
Absorb factory overheads on the basis of labour and administration overheads
on the basis of works cost. A profit of 15% on selling price is required.
07

(b)

Explain the various classification of the cost with respect to the following:
a) Based on Time
b) Based on Behaviour
c) Based on Controllability
d) Based on Expiry
e) Based on Nature

07

Q.2 (a) Explain the techniques of Inventory Control System. 07
(b) Discuss any three methods of Labour Remuneration. 07
OR
(b) You have been given a permit to run a bus on a route 20 kms. Long. The bus
cost you Rs. 90,000. It has to be insured @ 3% p.a. and the annual tax will be
Rs. 1,000. Garage rent is Rs. 100 p.m. Annual repairs will be Rs.1000 and the
bus is likely to last for 5 years at the end of which the scrap value is likely to be
Rs. 6,000. The driver?s salary will be Rs.250 p.m. and the conductor?s Rs.200
and 10% of the takings as commission (to be shared equally by both). Stationery
will cost Rs. 50 p.m. The manager cum accountant?s salary will be Rs.450 p.m.
Diesel and oil be Rs.820 per hundred kms. The bus will make 3 round trips for
carrying on the average 40 passengers on each trip. The bus will work on the
average 25 days in a month. Assuming 15% profit on takings, calculate the bus
fare to be charged from each passenger for 50 passenger kms.
07

Q.3 (a) Three workers X, Y and Z work in a factory. The following particulars are
provided for your information:

Normal Rate per hour Re.0.40
Piece-Rate (Std. 2 units per hour) Re.0.30 per unit

In a 40-hour week, the production of the workers is as follows:
X - 50 UNITS, Y - 80 UNITS, Z - 120 UNITS

07
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1
Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA (Integrated) ? SEMESTER ? 3 ? EXAMINATION ? SUMMER - 2019

Subject Code: 2537101 Date:13/05/2019
Subject Name: Cost Accounting
Time: 02:30 PM To 05:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.

Q.1 (a)
The accounts of ABC Ltd. Shows the following information for the year 2012.
Materials Rs.3,50,000; Labour Rs.2,70,000; Factory Overheads Rs.81,000 and
Administrative Overheads Rs.56,080.
What price should the company quote for a refrigerator? It is estimated that
Rs.2,000 in material and Rs.1400 in labour will be required for one refrigerator.
Absorb factory overheads on the basis of labour and administration overheads
on the basis of works cost. A profit of 15% on selling price is required.
07

(b)

Explain the various classification of the cost with respect to the following:
a) Based on Time
b) Based on Behaviour
c) Based on Controllability
d) Based on Expiry
e) Based on Nature

07

Q.2 (a) Explain the techniques of Inventory Control System. 07
(b) Discuss any three methods of Labour Remuneration. 07
OR
(b) You have been given a permit to run a bus on a route 20 kms. Long. The bus
cost you Rs. 90,000. It has to be insured @ 3% p.a. and the annual tax will be
Rs. 1,000. Garage rent is Rs. 100 p.m. Annual repairs will be Rs.1000 and the
bus is likely to last for 5 years at the end of which the scrap value is likely to be
Rs. 6,000. The driver?s salary will be Rs.250 p.m. and the conductor?s Rs.200
and 10% of the takings as commission (to be shared equally by both). Stationery
will cost Rs. 50 p.m. The manager cum accountant?s salary will be Rs.450 p.m.
Diesel and oil be Rs.820 per hundred kms. The bus will make 3 round trips for
carrying on the average 40 passengers on each trip. The bus will work on the
average 25 days in a month. Assuming 15% profit on takings, calculate the bus
fare to be charged from each passenger for 50 passenger kms.
07

Q.3 (a) Three workers X, Y and Z work in a factory. The following particulars are
provided for your information:

Normal Rate per hour Re.0.40
Piece-Rate (Std. 2 units per hour) Re.0.30 per unit

In a 40-hour week, the production of the workers is as follows:
X - 50 UNITS, Y - 80 UNITS, Z - 120 UNITS

07
2
Calculate the earnings of the workers under ?

(a) Taylor differential piece-rate system
(b) Merrick Differential piece-rate system
(c) Gantt?s task bonus system.

(b) Explain the Methods of Inventory Valuation. 07
OR
Q.3 (a) A factory produces uniform type of articles and has a capacity of 3,000 units per
week. The following information shows the different elements of cost for 3
consecutive weeks when the output has changed from week to week.
Units Produced Direct Material Direct Labour Semi-Variable
800 3,200 1,200 5,600
1000 4,000 1,500 6,400
1600 6,400 2,400 8,800
The factory has received an order for 2,400 units. Find out the price at which
the factory should quote each unit to earn a profit of 25%.

07
(b) A company has three production departments and two service departments, and
for a period the departmental distribution summary has the following totals:
Production Departments: P1-Rs.800; P2-Rs.700; and P3-Rs.500
Service Departments: S1-Rs. 234 and S2-Rs.300
The expenses of the service departments are charged out on a percentage basis
as follows:

Particulars P1 P2 P3 S1 S2
Service Department S1 20% 40% 30% - 10%
Service Department S2 40% 20% 20% 20% -
Prepare a statement showing the apportionment of two service departments?
expenses to Production Departments by Simultaneous Equation Method and
Repeated Distribution Method.
07

Q.4 (a)
In respect of a factory the following figures have been obtained for the year
2017:
Cost of material Rs.6,00,000; Direct wages Rs.5,00,000; Factory overheads
Rs.3,00,000; Administrative overheads Rs.3,36,000; Selling overheads
Rs.2,24,000; Distribution overheads Rs.1,40,000 and profit Rs.4,20,000.

A work order has been executed in 2018 and the following expenses have been
incurred:
Materials Rs.8,000 and wages Rs.5,000.

Assuming that in 2018 the rate of factory overheads has increased by 20%,
distribution overheads have gone down by 10% and selling and administration
overheads have each gone up by 12.5%, at what price should the product be
sold so as to earn the same rate of profit on the selling price as in 2017? Factory
overhead is based on direct wages while all other overheads are based on
factory cost.

07
FirstRanker.com - FirstRanker's Choice
1
Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA (Integrated) ? SEMESTER ? 3 ? EXAMINATION ? SUMMER - 2019

Subject Code: 2537101 Date:13/05/2019
Subject Name: Cost Accounting
Time: 02:30 PM To 05:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.

Q.1 (a)
The accounts of ABC Ltd. Shows the following information for the year 2012.
Materials Rs.3,50,000; Labour Rs.2,70,000; Factory Overheads Rs.81,000 and
Administrative Overheads Rs.56,080.
What price should the company quote for a refrigerator? It is estimated that
Rs.2,000 in material and Rs.1400 in labour will be required for one refrigerator.
Absorb factory overheads on the basis of labour and administration overheads
on the basis of works cost. A profit of 15% on selling price is required.
07

(b)

Explain the various classification of the cost with respect to the following:
a) Based on Time
b) Based on Behaviour
c) Based on Controllability
d) Based on Expiry
e) Based on Nature

07

Q.2 (a) Explain the techniques of Inventory Control System. 07
(b) Discuss any three methods of Labour Remuneration. 07
OR
(b) You have been given a permit to run a bus on a route 20 kms. Long. The bus
cost you Rs. 90,000. It has to be insured @ 3% p.a. and the annual tax will be
Rs. 1,000. Garage rent is Rs. 100 p.m. Annual repairs will be Rs.1000 and the
bus is likely to last for 5 years at the end of which the scrap value is likely to be
Rs. 6,000. The driver?s salary will be Rs.250 p.m. and the conductor?s Rs.200
and 10% of the takings as commission (to be shared equally by both). Stationery
will cost Rs. 50 p.m. The manager cum accountant?s salary will be Rs.450 p.m.
Diesel and oil be Rs.820 per hundred kms. The bus will make 3 round trips for
carrying on the average 40 passengers on each trip. The bus will work on the
average 25 days in a month. Assuming 15% profit on takings, calculate the bus
fare to be charged from each passenger for 50 passenger kms.
07

Q.3 (a) Three workers X, Y and Z work in a factory. The following particulars are
provided for your information:

Normal Rate per hour Re.0.40
Piece-Rate (Std. 2 units per hour) Re.0.30 per unit

In a 40-hour week, the production of the workers is as follows:
X - 50 UNITS, Y - 80 UNITS, Z - 120 UNITS

07
2
Calculate the earnings of the workers under ?

(a) Taylor differential piece-rate system
(b) Merrick Differential piece-rate system
(c) Gantt?s task bonus system.

(b) Explain the Methods of Inventory Valuation. 07
OR
Q.3 (a) A factory produces uniform type of articles and has a capacity of 3,000 units per
week. The following information shows the different elements of cost for 3
consecutive weeks when the output has changed from week to week.
Units Produced Direct Material Direct Labour Semi-Variable
800 3,200 1,200 5,600
1000 4,000 1,500 6,400
1600 6,400 2,400 8,800
The factory has received an order for 2,400 units. Find out the price at which
the factory should quote each unit to earn a profit of 25%.

07
(b) A company has three production departments and two service departments, and
for a period the departmental distribution summary has the following totals:
Production Departments: P1-Rs.800; P2-Rs.700; and P3-Rs.500
Service Departments: S1-Rs. 234 and S2-Rs.300
The expenses of the service departments are charged out on a percentage basis
as follows:

Particulars P1 P2 P3 S1 S2
Service Department S1 20% 40% 30% - 10%
Service Department S2 40% 20% 20% 20% -
Prepare a statement showing the apportionment of two service departments?
expenses to Production Departments by Simultaneous Equation Method and
Repeated Distribution Method.
07

Q.4 (a)
In respect of a factory the following figures have been obtained for the year
2017:
Cost of material Rs.6,00,000; Direct wages Rs.5,00,000; Factory overheads
Rs.3,00,000; Administrative overheads Rs.3,36,000; Selling overheads
Rs.2,24,000; Distribution overheads Rs.1,40,000 and profit Rs.4,20,000.

A work order has been executed in 2018 and the following expenses have been
incurred:
Materials Rs.8,000 and wages Rs.5,000.

Assuming that in 2018 the rate of factory overheads has increased by 20%,
distribution overheads have gone down by 10% and selling and administration
overheads have each gone up by 12.5%, at what price should the product be
sold so as to earn the same rate of profit on the selling price as in 2017? Factory
overhead is based on direct wages while all other overheads are based on
factory cost.

07
3

(b)

Explain the various objectives of Cost Accounting.

07
OR
Q.4 (a) A contractor commenced a contract on 1-7-2011. The costing information
reveals the following as on 31-3-2012.

Particulars Amount (Rs)
Material sent to site 7,74,300
Labour Paid 10,79,000
Labour outstanding as on 31-3-2012 1,02,500
Salary to engineer 20,500 per month
Cost of plant sent to the site (1-7-2011) 7,71,000
Salary to Supervisor (3/4
th
devoted to the contract) 9000 per month
Administration and other expenses 4,60,600
Pre-paid administration expenses 10,000
Material in hand at site as on 31-3-2012 75,800

Plant used for the contract has an estimated life of 7 years with residual value at
the end of life Rs.50,000. Contract price was Rs.45,00,000. On 31-3-2012 two
third of the contract was completed. The architect issued certificate covering
50% of the contract price and the contract has been paid Rs.20,00,000 on
account. Depreciation on the plant is charged on Straight Line Basis. The cost
of uncertified work is Rs.6,59,900.

Prepare Contract Account.

07
(b) Explain the different methods of costing.

07

Q.5 (a) Explain Job and Contract Costing. Differentiate between Job and Contract
Costing.

07
(b) Jay Ambe Catering Services engaged in providing catering services in social
events. Mrs. Annapurna, the manager of the firm has received an order to
provide a service in a wedding. Estimated expenses for this wedding event are
as under:
Estimated number of dishes 1,500
Wages to chefs [two chefs] Rs.1,200 each
Wages to waiters [20 waiters] Rs.300 each
Wages to cleaners [10 cleaners] Rs.150 each
Uniform allowance to chefs and waiters Rs.50 each
Transportation allowance to chefs, waiters and cleaners Rs.100 each
Flour and Maida [500 kg] Cost Rs.18 per kg
Rice, dal and other material Rs.8,000
Ghee and oil cost Rs.12,000
Vegetables Rs.25,000
Spices Rs.12,000
Depreciation of utensils Rs.5,000
Disposable glass and dishes Rs.10,000
07
FirstRanker.com - FirstRanker's Choice
1
Seat No.: ________ Enrolment No.___________

GUJARAT TECHNOLOGICAL UNIVERSITY
MBA (Integrated) ? SEMESTER ? 3 ? EXAMINATION ? SUMMER - 2019

Subject Code: 2537101 Date:13/05/2019
Subject Name: Cost Accounting
Time: 02:30 PM To 05:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.

Q.1 (a)
The accounts of ABC Ltd. Shows the following information for the year 2012.
Materials Rs.3,50,000; Labour Rs.2,70,000; Factory Overheads Rs.81,000 and
Administrative Overheads Rs.56,080.
What price should the company quote for a refrigerator? It is estimated that
Rs.2,000 in material and Rs.1400 in labour will be required for one refrigerator.
Absorb factory overheads on the basis of labour and administration overheads
on the basis of works cost. A profit of 15% on selling price is required.
07

(b)

Explain the various classification of the cost with respect to the following:
a) Based on Time
b) Based on Behaviour
c) Based on Controllability
d) Based on Expiry
e) Based on Nature

07

Q.2 (a) Explain the techniques of Inventory Control System. 07
(b) Discuss any three methods of Labour Remuneration. 07
OR
(b) You have been given a permit to run a bus on a route 20 kms. Long. The bus
cost you Rs. 90,000. It has to be insured @ 3% p.a. and the annual tax will be
Rs. 1,000. Garage rent is Rs. 100 p.m. Annual repairs will be Rs.1000 and the
bus is likely to last for 5 years at the end of which the scrap value is likely to be
Rs. 6,000. The driver?s salary will be Rs.250 p.m. and the conductor?s Rs.200
and 10% of the takings as commission (to be shared equally by both). Stationery
will cost Rs. 50 p.m. The manager cum accountant?s salary will be Rs.450 p.m.
Diesel and oil be Rs.820 per hundred kms. The bus will make 3 round trips for
carrying on the average 40 passengers on each trip. The bus will work on the
average 25 days in a month. Assuming 15% profit on takings, calculate the bus
fare to be charged from each passenger for 50 passenger kms.
07

Q.3 (a) Three workers X, Y and Z work in a factory. The following particulars are
provided for your information:

Normal Rate per hour Re.0.40
Piece-Rate (Std. 2 units per hour) Re.0.30 per unit

In a 40-hour week, the production of the workers is as follows:
X - 50 UNITS, Y - 80 UNITS, Z - 120 UNITS

07
2
Calculate the earnings of the workers under ?

(a) Taylor differential piece-rate system
(b) Merrick Differential piece-rate system
(c) Gantt?s task bonus system.

(b) Explain the Methods of Inventory Valuation. 07
OR
Q.3 (a) A factory produces uniform type of articles and has a capacity of 3,000 units per
week. The following information shows the different elements of cost for 3
consecutive weeks when the output has changed from week to week.
Units Produced Direct Material Direct Labour Semi-Variable
800 3,200 1,200 5,600
1000 4,000 1,500 6,400
1600 6,400 2,400 8,800
The factory has received an order for 2,400 units. Find out the price at which
the factory should quote each unit to earn a profit of 25%.

07
(b) A company has three production departments and two service departments, and
for a period the departmental distribution summary has the following totals:
Production Departments: P1-Rs.800; P2-Rs.700; and P3-Rs.500
Service Departments: S1-Rs. 234 and S2-Rs.300
The expenses of the service departments are charged out on a percentage basis
as follows:

Particulars P1 P2 P3 S1 S2
Service Department S1 20% 40% 30% - 10%
Service Department S2 40% 20% 20% 20% -
Prepare a statement showing the apportionment of two service departments?
expenses to Production Departments by Simultaneous Equation Method and
Repeated Distribution Method.
07

Q.4 (a)
In respect of a factory the following figures have been obtained for the year
2017:
Cost of material Rs.6,00,000; Direct wages Rs.5,00,000; Factory overheads
Rs.3,00,000; Administrative overheads Rs.3,36,000; Selling overheads
Rs.2,24,000; Distribution overheads Rs.1,40,000 and profit Rs.4,20,000.

A work order has been executed in 2018 and the following expenses have been
incurred:
Materials Rs.8,000 and wages Rs.5,000.

Assuming that in 2018 the rate of factory overheads has increased by 20%,
distribution overheads have gone down by 10% and selling and administration
overheads have each gone up by 12.5%, at what price should the product be
sold so as to earn the same rate of profit on the selling price as in 2017? Factory
overhead is based on direct wages while all other overheads are based on
factory cost.

07
3

(b)

Explain the various objectives of Cost Accounting.

07
OR
Q.4 (a) A contractor commenced a contract on 1-7-2011. The costing information
reveals the following as on 31-3-2012.

Particulars Amount (Rs)
Material sent to site 7,74,300
Labour Paid 10,79,000
Labour outstanding as on 31-3-2012 1,02,500
Salary to engineer 20,500 per month
Cost of plant sent to the site (1-7-2011) 7,71,000
Salary to Supervisor (3/4
th
devoted to the contract) 9000 per month
Administration and other expenses 4,60,600
Pre-paid administration expenses 10,000
Material in hand at site as on 31-3-2012 75,800

Plant used for the contract has an estimated life of 7 years with residual value at
the end of life Rs.50,000. Contract price was Rs.45,00,000. On 31-3-2012 two
third of the contract was completed. The architect issued certificate covering
50% of the contract price and the contract has been paid Rs.20,00,000 on
account. Depreciation on the plant is charged on Straight Line Basis. The cost
of uncertified work is Rs.6,59,900.

Prepare Contract Account.

07
(b) Explain the different methods of costing.

07

Q.5 (a) Explain Job and Contract Costing. Differentiate between Job and Contract
Costing.

07
(b) Jay Ambe Catering Services engaged in providing catering services in social
events. Mrs. Annapurna, the manager of the firm has received an order to
provide a service in a wedding. Estimated expenses for this wedding event are
as under:
Estimated number of dishes 1,500
Wages to chefs [two chefs] Rs.1,200 each
Wages to waiters [20 waiters] Rs.300 each
Wages to cleaners [10 cleaners] Rs.150 each
Uniform allowance to chefs and waiters Rs.50 each
Transportation allowance to chefs, waiters and cleaners Rs.100 each
Flour and Maida [500 kg] Cost Rs.18 per kg
Rice, dal and other material Rs.8,000
Ghee and oil cost Rs.12,000
Vegetables Rs.25,000
Spices Rs.12,000
Depreciation of utensils Rs.5,000
Disposable glass and dishes Rs.10,000
07
4
Transportation charges Rs.2,500
LPG cylinder and other fuel charges Rs.5,000
Sugar Rs.5,600
Milk and milk products Rs.6,000
Sweets Rs.15,000
Electricity Rs.1,200
Misc. Expenses Rs.10,000

Jay Ambe wants to decide the rate of dish in such a way so that the firm can
earn 30% profit on cost. You are required to find out rate per dish.
OR

Q.5 (a) From the following particulars of a machine floor shop, calculate the machine
hour rate:
(i) Cost of the machine 45,000
(ii) Cost of installation 5,000
(iii) Scrap value after 10 years 5,000
(iv) Rates and rent for the shop (Quarter) 1,500
(v) Shop supervisor salary (Quarter) 15,000
(vi) Estimated repairs (per annum) 500
(vii) Insurance premium for machine (per annum) 300
(viii) General Lighting (per month) 500

Power expenses 2 units per hour @ Rs.375 per 1,000 units. The estimated
working hours per annum is 5,000. The machine occupies ? of the total area of
the shop. The superior is expected to devote 1/6 of his time in supervising the
machine. General lighting are to be apportioned on the basis of floor area.

07
(b) Write a brief note on ?
a) Cost and Costing
b) Cost Object
c) Cost Centre
d) Cost Unit
07

*************
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