Download JNTUA (JNTU Anantapur) MBA (Master of Business Administration) 3rd Sem Reg-Supple 2018 Nov Dec 12E01303 Cost And Management Accounting Previous Question Paper
MBA (Finance) III Semester Supplementary Examinations November/December 2018
COST & MANAGEMENT ACCOUNTING
(For students admitted in 2014 (LC), 2015 & 2016 only)
Time: 3 hours Max. Marks: 60
Answer any FIVE questions
All questions carry equal marks
*****
1 (a) Discuss the scope and importance of management accounting. How does it differ from financial
accounting?
(b) Enumerate the objectives of job costing.
2 (a) The following transactions occur in the purchase and issue of a material:
Jan 2 Purchased 4,000 units @ rs.4.00 per unit
Jan 20 Purchased 500units @ Rs.5.00 per unit
Feb 5 Issued 2,000 units
Feb 10 Purchased 6,000 units @ Rs.6.00 per unit
Feb 12 Issued 4,000 units
March 2 Issued 1,000 units
March 5 Issued 2,000 units
March 15 Purchased 4,500 units @ Rs.5.50 per unit
March 20 Issued 3,000 units.
From the above, prepare the store ledger account:
(i) By adopting FIFO method of charging material issued.
(ii) By adopting the LIFO method. What would be the value of stock in hand at the end of period
according to each of these two methods?
(b) What is meant by EOQ? What are the various costs which affect the economic order quantity?
3 (a) From the following particulars work out the earnings for the week of a worker under: (i) Straight piece
rate. (ii) Differentiate piece rate. (iii) Halsey premium system. (iv) Rowan system.
Number of working hours per week 48
Wages per hour Rs.3.75
Rate per piece Rs.1.50
Normal time per piece 20minuts
Normal output per week 120 pieces
Actual output for the week 150 pieces
Differential piece rate: 80% piece rate when output is below standard and 120% when above
standard.
(b) Are high overhead costs on indication of inefficiency?
Contd. in page 2
Page 1 of 3
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Code: 12E01303
MBA (Finance) III Semester Supplementary Examinations November/December 2018
COST & MANAGEMENT ACCOUNTING
(For students admitted in 2014 (LC), 2015 & 2016 only)
Time: 3 hours Max. Marks: 60
Answer any FIVE questions
All questions carry equal marks
*****
1 (a) Discuss the scope and importance of management accounting. How does it differ from financial
accounting?
(b) Enumerate the objectives of job costing.
2 (a) The following transactions occur in the purchase and issue of a material:
Jan 2 Purchased 4,000 units @ rs.4.00 per unit
Jan 20 Purchased 500units @ Rs.5.00 per unit
Feb 5 Issued 2,000 units
Feb 10 Purchased 6,000 units @ Rs.6.00 per unit
Feb 12 Issued 4,000 units
March 2 Issued 1,000 units
March 5 Issued 2,000 units
March 15 Purchased 4,500 units @ Rs.5.50 per unit
March 20 Issued 3,000 units.
From the above, prepare the store ledger account:
(i) By adopting FIFO method of charging material issued.
(ii) By adopting the LIFO method. What would be the value of stock in hand at the end of period
according to each of these two methods?
(b) What is meant by EOQ? What are the various costs which affect the economic order quantity?
3 (a) From the following particulars work out the earnings for the week of a worker under: (i) Straight piece
rate. (ii) Differentiate piece rate. (iii) Halsey premium system. (iv) Rowan system.
Number of working hours per week 48
Wages per hour Rs.3.75
Rate per piece Rs.1.50
Normal time per piece 20minuts
Normal output per week 120 pieces
Actual output for the week 150 pieces
Differential piece rate: 80% piece rate when output is below standard and 120% when above
standard.
(b) Are high overhead costs on indication of inefficiency?
Contd. in page 2
Page 1 of 3
Code: 12E01303
4 (a) Product a passes through three processes before it is completed. The output of each process is
charged to the next process at price calculated to give a profit of 20% on transfer price (i.e.,25% on
cost price). The output of process III is charged to finished stock account on a similar basis. There was
no work-in-progress at the beginning of the year and overheads have been ignored. Stocks in each
process have been valued at prime cost of the process. The following data are obtained at the end of
31
st
March, 2001:
Details
Process I
Rs.
Process II
Rs.
Process III
Rs.
Finished stock
Rs.
Direct materials 20,000 5,000 4,000 -
Direct wages 15,000 10,000 20,000 -
Stock on 31
st
December 5,000 6,500 9,500 5,000
Sales during the year - - - 1,10,000
From the above information prepare:
(i) Process cost accounts showing the profit element at each stage.
(ii) Actual realized profit.
(iii) Stock valuation as would appear in the balance sheet.
(b) List out the five industries in which process costing is used.
5 (a) HR.Ltd., makes a single product which sells for Rs.30 per unit and there is a great demand for the
product. The variable cost of the product is Rs.16 as detailed below.
Rs.
Direct material 8
Direct labour (2 hrs) 4
Variable overhead 4
Total cost : 16
The labour force is currently working at full capacity and no extra time can be made available. Mr.
Goyal, a customer has approached the company with a request for the manufacture of a special order
at Rs.8,000. The cost of the order would be Rs.3000 for direct material and 600 labour hours will be
required and variable and variable overhead per hour should be Rs.2. should the order be accepted or
not.
(b) What are the characteristics and assumptions of marginal costing?
6 The cost of an article at a capacity level of 5,000 units is given under A below. For a variation of 25% in
capacity above or below this level, the individual expenses vary as indicated under B below.
A (Rs.) B
Material cost 25,000 (100% varying)
Labour cost 15,000 (100% varying)
Power 1,250 (80% varying)
Repairs and maintenance 2,000 (75% varying)
Stores 1,000 (100% varying)
inspection 500 (20% varying)
Depreciation 10,000 (100% varying)
Administration overheads 5,000 (25% varying)
Selling overheads 3,000 (25% varying)
62,750
Cost per unit Rs.12.55.
Find the unit of the product at a production level of 4,000 and 6000 units.
Contd. in page 3
Page 2 of 3
FirstRanker.com - FirstRanker's Choice
Code: 12E01303
MBA (Finance) III Semester Supplementary Examinations November/December 2018
COST & MANAGEMENT ACCOUNTING
(For students admitted in 2014 (LC), 2015 & 2016 only)
Time: 3 hours Max. Marks: 60
Answer any FIVE questions
All questions carry equal marks
*****
1 (a) Discuss the scope and importance of management accounting. How does it differ from financial
accounting?
(b) Enumerate the objectives of job costing.
2 (a) The following transactions occur in the purchase and issue of a material:
Jan 2 Purchased 4,000 units @ rs.4.00 per unit
Jan 20 Purchased 500units @ Rs.5.00 per unit
Feb 5 Issued 2,000 units
Feb 10 Purchased 6,000 units @ Rs.6.00 per unit
Feb 12 Issued 4,000 units
March 2 Issued 1,000 units
March 5 Issued 2,000 units
March 15 Purchased 4,500 units @ Rs.5.50 per unit
March 20 Issued 3,000 units.
From the above, prepare the store ledger account:
(i) By adopting FIFO method of charging material issued.
(ii) By adopting the LIFO method. What would be the value of stock in hand at the end of period
according to each of these two methods?
(b) What is meant by EOQ? What are the various costs which affect the economic order quantity?
3 (a) From the following particulars work out the earnings for the week of a worker under: (i) Straight piece
rate. (ii) Differentiate piece rate. (iii) Halsey premium system. (iv) Rowan system.
Number of working hours per week 48
Wages per hour Rs.3.75
Rate per piece Rs.1.50
Normal time per piece 20minuts
Normal output per week 120 pieces
Actual output for the week 150 pieces
Differential piece rate: 80% piece rate when output is below standard and 120% when above
standard.
(b) Are high overhead costs on indication of inefficiency?
Contd. in page 2
Page 1 of 3
Code: 12E01303
4 (a) Product a passes through three processes before it is completed. The output of each process is
charged to the next process at price calculated to give a profit of 20% on transfer price (i.e.,25% on
cost price). The output of process III is charged to finished stock account on a similar basis. There was
no work-in-progress at the beginning of the year and overheads have been ignored. Stocks in each
process have been valued at prime cost of the process. The following data are obtained at the end of
31
st
March, 2001:
Details
Process I
Rs.
Process II
Rs.
Process III
Rs.
Finished stock
Rs.
Direct materials 20,000 5,000 4,000 -
Direct wages 15,000 10,000 20,000 -
Stock on 31
st
December 5,000 6,500 9,500 5,000
Sales during the year - - - 1,10,000
From the above information prepare:
(i) Process cost accounts showing the profit element at each stage.
(ii) Actual realized profit.
(iii) Stock valuation as would appear in the balance sheet.
(b) List out the five industries in which process costing is used.
5 (a) HR.Ltd., makes a single product which sells for Rs.30 per unit and there is a great demand for the
product. The variable cost of the product is Rs.16 as detailed below.
Rs.
Direct material 8
Direct labour (2 hrs) 4
Variable overhead 4
Total cost : 16
The labour force is currently working at full capacity and no extra time can be made available. Mr.
Goyal, a customer has approached the company with a request for the manufacture of a special order
at Rs.8,000. The cost of the order would be Rs.3000 for direct material and 600 labour hours will be
required and variable and variable overhead per hour should be Rs.2. should the order be accepted or
not.
(b) What are the characteristics and assumptions of marginal costing?
6 The cost of an article at a capacity level of 5,000 units is given under A below. For a variation of 25% in
capacity above or below this level, the individual expenses vary as indicated under B below.
A (Rs.) B
Material cost 25,000 (100% varying)
Labour cost 15,000 (100% varying)
Power 1,250 (80% varying)
Repairs and maintenance 2,000 (75% varying)
Stores 1,000 (100% varying)
inspection 500 (20% varying)
Depreciation 10,000 (100% varying)
Administration overheads 5,000 (25% varying)
Selling overheads 3,000 (25% varying)
62,750
Cost per unit Rs.12.55.
Find the unit of the product at a production level of 4,000 and 6000 units.
Contd. in page 3
Page 2 of 3
Code: 12E01303
7 (a) Calculate the labour variances from the following information.
Standard wages
Grade X : 90 labourers at Rs.2 per hour
Grade Y : 60 labourers at Rs.3 per hour
Actual wages
Grade X : 70 labourers at Rs.2.50 per hour
Grade Y : 70 labourers at Rs.2.00 per hour
Budgeted hours 1000; actual hours 900
Budgeted gross production 5000 units, standard loss 20%; actual loss 900 units.
(b) List out the limitations of standard costing.
8 (a) Assuming that the cost structure and selling prices remain the same in both the periods.
Compute the following:
(i) Profit volume ratio.
(ii) BEP for sales.
(iii) profit when sales are Rs.1,00,000
(iv) Sales required to earn a profit of Rs.20,000
(v) safety of margin in both the periods
Periods Sales Rs. Profit Rs
I 1,20,000 9,000
II 1,40,000 13,000
(b) What are the managerial uses of break even analysis?
*****
Page 3 of 3
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This post was last modified on 27 July 2020