L.A.D. & Smt. R.P.

College for Women, Nagpur Terminal Examination 2009-10 B Com II Cost & Management Accounting
Marks : 50
Q. 1. Find out in proper form a cost sheet, showing the selling rate per ton of special paper manufactured by a paper mill in December, 2008 under the following division of cost: a) Prime cost, b) Works cost, c) Total cost, d) Selling price. The cost sheet is to be prepared with reference to data given below: Direct materials: Paper pulp-500 tons @ Rs. 250 per ton Other miscellaneous materials 100 tons at Rs. 130 per ton Direct labour: 80 skilled men @ Rs. 30 per day for 25 days 40 unskilled men at Rs.20 per day for 25 days Direct expenses: Special equipment Rs. 30000 Special dyes Rs. 10000 Works overhead: Variable at 100% on direct wages Fixed at 60% on direct wages Administrative overhead at 10% on direct wages, selling & distribution overhead at 15% on direct wages Finished paper manufactured 500 tons. Sale of scrap Rs. 6000 Profit 20% on sale price. (20) Q.2 (a) The following information for the month of August 2008 has been ascertained form the costing books of a manufacturing firm relating to a product which passes through two processes X & Y: Process X Process Y Material used 16000 6000 Direct labour 24000 16000 Works expenses 3344 2780 Input at Rs. 8 per unit ( units) 4000 Output ( units) 3900 3850 Stock on August 1 (units) 400 600 On August 31 ( units) 300 800 Valuation of opening stock Rs.19 Rs. 26 Normal wastage on input 2% 5% Scrap value of wastage per unit Rs.1 Rs. 4 Closing stock is to be valued at cost. Prepare Process Accounts for the month. (10) Q.2 (b) The net profit of Nidhi Limited according to financial accounts was Rs. 84377 while profit shown by cost accounts was Rs. 106200 for the same year. Prepare Reconciliation Statement to reconcile both the profits from the following information. (i) Depreciation charged in financial accounts Rs. 5600 while recovered the cost accounts Rs. 6250.

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Works overhead under-absorbed in cost accounts Rs. 1560 while office overheads over-recovered in cost accounts Rs. 850. (iii) Interest on loan(credit) not included in cost accounts Rs. 4000 (iv) Loss due to obsolescence charged in financial accounts Rs. 2850. (v) Bank interest and Dividend received Rs. 375. (vi) Income Tax paid Rs. 20150. (vii) Loss due to depreciation in inventories charged in financial accounts Rs. 3375. (viii) Stores adjustment (credited in financial accounts) Rs. 237. (10) Q.3(a) In 1998, the account of a company manufacturing motor-cars, disclosed the following particulars: Rs. Materials used 16000000 Direct Wages 17400000 Factory overhead expenses 2820000 Establishment and general expenses 2780000 You are asked to prepare a statement showing the price at which the company should sell its car during 1999, assuming: (i) That each car will require materials worth Rs. 329000 and an expenditure in direct wages Rs.121000 (ii) That during 1999 the factory overhead expenses will bear the same relation to direct wages as in 1998 (iii) That the percentage of establishment and general expenses on factory cost will be the same in 1999 as in 1998 (iv) That the company has decided to earn a profit of 10% on the selling price. (5) Q.3(b) Define cost accounting and explain the difference between cost accounting and financial accounting (5)