1) The document provides information for a cost accounting exam including questions on topics like material requisitions, factory overhead, process costing, economic order quantity, variable overhead rates, and differential piece rates.
2) Question 1 provides transaction details for material purchases, requisitions, returns and payroll and asks to record journal entries.
3) Question 2 gives process costing data for two departments and asks for a cost of production report.
4) Question 3 gives inventory balances, production quantities and sales data and asks for unit and total costs of finished goods, cost of goods sold, and gross profit.
1) The document provides information for a cost accounting exam including questions on topics like material requisitions, factory overhead, process costing, economic order quantity, variable overhead rates, and differential piece rates.
2) Question 1 provides transaction details for material purchases, requisitions, returns and payroll and asks to record journal entries.
3) Question 2 gives process costing data for two departments and asks for a cost of production report.
4) Question 3 gives inventory balances, production quantities and sales data and asks for unit and total costs of finished goods, cost of goods sold, and gross profit.
1) The document provides information for a cost accounting exam including questions on topics like material requisitions, factory overhead, process costing, economic order quantity, variable overhead rates, and differential piece rates.
2) Question 1 provides transaction details for material purchases, requisitions, returns and payroll and asks to record journal entries.
3) Question 2 gives process costing data for two departments and asks for a cost of production report.
4) Question 3 gives inventory balances, production quantities and sales data and asks for unit and total costs of finished goods, cost of goods sold, and gross profit.
NOTE: Attempt any five questions of the following. All questions carry equal marks.
Q1 During the month of April 2009 following transactions took place. (a) Material purchased, received and recorded Rs.250,000 (b) Material requisitioned on Job 101, 102, 103 220,000 (c) Indirect material requisitioned 12,000 (d) Material returned to supplier 4,000 (e) excess material returned from the factory to storeroom 10,000 ( This return is applicable to job 102) (f) Payments of wages and salaries were made based on the following information: Time tickets on job 101,102,102 (25,000 hrs) Rs 200,000 Clock cards and time tickets for all other indirect labour 60,000 Sales salaries and commission 40,000 Office and general administration payroll 20,000 Total 320,000 Employees provident fund contribution: 10% of total wages, income tax withheld Rs 8,000 (g) The company contributes 10% as its contributions of provident fund. (h) Factory overhead control account in voucher register was debited for Rs 160,000. Month end adjusting entries charged for depreciation Rs 25,000 and for insurance Rs 10,000. (i) Factory overhead is applied at the rate of 120% of direct labour cost. (j) Goods costing Rs.105,000 were completed. (k) Goods costing Rs.100,000 were sold for Rs. 180,000 (Rs 80,000 for cash)
You are required to pass journal entries in the factory office books and general office books.
Q.2 A company uses process costing in its two departments. Material are added at the end of the process after quality control inspection. No abnormal spoilage occurred during the month. During October 2,500 units were received from department 1 at a cost of Rs.50,000. Cost incurred by department 2 during October were: Materials Rs.8,000 Conversion cost Rs 36,000 A total of 2,000 units were transferred to finished goods inventory. The 300 units still in process at the end of October were 2/3 rd complete as to conversion cost. REQUIRED: Cost of production report for October of Department 2
Q.3 Following data have been taken from the records of Alpha Corporation: Jan.1 Dec.31 Rs. Rs. Inventories: Finished Goods 48600 ? Work in Process 81500 42350 Materials 34200 49300 Other Informations: Depreciation on factory equipment 21350 Interest earned 6300 Raw materials purchased 364000 Direct Labor 162500 Indirect Labor 83400 Freight in 8600 Factory overhead 47900 Purchase Discount 5200 Finished goods inventory on 1 st January 300 units and on 31 st December 420 units (all from current years production). Sales during the year, 3880 units at Rs. 220 per unit.. Required: 1. Unit cost of finished goods inventory on 31 st December. 2. Total cost of finished goods inventory on 31 st December. 3. Cost of Goods sold. 4. Gross profit--------total and per unit.
Q.4 The average daily requirement of 6" diameter dish-shaped grinding wheel is 3 pieces. Time required to score delivery from the usual supplier is 2 weeks. From the records of Novelty Tool Workers, it is found that maximum requirement of the wheel in any month of 4 weeks does not exceed 100 pieces and minimum requirement during any such period is not likely to fall below 50 pieces. You are asked to fix minimum and maximum limits and also the ordering level. Assume the economic order quantity to be 5 dozen. If 2 days are sufficient to receive emergency supply, fix also the danger level.
Q.5. Factory overhead burden rate of Kings Chemical Industries is Rs.2.25 per hour. Budgeted overhead at two activity levels is as under: Activity Level Budgeted Factory overhead 15,000 hours Rs. 40,000 35,000 hours Rs. 60,000 Actual factory overhead for the period was Rs.49,800 and actual volume was 25,000 hours. Required: (i) Variable overhead burden rate. (ii) Budgeted fixed overhead. (iii) Budgeted volume at which the burden rate is computed. (iv) Applied overhead. (v) Under or over applied overhead. (vi) Volume variance. (vii) Spending variance. Q.6 Workers paid under the following scheme of differential piece rates: Upto 100 pieces per day Rs.2.25 per piece 101______140 pieces per day Rs.2.85 per piece 141______ 180 pieces per day Rs.3.45 per piece 181& above pieces per day Rs.4.50 per piece Output of workers during a day is as follows: Names A B C D E F Pieces produced 98 120 135 145 182 200 Required: - Calculate gross wages of the day.
Q.7 What is meant by the term materials? Explain different classifications of materials by giving suitable examples.
Q.8. Write short answer of the following i) Cost ii) Semi Variable Cost iii) Job order cost iv) Conversion Cost v) Voucher vi) Abnormal Loss vii) Equivalent production viii) Average Cost Method ix) Process Costing x) Predetermined Factory overhead