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UNIT 1 (With Ans Key)

The document outlines key concepts in cost accounting, including definitions, differences between financial and cost accounting, and the installation of costing systems. It provides examples of cost sheets and calculations for manufacturing costs, detailing various expenses and classifications of costs. Additionally, it includes practical exercises for preparing cost sheets and estimating production costs for different units.

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Shiva Bala krishnan
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56 views3 pages

UNIT 1 (With Ans Key)

The document outlines key concepts in cost accounting, including definitions, differences between financial and cost accounting, and the installation of costing systems. It provides examples of cost sheets and calculations for manufacturing costs, detailing various expenses and classifications of costs. Additionally, it includes practical exercises for preparing cost sheets and estimating production costs for different units.

Uploaded by

Shiva Bala krishnan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

UNIT 1

1) Define cost Accounting?

2)Different between financial a/c and cost a/c?

3)Define Installation of costing system?

4)Nature and Scope of cost accounting?

5)Principal of cost Accounting?

6)Different cost a/c and Management a/c?

7)Classification of cost?

8) Simple Cost Sheet


Rs.
Particulars
Direct material consumed:
Direct wages paid
Chargeable expenses
Indirect materials:
Used in factory 8,000
Used in office 12,000
Used in selling 6,000
Used in distribution 4,000
Indirect labour:
In factory 15,000
In office 20,000
In selling 16,000
In distribution 12,000
Indirect expenses:
Relating to factory 6,000
Relating to office 3,000
Relating to selling 1,000

9)During the year 2008, X Ltd., produced 50,000 units of a product. The following were the
expenses:

Particulars Rs.
Stock of raw materials on 1.1.2008 10,000
Stock of raw materials on 31.12.2008 20,000
Purchases 1,60,000
Direct wages 75,000
Direct expenses 25,000
Factory expenses 37,500
Office expenses 62,500
Selling expenses 25,000
You are required to prepare a Cost sheet showing cost per unit and total cost at each stage

10) Cost sheet - With stocks of work-in-progress and finished goods

M/s. Indu Industries Ltd. are the manufacturers of moonlight Torches. The following data relate
to manufacture of torches during the month of March 2009

Raw materials consumed Rs. 20,000


Direct wages Rs. 12,000
Machine hours worked 9,500 hours
Machine hour rate Rs. 2
Office overheads 20% of works cost
Selling overheads 50 paise per unit
Units produced 20,000 units
Units sold 18,000 @ Rs. 5 per unit.

Prepare Cost sheet showing the cost and the profit per unit and the total profit earned.

The cost accounts department of a company has supplied the following data for the supply of
2,000 units of product.

Direct materials: 40,000 tons at Rs. 5 per ton.


Direct wages: 8,000 labour hours at Rs. 50 per hour.

Overheads:
Variable: Factory Rs. 10 per labour hour.
Selling Rs. 20 per unit.
Fixed: Factory Rs. 1,00,000
Office Rs. 2,00,000

Prepare a statement showing the price to be fixed which will fetch a profit of 25% on cost.

12)The cost of manufacturing 5,000 units of a commodity comprises:

(a) Materials: Rs. 20,000


(b) Wages: Rs. 25,000
(c) Chargeable expenses: Rs. 400
(d) Fixed factory overheads: Rs. 16,000
(e) Variable factory overheads: Rs. 4,000
For manufacturing every 1,000 extra units of the commodity the cost production increases as
follows:
(a) Materials: Proportionately
(b) Wages: 10% less than proportionately
(c) Chargeable expenses: No extra cost
(d) Fixed overheads: Rs. 200 extra
(e) Variable overheads: 25% less than proportionately

Calculate the estimated cost of producing 8,000 units of the commodity and show by how much
it would differ if a flat rate of factory overhead based on wages were charged.

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