1.
Objectives of cost accounting are
A) Cost finding
B)Increase the product value
C)Profit finding
D) Control of cost
2. Manufacturing overheads consists of
A) Indirect materials
B) Wages
C) Direct materials
D) Advertising
3. Prime cost inclueds
A) Legal expenses
B) Direct expenses
C) Travelling expenses
D) Direct materials
4. Office or administration overheads includes
A) Factory rent
B) Telephone charges
C) Samples
D) Bank commission
5. Selling & Distribution overheads are
A) Warehousing charges
B) Postage charges
C) Legal charges
D) Carriage outwards
6. Factory cost is also known as
A) Prime Cost
B) Works cost
C) Production cost
D) Selling cost
7. Elements of cost are
A) Administration
B) Fixed cost
C) Material
D) Labour
8. Calculate Prime cost from the following details Direct materials Rs. 10,000, Direct labour
Rs. 4,000 and Direct expenses Rs. 500
ANS : Rs. 14,500
9. Find works cost from the data given below: Prime cost Rs. 44,500, Works overhead Rs.
22,100, Opening work-in-progress Rs. 10,550 and Closing work - in - progress Rs. 12,850.
ANS :
10. Find the cost of production of goods sold from the information given below: Cost of
production Rs. 1,47,000 Opening stock of finished goods Rs. 28,840 and Closing stock of
finished goods Rs. 17,890.
ANS : Rs. 1,57,950
11. Find profit from the following particuluals: Sales Rs. 3,60,000 adn Cost of sales Rs.
2,89,600
ANS : Rs. 70,400
12. Calculate works cost from the following details : Prime cost Rs. 14,500, Factory
expenses Rs. 1,500
ANS : Rs. 16,000
13. Compute profit from the following data given below: Cost of sales Rs. 1,50,000 Profit
25%on sales
ANS :
14. Compute cost of sales from the following: Cost of production Rs. 2,57,000 Selling and
distribution expenses Rs. 67,500
ANS : Rs. 3,24,500
15. Find out the EOQ from the following particulars: Annual usage : 6,000 units Cost of
material per unit : Rs. 20 Cost of per unit Rs. 60 and Annual carrying cost of one unit : 10%
of inventory value.
ANS : 600 Units
16. Calculate average stock level from the following: Maximum stock leve : 8,600 units
Maximum stock level : 3,600 units
ANS : 6,100 units
17. Find Reorder level of stock from the following: Maximum consumption of material : 500
units Maximum reorder period : 4 weeks
ANS : 2,000 Units
18. Find Minimum level of stock from the following Reorder level : 8,600 units Normal
consumption of material : 1,400 units Normal reorder period : 5 weeks
ANS : 1,600 units
19. Compute danger level from the following: Average consumption of material : 100 units
Maximum reorder period for emergency purchases : 2 weeks
ANS : 200 Units
20. Compute maximum stock level from the following : Reorder level : 10,800 Units Normal
consumption of material : 1,650 Units Normal reorder period : 6 Weeks Reorder quantity :
4,200 units ANS : 5,100 units
21. Find out the value of stock under FIFO method of pricing of material issues: Opening
stock : 500 units @Rs. 10 per unit Purchases : 600 [email protected] per unit Issue : 580 units.
ANS : 5, 720 units
22. Compute average number of workers from the following: Number of workers at the
beginning of the month 900 Number of workers at the end of the month 1,100
ANS :
23. Calculate labour turnover rate under replacement method from the following : Number
of workers replaced 25, Average number of workers present in the factory 1000
ANS : 2.5%
24. Calculate labour turnover rate under separation method from the following : Number of
employees left from the factory 50, Average number of workers 1,000.
ANS : 5%
25. Calculate labour turnover rate under Flux method from the following : Number of
additions of the employees 150, Number of separations of the employees 50 and Average
number of workers 1000
ANS : 20%
26. Find the time wage payable to a worker from the following : Actual number of hours
worked in the factory in a week : 44 Normal rate of wage per hour : Rs.125
ANS : Rs. 5,500
27. Compute piece wages payable to a worker from the following : Actual number units
produced in the month of April 2013 : 500 Normal piece rate : Rs. 18
ANS : 9,000
28. Calculate the net wages payable to a worker from the following details: Basic wages per
month : Rs. 1,100 DA : 30% of basic wages Employee contribution of P.F : 10% of basic
wages
ANS : Rs.
29. Compute overhead rate based on direct materials : Factory overhead : Rs. 1,25,600
Direct materials : Rs. 3,80,000 Formula : (factory overhead/direct materials)
ANS : 33.05%
30. Find the overhead rate based on direct wages : Works overhead : Rs. 1,48,000
Direct wages : Rs. 2,20,000
ANS : 67.27% ( Works overhead/Direct wages)
31. Calculate overhead rate based on prime cost Factory on cost : Rs. 2,30,000 Prime cost
: Rs. 4,75,000
ANS : 48.42% ( Factory cost/Prime cost)
32. Calculate overhead rate based on direct labour hours: Factory overhead : Rs. 1,60,000
Direct labour hours : 40,000
ANS: 4 (Factory overhead/Direct labour hours)
33. How will you apportion the factory lighting to different departments A) K.W.H B)
Direct wages C) Light points D) Floor Area
ANS :
34. Compute overhead rate based on machine hours: Works overhead : Rs. 70,000
Machine hours : 3,500
ANS : Rs. 20 (Works overhead/machine hours)
35. From the following data, calculate machine hour rate : Estimated factory overhead : Rs.
58,000 Estimated machine hours : 50,500
ANS : Rs. 1.15
