CAUSSANEL COLLEGE OF ARTS AND SCIENCE - MUTHUPETTAI.
Model Exam
Costing
Class: IBBA Marks: 75
Sub. Code: 7BBA2C2 Time: 3Hrs.
Date:
Part – A
Answer all the questions (10*2=20)
1. What is cost? and Costing?
2. What are the elements of cost?
3. From the figures given below, calculate EOQ and number of orders to be placed per year.
Total consumption of materials per year 10,000 Kg
Buying cost per order Rs.50
Unit cost of materials Rs.2 per Kg
Carrying and storage cost 8% on average inventory.
4. What is Scrap?
5. What is direct and indirect labour?
6. What is Idle time?
7. What is meant by opportunity cost?
8. What is meant by fixed cost?
9. Explain the meaning of indirect labour.
10. Write the formula for earnings.
Part – B
Answer all questions by choosing either (a) Or (b) (5*5= 25)
11. (a) What are the objectives of cost accounting and Advantages of cost accounting?
Or
(b) Explain the various method of cost accounting.
12. (a) The components A and B are used as follows.
Average consumption 40 units
Normal usage 50 units per week
Minimum usage 25 units per week
Maximum Usage 75 units per week
Re order quantity A: 300 units
B: 500 units
Reorder period A: 4 to 6 weeks
B: 2 to 4 weeks
Maximum lead time for emergency purchase A: 1 day & B: 2 days
Calculate for the each component:
(a).Reorder level (b). Minimum level
(c). Maximum stock level (d). Average stock level (e). Danger level
Or
(b). The annual demand for an item is Rs. 6400 units, the unit cost is Rs.12 and
inventory carrying charges 25% p.a if the cost of one procurement is Rs. 150,determine:
i) Economic order quantity
ii) Number of orders per year
iii) Time between two consecutive orders
13. (a). Calculate labour turnover in three methods:
Total no. of employees at the beginning of the month 2500
Total no. of employees at the end of the month 2000
No. of employees who left during the month 70
No. of employees who are recruited during the month 50
Or
(b) What do understand by labour turnover? How is it measures?
14. (a). Prepare store ledger account from the following information
January 1. Purchased 500kg at rs.20 per kg.
10. Purchased 300 kg rs.21 per kg.
15. Issued 600 kg
20. Purchased 400 kg at rs.22 per kg.
25. Issued 300 kg
27. Purchased 500 kg at rs.21 per kg.
31. Issued 200 kg
Adopt the base stock method of issue and ascertain the value of closing stock under FIFO
and LIFO methods. Base stock 200 kg.
Or
(b). Explain the types of time wage system?
15. (a). Calculate the earnings of a worker from the following information, under:
a)Time rate method b)Piece rate method c)Halsey plan d)Rowan plan
Standard time : 30hours
Time taken : 20 hours
Hourly rate of wages is Rs.1 per hour plus a dearness allowance @ 50paise per
hour worked.
Or
(b). Calculate wages under halsey plan and rowan plan. Standard time 72 hour, time taken
60 hour, time rate Rs.3 per hour ,DA @ Rs.1 per hour on time taken.
Part – C
Answer Any Three questions (3*10=30)
16. i) Distinguish between cost accounting and financial accounting.
ii) What are the various steps to be taken at the time of installation of a costing system?
17. The stock in hand of a material as on 1 st September 2014 was 500 units at Re.1 per unit. The
following purchases and issues were subsequently made. Prepare the stores ledger account
showing how the value of the issues would be recorded under (a). FIFO and (b). LIFO methods.
Date Purchased Date Issued
Sep 6 100 units at rs.1.10 Sep 9 500 units
20 700 units at rs.1.20 22 500 units
27 400 units at rs.1.30 30 500 units
October 13 1000 units at rs.1.40 October 500 units
15
20 500 units at rs.1.50 22 500 units
November 17 400 units at rs.1.60 November 500 units
11
18. On the basis of the following information, calculate the earnings of A and B under straight
piece rate system and Taylor’s differential piece rate system.
Standard production 10 units per hour
Normal time rate Re.1 per hour
Differential to be applied:
80% of piece rate when below standard
120% of piece rate at above standard
In a certain day of 8hrs: A produces 75 units and B produces 100 units.
19. From the following information workout the production hour rate of recovery of overhead in
departments P1, P2 and P3.
Production departments Service departments
Particulars P1 P2 P3 S1 S2
Rent 200 400 150 150 100
Electricity 50 80 30 20 20
Fire insurance 80 160 60 60 40
Plant depreciation 1000 1500 1000 300 200
Transport 50 50 50 100 150
Estimated working hours 1000 2500 1800 ---- -----
Expenses of service departments S1 and S2 are apportioned as under:
Production departments Service departments
Particulars P1 P2 P3 S1 S2
S1 30% 40% 20% ---- 10%
S2 10% 20% 50% 20% -----
20. Explain the different between job costing and process costing.
