Important guess of Cost accounting paper for B.Com and M.Com basic paper. Important for Punjab university, Gomal University, Sargodha university and university of Education. Session 2018-2019
Q-1: Sigma industries
provides you the following data for the month of June20XX.
Inventories June1 June30
(Rs.) (Rs.)
Materials 9,000 10,000
Work in process-Material 8,000 9,000
Work in process-Labour 4,000 5,200
Work in process-F.O.H 4,500 4,000
Finished Goods 11,250 13,750
Manufacturing
costs for the month are as follows:
Direct material
used ………………………………………………………………………………………………………Rs. 43,000
Direct Labour
were:
Assembling
Department @ Rs. 6.00 per direct labour hour……………… Rs. 10,200
Finishing
Department @ Rs. 7.50 per direct labour hour ………………… Rs. 15,000
FOH is applied
according to the following rates;
Assembling department @ Rs. 5.00 per
direct labour hour
Finishing department @ Rs. 4.50 per
direct labour hour.
Requirement: Prepared cost of goods manufactured
and sale reports also calculate unit cost of materil, labour and FOH assuming
that during the month 12,000 units were produced.
Q#2) During the month of March, the
following cost were incurred in department of Nawazih industries,
Material
cost……………………………………………………………………….. Rs. 9,000
Labour
cost ………………………………………………………………………… Rs. 4,250
Factory
Overhead applied …………………………………………………. Rs. 5,100
During the month 20,000 units with a total cost of Rs.
38,000 were transferred into department from department no.1, of these 15,000
units were completed and transferred to department no. and 4,000 units were in
process on 31st March being ½ completed as to labour and FOH and ¾
as to material.
Requirement: A
cost of production report of department no.2 for the month of March.
Q#3) Consumption forecast of two materils A
and B are as follows:
Max
Daily consumption 600
units
Avg
Daily consumption 500
units
Min
Daily consumption 400
units
Material A Material
B
Lead time 4-8 days 3-5 days
Lead time to get urgent supplies 3 days 1 day
EOQ 5,000
units 3,000 units
Requirement:
Calculate for each of the materials:
a) Order
Level b) Minimum Level c) Maximum Level d) Danger Level
Q#4) Ravi club shall
purchase 6,000 dozens of tennis ball next year. Policy manual of the club
prescribes to impute 10% interest on average inventory investment. Other costs
associated with storage amount to Rs. 216 per dozen. The cost involved in handling
each purchase order is Rs. 3,000 price quoted by the supplier is Rs. 3,600 per
dozen.
Required: i)
Economic order quantity ii) Secretary of the club proposes to buy 2,000 dozens
tennis balls in each order. Show how much the club can save by buying in
economic order quantity.
Q#5) Burhan
& co applies factory overhead to its production on the basis of direct
labor hours. For the year 2011, the company estimated its expected actual
capacity 300,000 direct labour hours. Estimated fixed FOH Rs. 180,000 and
estimated variable FOH Rs. 330,000. By the end of 2011 actual capacity attained
was 280,000 direct labour hours and actual FOH for the year R. 456,000.
Requirement: i) Total under or over applied FOH for the
year ii) Budget Variance iii) Idle capacity Variance
Q#6
The inventory on December1, 2011 of a particular class of merchandise of
B corporation consisted of 180 units priced at a cost of Rs. 20. Purchases
during the month were as follow:
Dated Quantity (in Units) Unit
Cost (in Rs.)
Dec.6 50 20
Dec.12
100 19
Dec.14 70 21
Dec.18 40 22
Dec.23 110 23
Upto Dec 31st all the inventory was sold at Rs.30 per unit
except 200 units.
Requirement: i) Find the value of inventory using
weighted average method, LIFO and FIFO. ii)Gross profit using average weighted
method.
Q#7. Babblu brothers pay to filling machine
operators under price rate system. Standard daily wages of workers performing
filling operation is Rs. 500. Stadard daily output is 500 pieces per worker.
Output of workers during a day is as follow:
A
…………………………………………………………………………………………….. 450 pieces
B
…………………………………………………………………………………………….. 500 pieces
C
……………………………………………………………………………………………. 550 pieces
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