Eiii.ii.1.Cost Acctg (Ccafat)

Computer Lab - Practical Question Bank

4.Prepare Cost Sheet from the following information :

Rs.

Material consumed15,000

Direct labour charges9,000

Factory Overheads900

Administrative over heads @ 20% of works cost.Selling over heads @ 0.50 per unit.Units produced 17,100; Units sold 16,000@ Rs.4 per unit.

You are required to prepare a cost sheet from the above.

5.From the following information prepare a Cost Sheet.

Rs.Raw materials consumed

4,77,000

Direct labour

1,71,000

Manufacturing expenses

84,000

Sales

13,00,000.6.Given :

Rs.

Raw materials consumed

4,00,000

Direct labour

2,80,000

Manufacturing expenses

53,000

Office and administration over heads

1,85,000

Prepare a statement of cost of production.

7.Ascertain the prime cost, works cost, cost of production, total cost and profit from the under mentioned figures :

Direct Materials Rs.5,000; Direct Labour Rs.3,500; Factory Expenses Rs.1,500; Administration Expenses Rs.800; Selling Expenses Rs.700 and Sales Rs.15,000.

8.Prepare a Cost Sheet assuming no opening or closing stock :

No. 1No. 2

Materials (Rs.)30,00050,000

Labour (Rs.)60,00070,000

Sales (Units)180200

Selling Price (Rs.) per unit1,2001,500

Works on cost is charged at 40% on works cost and office on cost is charged at 20% on total cost.

9.The Received side of the Stores Ledger Account shows the following particulars :

Jan. 1Opening Balance : 500 units @ Rs. 4

Jan. 5 Received from vendor : 200 units @ Rs. 4.25



Jan. 25 Received from vendor : 400 units @ Rs. 4

Issues of material were as follows :

Jan. 4200 units; Jan.10400 units; Jan.15100 units; Jan.19100 units; Jan.26200 units; Jan.30250 units.

Issues are to be priced on the principle of First in First Out. Write out the Stores Ledger Account in respect of the materials for the month of January.

10.The following transactions took place in respect of an item of material:

ReceiptsRateIssue

QuantityRs.Quantity

2-3-20062002.00

10-3-20063002.40

15-3-2006

250

18-3-20062502.60

20-3-2006

200

Record the above transactions in the Stores Ledger, pricing the issues under Simple Average Method.11.The stock of material A as on 1st June, 2006 is 500 units at Re. 1 per unit. Following purchases and issues of this item were made subsequently :

ReceiptsRateIssue

QuantityRs.Quantity

(Units)Rs.(Units)

June 6

200

June 104001.10

June 153001.20

June 20

500

June 21

200

June 245001.30

June 25

300

June 28

200

Prepare a store Ledger Account showing how the value of the above issues should be arrived under the Base Stock Method when it operates in conjunction with LIFO. Base stock is 200 units.

12.The stock in hand of a material as on 1st September, 2005, was 500 units at Re. 1 per unit. The following purchases and issues were subsequently made. Prepare the Store Ledger Account showing how the value of the issues would be recorded under FIFO Method.

Purchased

Issues

September6100units atRs.1.10September9500units

September20700units at Rs. 1.20September22500units

September27400units at Rs. 1.30September30500units

13.Bharat Manufacturing Company uses copper wire which is purchased from the market as and when necessary. The following purchases and issues were made during the month of January, 2006 :

Jan. 1Opening balance 300 kgs. at Rs. 25 per kg.

Jan. 3Purchased 500 kgs. at Rs. 26.60 per kg. (Purchase Order No. 101).

Jan. 4Issued 220 kgs. (Material Requisition No. 201).


Jan. 20Purchased 490 kgs. at Rs. 23 per kg. (Purchase Order No. 102).


Jan. 26Surplus 20 kgs. returned to store out of quantity issued on January 4

(Material Requisition Note No. 20).

Prepare Stores Ledger Account for the above transactions according to LIFO method of pricing issue of materials.

14.The following transactions occur in the purchase and issue of a material :

January 19Purchased100at Rs. 5.00 each

February 4Purchased25at Rs. 5.25 each

February 12Purchased50at Rs. 5.50 each

February 14Issued80

March 6Purchased50at Rs. 5.50 each

March 20Issued80

March 27Purchased50at Rs. 5.75 each

Record the above in Stores ledger using FIFO method of pricing.15.Show the Stores Ledger entries as they would appear when using the weighted average method in connection with the following transactions :

Units Price Rs.

April 1Balance in hand b/f3002.00

April 2Purchased2002.20

April 4Issued150


April 11Issued150

April 19Issued200


April 27Issued150

16.Given :Rs.

Materials supplied to site on 1-4-20093,75,000

Wages paid4,37,500

Cost of plant62,500

Work certified9,00,000

Cash received on account6,75,000

Work completed but not certified25,000

Plant on the site on 31st March 2010 50,000

Contract price15,00,000

You are required to prepare contract account.

17.The following particulars related to a contract under taken by Ajit Engineers.

Rs.

Materials sent to site 85,349

Labour engage on site74,375

Plant installed at site15,000

Materials returned to stores549

Work certified1,95,000

Cost of work not certified4,500

Materials on hand at the end of the year 1,882

Value of the plant at the end of the year11,000

The contract price has been agreed at2,50,000

Cash received from the contractors1,80,000

You are required to prepare contract account and contractee account.

18.Given :

Notional ProfitRs.60,000

Work CertifiedRs.4,00,000

Work UncertifiedRs.30,000

Cash receivedRs.2,80,000

Contract PriceRs.8,00,000

How much amount of profit to be transferred to P & L A/c ?

19.Given :

Contract PriceRs. 10,00,000

Work CertifiedRs. 9,50,000

Estimated ProfitRs. 1,20,000

Calculate the Profit to be shown in Profit & Loss Account.

20.Given : Cash received Rs. 4,80,000 (80% of Work certified); Notional Profit Rs. 50,000; Contract Price Rs. 30,00,000.

Calculate the profit to be shown in Profit & Loss Account.

21.A contractor has under taken a contract on 1.4.2009 for Rs.2,70,000. On 31.3.2010 the position of that contract was as follows:

Rs.

Materials charges58,000

Wages1,12,400

General charges2,800

Plant installed16.000

Works certified1,60,000

Cash received1,20,000

Work uncertified8,000

The plant was installed on the date of the commencement of the contract charges depreciation on plant @ 10% p.a. Prepare contract a/c.

22. The contract ledger of a company showed the following expenditure on account of Contract No. 786 at 31st March, 2010.

Rs.Materials94,000

Wages1,03,000

Plant12,000

Establishment charges6,700

Materials on hand4.000

The contract was commenced on 1-4-2009 and the contract price was Rs. 4,50,000. Cash received on a/c to date was Rs. 1,72,000 representing 80% of the work certified the remaining 20% being retained until completion. The value uncertified was Rs. 4,500. Prepare an a/c in respect of the contract showing the profit to date assuming depreciation on plant at 10% p.a. and state the proportion of profit and company would be justified in taking to the credit of the Profit & Loss account.

23.Product X is produced after three distinct processes. The following information is obtained from the accounts of a period:

ItemsTotalProcess IProcess IIProcess III

Rs.Rs.Rs.Rs.

Direct materials 2,2001,800300100

Direct wages400100200100

Direct expenses500300200

Production overhead incurred is Rs.800 and is recovered on 200% of direct wages. Production during the period was 100 kgs. There was no opening or closing stocks. Prepare process cost accounts.

24.A product passes through three stages of production and the product of each category becomes the raw material for the next stage. Further raw materials are also added at each stage. During March 2010, 2,000 units of finished product were produced with the following expenditure.

Stage AStage BStage C

Materials (Rs.)20,00016,0008,000

Labour (Rs.)16,00024,00012,000

Direct expenses (Rs.)1,2002,000800

Indirect expenses amounted to Rs.2,600. It is to be apportioned on the basis of labour. Main raw material issued to stage A (besides above) was worth Rs. 12,000. Prepare the process cost account showing the cost per unit at each stage and the total cost of finished product at the final stage. 25. The product of a manufacturing concern passes through two processes A and B and then to finished stock. It is ascertained that in each process normally 5% of the total weight is lost and 10% is scrap which from process A and B realises Rs.80 per ton and Rs.200 per ton respectively. The following are the figures relating to both the processes.

Process AProcess BMaterials in tons1,00070

Cost of material per ton (Rs.)125200

Wages (Rs.)28,00010.000

Manufacturing expenses (Rs.)8,0005,250

Output in tons830780

Prepare process accounts showing cost per ton of each process. There is no stock or work in progress in process.

26. A product passes through two distinct Processes A and B and then to finished stock. The output of process A passes direct to B and that of B passes to Finished product. From the following information you are required to prepare Process accounts.

Process A Rs.Process B Rs.Materials consumed12,0006,000

Direct labour14,0008,000

Manufacturing expenses4,0004,000

Input to process A (units)10,000

Input to process A' (value) 10,000

Output (units)9,4008,300

Normal loss (% of input)5% 10%

Value of normal loss (per 100 units)810.27.A product passes through three processes. The following information is extracted from cost records relating to Process I :

Particulars

Rs.

Materials introduced in units

1,000

Rate per unit (Rs.)

10.00

Labour cost (Rs.)

8,000

Overhead expenses (Rs.)

3,500

Normal process losses

5%

Sale of normal process loss per unit (Rs.)

3

Actual output units

950

Prepare process account showing clearly calculation of normal and abnormal losses or gains if any.

28. Given :

Total Cost of normal outputs :Rs. 16,150

Scrap value realised:Rs. 150

Unit introduced (input) in the process:400

Units of output:350

Normal Cost units:10% of input

Calculate the quantity and the value of abnormal loss or gain.

29. Maruthi Travels, a transport company is running a fleet of six buses between two towns 75 km. apart. The seating capacity of each bus is 40 passengers. The following particulars are available for the month of June 2010 :

Rs.

1.Wages of drivers, conductors and cleaners3,600

2 Salaries of office and supervisory staff1,500

3. Diesel and other oils10,320

4. Repairs and maintenance1,200

5. Taxation and insurance2,400

6. Depreciation3,900

7. Interest and other charges3,000

The actual passengers carried were 80% of seating capacity. All the buses ran on all days in the month. Each bus made one round trip per day. Find out the cost per passenger kilometer.30. The following is the information from the books of Thomas: Number of taxies 10; Cost of each taxi Rs. 20,000; Salary of manager Rs. 600 p.m.; Salary of accountant Rs. 500 p.m. salary of cleaner Rs.200 p.m.; salary of mechanic Rs. 400 p.m. Garage rent Rs 600 p.m. Insurance premium 5% p.a., Annual tax Rs. 600 per taxi. Drivers salary Rs 200 per taxi. Annual repair Rs 1,000 per taxi.

Total life of a taxi is 2,00,000 kms A taxi runs in all 3,000 kms in a m of which 30% it runs empty Petrol consumption is one litre for 10 kms @ Rs. 4 80 per litre. Oil and other sundries are Rs. 5 per 100 kms.

Calculate the cost of running a taxi per km.

31.Mr. A runs tempo service in the town and has two vehicles. He furnishes you the following data related to Vehicle 'A'. You are required to compute the cost per running mile.

Rs.

Cost of vehicle

25,000

Road license fee per year

750

Supervision and salary (yearly)

1,800

Drivers wages per hour

4.00

Cost of fuel per litre

1.50

Repairs and Maintenance per mile

1.50

Tyre cost per mile

100

Garage rent per year

1,600

Insurance premium yearly

850

Miiles run per litre

6

Mlileage run during the year

15,000

Estimated life of vehicles (miles)

1,00,000

Charge interest at 10% p a on cost of the vehicles. The vehicles run 20 miles on an average.

32.Given :

No. of bus10

No. of trips2 each

Distance covered (one way)30 k.m.

No. of days in a month30

Seating capacity40

Occupancy rate80%

Calculate Passenger kilometers.

33.From the following particulars calculate B.E.P. and P/V ratio.

Rs.

Fixed Expenses

1,50,000

Variable Cost per unit

10

Selling Price per unit

15

34.From the following data, calculate B.E.P. and P/V ratio.

Rs.

Selling Price per unit

40

Variable Manufacturing Cost per unit

25

Variable Selling Cost per unit

0.3

Fixed Factory Overheads

1,80,000

Fixed Selling Cost

35.Given :

Fixed overhead Rs. 2,40,000

Variable cost per unit Rs. 15

Selling price per unit Rs. 30.

Find out : (a) Break even sales units, and (b) if the selling price is reduced by 10%, what will be the new break even point ?

36.Profit

Rs. 200

Sales

Rs. 2,000

Variable cost75% of sales

(a) Find out Break even sales ; and (b) what would be the sales volume to earn a profit of Rs. 500.

37.From the following figures, you are required to calculate (i) P/V Ratio, (ii) Break Even Sales Volume (iii) Margin of Safety and (iv) Profit.

Sales Rs. 4,000; Variable cost Rs. 2,000; Fixed cost Rs. 1,600.

38.Given :

Rs.

Break even volume

8,000

Fixed costs

3,200

Find out profit when sales are Rs. 10,000.

39.Calculate the break-even point from the following figures.

Rs.

Sales3,00,000

Fixed expenses75,000

Direct Materials1,00,000

Direct Labour60,000

Direct expenses40,000.40.From the following data, calculate the break-even point :

Rs.

Selling price per unit20

Direct Materials cost per unit8

Direct Labour cost per unit2

Variable overhead per unit3

Fixed overheads (total)28,000

If sales are 20% above the break-even point, determine the net profit.

41.From the following figures, calculate the sales required to earn a profit of Rs. 1,20,000.

Rs.

Sales6,00,000

Variable costs3,75,000

Fixed costs1,80,000.42.From the following data, calculate :

(a)Break-even point expressed in sales rupees.

(b)Number of units to be sold to earn a profit of Rs. 60,000 a year.

Selling priceRs. 20 per unit

Variable manufacturing cost11 per unit

Variable selling cost3 per unit

Fixed costs2,52,000 per year.43.Selling price per unit

Rs. 150

Variable cost per unit Rs. 90

Fixed CostRs. 6,00,000

(i)What will be the selling price per unit if the break even point is 8,000 units?

(ii)Compute the sales required to earn a profit of Rs. 2,20,000.

44.Compute profit earned during the year using the marginal costing technique :

Fixed Cost - Rs. 5,00,000; Variable Cost -Rs. 10 per unit; Selling Price -Rs. 15 per unit;Output Level - 1,50,000 units.45.From the following, find out (a) Break even volume, and (b) Break even sales units:

Sales 10,000 units; Variable cost Rs. 1,00,000; Sales value Rs. 2,00,000;

Fixed cost Rs. 40,000; Selling price per unit Rs. 20.

46.From the following particulars calculate : (i) Total Materials Cost Variance; (ii) Materials Price Variance; and (iii) Materials Usage Variance.

StandardActual

MaterialsUnitsPrice (Rs.)UnitsPrice (Rs.)

A1,010 1.01,080 1.2

B410 1.5380 1.8

C350 2.0380 1.9

47.From the data given below, calculate material usage variance.

Consumption for 100 units of product

Raw Materials

StandardActual

A

40 units @ Rs. 50 per unit50 units @ Rs. 50 per unit

B

60 units @ Rs. 40 per unit60 units @ Rs. 45 per unit.48.From the following data, calculate labour cost and efficiency variances :

The budgeted labour force for producing product A is: i) 20 Semi-skilled workers @ p. 75

per hour for 50 hours; ii) 10 Skilled workers @ Rs. 1.25 per hour for 50 hours.The actual labour force employed for producing A is: i) 22 Semi-skilled workers @ p. 80

per hour for 50 hours; ii) 8 Skilled workers @ Rs. 1.20 per hour for 50 hours.

49.Compute material price, usage and mix variances from the data given below :

MaterialStandardActual

Qty.Kgs.Unit PriceRs.TotalRs.Qty.Kgs.Unit PriceRs.TotalRs.

XY6.002.001.503.509.007.005.001.002.406.0012.006.00

50.Calculate material cost variance from the following particulars :

MaterialStandard

Actual

Qty. Kg.Price Rs.Qty. Kg.Price Rs.

A

10 8 10 7

B

8 6 9 711

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Eiii.ii.1.Cost Acctg (Ccafat)