MAY 2011 U/ID 22209/UCZK/

UCXD/URMB/UCVG

Time : Three hours Maximum : 100 marks

SECTION A (10 3 = 30 marks)

Answer any TEN questions.

All questions carry equal marks.

1. What is the scope of cost accounting?

AP PnUQ \ GU TP.

2. What is Memorandum Reconciliation Account?

Smk vk PnUS G G?

3. Write any six objectives of establishing a separate purchase

department.
uU Pu x Au |UP[P
G B GxP.

4. What is the usage of job cards? Also write its types.

Amh EP x? Au PP ?

5. What is meant by coding?

Sk G G?

6. What do you mean by Machine Hour Rate?

Cv | Qu } Ax x?

7. What are all the essential characteristics of good management

accounting?
| s PnUQ UQ Snv\[P ?

8. From the following particulars, calculate the operating ratio :

Sales = Rs. 5,00,000
Cost of goods sold = Rs. 3,00,000
Operating expenses = Rs. 1,00,000
Non-operating expenses = Rs. 20,000.
 R [Px CUP Quzv PnUQkP.
. 5,00,000
AP . 3,00,000
CUPa \P . 1,00,000
CUP \ \P . 20,000

9. Calculate the capacity ratio. Money Ltd., produces a commodity

of X in its department.
Time taken X = 12 hours per unit
Goods produced X = 1,600 units
Actual man hours spent = 13,000 hours

Budgeted hours in a year = 1,02,000 hours.

Ezv \v Quzv PnUQkP. o { X
G ux x uUQx.
X G GkzxU Psh P : K AQS 12 oP

X Ezv : 1600 ASP

EsP \hmh | : 13,000 oP

K Bsi vmhhmh P : 1,02,000 oP.

10. Calculate the B.E.P. from the data of Nathan Co. for the year
2008.
Sales (4000 units @ Rs. 25 each) = 1,00,000
Variable cost = 72,000
Fixed cost = 16,800.
R 2008 Bsi [Px, |u {zv C
|mh U PnUQkP.
(4000 ASP J . 25 G) : 1,00,000
k AP : 72,000
{a \P : 16,800.

2 U/ID 22209/UCZK/
UCXD/URMB/UCVG
11. Calculate cash from operations from the following particulars :
Sales of the year = Rs. 1,50,000.00
Purchases for the year = Rs. 80,000.00
(including credit purchases of Rs. 25,000)
Expenses for the year = Rs. 15,000.00.
R [Px \ UPzv PnUQkP.
Bsk = . 1,50,000
Bsk Pu = . 80,000
(Cv Ph Pu . 25,000 Eh[Qx).
Bsk \P . 15,000.00.

12. Find out the reorder level from the following :

Maximum consumption of material = 300 units
Minimum reorder period = 2 weeks
Maximum reorder period = 4 weeks
R [Px Bn mhzv PnUQkP.
P A ~P : 300 ASP
Sum\ BnU P : 2
P A BnU P : 4 [P.

SECTION B (5 6 = 30 marks)

Answer any FIVE questions.

All questions carry equal marks.

13. Discuss the main objections raised against cost accounting.

APU PnUQUS GvP Gk Gv{U
PzxUPU TP.

14. What is Bin card? Distinguish between Bin card and Stores
Ledger.
Amh G G? AmhUS Qh[S miS
E k x?

15. Briefly explain the functions of management accounting.

s PnUQ oP _UPP GxP.
3 U/ID 22209/UCZK/
UCXD/URMB/UCVG
16. The following information is available in respect of component D.
Maximum stock level = 42,000 units
Budgeted consumption = Maximum 7500 units per month
= Minimum 4000 units per month
Estimated delivery period : Maximum 4 months

Minimum 2 months
You are required to calculate :
(a) Re-order level.
(b) Re-order quantity.
R [P D G Ev&Ea \ux.
P A \US A = 42,000 ASP
vmhhmh ~P = P A 7,500 ASP K uzvS
K uzvS Su A 4000 ASP
vmhhmh [S P : PP 4 u[P
Sum\ 2 u[P
i [Px
(A) Bn mh
(B) Bn A. PnUQkP.

17. From the following particulars compute the machine hour rate.
Cost of the machine = Rs. 11,000

Scrap value = Rs. 680

Repairs for the effective working life = Rs. 1,500

Standing charges for 4 weekly period = Rs. 40

Effective working life 10,000 hours
Power used 6 units per hour at 5 paise per unit
Hours worked in 4 weekly period : 120 hours.

4 U/ID 22209/UCZK/
UCXD/URMB/UCVG
 R [P Psk Cv { Quzu PnUQkP.

Cv AP . 11,000

P v . 680

Cvzv BmPzv Hk x}US \ . 1,500

|S zvP {a\P . 40

Es EUS P 10,000 oP

J oUS 6 ASP G K AQS 5 \ G

\ EPkzumhx.

4 zv 120 oP o {mhx.

18. Calculate the trend percentages from the data taking 2006 as
the base year.
As at 31st December
Current assets 2006 2007 2008 2009
Rs. Rs. Rs. Rs.
Cash at Bank 10,000 12,000 13,000 15,000
Bank debts 15,000 18,000 25,000 30,000
Stock 20,000 30,000 40,000 50,000
B/R 5,000 7,500 10,000 15,000

R 2006 B Bsi [P Psk Au Bsi

Aih BshP Psk US Quzu PnUQkP.

31 i\
|ha
2006 2007 2008 2009
\zxUP
. . . .
[Q UP 10,000 12,000 13,000 15,000
[QU Ph 15,000 18,000 25,000 30,000
\US 20,000 30,000 40,000 50,000
uS 5,000 7,500 10,000 15,000
a^mk

5 U/ID 22209/UCZK/
UCXD/URMB/UCVG
19. From the following details, calculate debtors turnover ratio :
Total sales for the year = Rs. 1,75,000
Cash sales = 20% of total sales
Sales return out of credit sales = Rs. 10,000
Sundry debtors Opening balance = Rs. 8,000
Closing balance = Rs. 12,000.
R [P Psk Ph Quzu PnUQkP.
Bsk zu : . 1,75,000
UP : 20%
v & : . 10,000
] Ph & B C : . 8,000
& Cv C . 12,000

20. A company has a P/V ratio of 40%. What percentage sale must
be increased to offset :
(a) 10% reduction in selling price and
(b) 20% reduction in selling price.
(A) 10% Sxx
(B) 20% Sxx G `{ J
{ ux C A Qu 40%
uUP UP A G Ezu sk
G PnUQkP.

SECTION C (2 20 = 40 marks)
Answer any TWO questions.
All questions carry equal marks.

21. Calculate the earnings of workers X and Y under

(a) Straight piece rate system and
(b) Taylors differential piece rate system from the following
details :
Standard time per unit = 12 minutes
Standard rate per hour = Rs. 60
Differentials to be used 80% and 120%.
In a particular day of 8 hours, worker X produced 30 units
and worker Y produced 50 units.

6 U/ID 22209/UCZK/
UCXD/URMB/UCVG
 R [P Psk X Y G C
oP (A) |i Ezv Qu
(B) h k Ezv Qu i PnUQkP. K
AQ vmh P 12 {h. K oUP vmh Qu . 60.
kP EPkzu six 80% 120%.

8 o | EUP si J | o X 30 ASP
Ezv \Q o Y 50 ASP Ezv
\Q.

22. The following figures are available from financial accounts for
the year ending 31st March 2006.
Rs.
Direct material consumed 2,00,000
Direct wages 1,00,000
Factory overheads 75,000
Administrative overheads 2,25,000
Selling and distribution overheads 2,40,000
Bad debts 30,000
Preliminary expenses written off 40,000
Legal charges 20,000
Dividend received 50,000
Interest on bank deposit received 20,000
Sales (1,20,000 units) 18,00,000
Closing stock (30,000 units) 1,60,000
The cost accounts reveal the following :
Direct material consumed Rs. 2,20,000. Direct wages Rs. 80,000.
Factory overheads at 20% on prime cost. Administration
overheads at Rs. 2 per unit produced and selling overheads at
Rs. 2 per unit sold.
Prepare :
(a) Statement showing cost and profit.
(b) Financial profit and loss account.
(c) Reconciliation statement.

7 U/ID 22209/UCZK/
UCXD/URMB/UCVG
R [P a 31 2006UP {v{ PnUPmix
GkUPmh.

.
|i ~P 2,00,000

|i T 1,00,000

u\ \P 75,000

{P \P 2,25,000

Q \P 2,40,000

UPh 30,000

\P Gv }UQx 40,000

\mha \P 20,000

[Pu x 50,000

[Q x mi x 20,000

(1,20,000 ASP) 18,00,000

Cv \US (30,000 ASP) 1,60,000

AP PnUS R kzxQx

|i ~P . 2,20,000, |iU T . 80,000,

u\ \P u AP 20%. {P
\P K AQS . 2 Ezv
\P K AQS . 2.

i [Px

(A) AP Czu Pmk AUP

(B) {v C |mhU PnUS

(C) \Pmk mi BQPz uUP.

8 U/ID 22209/UCZK/
UCXD/URMB/UCVG
23. From the following particulars, prepare a statement showing the
proprietors fund as at 31st December 2009 with as many details
as possible.

(a) Current ratio = 2.5 : 1

(b) Acid test ratio = 1.5 : 1

(c) Fixed assets to proprietary funds = 0.75 : 2

(d) Working capital = Rs. 90,000

(e) Reserves & Surplus = Rs. 60,000

(f) Bank overdraft = Rs. 15,000.

R [P Psk 31 i\ 2009UP E
{v Pmk AUP uUP.
(A) |h Qu : 2.5 : 1
(B) } Qu : 1.5 : 1
(C) {a \zxUS E {vUS E Qu : 0.75 : 2
(D) |h u : . 90,000
(E) PP EP : . 60,000
(F) [Q : . 15,000

24. A company budgets for a production of 1,50,000 units. The

variable cost per unit is Rs. 14 and fixed cost is Rs. 2 per unit.
The company fixes its selling price to fetch a profit of 15% on
cost.

(a) What is the break even point?

(b) What is the profit-volume ratio?

(c) If it reduces its selling price by 5%, how does the revised
selling price affect the break even point and the profit-
volume ratio?

(d) If a profit increase of 10% is desired more than the budget,

what should be the sales at the reduced prices?

9 U/ID 22209/UCZK/
UCXD/URMB/UCVG
J { 1,50,000 ASP Ezv \ vmhkQx. K
AQP \ . 14. {a \ K AQS . 2
{ ux AhUP 15% C
i {nUQx.
Cu `{,
(A) C |mh { x?
(B) C A Qu x?
(C) 5 UPk S
x G C|mh , C
A Quzv vUS.
(D) vmhhmh Czv 10 UPk Ezu
sk Su G
CUP sk.

10 U/ID 22209/UCZK/
UCXD/URMB/UCVG