SRI SIDDHARTHA INSTITUTE OF BUSINESS MANAGEMENT

1st Internals Assessment Test- Feb 2017

B.B.M 4th Semester
Subject: COST ACCOUNTING
Time: 1 hour
20 Marks
I Answer the following each carries 10 marks (10*2=20)
1.Calculate the overhead applicable to production department A and B . there are two service departments
X and Y.

X renders service worth Rs.12000 to Y and balance to A and B in the ratio of 3:2. Y renders service to A
and B in 9:1 ratio.

Particulars Total A B X Y
Floor space( Sq. ft) - 5000 4000 1000 2000
Assets (Rs.in lakhs) - 10 5 3 1
HP of machines - 1000 500 400 100
Number of workers - 100 50 50 25
Light points - 50 30 20 20
Expenses are
depreciation 19000
Rent,rates etc 36000
insurance 15200
power 20000
Canteen expenses 10800
electricity 4800

2.Beta manufacturing company provides you its trading and profit and loss account as follows:

particulars Rs particulars Rs
To purchases 25210 By Sales (50000 units at 75000
Less closing stock 4080 Rs.1.50each)

21130 Discount received 260

Direct wages 10500 Profit on sale of land 2340
Work expenses 12130
Selling expenses 7100
Office expenses 5340
Distribution expenses 1100
Net profits 20300
77600 77600
The profit as per cost accounts was only Rs. 19770. Reconcile the financial and cost profits using the
following :

In cost accounts:

1. Closing stock was valued at Rs. 4280

2. The works expenses were t6aken as 100% of direct wages
3. Selling and office expenses were charged at 10% of sales and Rs.0.10 per unit respectively
4. Distribution expenses in cost accounts is Rs.800