Guess Paper 1: Cost Accounting Fall – 2020 Past Papers
University Name – Confidential
Time Allowed: 3 hours
Total Marks: 70, Passing Marks (35)
Q1. Define cost accounting. Also elaborate its objectives in detail.
Q2. XYZ and company submits following data for Nov
Direct labor cost——-$31,000
CGS————————-111,000
FOH is applied @ 140% of direct labor cost
Inventory accounts showed these beginning and ending balances
Sep 1 Sep 30
Finished goods $14000 $16000
Work in process 9300 11000
Materials 6800 7400
Other data
Marketing exp— 14,300 General and administrative exp—22,100
Sales for the month—182000
You are required to prepare income statement with schedule showing CGS and manufactured.
Q3. Being a manager what kind of difficulties can you face in process cost accounting?
Q4. Rashid machine works collects its cost data by job order costing accumulation procedure. For job 646 the
following data is available.
Direct mutual direct labor
9/14 issued—$1126 week of sep 20—-180 hr@$6.50/hr
9/20 issued—664 week of Sep 26—-140 hr@$6.25/hr
9/22 issued—471
FOH is applied @ 3.50 per direct labor cost.
Q5. How would you analyse joint production cost? Discuss briefly.
Q6. Explain labor cost and its efficiency in detail.
Q7. The Imperial plant has normal capacity of 91,000 units per month. Monthly production costs are $13 variable per unit and $250000 fixed. By increasing the fixed cost $11000 amonth, the plant can produce 97000 units.
Required
a. Differential cost of the production between 80% and 90% of normal capacity.
b. Differential cost of producing 5000 units above normal capacity.
c. Per unit total production cost of 5000 units, rounded to the nearest cost.
Guess Paper 2: Cost Accounting Spring – 2020 Past Papers
Time Allowed: 3 hours
Total Marks: 70, Passing Marks (35)
Q1. Define cost accounting and its Nature in detail.
Q2. Prepare balance sheet for ABC manufacturing company for the year 2000 on the basis of following information.
Cash—-$2320,000 Land—289,000 Marketable securities—-820000
Building—-3406100 A/Recievable—–2661000 machinery equipment—-1252900
Inventories—-323800 accumulated depreciation—-8118,000
Prepaid insurance —Taxes etc—-220,000 A/Payable—-990800 accrued payroll, taxes—104,5000 estimated income tax—-190,700 due on long term debt—-200,000
Long term debt—2677,500 common stock—425,8000 retained earnings—7996,900
Q3. Discuss cost and its classifications in detail.
Q4. The Cambridge company uses job order costing. At the beginning of May, two jobs were in process:
Job 369 Job 372
Material $2000 $700
Direct labor 1000 300
Applied factory overhead 1500 450
There was no inventory of finished goods on May 1. During the month, jobs 373, 4,5,6,8 and 9 were started.
Material requisitions for May tataled $13000, direct labor cost, $10000 and actual factory overhead, $16000. FOH is applied at rate of 150% of direct labor cost.
The only job still in process at the end of Mayis No.379 with cost of $1400 for materials and $900 for direct labor.
Job 376, the only finished job on hand at the end of May, has a total cost of $2000.
Required:
1. T account for work in process, finished goods, cost of good sold, factory overhead control and applied factory overhead.
2. General journal entries to record
a. Cost of goods manufactured
b. Cost of goods sold
c. Closing of over or underapplied factory overhead to cost of goods sold.
Q5. Elaborate various difficulties in costing process. Also explain joint production cost.
Q6. Trainer, inc., whose largest selling product is track, prepares monthly production budgets for its three departments. Budgeted and its actual amount for May are as shown below.
Actual
Departments Budgeted hours Labor cost Units
Mixing 1120 6530 750
Processing 3300 18900 620
Packaging 350 2500 756
The following standards have been adopted for this product.
Standard
Department Hours per unit standard labor cost per hour
Mixing 1.5 6.10
Processing 5.0 6.50
Packaging 0.5 6.00
Prepare labor cost control report for april.
Q7. Write a note on value cost and profit analysis in detail.
Guess Paper 3: Cost Accounting Fall – 2019 Past Papers
Time Allowed: 3 hours
Total Marks: 70, Passing Marks (35)
Q1. Define cost accounting. Also elaborate various cost concepts.
Q2. Prepare balance sheet for XYZ manufacturing company for the year 2000 on the basis of following information.
Cash—-$2330,000 Land—290,000 Marketable securities—-810000
Building—-3407100 A/ Recievable—–2661000 machinery equipment—-1262900
Inventories—-323800 accumulated depreciation—-8118,000
Prepaid insurance —Taxes etc—-220,000 A/Payable—-990800 accrued payroll, taxes—104,5000 estimated income tax—-190,700 due on long term debt—-200,000
Long term debt—2677,500 common stock—425,8000 retained earnings—7996,900
Q3. Discuss differential cost analysis in detail.
Q4. Champion machine works collects its cost data by job order costing accumulation procedure. For job 642 the following data is available.
Direct mutual direct labor
9/14 issued—$1200 week of sep 20—-180 hr@$6.21/hr
9/20 issued—661 week of Sep 26—-140 hr@$7.25/hr
9/22 issued—483
FOH is applied @ 3.20 per direct labor cost.
Q5. Explain joint product and cost. Also discuss difficulties in costing.
Q6. Trainer, inc., whose largest selling product is track, prepares monthly production budgets for its three departments. Budgeted and its actual amount for april are as shown below.
Actual
Departments Budgeted hours Labor cost Units
Mixing 1200 6533 741
Processing 3220 19850 616
Packaging 350 2644 803
The following standards has been adopted for this product.
Standard
Department Hours per unit standard labor cost per hour
Mixing 1.6 6.11
Processing 5.1 6.51
Packaging 0.5 6.00
Prepare labor cost control report for april.
Q7. Write a note on differential cost and its quantitative techniques.
Guess Paper 4: Cost Accounting Spring – 2019 Past Papers
Time Allowed: 3 hours
Total Marks: 70, Passing Marks (35)
Q1. Define scope and nature of cost accounting in detail.
Q2. Abasyn and company submits following data for Nov
Direct labor cost——-$30,000
CGS————————-111,000
FOH is applied @ 150% of direct labor cost
Inventory accounts showed these beginning and ending balances
Sep 1 Sep 30
Finished goods $14000 $17000
Work in process 9500 12000
Materials 6900 7300
Other data
Marketing exp— 14,300 General and administrative exp—22,100
Sales for the month—182000
You are required to prepare income statement with schedule showing CGS and manufactured.
Q3. What type of difficulties management can face in process cost accounting?
Q4. ABC machine works collects its cost data by job order costing accumulation procedure. For job 642 the
following data is available.
Direct mutual direct labor
9/14 issued—$1125 week of sep 20—-180 hr@$6.25/hr
9/20 issued—662 week of Sep 26—-140 hr@$6.28/hr
9/22 issued—470
FOH is applied @ 3.60 per direct labor cost.
Q5. How would you analyse joint production cost? Discuss briefly.
Q6. Explain labor cost and its efficiency in detail.
Q7. The Sanco River plant has normal capacity of 91,000 units per month. Monthly production costs are $12 variable per unit and $250000 fixed. By increasing the fixed cost $11000 a month, the plant can produce 96000 units.
Required
a. Differential cost of the production between 80% and 90% of normal capacity.
b. Differential cost of producing 5000 units above normal capacity.
c. Per unit total production cost of 5000 units, rounded to the nearest cost.
Guess Paper 5: Cost Accounting Fall – 2018 Past Papers
Time Allowed: 3 hours
Total Marks: 70, Passing Marks (35)
Q.1 What is cost accounting? Explain its objectives in detail.
Q.2 Define various cost concepts. List some examples of indirect manufacturing cost.
Q.3 What is standard cost? Also explain relevant range in cost accounting.
Q.4 Explain differential cost analysis in detail.
Q.5 Explain briefly how would you analyse joint product cost.
Q.6 The premier plant of the union company has normal capacity of 90,000 units per month. Monthly production costs are $10 variable per unit and $250000 fixed. By increasing the fixed cost $10000 a month, the plant can produce 96000 units.
Required
- Differential cost of the production between 80% and 90% of normal capacity.
- Differential cost of producing 5000 units above normal capacity.
- Per unit total production cost of 5000 units, rounded to the nearest cost.
Q.7 ABC machine works collects its cost data by job order costing accumulation procedure. For job 642 the following data is available.
Direct mutual direct labor
9/14 issued—$1300 week of sep 20—-180 hr@$6.25/hr
9/20 issued—663 week of Sep 26—-140 hr@$7.35/hr
9/22 issued—485
FOH is applied @ 3.60 per direct labor cost.
[OBJECTIVE]
Subject: Cost Accounting
Time Allowed: 10 Minutes
Maximum Marks: 10
NOTE: Attempt this Paper on this Question Sheet only. Please encircle the correct option. Division of marks is given in front of each question. This Paper will be collected back after expiry of time limit mentioned above.
Part-I Encircle the right answer, cutting and overwriting is not allowed. (1×10=10)
1. Prime cost means:
A. All Production Costs B. All Indirect Production Costs
c. All Direct Production Costs D. None of the above
2. Direct material = Rs. 45,000; Direct wages = Rs. 60,000; Factory overheads = Rs. 90,000; Direct labor hours = 15,000; Machine hours = 30,000; FOH Applied Rate on the basis of machine hours =?
A. Rs. 6 per hour B. Rs. 3 per hour
C. Rs. 1.5 per hour D. Rs. 0.5 per hour
3. The method of remuneration that links the payment with the hours worked, is called:
A. Time work method B. Piecework method
C. Bonus method D. None of the above
4. Under which costing method cost of materials is charged to production in the order of purchases: :
A. First-in, First-out Method B. Last-in, First-out Method
Cc. Average Cost Method D. None of the above
5. Carrying cost = 15%; Ordering cost = Rs. 9 per order; Estimated Annual Requirement = 48,000 units; Cost per unit = Rs. 4. The most economical order size is:
A. 1,440,000 units B. 1,200 units
c. 1,440 units D. 12,000 units
6. Journal entry to record the issue of direct material from store is:
A. Material…Dr Supplier…Cr B. Supplier..Dr | Material…Cr
C. WIP…Dr Material…Cr D. FOH…Dr Material…Cr
7. For an activity level of 10,000 units, Total cost is Rs. 200,000; for 15,000 units, Total cost is Rs. 275,000. Calculate variable cost per unit using high-low method.
A. Rs. 15 B. Rs. 10
C. Rs.25 D. Rs. 20
8. Under-applied factory overheads occur when:
A. Applied FOH exceed Actual FOH B. Applied FOH exceed Budgeted FOH
C. Actual FOH exceed Applied FOH D. Actual FOH exceed Budgeted FOH
9. Normal working day: 8 hours Basic pay rate per hour: Rs. 5
Standard time per unit: 4 minutes Bonus payable at basic rate: 50% time saved
On a particular day, one employee finishes 150 units. His gross pay for the day will be:
A. Rs. 40 B. Rs. 50
Cc. Rs. 55 D. Rs. 4S
10. A piece-work system of remuneration focuses on:
A. Quality of output B. Quantity as well as quality of output
C. Quantity of output D. Neither on quality nor on quantity
[SUBJECTIVE]
Subject: Cost Accounting
Time Allowed: 2 Hours 45 Minutes
Maximum Marks: 50
NOTE: ATTEMPT THIS (SUBJECTIVE) ON THE SEPARATE ANSWER SHEET PROVIDED.
Part-II Give short answers of the following:. (2×10=20)
Q#1: Define profit center.
Q#2 What is service costing?
Q#3: What are the components of conversion cost?
Q#4: What is meant by safety stock?
Q#5: Write down any three differences in financial accounting and cost accounting.
Q#6: What is meant by bonus schemes?
Q#7: What is a standard cost?
Q#8: Define semi-variable cost.
Q#9: Define factory overheads.
Q#10: What is the difference between a fixed and a flexible budget?
Part-III Give brief answers of the following:. (3×10=30)
Q#3: A company uses process costing. The costs for 2™ department for January, 2019 were:
Costs of units received from 1″ department Rs. 20,000
Cost incurred in 2 department: Materials Rs. 21,816; Labor Rs. 7,776; Overheads Rs. 4,104
During the month, 2™ department received 5,000 units and transferred 4,000 units to 3% department. At the end of the month, 1,000 units were in process.
The degree of completion of the work-in-process units was: 50% units were 40% complete and the balance units were 20% complete.
Required: Prepare cost of production report for the month.
Q#4: Mudassar Industries has developed the following data to assist in controlling one of its inventory items:
Economic Order Quantity 1,000 kg
Average Daily Use 100 kg
Minimum Daily Use 80 kg
Maximum Daily Use 120 kg
Lead Time 7 days
Required:
(i) Order level
(ii) Maximum inventory level
(iii) Minimum inventory level
Q#5: Following are few figures taken from records of Mahnoor Industry:
Material purchased during the month = Rs. 265,000
Cast of goods sold for the month = Rs. 555,000
Factory overhead absorption rate = 75% of direct labor cost
Inventory accounts showed the following opening and closing balances:
January 01 January 31
Material Rs. 15,500 Rs. 20,500
Work in process Rs. 22,750 Rs. 25,600
Finished goods Rs. 28,200 Rs. 10,350
Required:
Prepare cost of goods manufactured and sold statement.
[OBJECTIVE]
Subject: Cost Accounting
Time Allowed: 10 Minutes
Maximum Marks: 10
NOTE: Attempt this Paper on this Question Sheet only. Please encircle the correct option. Division of marks is given in front of each question. This Paper will be collected back after expiry of time limit mentioned above.
Part-I Encircle the correct option, cutting and overwriting is not allowed. (10)
1. Average consumption x Emergency time is a formula for the calculation of:
a. Danger level b. Re-order level
c. Maximum consumption d. None of these
2. BOQ stands for:
a. Economic Order Quantity b. Economic Order Quantity
c. Estimated Ordering Quality d. None of these
3. Direct Material is a
a. Variable cost b. Fixed cost
c. Semi variable cost d. None of these
4. Worker is paid Rs. 0.50 per unit and he produces 18 units in 7 hours. Keeping in view the piece rate system, the total wages of the worker would be:
a. Rs.9 b. Rs.126
c. Rs.3.5 d. Rs.63
5. If cost of opening finished goods Rs. 2,000; Cost of goods to be produced Rs. 6,000 and Operating expenses Rs. 1,000, which of the following is the cost of goods available for sale?
a. Rs. 8,000 b. Rs. 4,000
c. Rs. 7,000 d. Rs. 9,006
6. Fixed cost is:
a. Variable b. Constant
c. Semi-variable d. None of these
7. Which of the following statement is TRUE about historical cost?
a. It is always relevant to decision making b. It is always irrelevant to decision making
c. It is always an opportunity cost d. It is always realizable value
8. Merrick Differential Piece Rate Plan based on ___________ piece rates.
a. Two b. Three
c. Four d. Five
9. Cost of production report is also known as:
a. Job order cost b. Process cost sheet
c. Balance sheet d. Material requisition sheet
10. Average cost is also known as:
a. Variable cost b. Unit cost
c. Total cost d. Fixed cost
[SUBJECTIVE]
Subject: Cost Accounting
Time Allowed: 2 Hours 45 Minutes
Maximum Marks: 50
NOTE: ATTEMPT THIS (SUBJECTIVE) ON THE SEPARATE ANSWER SHEET PROVIDED.
Part-II Give short answer, each answer carries equal marks. (20)
Q#1: Briefly explain Direct & Indirect Labor with example.
Q#2: Explain Historical Cost.
Q#3: Explain each item of the formula of EOQ.
Q#4: Give 5 examples of Factory Overheads.
Q#5: Pass the Journal entries when the Goods are returned from customer.
Part-III Give detailed answer, each answer carries equal marks. (30)
Q#3: Following is the information of Ammara Paper Mills:
Purchase of Material for the year Rs. 5,00,000
Purchase returns. Rs. 16,000
Direct Labor Rs. 2,30,000
Factory overhead Rs. 75% of Labor cost
Inventories:
Finished Goods inventory decreased by Rs. 28,000
Work in process inventory increased by Rs. 24,000
Opening Material Rs. 50,000
Closing Material Rs. 30,000
Required: Cost of goods manufactured and sold statement.
Q#4: Noor Companies Limited purchase a certain item of raw material in lots of 4,800 units which is 3 month supply. The cost per unit is Rs. 40.00, Ordering cost is Rs. 75.00 per order and carrying cost is 20%.
Required: How much the company can save by using EOQ.
Q#5: Production and cost data of 1st department of Nazir Sons Ltd. For the month of July 2018 are as follows:
Units started were 5000, transferred to next department were 4500 units. Remaining units were in-process estimated to be 70%, 60% and 50% completed as to Material, Labor and FOH respectively. Costs of Material, Labax end FOH were Rs. 2,50,000; Rs. 50,000 and Rs. 1,98,000 respectively.
Required: Cost of production report for the month of July.
