Paper / Subject Code: 38202 / Costs & Management Accounts.
Q.P. Code :016491
(Time: 2% Hours] [Marlks: 75]
Please check whether you have got the right question papef.
N.B: 1) Question No. 1 is Compulsory
2) Working note in part of answer
3) Allquestion carry equal Marks 15 each
Q. 1 The Management of a manufacturing concern has approached the Costing Department tofind
out the cost of 6,000 units. The cost analysis of 4000 units gives.the following results
i) Materials Rs. 90,000.
i) Labour Rs. 50,000.
ii) Direct Expenses Rs. 1,000.
iv) Factory Overheads Rs. 2,000,
v) Administrative Overheads Rs.1,600.
vi) Selling and Distributign Overheads Rs. 800.
The further details in this connectianareas tollowsi
a) An increase of-10% Ís expected in thè costof rawmaterial and 5%in the cost of labour.
b) 70% of the factory overheadsare tisèd and 30% arevariable.,
) The ratio,ot fixed andvarjable part cfadminstrationoveheads is 60:40.
d) 50% ofthe Selingand.Distribütion overheads 3re tveo
The manageent desires tocharge 25%profi òn sale price
Preparecost ståtêment with matmum break up of costand ascertain selling price for the
production of 6000units fworking nore is imiportant)
-Q2 NDthe booksoM/S Akshay.Traders; you are required to prepare a Cash Budget for the
quarterended 31.12.2016:
Rs
Cash Bankas on 1.10.016 2,50,000
Salaries and wagese_timatedmonthly 50,000
aerestPayableNovénberz016 5,000
other expenses jndude Rent 4,000 per month
Also Depreciationof RS.1,000.inçluded in other expenses per month.
TURN OVER
BF8003E49DBD4ECBD94387E8FAE33FIA
EP7 Sübject Code: 382027 Costs & Management Accounts.
Q.P. Code:016491
Other Data:
a) Estimates of Sales, purchases etc.:
Estimated September 2016 October 2016 Novembèr 2016.December.2016
Rs.
Cash Sales (Actual)
Rs.
Rs.*Rs.
Credit Sales
1,40,000 1,52,000 121,000
1,00,000 80,000 1,40,000 ,20,000
Purchases 1,60,000 1,70,000 2,40,000
Other Expenses 1,80,000
20,000 22,000 21,000
b) Credit sales are collected at the rate of 50% in the month In which
in the folowing month. the sales are made and 50%
c) Collections from Cash sales get discount of12% credit sales are
subject ta 10%
payment is received during the month of sales arnd 5,% digcount, if the paymegtisdiscount, if the
the following month. received in
d) Creditors are paid either on"prompt basisor 1i days
paynentbasis.it is estimated that
10% of the creditorsare lin the"promp category tò get discougt
basis.
of 5% and rest paid on credit
a.3 Anewly estabished rhanufacturing company Aàkaar td has an installed capacity to produce
2,00,000 units of aconsumer producttannualiys
a The açtual
capacity utillsation may be
substantially lower as the ficm is new to the markt and demand is uncertain. The following
budget hàsbeèn prepared for 60%capacitý utilisatign:
Cost per unit
Direct Matèrtals
Direct labour
Direct Exenses
PraductBÛn Ovérheads (50% variable)
Adnini_tratiton Overhêads (100% fixed)
selling andDistribution 5
(80% variable)
You are required to prepare budgets at 50%, and 90% levels of capacity
utilisation giving
Aearly the
the àbovele
varlable tost,the unit fixed cost and the total costs under various heads at all
TURN OVER
BFS003E49DBDAECBD94387ESFAE33FIA
Paper /Subject Code: 38202 /Costs & Management Accounts.
Q.P. Code 016491
3
0.4 From the following data compute
1. PV Ratio
2. B.E.P. in Rupees and in Unit.
3. Number of Units to be sold to earn a profit of Rs. 10,00,000
4. Margin of safety in and Units if Sales units are 20,000
S. What will be the change if Selling price increased by 5%.
Sales Price.. Rs. 25 perUnit
Direct Material.. Rs: 5per Unit
Direct Wages.. Rs. 6per Unit
" Variable Administrative Overheads. Rs:3perUnit
Fixed Factory Overhead., RS.GAO,00o0 per year
Fixed Administrative Qvecleads: Rs1,52,000,peryear
Q.s Amanufacturing company submits the following figures for the first Quarter of 2003.
Sales/Month SProduct in Units
cY
January 25.0001 30,000
February 20,000 25,000
March 30,000 35,000 N
Seling priceper unit Pcbdùct XRs 10 ProductYR^. 20
Prepare asales budgetbased onthe above data forthefirst Quarter of 2004 assuming.
Sales guantity increase bfXby 209%,Y
Salespoe inrease of Re.t Y;; 10% decrease
by
0.6 Adwait tdwants to introdoce poducyNdtrtarget market for next Syears.
Theyexpet Salës tumover of 80,000 units in First year next two
ang sthyears sales turnovef will be years 1,20,000 units and in 4th
reducd
g0,000 units ahd 75,000 units respectively. compare to previous 2years and is projected to be
Sellng priçe also is estimated to be Rs. 100 per unit in 1#
and 3 year and charged to be Rs.125 per year which can be
to get sales turnover unit but in last 2 years it has to be increased byin 2nd
fulfiled. reduced Rs.75
The cost of Machinery which they wants to
Rs.50,00,000.WIth-ife of 5years and no scrapbe value.
used in production is estimated to be
TURN OVER
BF$003EA9DBD4ECBD94387ESFAE33FIA
Paper / Subject Code: 38202 / Costs & Management Accounts.
Q.P. Code:016491
The Cost of goods sold is estimated to be 50%, Cost of operations estimatedto be 25% before.
depreciation. (allexpenses to be calculated on selling pric
Tax rate is estimated 30%.It is also estimated that Rs.25,00,oo0 vikbeneededafterlyearfor
Working capital need.
You are required to help them to find NPV, ProfitabiBty Inde And Discounted Cash flow.
Discount rate is tobe @10%.
a7A) Distinguish between Standard costing apd Budgetarytontrol
5
B) Classify following as per Function, Befavioucand Traceabjlity.
a) Direct Wages
b) Manufacturing expenses
c) Packaging and promotions
d) Solicitors fees
e) Dell very van expenses
0.8 What is Costing? Whàt is the difference beweencost actountlng andFinancial accounting?
Whlch accounting plays major role in enterpríser
BF&003E49DBDAECBD94387E3FAE33FIA
Paper /Subject Code: 382021 Costs & Management Accounts.
Duration: 2 bours and 30 Mins Max. Marks: 75
I. Provide very short answer for each of the following questions; each of which çarry 2 marks
(10 marks)
1. Advantages of Cost Accounting
2. Profit-Volume Ratio
3. Limitations of Cost Accounting
4. Profit Center
5. Fixed Budget
6. Lease or buy decision in Marginal Costing
7. Material Price Variance
8. Labour Cost Variance
9. Cost eduction Vs Cost control
10. Marginal Cost
Answer any 3of the following questions; cach of which carry 5 marks (15 Marks)
1. Types of Cost.
2. Scope of Management Accounting.
3. Importance of Standard Costing.
4. Break Even Point
5. Key factor in Budgets
II. Answer any 2 of the following questions; cach of which carry 10 marks (20 Marks)
1. Draw upa Flexible Budget from the following at 70%, 80% and 100% capacity.
At 90% capacity, ABC Ltd. Produces 10,800 units and incurred the expenses as under:
Particulars Cost per unit
Dircct Material
Direct Labour
Other Variable Expenses 4.50
Administration Overheads 6(40% Variable)
|Selling Overheads 3 (75% Variable)
Production Overheads 3 (20% Variable)
Selling Price per unit Rs 60.
2. From the following information: -
Variable cost per unit Rs 19.20 (60% of Seling Price per unit) and Fixed cost Rs
1,56,032.
Calculate: a) P/V Ratio b) Break Even Sales in units
c) Sales to earn a Profit of Rs 84,096
d) MOS in Units when sales is 16.000 units.
3. Calculate Sales Variances from the following:
ACompany budgeted sales of Product Aare 40,000 units at standard selling price of
Rs 10 per unit and Product B 60,000 units at standard sclling pricc of Rs 12 per unit.
Actual Sales of Product Aare 70,000 units at Rs 14 per unit and Product B50,000
units at Rs 8 per unit.
14503
Page I of2
8622F70006A355C83606845BO81B3064
Paper / Subject Code: 38202 / Costs & Management Accounts.
IV.
Answer any 3 of the following questions; each of which carTy 10 marks (30 Marks)
I. Define Costing? What is the difference between Cost Accounting and Managemnt
Accounting? Which açcounting plays major role in çnterprise?
2. Calculate material and labour variançes from th¹ following: -
Standard for a unit of production: -
Material -2 kgs @Rs Sper kg
Labour-4 hours @ Rs 6 per hour
Actual Production -4,00,000 units
Actual material used- 7,90,000 kgs
Actual hours worked - 15,80,000 hours
Actual rate - For Material - Rs 5.20 per kg
For Labour- Rs 6.40 per hour.
3. The Sales Turmover and Profit of MIS Amit Ltd. During the two years 2021 and 2022
were as follows:
|Year Sales Profit
2021 9,00,000 1,20,000
2022 10,20,000 1,50,000
Calculate: - a) P/V Ratio b) BEP Sales c) Sales required to eam a profit of
Rs.2,40,000 d) Profit made when Sales are Rs 15,00,000.
4. The cxpenses for the production of 5,000 units in a factory are given as follows.
Items Rs. Per Unit
Material 50
Labour 20
Variable Overheads
Fixed Overheads (Rs. 50,000)
Administration Expenses (5% variable)
Selling expenses (20% fixed)
Distribution expenses (10% fixed)
Total 116
You are requiredto prepare a budget for the production 7,000 units.
5. Classification of cost based on Traceability. (1 marks each)
a) Lubricant used in maintenance of Plant &Machinery
Wood used in production of tables and chairs
c) Threads and buttons used in stitching clothes
d) Steel bars used in steel factory
department
e) Wages paid to the workers engaged in machining
) Salaries and wages paid to store kecpers
g) Wages paid to the workers
engaged in fabriçating department
in assembling department
h) Wages paid to the workers engaged
machinery
i) Cotton waste used in cleaning the
) Wages paid to
timekeeper's
Page 2 of 2
14503 8622F70006A355C8360684SB081B3064
Paper/Subject Code 8202asts & anaeyuiby ut A
g e t Arcount
|Futal Marka: "5|
(2% Huur
(COMPLSORVu Mark rah) sMarka
iQ| Anwer in one er te eatences each.
ut-down decisot u Magnat ('estiny
n Marenal Csti
Obxtem atainst cat acconting
What ate the types of fantel budgets"
Hudgeted sncoEs stalement and Budgetcd talatice sieet
Flesible budet
it budgt
Codme.nrf
n Methods of tr cakcven analys
Need for Cos managenect
-1s Marks
IQ.| Write Short Noto on the kokwing, (ANY THREEI(5 Murk each)
Toals and echuiques used n Managcnçat àccong
Clasiicat.ot, of costs
Need for Stabdacd Csting and Vap A
i Managemt Deciaas dsing Malgiaal Cesting Techaique
(oAnalyse ihe follow ing, ANY TWO) 0 Matk each) =20 Marks
a) Frot Lhe folluwg purtirulats, calcalate
) PV aio
fua) Break - Evi potni sale.
u}Proft ur lovs wt ales are R& ,4500
(Tls atitit of vales tepuired to carn a prof+it ef R« |,08, 000
i'erid Sales (R) Profit ths.
8.10.000
|036,K) f 200
65127 Page i of 4
FOODSIFOr 26474ES112us37e51
l
Mauagement Aceunts
Paper /ubject Code: JN202Cats &
ing lo kg of yar, tc standard materal roreineat s
4) For mak
Rate petLg )
Material Quantity (kg)
Whutc
40
Black otased
In March, I000 kg of yarn was
ts as nder
The actaal corsumpion of tLalerials
Materul Quantity (kg)
Whits hage Varnance
|Hlak Materal Pucs Varunce (r Ntalerial
Calculate ) Materal Cost Variatsce (u
coat sheel fut penod eed on 3lst March 20
prearea
95)Fitn te lulluwny information,
Amt in Rs
Particulurs
Opensme stock pf raw aterial L36,0C0
Purchases of raw aleral
|Cang stock of au maleal
Direst cvpcnses
Fa:tory ovrtieat 100'% ot r wuris foul
und Aiutat
Cost of rrangtck Ct fis
End of Paper
65127 Page &oft 4
ORFOr20A74L)zERNHI
Code M2osts &Maiagrmat Accnt
PaperiSubjeci
Man Marks 75
Ihuratlo:2 hur and 30 Min (ah uf whah carry mara
uf the ullowm awtens
IPusde sery short anact ft each
Advantage of Cost Accounting
! rof-Volue Rat
of Cot Acle
Fised lBudgd Matginalosfing
6 Lavc t buy decisiet i
4Cot raucton Vs Cust cuntso
I0 Marg.nal Cost
(15 Matki
of whuch zaty S marks
af the fallowut gaestians, cch
1 SzuE of Maicenernt Ac:uutling
J Iputace of SATlard Csing
tin Rudzets
10marks
Anwrr any of he folluwg ueslios. c s0 and 00 capusity
Parzicufars Cost per unit
Drat Mstetial
AdmtaUor Oerhradw Vrabls)
Selimg Ovethusds 20% Vablci
From the ollowirg nforaton
cort per nit Rs 1424 (6U ef Selling Price per utit and Fixed cost Rs
Callat aPVRatio hi ireak Fsen Sales it units
C Salcy la can a Put ofRs S4.096
d1 MOS n Lrts wher saes I 16,t0M uILts
Ca daaDest
r4)oo units al standud selling price o
Rs t0per Lil atd PoIt B6JoDo ant ut stardard Aelliite priC of R: 1' gr un
Aa Sales of P'rcut Aae , 0 units at Ra 14 ner unit and Pradut Bs0,020
Page &ut !
NHFRN.41C16490
Fsperujert Cte t /n AMansgent Acenh
aty L@ azk
Atsaer An y3of the following q e a e e n ('ost Accaunting sid Managcment
C d l h tvauko from thc lailwns
Standatd for a ufat af prodacten
Maletial-2..
Aeal Prhucteot 4 00 000 uts
Aral materal ued7,cCkg
Actal bou
aHss 20 pct <
Aetual taie
Eet ibu -Rs6 4n cr hour 202] and 202
Tart and otit af MM'S Amut L Deng the two sears
The Sales
wcre as tollows Proft
l0 20, CI Sales teuui1ed lo rasm a protit of
nSles ane
a H 1S.0D000
4 The espcases for the prouctien of39 unls in a faclury ar gvcn as loliows
Per Lait
em
Var abe erheads
Anitalrat:er EsnenCG (5,v2nable)
Sellng expses O fned)
istnutet espcLses (l fial)
16
uts
Cauificaton af cot bd on Iruealulty (! murks cach}
a) |stricant sl ia mainteaunce of Plant &Machinery
t) Wood Led in preHEn of tablzs and chari
tiching clots
di Steel hrs aod ia acl (actory
c Wages paid to c wtke cngagcd un mactis1ng depurtrnent
isutng department
Waes nul Le thg workers mescdn asscmbling depatineri
Coa acd , cleahint the machunery
Waca piid lo timckccpt
1458
#0221H1Ces4HOHKA
& Management Accounts.
I'aper Subjet ('ude: 3N202/Cest
2e23 Tul26
Tutal Marks: 75
2: lluurs
OLAnswer the folowin Qestions
What is Manyement Accountng?
2 Whut is Munagemment nfmtun Sywem?
What N|abour 'ost Variances?
What is Marginal Costing!
$ What do sou uderstad hs Hudet"
02 Wile Short Notes (Any
1. Write Short Note on Funetonal Budget
.Wnte Short Note on Continuos udget
isian
# Wrile Shur Note n Sales Volurie Variarnce
Wnte Short Note on Ditleent Technaquc of Costing
26
03. Solve Any 2) as undet
muth The StandurdCost Sleet is
npany is 20,000 Lnts per
Direct LabUur ohouri Rs.S per hout
tor the month
Ite tollowing ae the actaal detzils
Astua ptuduclion ard sale , 415 per kg
(2eem a W 2 6hours at Rs 6per hour
Caleulute Material and l atourVaraiices
Ihe operuting statement ofa cumpuny is as foßeows:
Sales (80,00 Rs 15 cach
12.00,00
Vanssle
Materal
1abour
Oveheads
Vanablc Lost
120,.000| J0,40,000
ROET 1,60,00)
The culacity of the plant is l Jakh units A custoner trom:USA. is desirous of buying 20,00 Inits
at a net price of Rs 10 pet unit Advice the pulucer whether or no offer shold he aceepted.
Make out a cush luw chust fot the budget period April-June, 1999 fron the follewing
ntormation
) Actul and budgeted sales:
Actual Budgeted
Anril
May 85900
Mutsl 75,000 June RO,00
34577 Page I of3
gthe yea
5457 Page 2 of 3
Paper /Sulject Code: 38202 Cost &Management Aceuunts.
2
Duratkon :2% Hours Total Mlarks: 75
etions
lestr Ouestions are conpulsory
sto the tight indicate full urks
he relevant case lawS and seetions where teouiret
esclh 10 marks
)Answer in tWo sentences
counting lo society
Benelits fest
h) Asce1talme
n cost
d Opportunity cost
of S 15 marks
0) Answer any 3 out
a) Caleulate PV ration
1Year sales Rs. 12000 profit 800
I vear sales Rs. 14000 prof Rs, 1300
b) Prepare i sheet
Mateial 15000
Direct Jabour 15000
factory expenses 1000
Office Expenses 20000
Profit 50% of cost
c) Prepare flexible Budget for S0" cupacity
variable Rs. 20000
Fixed overbead Rs. |0000 Rs
ahle
Seu
heads
40% fixcd
Rs. 60000
Productton 2000 Units
dy Calculate Margin of Safety prulit l0% & PVratio 41
e) Frotm the fullowing data Caleulate ) Contnbution
2) Break even j
0400/
Proft Rs 3000:- ixed cost Rs. 30000
20 MMarks
03) Answer any 2
Calculate Materinl usage variances
standard quantity of Sunmica per table 4 sq.l
Standard price per sq.fî. Rs.
Actual poduction l000 tablcs
Sunmica actually used 43000 sq.
Actual purchuse price per sq. f. Rs. 5 50,
Page I of 2
54506
X1010Y4DsC13NI00Y4D5CI3XN010Y41)5C13x10LuY4DSCL4
Paper / Subject Code: 38202 / Costs & Management
Accounts.
b fixed cost Rs. 2,00,000/
variable cost Rs. 14 per unit
current market pricc Rs. 16 per unit
Output 100000 units
should company sell or not?
Sclling Rs. 300 unit variable cost Rs. 180/- per unit. Fixcd cost Rs. 12,00,000/
int
2)
What is hreak even
What is the selling price per unit if break Even point is 24000 units?
Q4) Answer any 3 of the following 30 marks
a) From the following data find out PV ratio in cach of the independent situations.
1) Variable cost Rs,120/- contribution Rs. 80/
2) Sales Rs. 40 contribution Rs. 30/
b) Calculate Profit at diffeYent sales volumes
1) Sales Rs. 120000
2) Sales Rs. 200000
Fixed cost Rs. 24000
Selling price Rs, 24 per unit
c) Prepare a statement of Budgeted profit for product direct material @ Rs 40 per kg Rs. 80
direct wages @Rs. 90 per hour 10 hours factory variable cost Rs. 20 per unit
Factory fixed cost Rs. 18 per unit
Budgeted productions 12800ùnits selling price Rs. 280 per unit
d) Prepare a cash budge from April June 2020
Sale's Purchase Wages Expense
184000 104000 18000 14000
April 20000 16000
May 200000 120000
220000 110000 24000 18000
June
1) 50% sales are on credit
2) Collection from Debtors 1 Months
3) Tax payable in June 10000
4) Sales in March 200000
5) Cash Balance 1 April 100000
e) Calculate-Labour coast variance
Actual production 20000 units
Actual Hours 30600 Hours
Standard rate Rs. 8per hours
Standard Hours per unit 30 hours
