The document is an examination paper with various accounting questions related to Uniform Costing, journal entries, transport cost calculations, and process accounts. It includes specific instructions for candidates and outlines multiple questions that must be attempted. The paper covers topics such as advantages and disadvantages of Uniform Costing, cost calculations for transport services, and preparation of accounts for manufacturing processes.
The document is an examination paper with various accounting questions related to Uniform Costing, journal entries, transport cost calculations, and process accounts. It includes specific instructions for candidates and outlines multiple questions that must be attempted. The paper covers topics such as advantages and disadvantages of Uniform Costing, cost calculations for transport services, and preparation of accounts for manufacturing processes.
The document is an examination paper with various accounting questions related to Uniform Costing, journal entries, transport cost calculations, and process accounts. It includes specific instructions for candidates and outlines multiple questions that must be attempted. The paper covers topics such as advantages and disadvantages of Uniform Costing, cost calculations for transport services, and preparation of accounts for manufacturing processes.
The document is an examination paper with various accounting questions related to Uniform Costing, journal entries, transport cost calculations, and process accounts. It includes specific instructions for candidates and outlines multiple questions that must be attempted. The paper covers topics such as advantages and disadvantages of Uniform Costing, cost calculations for transport services, and preparation of accounts for manufacturing processes.
Instructions: 1) Ensure that the proper question paper is given to you. 2) All questions are compulsory. 3) Figure to the right indicates full marks. 4) Use of non-programmable calculator is allowed. 5) Draw neat diagram wherever necessary. 6) Symbols have usual meaning unless otherwise indicated.
Q 1 (A) Answer the following. (Attempt Any One)
(i) Explain Advantages of Uniform Costing. (5) (ii) Explain Uniform Costing. (5) Q 1 (B) Answer the following. (Attempt Any One) (i) Explain Disadvantages of Uniform Costing. (7) (ii) Explain Objectives of Uniform Costing. (7) Q 2 (A) Answer the following. (Attempt Any One) (i) Dutta Enterprises operates an integral system of accounting. (5) You are required to pass the Journal Entries for the following transactions that took place for the year ended 31 March 2024. 1. Raw Materials purchased (50% on credit) 6,00,000 2. Material issued to production 4,00,000 3. Wages paid (50% direct) 2,00,000 4. Wages charged to production 1,00,000 5. Factory Overheads incurred 80,000 6. Factory Overheads charged to production 1,00,000 7. Selling & Distribution Overheads incurred 40,000 8. Finished Goods at cost 5,00,000 9. Sales (50% credit) 7,50,000 10. Closing Stock Nil 11. Receipts from Debtors 2,00,000 12. Payments to Creditors 2,00,000 (ii) Journalize the following transactions assuming that cost and (5) financial accounts are integrated: Rs. Raw Materials purchased 1,50,000
Page 1 of 6 Direct Materials issued to production 1,12,500 Wages paid (30%) indirect 90,000 Wages charged to production 75,000 Manufacturing Expenses incurred 63,000 Manufacturing Overhead charged to production 69,000 Selling & Distribution Cost paid 15,000 Finished Product at cost 1,50,000 Sales 2,25,000 Receipts from customers 52,500 Paid to Creditors 82,500 Q 2 (B) Answer the following. (Attempt Any One) (i) The following balances were extracted from a company's ledger (7) as on 31-12-2019. Rs. Rs. Raw Materials Control A/c 1,95,344 Work-In-Progress Control A/c 58,980 Finished Stock Control A/c 87,920 Normal Ledger Control A/c 3,42,244 Further transactions took place during the following quarter as follows: Particulars Rs. Raw Materials Purchased 89,688 Raw Materials - Issued to Production 68,000 Raw Materials - Credited by Suppliers 4,000 Inventory Audit - Raw Materials Losses 5,200 Finished Goods - at Cost 1,47,336 Factory Overhead - Allocated to WIP 47,144 Direct Wages - Allocated to WIP 73,480 Cost of Goods Sold 1,68,000 WIP Rejected (with no scrap value) 7,200 Customer's Returns of Finished Goods (at cost) 12,000 (ii) The following balances were extracted from a company's ledger (7) as on 31-12-2019. Rs. Rs. Raw Materials Control A/c 48,836
Page 2 of 6 Work in Progress Control A/c 14,745 Finished Stock Control A/c 21,980 Nominal Ledger Control A/c 85,561 Further transactions took place during the following quarter as follows: Rs. Factory Overhead - Allocated to WIP 11,786 Goods Finished at Cost 36,834 Raw Materials Purchased 22,422 Direct Wages - Allocated to WIP 18,370 Cost of Goods Sold 42,000 Raw Material - Issued to Production 17,000 Raw Material - Credited by Suppliers 1,000 Inventory Audit - Raw Material Losses 1,300 WIP Rejected (with no scarp value) 1,800 Customer's Returns (at cost) of finished goods 3,000 Q 3 (A) Answer the following. (Attempt Any One) (i) A transport service company is running five buses between two (5) towns which are 50 km. apart. Seating capacity of each bus is 50 passengers. The following particulars were obtained from their books for April, 2011: Rs. Wages of drivers, conductors and cleaners 24,000 Salaries of office staff 10,000 Diesel oil and other oil 35,000 Repairs and maintenance 8,000 Taxation, insurance etc. 16,000 Depreciation 26,000 Interest and other expenses 20,000 Total Cost 1,39,000 Actually, passengers carried were 75% of seating capacity. All buses run on all days of the month. Each bus made one round trip per day. Find out the cost per passenger-kilometer.
Page 3 of 6 (ii) A transport service company is running 4 buses between two (5) towns which are 50 miles apart. Seating capacity of each bus is 40 passengers. The following particulars were obtained from their books for April, 2012. Rs. Wages of Drivers, Conductors and Cleaners 2,600 Salaries of Office and Supervisory Staff 800 Diesel oil and other oil 3,800 Repairs and Maintenance 1,000 Taxation, Insurance etc. 1,600 Depreciation 2,600 Interest and Other Charges 1,000 Total Cost 13,400 Actual passengers carried were 75% of the seating capacity. All the four buses ran on all days of the month. Each bus made one round trip per day. Find out the cost per passenger mile. Q 3 (B) Answer the following. (Attempt Any One) (i) A chemical factory runs its boiler on furnace oil obtained from (7) Indian Oil and Bharat Petroleum, whose depots are situated at a distance of 12 and 8 Kms from the factory site. Transportation of Furnace Oil is made by the Company's own tank lorries of 5 tons capacity each. Onward trips are made only on full load and the lorries return empty. The filling-in time takes an average 40 minutes for Indian Oil and 30 minutes for Bharat Petroleum. But the emptying time in the factory is only 40 minutes for all. From the record available it is seen that the average speed of the company's lorries works out to 24 miles per hour. The varying operating charges average 60 paise per mile covered and fixed charges give an incidence of Rs. 7.50 per hour of operation. Calculate the cost per ton mile for each source. (ii) Shanker has been promised a contract to run a tourist car on a 20 (7) km. long mute for the chief executive of a multinational firm. He buys a car costing Rs.1,50,000. The annual cost of insurance and taxes are Rs. 4,500 and Rs.900 respectively. He has to pay Rs.500
Page 4 of 6 per month for a garage where he keeps the car when it is not in use. The annual repair costs are estimated at Rs.4,000. The car is estimated to have a life of 10 years, at the end of which the scrap value is likely to be Rs.50,000. He hires a driver who is to be paid Rs.300 per month plus 10% of the takings as commission. Other incidental expenses are estimated at Rs.200 per month. Petrol and oil will cost Rs.100 per 100 kms. The car will make 4 round trips each day. Assuming a profit of 15% on takings is desired and that the car will be on the road for 25 days on an average per month what should he charge per round-trip? Q4 (A) Answer the following. (Attempt Any One) (i) Prepare a Process Account, Abnormal Loss Account and Normal (5) Loss Account from the following information. Input of Raw material 1000 units @ 20 per unit Direct Material 4,200 Direct Wages 6,000/- Production Overheads 6,000/- Actual output transferred to process II 900 units Normal Loss 5% Value of Scrap per unit Rs. 8/- (ii) Prepare a statement of Equivalent Production from the following (5) information. Opening Stock 1,00,000 Units, Material Rs. 50,000, Labour Rs. 20,000 Overheads Rs. 50,000. Units Introduced 4,00,000 Units Material Rs. 2,00,000, Wages Rs. 1,50,000, Overheads Rs. 1,40,000. During the period 3,00,000 units were completed and transferred to Process II. Closing stock 2,00,000 units. Degree of completion. Material 100 % Labour 50 % Overheads 40 %.
Q4 (B) Answer the following. (Attempt Any One)
(i) The product of a company passes through 3 distinct processes. The (7) following information is obtained from the accounts for the month ending January 31, 2008.
Page 5 of 6 Particulars Process – A Process – B Process – C Direct Material 7,800 5,940 8,886 Direct Wages 6,000 9,000 12,000 Production OHs 6,000 9,000 12,000 3000 units @ Rs. 3 each were introduced to process – I. There was no stock of materials or work in progress. The output of each process passes directly to the next process and finally to finished stock A/c. The following additional data is obtained: Process Output Percentage of Normal Loss to Value of Scrap p.u. Input Process – I 2,850 5% 2 Process – II 2,520 10 % 4 Process – III 2,250 15 % 5 (ii) Prepare a statement of equivalent production from the following (7) information. Opening Stock 50000 Units, Material Rs. 25000, Labour Rs. 10000 Overheads Rs. 25000. Units Introduced 2,00,000 Units Material Rs. 100000, Wages Rs. 75000, Overheads Rs. 70000. During the period 1,50,000 units were completed and transferred to Process II. Closing stock 1,00,000 units. Degree of completion. Material 100 % Labour 50 % Overheads 40 %.
Q4 Write Short Notes (Attempt Any Three) (12)
(i) Explain Current Ratio (ii) Explain Integrated Cost System (iii) Explain Operating Costing (iv) Explain Abnormal and Normal Loss
