FIRST HOME ASSESEMENT 2068

Class: - BBS 1^st yr.          Cost & Mgmt. Accountancy        Full Marks: - 100

Course No.: - MGT 212                                                         Pass Marks: - 40

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1. 1. What is meant by 'Costing', 'Cost Accounting' and 'Cost Accountancy'?                        5
2. 2. Define fixed cost, variable cost and semi variable cost with suitable example of each one.       5
3. 3. What do you mean by Inventory Management? Write in short its two objectives.       5
4. 4. What do you mean by labour cost?                                                                                        5
5. 5. The monthly manufacturing cost of a concern for two different levels of activities are as follows:

Required: Classify the above overhead into fixed cost, variable cost and semi variable cost with reason.             5

1. 6. Consider the following information:

Required: Using High Low Method, calculate

1. a. Variable cost per unit
2. b. Fixed cost
3. c. Total cost for the output of 5000 units                                       1.5+1.5+2
4. 7. The cost structure of a company at different level of production for last five years has been presented below:

Required: Using Least Square Method, calculate

1. a. Variable cost per unit
2. b. Fixed cost
3. c. Total cost for the output of 1000 units                                       1.5+1.5+2
4. 8. The annual usage of a factory is 5000 units. The unit cost is Rs. 400 and inventory holding charge is 25% per year of inventory value. The cost per procurement is Rs. 2500.

Required:

1. a. The optimum order quantity
2. b. Optimum number of orders per year
3. c. Minimum average yearly cost
4. d. Time between tow consecutive orders.                                         2+1+1+1
5. 9. A manufacturing Co.'s requirement of cloth is 24000 units for a year. The ordering cost is Rs. 75 and the carrying cost per unit is Rs. 10. The inventory value per unit is Rs. 5. If the following schedule is applicable to the firm where supplier offers to purchase in lot size 600 units, 4000 units, 8000 units, 12000 units and 24000 units, determine the most economic order quantity by considering the discount and also calculate EOQ without considering discount.                                        5

1. 10. A Co. has been procuring 160000 units costing Rs. 100 each in 20 installments. The procurement cost is Rs. 1000 per procurement and the estimated storing cost is 20% of inventory value.

Required:

1. a. Total cost of the existing purchasing policy.
2. b. Total cost of optimum purchasing policy.
3. c. Recommendation the best policy                                                       2+2+1
4. 11. You are provided the following information of a factory:

Weekly consumption                3500-5600 units

EOQ                                              5000 units

Re-order period                          5-9 days

Maximum re-ordering period for emergency purchase 20 days

Required:

1. a. Reorder level
2. b. Maximum stock level
3. c. Minimum stock level
4. d. Average inventory level using both formulae
5. e. Danger stock level                                                                                 1x5=5
6. 12. A Co. pay proposed under Halsey premium plan to a worker is Rs. 2000. The pay was determined at an hourly wages rate of Rs. 16. The specification of normal time for the job was 150 hours.

Required:

1. a. Time spent by the worker to complete the job
2. b. Time saved by the worker
3. c. Total wages if Rowan premium plan is followed                            2+1+2
4. 13. Monthly actual production/yield of the workers are as under:

Standard output per minute                2 units

Working hour per day                           8 hrs

Working days per week                        5 days

Normal piece rate                                  Rs. 5

Required: Monthly wages of workers under

1. a. Straight piece rate system
2. b. Taylor's differential piece rate system
3. c. Gantt's task and bonus plan                                                                         5
4. 14. Worker employed for 150 hours at a wages of Rs. 50 per hour has produced 2000 units. The standard output per hour is 10 units.

Required: Wages payable to the workers based on Taylor's differential piece rate system ranging 85% and 130% and Gantt's task Bonus Plan                                                                                                              5

1. 15. The following data were available for a manufacturing co. for the year 2011:

Following data were gathered for the specific job carrying in year 2012:

Required: Calculate the overhead rate and total overhead for the job under various basis       5

1. 16. Calculate hourly rate for a machine operating for 5000 total hours during a year by making a systematic classification of costs:

Outlay for machine Rs. 100000 with Rs. 10000 residual value

Total working hour of machine 40000 hours

Setting up time 25% of total machine hours

Power consumption Rs. 5 per hour working

Repairs & maintenance cost Rs. 15000 effective total machine hours

Annual lighting expenses Rs. 12000

Machine attendant's annual salary Rs. 20000                                                                     7

1. 17. The picture of the three production departments A, B and C and one service department S of the last month are as follows:

The following expenses were incurred for that month:

Wages expenses                        40000

Selling & Dis. expenses            42000

Store overhead                         30000

Cafeteria overhead                  24000

Power for the machine            36000

Required:

1. a. Primary overhead distribution summary
2. b. Re-apportionment of overhead of service department
3. c. Overhead rate under machine hour                                                   3+2+3
4. 18. Prepare reconciliation statement and determine the amount of profit shown by cost account from the following information:        5

Trading and P/L account

For the year ended Chaitra 2066

In cost accounting:

Factory overhead                                  Rs. 5000

Administrative overhead                      Rs. 17000

Selling overhead                                     Rs. 8000

Opening stock                                         Rs. 6000

Closing stock                                          Rs. 13500

1. 19. The financial book of a company shows a net profit of Rs. 60000 for the year ended 31^st Chaitra 2065. On reconciliation, the following details are ascertained.

Required: Cost Reconciliation Statement 5