TT NP - 300 Ill Semester B.B.A. Examination, March/April 2023 (NEP) (2022-23 and Onwards) (Freshers) BUSINESS ADMINISTRATION Paper — 3.1 : Elements of Cost Accounting Time : 2% Hours Max. Marks : 60 Instruction : Answers should be written in English only. SECTION-A 1. Answer any 6 of the following sub-questions. Each sub-question carries 2 marks. (6x2=12) a) What do you mean by a cost centre ? b) Write any two objectives of cost accounting. ¢) What is purchase requisition ? To whom it is submitted 2, d) What is time keeping ? e) What is ABC analysis 2 f) State any four examples of administration overheads. g) What is predetermined cost ? h) What is machine hour rate ? SECTION -B Answer any three of the following questions. Each question carries 4 marks. (3x4=12) 2. What are the essentials of a good wage payment system ? 3. Prepare a cost sheet from the following information : z Direct materials 1,00,000 Production wages 60,000 Factory expenses 40,000 Sale of scrap 2,000 Office overheads 32,000 Selling expenses 13,000 Sales 2,72,000 PTO.NP - 300 ‘ACN 4. Calculate the EOQ from the following/* Annual usage 600 units Ordering cost % 12 per order Carrying cost 20% Price per unit % 20. a Standard time 10 hours Hourly rate = 2 Time taken 6 hours. a Cost of machine Scrap value . Calculate total earnings of worker under Halsey and Rowan Plan From the following particulars calculate the machine hour rate. 11,000 = 680 Repairs for effective working life % 1,500 Standing charges for 4 weeks = 1,600 Effective working life Power used Hours worked in 4 weeks 10,000 hours 6 units per hour @ 5 paise per unit 120 hours SECTION -C ‘Answer any three of the following questions. Each question carries 12 marks. (3x12=36) 7. The following particulars are obtained from Tom and Jerry Co. Ltd. as on 318! December 2021. Raw materials used Direct wages Factory overheads Administrative overhead Selling overhead Profit z 8,64,000 7,20,000 4,32,000 4,09,600 5,04,000 5,85,920CA a a) Prepare cost sheet for 2021. b) In 2022 the company received an order. Itis estimated that direct materials would cost % 8,32,000 and labour % 7,20,000. What should be the price to be quoted to earn the same rate of profit on sales as in 2021 ? Assume that factory overhead is recovered as a percentage of direct wages, administrative and selling averhead as a percentage on works cost, based on cost prevailing in the previous year. 8. From the following information prepare Stores Ledger Account under LIFO method. 18t Jan. Opening stock 200 pieces @ % 2 each 5th Jan. Purchases 100 pieces @ % 2.20 each 10" Jan. Purchases 150 pieces @ % 2.40 each 20' Jan. Purchases 180 pieces @ % 2.50 each 2nd Jan. Issues 150 pieces 7" Jan. Issues 100 pieces 12th Jan, Issues 100 pieces 28' Jan. Issues 200 pieces 9. From the following particulars prepare labor cost sheet per man-day of 8 hours. a) Basic salary % 2 per day b) Dearness allowance 25 paise for every point over 100 cost of living index. Current cost of living index 700 points c) Leave salary 10% of (a) and (b) d) Employer's contribution to PF 8% ofarb+c e) Employer's contribution to state insurance 2.5% of a+b+c f) Expenditure on amenities % 20 per head per month g) Number of working days in a month 25 days of 8 hours eachoe 4 ‘AA 40. Dora and Co. has three production departments A, B and C and two service departments D and E. The following figures are extracted from the records of the company. ig z Rent and rates 5,000 General lighting 600 Indirect wages 1,500 Power 1,500 Depreciation of Sundries 10,000 machinery 10,000 The following further details are available : Total__[ A B c D E Floor space(Sq.ft.)| 10,000 | 2,000 | 2,500 | 3,000 | 2,000] 500 Light points 60 10 15 20 70 | 5 Direct wages (%)_| 10,000 | 3,000 | 2,000 | 3,000 | 1,500] 500 HP of machines | 150 60 30 50 10 | — veueial 2,50,000} 60,000} 80,000] 1,00,000] 5,000} 5,000 machinery @)_| 250% A ; a : Apportion the costs to various departments on the most equitable basis. a) Whats labour turnover ? Discuss the steps to be taken for minimising labour turnover (any 6). b) The component 4 is used as follows : Normal usage 50 units per week each Minimum usage 25 units per week each Maximum usage 75 units per week each Re-order quantity 300 units Re-order period 4-6 weeks Calculate : a) Re-order level b) Minimum level c) Maximum level 6