Cost Accounting Solved Question Paper 2014, Gauhati University Solved Question Papers

Gauhati University Solved Question Papers
Cost Accounting Solved Question Paper 2014
Full Marks: 80
Time: 3 hours
(The figures in the margin indicate full marks for the questions)

1. Answer as directed: 1×6=6

a) What is just-in-Time Purchasing?

Ans: Just-in-time purchasing means providing materials to the production facility just as they are required for use.

b) Define ‘Codification of materials’.

Ans: Codification of materials is the process of assigning a number or symbol to each store item, along with a name, in order to make it easy and convenient to identify.

c) What is ‘Time Booking’ in Labour Cost Control?

Ans: TIME-KEEPING: This department is concerned with maintenance of attendance time and job time of workers. Attendance time is recorded for wage calculation and job time or time booking is considered for computing time spent for each department, job, Operation and Process for calculating labour cost department wise, job wise and of each process and operation.

d) Mention the meaning of ‘Time and Motion Study’.

Ans: Time and Motion Study: The study of time and motion is essential for designing an incentive system. Time study determines the time to be spent on the job. Standard time is the time that should be taken for completing a particular job under standard or normal working conditions. For fixation of standard time, motion study is necessary. Thus, the motion study precedes the time study. Motion study means dividing the job into fundamental elements or basic operations of the job or process and studying them in detail to eliminate the unnecessary elements or motions.

e) Give two features of ‘Process Costing’.

Ans: Features/Characteristics of Process Costing:

a) Process Costing Method is applicable where the output results from a continuous or repetitive operations or processes.

b) Products are identical and cannot be segregated.

f) Mention two difficulties involved in process costing.

Ans: The following are the problems of Process Costing:

a) Cost obtained at the end of the accounting period are only of historical value and are not very useful for effective control.

b) Where different products arise in the same process, it is not possible to exactly ascertain the total cost of the products.

2. Answer the following questions briefly: 3×5=15

a) Explain the practical difficulties faced while installing Cost Accounting System in are organisation.

Ans: Steps in Installation of a Costing System3

The costing system of an organization should be carefully planned in order to achieve its objectives. The important steps for the installation of a costing system are discussed below:

1) Determination of objectives: The first step is to clearly lay down the objectives of the costing system. If the objective is only to ascertain the cost, a simple system will be sufficient. However, if the objective is to get information for decision making, planning and control, a more elaborate system of costing is necessary.

2) Study of the nature of business: The nature of the business and other technical aspects like nature of the products, methods and stages of production cycle should be carefully analyzed. Such an analysis is necessary to decide the method of costing to be adopted. For example, contract costing is suitable for large construction projects. Operating costing is adopted by service industries like transport.

3) Study of the nature of the organization: The costing system should be designed to meet the requirements of the organization. Hence, it is necessary to study the nature, size and layout of the organization. The factors to be considered are:

a. Size of the organization and the size of the departments.

b. The physical layout of the organization.

c. The different levels of management.

d. The extent of decentralization of authority.

e. The nature of authority relationships.

4) Deciding the structure of cost accounts: A suitable costing system can be developed on the basis of the study of the nature of business and organization. The structure of cost accounts should be simple and in accordance with the natural production process.

5) Determination of cost rates: This step involves a thorough study of the following points for developing an integrated costing system.

a. Classification of costs into direct and indirect costs.

b. Grouping of indirect costs (overheads) into production, administration, selling and distribution etc.

c. Methods of pricing issues.

d. Treatment of wastes of all types.

e. Absorption of overheads.

f. Calculation of overhead rates.

6) Organization of the cost office: The cost office is responsible for the efficient operation of the costing system. The cost office, with adequate staff must be located a close as possible to the factory. The following are the major functions of the cots office.

a. Stores accounts.

b. Labour accounting

c. Recording of cost data and

d. Cost control.

7) Further, the role and duties and responsibilities of the cost accountant must be clearly defined. He must have the necessary authority to discharge his duties effectively.

8) Introducing the system: After completion of the above steps, the costing system may be formally introduced. Introduction of the system in an existing organization should be done
gradually. Before introduction, the feature of the systems, its working and advantages must be explained to the concerned employees to secure their co-operation.

b) Define, with examples, the meaning of

1) Cost Unit and

2) Cost Centre.

Ans: 1) Cost Centre: A large business is divided into a number of functional departments (such as production, marketing and finance) for administrative convenience. These departments are further divided into smaller divisions for cost ascertainment and control. These smaller divisions are called cost centers. A cost centre is a location, person or item of equipment (or group of these) in relation to which cost can be ascertained and controlled. In simple words, it is a subdivision of the organization to which cost can be charged.

The determination of suitable cost centre is very important for the purpose of cost ascertainment and control. The manager of a cost centre is held responsible for control of cost of his cost centre. The number and size of cost centers vary from organization to organization. The selection of a suitable cost centre depends on the following factors:

a. Nature and size of the business.

b. Layout and organization of the factory.

c. Availability of various cost data and information.

d. Management policy regarding cost ascertainment and control.

2) Cost Unit: It is a unit of production, service or time or combination of these, in relation to which costs may be ascertained or expressed. It should be one with which expenditure can be most readily associated. An appropriate cost unit should be selected keeping in view the following:

a) Cost units should suit the business.

b) It should be most natural to the business.

c) Cost unit should be readily understood and accepted by all concerned.

d) Cost unit should be uniformly maintained over a period of time and should be same or similar products.

Cost Units differ from one business to the other. They are usually units of physical measurement like number, weight, area, volume, time, length and value.

c) What are the essential of ‘Perpetual Inventory System’?

Ans: Perpetual Inventory System: Perpetual Inventory system means continuous stock taking. CIMA defines perpetual inventory system as ‘the recording as they occur of receipts, issues and the resulting balances of individual items of stock in either quantity or quantity and value’. Under this system, a continuous record of receipt and issue of materials is maintained by the stores department and the information about the stock of materials is always available. Entries in the Bin Card and the Stores Ledger are made after every receipt and issue and the balance is reconciled on regular basis with the physical stock. The main advantage of this system is that it avoids disruptions in the production caused by periodic stock taking. Similarly, it helps in having a detailed and more reliable check on the stocks. The stock records are more reliable and stock discrepancies are investigated and appropriate action is taken immediately.

Salient features of perpetual inventory system

a) It requires more efforts to maintain inventory under this method.

b) Quantity balances shown by the store ledger and bin cards are reconciled.

c) A number of items are physically checked systematically and by rotation.

d) The method is comparatively costly as compared to periodical inventory system.

e) Store ledger and bin cards keeps inventory record up-to date and decent.

d) Mention the causes of high labour turnover.

Ans: Causes of Labour turnover: The causes for labour turnover can be broadly classified under three heads.

(1) Personal Causes

(2) Unavoidable Causes

(3) Avoidable Causes

i) Personal Causes: Some of the employees may leave the organization on account of personal reasons as given below:

(a) Circumstances of family.

(b) Retirement on reaching the prescribed age.

(d) Dislike for the job or place;

(e) Death of the employee.

(f) Employee getting recruited in a better job.

(g) Permanent disability due to accidents.

(h) Involvement of employee in activities of moral turpitude.

ii) Unavoidable Causes: In certain instances, the organization may discharge the employees due to unavoidable reasons as mentioned below:

(a) Termination of workers on account of insubordination or inefficiency

(b) Discharge of workers on account of irregularity or long absence.

iii) Avoidable Causes: Some of the employees may leave the organization account of the following reasons:

(a) Non availability of promotion opportunities

(b) Dissatisfaction with incentive schemes

(d) Unsuitable to job due to wrong placement

(e) Unhappy with working conditions(f) Non availability of accommodation, health and recreational facilities

(g) Lack of stability of Tenure.

e) Discuss the applicability of Process Costing.

Ans: Application of Process Costing

There are number of industries where Process costing system can be used except where job, Batch or Unit Operation Costing is necessary. The following are examples of industries where process costing is applied:

a) Where the final product merges only after two or more process such as paper-the raw material, bamboo is made into pulp; pulp is a made into paper and then it is finished, glazed etc. for sale;

b) The product of one process becomes the raw material of another process or operation e.g. refined groundnut oil is the material for making vegetable ghee and

c) Different products may have a common prior process e.g. brass goods will require melting of brass commonly for all goods. Another example is petroleum products by the same refinery.

Some other industries where Process Costing is applied are: Chemical works, Textiles, weaving, spinning, Soap making, Food product, Box making, Canning factory, Coke works, Paint, ink and varnishing etc.

3. Answer the following questions: 5×2=10

(a) Write a brief note on ‘Methods of Classification’ of overheads in cost accounting.

Ans: Classification of Overheads

Classification of overheads is the process of grouping of costs based on the features and objectives of the business organization. Classification is made according to following basis:

a) Classification according to Elements: According to this classification overhead are divided according to their elements. The classification is done as per the following details.

1. Indirect Materials: Materials which cannot be identified with the given product unit of cost center is called as indirect materials. For example, lubricants used in a machine is an indirect material, similarly thread used to stitch clothes is also indirect material. Small nuts and bolts are also examples of indirect materials.

2. Indirect Labour: Wages and salaries paid to indirect workers, i.e. workers who are not directly engaged on the production are examples of indirect wages.

3. Indirect Expense: Expenses such as rent and taxes, printing and stationery, power, insurance, electricity, marketing and selling expenses etc are the examples of indirect expenses.

b) Functional Classification: Overheads can also be classified according to their functions. This classification is done as given below.

1. Manufacturing Overheads: Indirect expenses incurred for manufacturing are called as manufacturing overheads. For example, factory power, works manager’s salary, factory insurance, depreciation of factory machinery and other fixed assets, indirect materials used in production etc. It should be noted that such expenditure is incurred for manufacturing but
cannot be identified with the product units.

2. Administrative Overheads: Indirect expenses incurred for running the administration are known as Administrative Overheads. Examples of such overheads are, office salaries, printing and stationery, office telephone, office rent, electricity used in the office, salaries of administrative staff etc.

3. Selling and Distribution Overheads: Overheads incurred for getting orders from consumers are called as selling overheads. On the other hand, overheads incurred for execution of order are called as distribution overheads. Examples of selling overheads are sales promotion expenses, marketing expenses, salesmen’s salaries and commission, advertising expenses etc. Examples of distribution overheads are warehouse charges, transportation of outgoing goods, packing, commission of middlemen etc.

4. Research and Development Overheads: In the modern days, firms spend heavily on research and development. Expenses incurred on research and development are known as Research and Development overheads.

c) Classification according to Behavior: According to this classification, overheads are classified as fixed, variable and semi-variable. These concepts are discussed below.

1. Fixed Overheads: Fixed overheads are commonly described as those that do not vary in total amount with increase or decrease in production volume, for a given period of time, may be a year. Salaries, depreciation of fixed assets, property taxes, are some of the examples of fixed costs. Total fixed costs remain same irrespective of changes in volume of production but per unit of fixed cost is variable. It increases if production decreases while if production increases, it decreases.

2. Variable Overheads: Variable overheads are those which go on increasing if production volume increases and go on decreasing if the volume decreases. Such increase or decrease may or may not be in the same proportion. Variable overheads are generally considered to be controllable as they are directly connected with the production.

3. Semi-variable Overheads: These types of overheads remain constant over a relatively short range of variation in output and then are abruptly changed to a new level. In other words, they remain same up to a certain level of output and after crossing that level, they start increasing. For example, supervisor’s salary is treated as fixed but if a decision is taken to operate a second shift, additional supervisor may have to be appointed which results into increase in the salary of the supervisor. This indicates that it is a semi-variable overhead. Similarly, maintenance expenditure, fire insurance are also semi-variable overheads.

Write a brief note on ‘Methods of overhead absorption in Cost Accounting.

Ans: The methods used for absorption are as follows:

a. Direct Material Cost: Under this method, the overheads are absorbed on the basis of percentage of direct material cost. The following formula is used for working out the overhead absorption percentage: Budgeted or Actual Overhead Cost/ Direct Material Cost X 100

b. Direct Labor Cost Method: This method is used in those organizations where labor is a dominant factor in the total cost. Under this method, the following formula is used for calculating the overhead absorption rate: Budgeted or Actual Overheads/ Direct Labor Cost X 100

c. Prime Cost Method: This method is an improvement over the first two methods. Under this method, the Prime Cost is taken as the base for calculating the percentage of absorption of overheads by using the following formula: Budgeted or Actual Overheads/ Prime Cost X 100

d. Production Unit Method: This method is used when all production units are similar to each other in all respects. Total overhead expenses are divided by total production units for computing the rate per unit of overheads and overheads are absorbed in the product units. If a firm produce more than one products and if they are not uniform to each other, equivalent units are calculated to find out the rate of overheads per unit. The formula of absorption of overheads is as follows: Overhead absorption rate = Budgeted or Actual Overheads/Production Units

e. Direct Labor Hour Method: Under this method, the rate of absorption is calculated by dividing the overhead expenses by the direct labor hours. The formula is as follows. Budgeted or Actual Overhead Expenses/Direct Labor Hours

f. Machine Hour Rate: Where machines are more dominant than labor, machine hour rate method is used. CIMA defines machine hour rate as ‘actual or predetermined rate of cost apportionment or overhead absorption, which is calculated by dividing the cost to be appropriated or absorbed by a number of hours for which a machine or machines are operated or expected to be operated’. In other words, machine hour rate is the cost of operating a machine on per hour basis. The formula for calculating the machine hour rate is, Budgeted or Actual Overhead Expenses/ Machine Hours

g. Selling Price Method: In this method, selling price of the products is used as a basis for absorbing the overheads. The logic used is that if the selling price is high, the product should bear higher overhead cost. Ratio of selling price is worked out and the overheads are absorbed.

(b) Describe the treatment of the following items in Cost Accounting:

1) Depreciation.

2) Interest of Capital.

Ans: 1) Interest on Capital: This item of expenses is a controversial one. Some accountants suggest that this is purely a financial cost and has got nothing to do in cost accounts. Others contend that, like other factor prices, interest on capital should also be treated as an element of cost. The arguments for and against inclusion of interest in cost are as follows:

Arguments for inclusion:

a) As rent is paid for the use of accommodation, interest is paid for the use of capital. If rent is included in cost why interest should be excluded?

b) Comparison of cost in two organisations cannot be dependable unless interest is considered in both.

Arguments against inclusion:

a) Interest is a matter of internal finance and hence it is not connected with cost of production.

b) Interest is paid on borrowed capital. No interest is payable on proprietor’s own capital. Since it is difficult to decide as to whether interest on borrowed capital or interest on entire capital should be considered for cost accounts, it is better to exclude the item altogether.

2) Depreciation: Depreciation is divided into three categories. First, depreciation on factory assets is charged to factory overheads. Second, depreciation of office equipments charged to office and administrative overheads. Third, depreciation of delivery van charged to selling and distribution overheads.

The following budget is presented before you for the year 2014-15.

Particulars

Rs.

Factory overheads

Direct labour cost

Direct labour hours

Machine Hours

62,000

98,000

15,500 hours

50,000 hours

There will be 3,000 direct labour and 10 machines working during 2014-15. You are required to calculate –

1) Direct Labour Hour Rate.

2) Direct Labour Cost Rate.

3) Machine Hour Rate.

4. Explain the following questions: 5×2=10

a) Explain the meaning and basic features to ‘Integral System of Cost Accounting records’.

Ans: Meaning: Integrated or Integral accounting is a system in which cost and financial accounts are kept in the same set of books. In such a system, transactions of both cost and financial accounts are recorded in one combined set of books based on double entry system. This system eliminates the need for separate sets of account books for costing and financial accounting purposes. Accounts are designed in such a way that full information required for costing as well as financial accounting purposes is obtained from one set of books.

Features of Integral accounting

Integral accounting has the following distinctive features:

1. In integral accounting, there is no need to open a Cost Ledger Control Account as it is possible to complete double entry without this account.

2. Subsidiary ledgers, i.e., stores ledger, work-in-progress ledger and finished goods ledger are maintained as in done in non-integrated accounting. In addition, a sales ledger (containing personal accounts of all customers) and a purchase ledger (containing personal accounts of all suppliers) are also maintained. Overheads ledger is maintained to contain separate accounts for factory, administration and selling and distribution overheads.

3. For each subsidiary ledger, a control account is opened in the general ledger. Main control accounts are as follows:

(a) Stores ledger control account.

(b) Work-in-progress ledger control account.

(d) Wages control account.

(e) Factory overheads control account.

(f) Administrative overheads control account.

(g) Selling and distribution overheads control account.

(h) Sales ledger control account.

(i) Purchase ledger control account.

4. Balance in various overheads control accounts represents over or under absorption which is transferred toProfit and Loss Account.

5. Balance in Profit and Loss Accounts represents profit or loss which is transferred to Profit and Loss Appropriation Account.

b) Explain the possible reasons for differences between Profit (Loss) shown by Cost Accounts and Financial Accounts.

Ans: Reasons for disagreement between Profits as per financial accounting and Profits as per cost accounting:

The difference in the profitability of cost and financial records may be due to the following reasons.

1) Items included in the financial accounts but not in cost accounts.

Ø Purely financial income- such as interest received on bank deposits, interest and dividend on investments, rent receivables, transfer fee received, profit on the sale of assets etc.

Ø Purely financial charges – such as losses due to scraping of machinery, losses on the sale of investments and assets, interest paid on the bank loans, mortgages, debentures etc., expenses of company’s transfer office, damages payable at law etc.

Ø Appropriation of profit – the appropriation of profit is again a matter which concerns only financial accounts. Items like payment of income tax and dividends transfer to reserve, heavy donations, writing off of preliminary expenses, goodwill andpatents appear only in profit and loss appropriation account and the costing profit and loss a/c is not affected.

2) Items included in cost accounts only: There are certain items which are included in cost accounts but not in financial accounts. They are: Charges in lieu of rent where premises are owned, interest on capital employed in production but upon which no interest is actually paid.

3) Under/Over absorption of overhead expenses: In cost accounts, overheads are absorbed at predetermined rates which are based on past data. In the financial accounts the actual amount incurred is taken into account. There arise a difference between the actual expenses and the predetermined overheads charged to product or job. If overheads are not fully recovered, which means that the amount of overheads absorbed in cost accounts is less than the actual amount, the shortfall is called as under recovery or under absorption. If overhead expenses recovered in cost accounts are more than that of the actually incurred, it is called over absorption. Thus, both the over and under recovery may cause the difference in the profits of both the records.

4) Different basis of stock valuation: In cost accounts, the stock of finished goods is valued at cost by FIFO, LIFO, average rate, etc. But, in financial accounts stocks are valued either at cost or market price, whichever is less. The valuation of work-in-progress may also lead to variation. In financial books only prime cost may be taken into account for this purpose whereas in cost accounts, it may be valued at prime cost plus factory overhead.

5) Different basis of depreciation adopted: The rates and methods of charging depreciation may be different in two sets of accounts.

5. Answer the following questions:

(a) From the following information, prepare a Cost Sheet showing cost per unit and show the profit for the month of January 2014. 9

Particulars

Rs.

Raw Materials Consumed

Direct wages

Selling Overhead per unit

Machine hours worked

Machine hour rate

Office Overhead

Unit Produced

Unit Sold

Sales

80,000

48,000

150

8,000 hours

4 per hour

10% of works cost

4,000

3,600 @ Rs. 50 each

18,000

(b) From the following particulars find out the value of Closing Inventory as on 31.3.2014. 10

Purchases:
2014, March	3 7 17	400 kgs @ Rs. 2.50 per kg. 800 kgs @ Rs. 3.00 per kg. 500 kgs @ Rs. 3.50 per kg.
Issues:
2014, March	5 9 25	600 kgs. 500 kgs. 600 kgs.

Stock on March 1, 2014 was 500 kgs valued @ Rs. 2.00 per kg. The stock verification on March 27 revealed that there was a loss of 10 kg. Apply FIFO Method.

Discuss the merits and demerits of FIFO and LIFO methods of inventory valuation.

Ans: First in First Out Method (FIFO)

According to this method the units first entering the process are completed first. Thus the units completed during a period would consist partly of the units which were incomplete at the beginning of the period and partly of the units introduced during the period.The cost of completed units is affected by the value of the opening inventory, which is based on the cost of the previous period. The closing inventory of work-in-process is valued at its current cost.

Advantages:

a. This method is simple to understand and easy to operate.

b. The closing stock is valued at the current market price.

c. Since issues are priced at cost, no profit or loss arises from pricing.

d. This method is more suitable in times of falling prices.

e. Deterioration and obsolescence can be avoided.

Disadvantages:

a. When prices fluctuate, calculation becomes complicated. This increases the possibility of clerical errors.

b. During the period of price fluctuations, material charged to jobs vary. Therefore, comparison between jobs is difficult.

c. During the period of rising prices, product costs are under stated and profits are overstated. This may result in payment of higher dividend out of capital.

Last in First Out Method (LIFO)

According to this method unit last entering the process are to be completed first. The completed units will be shown at their current cost and the closing-work in process will continue to appear at the cost of the opening inventory of work-in-progress along with current cost of work in progress if any.

Advantages:

a. Issues are based on actual cost.

b. Issue price reflects current market price.

c. Product cost will be based on current market price and hence will be more realistic.

d. There is no unrealized profit or loss.

e. Simple to operate if purchases are not many and prices are steady or rising.

f. When prices are raising this method is helpful in preparation of quotation or estimates.

Disadvantages:

a. This method involves considerable clerical work.

b. Under felling price, issues are priced at lower prices and stocks are valued at higher rates.

c. Stock of material shown in the balance sheet will not reflect market price.

d. Due to variation in prices, comparison of cost of similar job is difficult.

e. This method is not accepted by the income tax authorities.

(c) Calculate the total monthly remuneration of two workers: A and B from the following data: 10

1) Standard production per month per workers 200 units.

Actual Production:

A: 1,800 units

B: 1,600 units.

2) Piece Work rate in Re. 1.00 per unit of actual production.

3) Additional production bonus is Rs. 20 for each percentage actual production exceeding 80% of actual production.

Give the treatment of the following items as applied in Cost Accounting: 10

1) Direct Expenses.

2) Indirect Expenses.

3) Interest on Capital.

4) Research and Development expenses.

5) Depreciation.

Ans: 1) Direct expenses are those which are incurred for and may be conveniently identified with a particular cost centre or cost unit. Direct expenses forms part of prime cost. It is added with direct material and direct labour to find out prime cost.

2) Indirect expenses are those cost which are incurred for the benefit of number of cost centers or cost units and cannot be conveniently identified with a particular cost centre or cost unit. Examples of indirect expenses are factory overheads, office and administrative overheads, selling and distribution overheads. Factory overheads are added with prime cost to find out works cost, office and administrative overheads are added with works cost to find cost of production and selling and distribution overheads added with cost of production to find total cost.

3) Interest on Capital: This item of expenses is a controversial one. Some accountants suggest that this is purely a financial cost and has got nothing to do in cost accounts. Others contend that, like other factor prices, interest on capital should also be treated as an element of cost. The arguments for and against inclusion of interest in cost are as follows:

Arguments for inclusion:

a) As rent is paid for the use of accommodation, interest is paid for the use of capital. If rent is included in cost why interest should be excluded?

b) Comparison of cost in two organisations cannot be dependable unless interest is considered in both.

Arguments against inclusion:

a) Interest is a matter of internal finance and hence it is not connected with cost of production.

4) Research and experimental cost: These are costs incurred in the discovery of new ideas or process by experiment or otherwise and for putting the results of such experiments on commercial basis. Research may also be done for improvement of an existing process or product. Research may be of two types – (a) fundamental research, and (b) applied research.

(a) Fundamental research does not aim at a specific tangible result and is a continuous process. So, cost incurred on such a continuous process during a particular period should be treated as works overhead of that period. If, however, the process is not a continuous one for any reasons, the cost may be spread over a number of years depending upon the amount involved.

(b) When expenses are incurred on applied research for improving an existing product or method, such expenses should be treated as works overhead of the period in which they have been incurred. When expenses are incurred in a research for new product or method, separate project number should be allotted for research for each purpose and expenses should accordingly. Now, this research may either end in failure or end in success. In case of cost should be written off to costing profit and loss account. If it is a success, the expenses should be debited to development cost. The total of research and development cost for each project should be treated as deferred revenue expenditure to be charged to product or products over a number of periods. If such research and development cost relates to a particular product, it should be directly charged to that product only over a number of periods. If it relates to a production method, such cost should be charged to works overhead account over a number of periods.

5) Depreciation: Depreciation is divided into three categories. First, depreciation on factory assets is charged to factory overheads. Second, depreciation of office equipments charged to office and administrative overheads. Third, depreciation of delivery van charged to selling and distribution overheads.

(d) The following is the condemned record of transaction on 31^st March, 2014 relating to a special contract completed on the same financial year. 10

Rs.

Materials bought from Market

Materials issued from the Stores

Wages

Direct Expenses

3,000

1,000

4,880

588

Work on cost 25% of Direct Wages; Office on cost 10% of Prime Cost; Contract Price Rs. 12,000. You are required to prepare a Contract Account keeping in view that material returned amounted to Rs. 480.

Also Read: Gauhati University Cost Accounting Solved Question Papers

– Cost Accounting Solved Paper’ 2011

– Cost Accounting Solved Paper’ 2012

– Cost Accounting Solved Paper’ 2013

– Cost Accounting Solved Paper’ 2014

– Cost Accounting Solved Paper’ 2015

– Cost Accounting Solved Paper’ 2016

– Cost Accounting Solved Paper’ 2017

– Cost Accounting Solved Paper’ 2021 (CBCS Pattern)

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Gauhati University Solved Question Papers Cost Accounting Solved Question Paper 2014 Full Marks: 80 Time: 3 hours (The figures in the margin indicate full marks for the questions)

Gauhati University Solved Question Papers
Cost Accounting Solved Question Paper 2014
Full Marks: 80
Time: 3 hours
(The figures in the margin indicate full marks for the questions)