Scribd will begin operating the SlideShare business on December 1, 2020 Achal Singhal (052). Economic Ordering Quantity 3. Profit on Closing Stock: 40,000/2,40,000 × 12,000 = 2,000, Profit on Closing Stock = 2,42,000/6,60,000 × 30,000 = Rs. Calculate the factory works cost of the product under: Production department of a company pays its workers standard wages @ Rs. 2. 7. Labour hour rates = Expenses/Labour hours worked. Privacy Policy 8. Normal loss, and . 2.00 per hour plus a bonus under the Rowan Premium Bonus Scheme and Dearness Allowance of Rs. Cost Accounting Problems on Apportioning Total Process Costs (2 Problems). Profit 25% on cost. The departmental distribution summary showed the following expenses for June 2007: Rina, a contractor got a contract to supply 100 wooden dolls per day to M/s R. K. Mitra & Co. The cost of holding a doll is Rs.
  • Cost means “the price paid for something”
  • Cost ascertainment is computation of actual costs incurred
  • Cost estimation is a process of predetermining costs of goods and service. 052 = 2/3 × 72,000 × 1,60,000/20,000 = 38,400. 34,800 beyond escalation clause the contract price will be increased by 25% of Rs. By: As of this date, Scribd will manage your SlideShare account and any content you may have on SlideShare, and Scribd's General Terms of Use and Privacy Policy will apply. In the process line of XY Company three joint products are produced for the month of May 1990. 2,000, Annual cost of carrying inventory (including interest) – 10% of cost. What would be the optimum run size for unit manufacture? 1. Cost Accounting Problems on Equivalent Production (1 Problem): 14. 5.00 + Rs. 2. sets per annum. If you wish to opt out, please close your SlideShare account. From the following, you are required to calculate for each employee: (a) The bonus hours and amount of bonus earned; (c) The wage cost of each good unit produced. Now customize the name of a clipboard to store your clips. Rs. Corporation in respect of its raw materials for the month of December 1988: On 31.12.88 a shortage of 100 units was found. of set-up per annum = Annual Production/EBQ, ... Time interval between two consecutive optimum runs, (c) Minimum inventory holding cost per annum. 1. The particulars of receipts and issues of materials in a factory in January 2007 are: Pricing of issues is to be done on FIFO basis. ADVERTISEMENTS: The material requirements of production are issued on the basis of material requisitions. of average inventory cost. Image Guidelines 5. No overtime is worked and payment is made in full for all units worked on, including those subsequently rejected. Cost Accounting Problems on Secondary Distribution (1 Problem): 7. of workers: A machine was purchased for Rs. 5,000, respectively. Report a Violation, Cost Accounting Problems on Economic Ordering Quantity, Cost Accounting Problems on Labour Hour Rate, Cost Accounting Problems on Secondary Distribution, Cost Accounting Problems on Incentive Schemes, Cost Accounting Problems on Idle Capacity Cost, Cost Accounting Problems on Batch Costing, Cost Accounting Problems on Contract Costing, Cost Accounting Problems on Process Costing, Cost Accounting Problems on Normal Loss, Abnormal Loss and Abnormal Gain, Cost Accounting Problems on Equivalent Production, Cost Accounting Problems on Apportioning Total Process Costs, Top 4 Problems on Labour Turnover with Solutions | Cost Accounting, Top 5 Problems on Overhead with Solutions | Cost Accounting. Content Guidelines 2. Cost Accounting Principles and Practice, Jain, I. The value of the work certified should not be considered in the effect of escalator clause. Cost Accounting Problems on Contract Costing (3 Problems): 11. Rate of stock issued on 10.12.88 = Rs. 4 = 4.00 + 1.00 = Rs. In this article we have compiled various cost accounting problems along with its relevant Solutions. and Defective Items. If you continue browsing the site, you agree to the use of cookies on this website. 4.00 + 25% of Rs. = 2/3 × 1,24,200 × 2,25,000/3,00,000 = 2/3 × 1,24,200 × 3/4 = 62,100. 17,500 Prepare the. Pre-separation point costs amounted to Rs. Abnormal loss. 6.00/2 = Rs. • Materials are protected against loss by fire, theft, etc. 25,000, respectively. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Clipping is a handy way to collect important slides you want to go back to later. TOS 7. From the following particulars determine the Economic Order Quantity: (i) Annual consumption of materials = 2,000 tonnes; The total cost of the inventory is minimum, when the ordering quantity is 500 units, i.e. The accurate cost of output can be computed after taking the losses into account. Learn more. Saha & Bose Ltd. has made a contract with Mitra & Das Ltd. to supply 4,800 T.V. It is estimated that the carrying cost per T.V. A manufacturing company has two production departments X and Y and three service departments: Store, Maintenance and Time Keeping. (iii) Finished Stock 40,030. Labour Hour Rate 6. Secondary Distribution 7. Value of stock issued on 31.12.88 = Rs. The cost of material of the product is Rs. Services rendered by the Service Department are to be apportioned to the production departments X 50%, Y 25%, and Z 25%. 3. Plagiarism Prevention 4. It was found that since the date of signing of the contract the price of material and rate of wages increased by 25%. A shortage of 10 kg was noticed on 16th January. Normal Loss, Abnormal Loss and Abnormal Gain 13. Cost Accounting Problems on Store Ledger (4 Problems): 4. From the following information prepare a statement showing primary distribution of overhead: A worker takes 12 hours to complete a work on daily wages and 8 hours on a scheme of payment by results. Total Assets value = Rs. We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. The joint products are manufactured in one common process; after which they are separated and may undergo further individual processing. Prof.V. As the wages and material cost increased by Rs. Calcutta Engineering Co. has three production departments X, Y and Z and one service department S. From the following particulars calculate Labour Hour Rate of each of the departments X, Y and Z: There were 125 working days of 8 hours each. 1. Labour hours worked = No. The accounts of Basudev Manufactures Ltd. for the year ended 31st December 1988 show the following: Prepare a Cost Sheet for the year ended 31.3.86 from the following figures extracted from the books of Best Engineering Co. Materials purchased 2,50,000, Wages paid 2,00,000, Carriage inward 2,000, Consumable Stores 10,000, Wages of Storekeeper 7,000, Depreciation of Plant & Machinery 10,000, Materials destroyed by Fire 5,000, Repairs & Renewals 5,010, Office Manager’s Salary 10,000, Salary to Office Staff 20,500, Printing & Stationary 10,000, Power 10,500, Lighting for Office Building 2,000, Carriage outward 3,000, Freight 5,000, Entertainment 2,500, Warehousing charges 1,500, Legal charges 2,000, Expenses for participating in Industrial exhibition-6,000. Find out the amount of provision to be made to offset the inter-process profits added. of workers, 2. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Learn more. It was installed in a shop over ⅕th of its floor area at an additional cost of Rs. 1. 648. Assume there are 300 working days in a year. • Materials should be stored in such a way that they provide minimum of handling and cost… 5,000. MMAATTEERRIIAALLSS The following data are available for 2006: (b) Prices of materials will go up by 33⅓%. selling overhead per unit in 2007, = Rs. ACCOUNTING TREATMENT FOR MATERIAL LOSSES 1) ACCOUNTING TREATMENT OF SCRAP There are following three options for accounting of scrap: Option # 1: Nominal sales price realized out of negligible scrap is treated as other income in cost account. Cost Accounting CA is a formal system of accounting for costs in the books of accounts by means of which costs of products and services are ascertained and con… Prepare the Store Ledger for the month of January 2007. At the end of the year the following information were collected: The above contract contained an escalator clause: “In the event of price of raw material and rates of wages increased more than 10%, the contract price would be increased accordingly by 25% of the rise in the cost of materials and wages beyond 10% in each case.”.