New Semester
Started
Get
50% OFF
Study Help!
--h --m --s
Claim Now
Question Answers
Textbooks
Find textbooks, questions and answers
Oops, something went wrong!
Change your search query and then try again
S
Books
FREE
Study Help
Expert Questions
Accounting
General Management
Mathematics
Finance
Organizational Behaviour
Law
Physics
Operating System
Management Leadership
Sociology
Programming
Marketing
Database
Computer Network
Economics
Textbooks Solutions
Accounting
Managerial Accounting
Management Leadership
Cost Accounting
Statistics
Business Law
Corporate Finance
Finance
Economics
Auditing
Tutors
Online Tutors
Find a Tutor
Hire a Tutor
Become a Tutor
AI Tutor
AI Study Planner
NEW
Sell Books
Search
Search
Sign In
Register
study help
business
management cost accounting
Cost Accounting 1st Edition K. Alex - Solutions
In marginal costing, fixed costs are charged to(a) Profit and loss account (b) Income account(c) Costing profit and loss account (d) Stores ledger Ans: (c)
P/V ratio is an indicator of(a) The rate at which goods are sold (b) Volume of sales(c) Volume of profit (d) Rate of profit Ans: (d)
A large margin of safety indicates(a) Overproduction (b) Overcapitalization(c) Soundness of business (d) None of the above Ans: (a)
An increase in variable cost results in(a) Increase in P/V ratio (b) Increase in profit(c) Decrease in contribution (d) Decrease in profit Ans: (c)
Period costs are(a) Overhead costs (b) Prime cost(c) Variable cost (d) Fixed cost Ans: (d)
Contribution margin is also known as(a) Marginal income (b) Gross profit(c) Net profit (d) Loss Ans: (a)
Marginal costing does not include(a) Fixed cost (b) Variable cost(c) Contribution (d) Sales
Marginal costing is a technique of cost control.
There is loss in marginal costing when there is production but no sales.
Profit in marginal costing is more when production is more than sales.
Absorption costing is more suitable for decision making than marginal costing.
In marginal costing, managerial decisions are guided by contribution margin than by profit.
In absorption costing, valuation of stock is higher than that in marginal costing.
At BEP contribution is equal to fixed cost.
Marginal costing may be used in conjunction with standard costing.
In marginal costing, fixed costs are apportioned on some arbitrary basis.
In marginal costing, fixed costs are excluded in the valuation of work-in-progress.
The following information is given for process I for B Ltd. The average method of pricing work-inprogress is used.Work-in-progress in January:Rs Materials on 500 units 900 Labour on 500 units 1,000 Factory overheads on 500 units 400 Total 2,300 Production costs for January:Rs Materials 7,800 Labour
In process I, opening work-in-progress in February 1989 was 200 units, 40% complete. 1,050 units were introduced during the period. 1,100 completed units were transferred to process II and 150 units remained as closing work-in-progress, 70% complete. Compute equivalent production and apportion the
Calculate equivalent production from the following data:20,000 units of work-in-progress were there in process I on 1 January 1997 and it was 60% complete.50,000 units were introduced into the process during January 1997.56,000 units were fully finished and transferred to process II.14,000 units of
From the following details, prepare a statement of equivalent production and a statement of cost, and find the value of the following:Output transferred Closing work-in-progress, by the average cost method Opening work-in-progress 2,000 units Materials (100% complete) Rs 7,500 Labour (60% complete)
During January 2,000 units were introduced into process I. The normal loss was estimated at 5% on input. At the end of the month 1,400 units had been produced and transferred to the next process.460 units were incomplete and 140 units had been scrapped. It was estimated that the incomplete units
During a month, 2,000 units of raw materials at a cost of Rs 9,500 were issued to process A. At the end of the month 1,500 units had been produced; 300 units were still in process; and 200 units had been scrapped. A normal wastage of 5% is allowed. The work-in-progress is complete:100% with respect
Calculate the estimated costs of production of by-products X and Y at the point of separation from the main product.By-product By-product X Y Selling price per unit Rs 12 Rs 24 Cost per unit after separation from the main product Rs 3 Rs 5 Units produced 500 200 Selling expenses amount to 25% of
AB Co. Ltd manufactures product A, which yields two by-products B and C. The actual joint expenses of manufacturing for a period were Rs 8,200. The profits on each product as a percentage of sales are 331/3%, 25% and 15%, respectively. Subsequent expenses are as follows:Products A B C(Rs) (Rs)
A factory producing an article P also produces a by-product Q, which is further processed into finished product. The joint cost of manufacture is as follows:Rs Materials 5,000 Labour 3,000 Overheads 2,000 Total 10,000 Subsequent costs are as follows:P Q(Rs) (Rs)Material 3,000 1,500 Labour 1,400
A factory producing an article A also produces a by-product B, which is further processed into finished product. The joint cost of manufacture is given as follows:Material 50,000 Labour 30,000 Overheads 20,000 Subsequent costs are given as follows:A B(Rs) (Rs)Material 30,000 15,000 Labour 14,000
A factory produces an article A; this process yields B and C as by-products. The costs are as follows:Actual joint costs Subsequent cost A B C Material 10,000 1,500 1,300 1,000 Labour 1,600 200 150 100 Overhead 8,000 800 550 400 19,600 2,500 2,000 1,500 Estimated sales 30,000 24,000 20,000
Vasanth Ltd manufactures product A, which yields two by-products B and C. The actual joint expense of manufacture for a period was Rs 8,000. Subsequent expenses and other data are as follows:A (Rs) B (Rs) C (Rs)Materials 100 75 25 Wages 200 125 50 Overheads 150 125 75 450 325 150 Prepare a
A company producing product X yields two by-products Y and Z. The following particulars relate to a particular period of operation in which the joint cost amounted to Rs 1,40,000:Product Sales (Rs) Profit % on sales Cost of further processing (Rs)X 1,45,920 20% 36,016 Y 72,960 30% 11,000 Z 48,640
The following data have been extracted from the books of M/s. East India Coke Company Ltd:Yield (Rs) of recovered products per tonne of coal Coke 1,420 Coal tar 120 Benzol 22 Sulphate of ammonia 26 Gases 412 Total 2,000 The price of coal is Rs 80 per tonne. Direct labour and overhead costs to the
A coke manufacturing company produces the following products by putting 5,000 tonnes of coal at Rs 25 per tonne into the common process:Coke: 3,500 tonnes Tar: 1,200 tonnes Sulphate: 52 tonnes Benzol: 48 tonnes Apportion the joint cost among the products on the basis of physical units method.
Sujatha Industries produces three products X, Y and Z from a joint processing operation. The cost before separation amounted to Rs 1,25,000. The outputs of X, Y and Z were 5,000; 6,000; and 1,500 units, respectively. Apportion the joint cost among products on the basis of average unit cost method.
In manufacturing the main product, a company processes the incidental waste into two by-products A and B. From the following data relating to the products, you are required to prepare a comparative profit and loss statement showing individual costs and other details. The total cost up to separation
M/s. XYZ Co. has a single process.Work-in-progress (opening) = 8,000 units Rs Cost: Materials 29,600 Wages 6,600 Overheads 5,800 During the period, the input was 32,000 units. Additional cost data is as follows:Rs Materials 1,12,400 Wages 33,400 Overheads 30,200 At the end of the year, 28,000 units
A product passes through three processes A, B and C. The details of expenses incurred on the three processes during the year 1992 are as follows:Process A Process B Process C Units issued/introduced at cost per unit Rs 100 10,000(Rs) (Rs) (Rs)Sundry materials 10,000 15,000 5,000 Labour 30,000
A product passes through three processes, processes I, II and III. 15,000 units of crude material were introduced into process I at Re 1 per unit. Additional information is as follows:Process I (Rs) Process II (Rs) Process III (Rs)Material consumed (Rs) 3,000 4,500 1,500 Direct labour (Rs) 15,000
The product of a manufacturing concern passes through two processes A and B and then to finished stock.It is ascertained that in each process normally 5% of the total weight is lost and 10% is scrap from which processes A and B realizes Rs 80 per tonne. The following are the figures relating to
In a factory, the product passes through two processes A and B. A loss of 5% is allowed in process A and 2% in process B, nothing being realized by disposal of the wastage. During April, 10,000 units of material costing Rs 6 per unit were introduced into process A. The other costs were as
A product passes through three processes. The following data relate to the three processes during September 1998:Total Process I Process II Process III Materials (Rs) 5,625 2,600 2,000 1,025 Labour (Rs) 7,330 2,250 3,680 1,400 Production overhead (Rs) 7,330 — — —Total Process I Process II
The product of a company passes through three distinct processes to reach completion. They are A, B and C. From past experience it is ascertained that loss is incurred in each process as follows:Process A—2%, process B—5%, process C—10%.In each case, the percentage of loss is computed on the
A product passes through three process I, II and III. From the following information, prepare the process accounts assuming that there are no opening or closing stocks:Process I (Rs) Process II (Rs) Process III (Rs)Materials 1,000 1,500 500 Labour 5,000 8,000 6,500 Overheads 1,050 1,188 2,009
From the following information, prepare process cost accounts and normal loss, abnormal loss or gain accounts:Process A (Rs) Process B (Rs)Material 30,000 3,000 Labour 10,000 12,000 Overheads 7,000 8,600 Input (units) 20,000 17,500 Normal loss 10% 4%Sale of waste per unit (Rs) 1 2 Final output from
The product of a company passes through three distinct processes to reach completion. From past experience it is ascertained that wastage is incurred in each process as under process A—2%, process B—5% and process C—10%. The wastage of processes A and B is sold at Rs 10 per 100 units and that
A product passes through three processes X, Y and Z. The normal waste of each process was 3%, 5%and 8% for X, Y and Z, respectively. The waste of process X was sold at Rs 2.50 per unit, that of Y at Rs 5 per unit and that of Z at Rs 8.50 per unit. 10,000 units were issued to process X on 1 July at
A particular brand of scent passed through three important processes. During the week ending on 15 January 1987, 600 bottles were produced. The costbooks show the following information:Process A (Rs) Process B (Rs) Process C (Rs)Materials 4,000 2,000 1,500 Labour 3,000 2,500 2,300 Direct expenses
Calculate the cost of each process and the total cost of production from the following data:Process 1 Process 2 Process 3(Rs) (Rs) (Rs)Material 2,250 750 300 Wages 1,200 3,000 900 Direct expenses 500 500 500 Works overheads 1,890 2,580 1,875 Other indirect expenses of Rs 1,275 should be apportioned
What do you mean by equivalent production?
Write a note on interprocess profits.
What are known as separate expenses and joint expenses?
What is the meaning of the term split-off point?
State the differences between joint products and by-products.
Write notes on(a) Normal loss(b) Abnormal loss(c) Abnormal gain
Name some industries where process costing is applied?
Discuss the features of process costing.
The method of accounting for joint product cost that will produce the same gross profit for all the products is(a) Reverse cost method (b) Opportunity cost method(c) Sales value method (d) Other income method
Products that cannot be produced separately are known as(a) By-products (b) Co-products(c) Joint products (d) Main product
Avoidable losses arising from the nature of a productive process is termed as(a) Normal loss (b) Abnormal loss(c) Net loss (d) Gross loss
Process costing is adopted by(a) Paper mills (b) Chemical industries(c) Textile mills (d) All the above
A bakery producing cakes, biscuits and breads should be treated as(a) Joint product (b) Main product(c) By-product (d) Co-product
Credit is given to a process account at a predetermined value of the by-product under(a) Points value method (b) Sales value method(c) Standard cost method (d) Opportunity cost method
Individual products, each of a significant value, produced simultaneously from the same raw material are known as(a) By-products (b) Joint products(c) Main products (d) Co-products
The type of process loss that should not affect cost of inventories is(a) Standard loss (b) Seasonal loss(c) Normal loss (d) Abnormal loss
Which of the following methods of costing can be used in a large oil refinery?(a) Job costing (b) Unit costing(c) Process costing (d) Operating costing
In process costing, cost follows(a) Finished goods (b) Product flow(c) Price rise (d) Price decline
When actual loss is more than estimated loss, the difference between the two is considered as abnormal gain.
The method of costing applied in biscuit industry is process costing.
The cost of abnormal process loss is not included in the cost of a process.
In process costing, ordinarily no distinction is made between direct and indirect materials.
Abnormal gain should reduce normal loss.
Abnormal loss is spread on good units of production.
Normal loss does not increase the cost per unit of usual production.
Process costing is applied in chemical works.
Process costing is applied in garment industry.
Process costing is one aspect of operation costing.
From the following particulars, prepare operating cost sheet.Total units generated 20,00,000 kWh.Operating labour Rs 50,000 Repairs Rs 50,000 Lubricants Rs 40,000 Plant supervision Rs 30,000 Administration O.H.S. Rs 20,000 Coal consumed per kWh = 2.5 kgs., at Re 0.02 per kg.Depreciation at 5% on
Following is the information given by the owner of a hotel. You are required to advise him what rent should be charged from customers per day so that he is able to earn 25% profit on cost other than interest.(a) Staff salaries Rs 80,000 per annum(b) Room attendant’s salary Rs 2 per day: The
From the following data, find out the cost per ‘room-day’ and the charge to the customers if the profit required is 20% on cost.Room accommodation available 50 double rooms 100 single rooms Each double room is equal to two single rooms. Average occupancy throughout the year of 360 days is
A Transport Company operates two trucks. Following is the data regarding the monthly cost of operating them.Trucks A Rs B Rs Driver’s salary 250 275 Cleaner’s wages 150 160 Petrol 300 350 Mobil oil 25 30 Garage rent 125 125 Taxes and insurance 50 50 Depreciation 560 620 Trucks A Rs B Rs
XY & Co. owns a fleet of 10 trucks each costing Rs 60,000. The company has employed one manager to whom it pays Rs 450 p.m., an accountant who gets Rs 250 p.m. and a peon who gets Rs 100 p.m. The company has got its trucks insured @ 2% per annum. The annual total tax is Rs 1,200 per truck. The
From the following, data relating to vehicle ‘X’ calculate the cost per running kilometre.Vehicle X Kilometres run (annual) 15,000 Tons per km (average) 6 Cost of vehicle Rs 25,000 Road licence (annual) Rs 750 Insurance (annual) Rs 700 Garage rent (annual) Rs 900 Supervision and salaries Rs
The following figures are extracted from the books of a firm for the year 1994.Passenger buses 5 Numbers Bus costing Rs 50,000; Rs 1,20,000; Rs 45,000 Rs 55,000 and Rs 80,000 Depreciation 20% of the cost per annum Annual repair and spare parts, etc.80% of depreciation Wages of 10 drivers Rs 600
From the following data relating to vehicle ‘A’ compute the cost per running ton-km.Vehicle A Kilometres run (annual) 15,000 Tons per km (average) 6 Rs Cost of vehicle 2,50,000 Road licence (annual) 800 Insurance (annual) 700 Garage rent (annual) 1,300 Supervision and salaries p.a. 2,700
From the following data relating to a lorry of 4 tonne capacity, you are required to compute the operating cost per tonne-mile.Truck cost Rs 1,00,000 Estimated life in years 10 Maintenance Rs 500 p.m.Payment to driver and cleaners Rs 750 p.m.Annual insurance Rs 1,200 Establishment charges Rs 650
From the following data, calculate the cost per kilometre of a vehicle:Rs Value of vehicle 75,000 Road licence fee per year 500 Insurance per year 100 Garage rent per year 600 Driver’s wage per month 500 Cost of petrol per litre 6.00 Kilometres run per liter 8 Proportionate charge for tyre and
Sohan Singh has started transport business with a fleet of 10 taxis. The various expenses incurred by him are given below:(a) Cost of each taxi—Rs 75,000(b) Salary of office staff—Rs 1,500 p.m.(c) Salary of garage staff—Rs 2,000 p.m.(d) Rent of garage—Rs 1,000 p.m.(e) Driver’s salary (per
From the following particulars, calculate the cost of running a taxi per kilometre: 1. Number of taxis 10 2. Cost of each taxi Rs 2,00,000 3. Salary of manager Rs 6,000 p.m. 4. Salary of accountant Rs 5,000 p.m. 5. Salary of cleaner Rs 2,000 p.m. 6. Salary of mechanics Rs 4,000 p.m. 7. Garage rent
The Road Transport Company, which keeps a fleet of lorries, shows the following information:Kilometres run for April 1994 30,000 Wages for April Rs 2,000 Petrol, oil, etc. for April Rs 4,000 Original cost of vehicles Rs 1,00,000 Depreciation to be allowed @ 25%per annum on original cost Repairs for
From the following data relating to two vehicles A & B, compute the cost per running mile.Vehicle A Miles Vehicle B Miles Mileage run (annual) 15,000 6,000 Estimated life of vehicles 1,00,000 75,000 Miles run per gallon of fuel 20 15 Rs Rs Cost of vehicle 25,000 15,000 Road tax (annual) 750 750
Raja runs mini bus service in the town and has two vehicles. He furnishes you the following data and wants you to compute the cost per running mile.Vehicle A Rs Vehicle B Rs Cost of vehicle 25,000 15,000 Road licence (per year) 750 750 Salaries (yearly) 1,800 1,200 Driver’s wage per hour 4 4 Cost
From the following data you are required to ascertain the cost of running the motor lorry per tonne-mile.Total tonnage carried in a week: 30 Total mileage in a week: 600 miles Details of the above are:Miles Tons Monday 120 6 Tuesday 125 5 Wednesday 110 4 Thursday 100 5.5 Friday 80 4.5 Saturday 65
Shriman operates a taxi. Compute cost per running km from the following details.Rs Purchase price of taxi 50,000 Insurance per annum 1,000 Rent of garage per month 100 Tyres and tubes per set (A set lasts 16,000 km) 4,000 Rs Driver’s wage per day of 8 hours 32 (Average distance per day 160
The Union Transport Company supplies the following details in respect of a truck of 5 tonne capacity:Cost of truck Rs 90,000 Estimated life 10 years Diesel, Oil, grease Rs 15 per rip each way Repairs and maintenance Rs 500 per month Driver’s wages Rs 500 per month Cleaner’s wages Rs 250 per
From the following data calculate the cost per mile of a vehicle:Rs Value of vehicle 15,000 Road licence for the year 500 Insurance charges per year 100 Garage rent per year 600 Driver’s wage per month 200 Cost of petrol per litre 0.80 Miles per litre 8 Proportionate charge for tyre and
(a) Passenger kilometres From the following calculate the total passenger kilometres.Number of buses—10; number of days operated in a month—28; number of trips by each bus per day—2 trips; distance of route—25 km (one side); capacity of the bus—50 passengers; normal operating
(a) Running kilometres and passenger kilometres From the following information, calculate total running kilometres and total passenger kilometres.Number of buses: 5; days operated in a month: 25; trips per day made by each bus: 4;Distance of route: 25km (one side).,capacity of bus: 50 passengers.
(a) Passenger kilometres A transport company is running four buses between two towns, which are 50 km apart.Seating capacity of each bus is 40 passengers. Actual passengers carried were 75% of seating capacity, on an average.All the buses run 30 days in a month.Each bus made one round trip per
A cinema hall has seating capacity of 800.It runs daily 4 shows on all 30 days of a month. It is generally full to the extent of 80% of its capacity. Find out the number of man shows during the month.
A transport company is running two buses between two places 100 km apart. Seating capacity of each bus is 50 passengers. The following particulars are taken from their books for a month.Rs Wages of drivers, conductors and cleaners 3,000 Salary of supervisory and office staff 1,500 Diesel, oil, etc.
A transport service company is running four buses between two towns 50 miles apart. Seating capacity of each bus is 40 passengers. The following particulars were obtained from their books:Rs Wages of drivers, conductors and cleaners 2,400 Salaries of office and supervisory staff 1,000 Diesel oil
Showing 1200 - 1300
of 2716
First
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Last
Step by Step Answers
Get 50% OFF
Claim Now
