HI-AIMS COLLEGE OF COMMERCE AND MANAGEMENT SARGODHA

Grand Test November 2012, B.Com Part-II

Paper: Cost Accounting Total. Marks: 60 Time Allowed: 90 Minutes

Q-1: A Client has recently leased manufacturing facilities for the production of a new

product based on the studies made by his staff. The following data have been made

available to you:

Estimated Annual Sales = 16,000 units.

Estimated Cost Total Per Unit

Materials Rs.128,000 Rs. 8.00

Labor Rs. 19,200 Rs. 1.20

Factory overhead Rs. 32,000 Rs 2.00

Administrative expenses Rs. 20,800 Rs.1.30

Rs. 200,000 Rs.12.50

Marketing expenses are expected to be 10% of sales and the profit is to amount to

Rs.1.90 per unit.

Required: a. Compute the Sales Price per unit.

b. Project a Profit & Loss Statement for the year.

Q-2: Second department of Sitara Manufacturing Co. Ltd. during the month received in

40,000 units at a cost of Rs. 660,000 and transferred out 32,000 units. Following costs

were incurred by the department: Materials Rs. 250,000, Labor Rs. 162,000, and

Factory over head 81,000. In the 2nd department all Materials are issued at the beginning

of process. During the month in the department there was abnormal loss of Rs. 5000

units when 2/5 converted. Units in process in the department at the end of

month were estimated as 2/3 converted.

Q-3: Following data have been taken from the records of Alpha Corporation:

Jan. 1 Dec. 31 Rs. Rs.

Inventories

Raw Material 34,200 49,300

Work in process 81,500 44,230

Finished goods 48,600 ?

Other Information:

Deprecation on Factory Equipment 21,350

Interest earned 6,300

Raw material Purchased 364,000

Direct labor Cost 162,000

Indirect labor cost 83,400

Freight In 6,800

Factory overhead 47,900

Purchase Discount 5,200

Finished goods inventory on 1st January 300 units and 31st December 400 units. Sales during the year,

3880 units at Rs. 220 per unit.

Required:1. Number of units manufactured..

2. Cost of Goods manufactured.

3. Cost per unit manufactured.

4. Cost of finished goods inventory on 31st December.

5. Cost of good Sold.

6. Gross profit--------total and per unit.

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