mesh Accounting = S11 {aivity | Savin shits of Product — Personal Loans | Credit Cards | ATM Transaction ; 2 52.000 7,000 14,000 Computer Transactions 2301 ‘000 0 28,000 Number of Statements 420,000 2,80,000 4,20,000 Telephone minutes 490,000 ; at 210,000 Required:- 1) Calculate rates for each activity, 2) Calculate the cost of each Product, OR 4.{b) Ganesh Transport Co. owns a bus which runs between Mumbai to Shirdi and back, for 30 days in a month. The distance between Mumbai to Shirdi is 250 kms. The bus completes the trip from Mumbai to Shirdi and back on the same day, a5) The following information is available : Cost of bus Rs. 36,00,000 Depreciation Rate 20% p.a. Salary of Driver Rs. 35,000 p.m. Insurance Premium 1% p.a. Salary of Cleaner Rs.9,000 p.m. Salary of Conductor Rs.18,000 p.m. Diesel consumption is 15 kms per litre of diesel and cost of diesel per litre is Rs.91. Tax and license fees is Rs.1,20,000 p.a. Oil and lubricants is Rs.50 per 25 kms. Repairs and maintenance Rs.10,000 p.m. Permit fees Rs, 24,000 p.m Normal capacity of bus is 60 passengers. The bus generally has 70% of its capacity occupied when it goes to Shirdi. Calculate the fare to be charged if a profit at 20% is to be carned on takings. QS. (a) What is advantages of Uniform Costing ? (08) (b) Distinguish between Normal and Abnormal loss. (07) OR (©) Write short notes on (Any 3) (a5) 1, Wages Control Account. 2. Cost driver, 3. Inter-firm comparison, 4. Inter Process Profit. 5. Features of Service costing.Factory overhead inourred(40% of wages paid to workers Office stead applied to cost of sales sor Salesmen salaries paid ee Salary paid to Lalit ato Cost of goods produced 00, Material lost 15,000 Sales to HCC Ltd (20% on cash) 5,00,000 OR 3.(b) Coldplay Ltd operates separate cost accounting and financial accounting system. a following is the opening balance as on 1" August 2024 in the cost ledger (15) Particulars Dr(Rs)_[__Cr(Rs) Stores ledger control A/e 1,80,000 WIP Control Ale 1,20,000 Finished Goods Control Ale 1,50,000 Cost Ledger Control A/c 4,50,000 450,000 | ~ 4,50,000 Transactions for the month of August 2024 were as under : CEI AMAwe . Material purchased Rs. 1,00,000. . Wages paid — Direct 75,000 & Indirect Rs.25,000. . Factory Overheads incurred Rs.54,000. Material issued to Factory Rs.45,000.~- a a = Finished goods at cost Rs.3,00,000. Cost of goods sold Rs.2,60,000. Material issued to Production Rs.1,50,000 . Sales Rs.3,50,000. Material damaged and written off to costing Profit & Loss A/c Rs.16,000. You are required to prepare 1, Stores Ledger Control A/c. 2. WIP Control A/c. 3. Finished Goods Control A/c. 4, Costing Profit & loss A/c. 5. Cost ledger Control A/c. 6. Trial Balance as on 31"" August 2024 Q4 (a) JSK Bank operated for years under the assumption that profitability can be increased by increasing Rupee volume. But that has not been the case . cost has revealed the following : ‘ ‘ (as) Activity, Activity «| Activity Driver Activity Cost___ " Capacity | Providing ATM Service 1,40,000 | Number of Transaction 2,80,000 Computer Processing 14,00,000 | Number of Computer Transaction 35,00,000 Issuing Statements 1120,000 | Number of Statement (ihe Customer Inquiries 5,04,000 | Telephone minutes The following annul information on three product was also made availablee.In_____ costing, the cost of carrying a passenger for a kilometre and cost of carrying goods of one tonne is ascertained. i, Hotel ii, Hospital iii. Transport iv. Process £. Inter-firm comparison is one of the aims of __ i) Uniform Costing ii) Unit costing iii) Standard Costing iv)Marginal Costing g. The term ‘composite cost unit’ is associated with: i.Job costing ii, Batch costing iii. Operating costing _ iv. Process costing h. Cost allocation bases in activity-based costing should be__ i. Cost driver ii. Cost Pools iii. Activity centres iv Resources i. Operating costing system is more suitable to industries i, Product ii, Construction iii, Service —_iv. Manufacturing is a cost accounting method that assigns indirect and overhead costs to products and services based on the activities that contribute to those costs i, Service costing ii. Process Costing iii. Uniform Costing iv. Activity-based costing Q2(@) Q. The following information relates to Process A : (15) 4) Opening work in progress 12,000 units costing Rs. 1,36,800 Degree of completion : Material 100% Rs. 72,000 Labour 60% Rs. 43,200 Overheads 60% Rs. 21,600 ii) Received during the month of September, 2024 from previous Process R. 1,20,000 units at Rs. 5,13,000 iii) Expenses incurred in Process A during the month: Materials Rs. 2,37,000 Labour Rs, 4,14,690 Overheads Rs. 2,07,360 iv) Closing Work in process: .9,000 units Degree of completion: Materials 100% Labour & Overheads 50%Duration: 2.5 Hrs. Total Marks: 75 Note: 1) All questions are compulsory 2) All workings should form part of the answer Q.1(@) State Whether the following statements are True or False. (Any 8 ) (08) 1. It is possible to have normal loss and abnormal gain on the same process account in the same period. : 2. Operating costing is suitable for industries which are rendering services. 3. Uniform costing is a financial practice that uses standardization to make comparisons across an industry or among the branches of a large business. 4. Machine setup is done every time a new batch is to be made, regardless of batch size 5. Activity-based costing (ABC) is a system you can use to find production costs. 6. Ina Non-integrated System, WIP control account is debited when the product is sold. 7. In case of service industry, the closing stock of work-in-progress is valued at overhead cost. 8. Notmnal loss is treated as abnormal loss while calculating normal cost perunit. 9. Equivalent units of production is a method used to calculate the amount of work done on fully completed units during a production period. 10. Cost drivers are not the expenses or resources that you incur to run your business. Q. 1. (b) Multiple Choice Questions: (Any 7) < 07) a. Equivalent production of 1,000 units, 60% complete (for labour) is 600 units ~ iv. 500 units i. 1,000 units ii. 750 units b. Inter-firm comparison helps a firm in. i, Ascertaining cost. ii Allocating costs ii, Controlling and reducing cost ‘v. apportionment of cost“ is an accounting system that keeps cost and financial transactions in separate ‘ceount books Integrated system ii. Non-integrated accounting system iii. Process costing v. Operating costing . Under integrated accounts, if material worth Rs. 20,000 are scrapped, then scount will be debited Stores Ledger Control A/c ii. Work-in-progress account iii. Costing Profit & Loss Accot 7. Profit & Loss Account