QUESTION PAPER
Program: Under Graduate Program
Semester: III Academic Year: 2018-19
Course: Accounting for Managers Course Code: ACCT201
Examination Date: 05/12/2018 Time: 9:30 - 11:30 Total Marks: 100
Instructions to students:
Students should read carefully the instructions printed on the question paper and on the cover of
the answer book, which is provided for their use.
The paper is divided into Part A: Objective type and Part B: Long Answer Questions
Part A: All questions compulsory
Part B: All questions compulsory
Scientific calculators/normal calculators allowed
Use of ONLY Blue/Black pen are permitted
Write the most appropriate option for the MCQ
Show all your workings clearly on the answer sheet
Sharing of resources are NOT allowed
Part A: Multiple Choice Questions. Write the most appropriate option in the answer book.
[10*2=20Marks]
1) Cost sheet can be prepared on the basis of:
a. Historical cost
b. Estimated cost
c. Both a and b
d. None
2) Prime cost:
a. Direct material + Direct wages + Direct expenses
b. Direct material + Indirect wages + Direct expenses
c. Indirect material + Indirect wages + Direct expenses
d. None
3) Cost of goods sold:
a. Total cost of production + opening stock of finished goods – closing stock of finished goods
b. Total cost of production – closing stock of goods
c. Total cost of production +selling and distribution overheads
d. None
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4) Total cost of production:
a. Factory cost + Office and administration overheads
b. Direct labor
c. Direct wages
d. None
5) Direct material: 13500: opening stock, 137000: purchases, 9000: closing stock 9000, direct wages:
54,000, direct expenses: 12000. Calculate the Prime cost:
a. 207500
b. 205000
c. 208000
d. None
6) Which of the following accounting standard is applicable for Inventory Valuation?
a. IndAS2
b. IndAS16
c. IndAS18
d. IndAS7
7) According to new accounting standard issued by ICAI, which method of pricing of inventory is not
applicable?
a. LIFO
b. FIFO
c. Weighted average
d. None of the above
8) When sales is INR 2,00,000, fixed cost is INR 30,000, P/V ratio is 40% then the amount of
contribution in INR will be:
a. INR 50,000
b. INR 80,000
c. INR 12,000
d. None
9) Which of the following is true about marginal cost?
a. Marginal cost is synonymous to opportunity cost
b. Only variable cost is included in marginal cost
c. Both variable cost as well as fixed cost are included in marginal cost
d. None
10) Material price variance is calculated by using which of the following formulae?
a. (Actual Quantity – Standard Quantity) * Standard Price
b. (Actual Quantity*Actual Price) – (Standard Quantity*Standard Price)
c. (Actual Price – Standard Price)* Actual Quantity
d. (Actual Proportion – Revised Standard Proportion of actual input)* Standard Price
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Part B: Long Answer Questions. Show all the working clearly.
Question 1) [4*5=20 Marks]
XYZ. Ltd. furnishes you the following information:
Fixed Cost = INR 5 Lakh
Sales = INR 20 Lakh
P/V Ratio= 40%
Calculate the following:
i. Break even sales (in INR)
ii. Break even sales (in Units)
iii. Margin of Safety (in INR)
iv. Total Variable Cost (in INR)
Question 2) [10 Marks]
From the following calculate the prime cost:
Particulars (INR.)
Stock on materials on 1.4.2016 28,000
Purchase of materials 1,60,000
Stock of direct materials on 31.3.2017 35,000
Productive wages 90,000
Factory Overheads 36,000
Selling Expenses 10,000
Direct Expenses 1,20,000
Question 3) [20 Marks]
ABC Company uses a periodic inventory system. The beginning inventory of a particular product, and the
purchases during the current year, were as follows:
Date Particulars Units INR per unit Total(INR)
1 Jan Opening Balance 100 10 1,000
5 Jan Purchases 100 11 1,100
10 Jan Purchases 150 12 1,800
During the period 300 unit were sold @ Rs. 15 per unit.
Using periodic costing procedures, determine:
(1) Cost of goods sold relating to this product and
(2) Cost of the year-end inventory under each (LIFO and FIFO) of the flow assumptions?
(3) Sales
(4) Gross Profit
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Question 3) [20 Marks]
From the following particulars Calculate:
a) Material Price Variance
b) Material Usage Variance
Units Produced =1,000
Standard material cost per unit:
Material A 3 Pieces @ Re1= INR 3
Material B 1 Pieces @ Re 2 = INR 2
Actual Material Used as below:
Material A 2,500 Pieces @ Re 1
Material B 1,500 Pieces @ 2.2
Question 4) [10 Marks]
From the following data, prepare fixed budget for production of 70,000 Units, distinctly showing variable
cost and fixed cost as well as total cost. Also indicate element wise cost per unit. Budgeted output is
1,00,000 Units and budgeted cost per unit is as follows:
INR
Direct Material 90
Direct Labour 40
Factory Overhead (Fixed) 10
Administrative Overhead (30% fixed) 15
Distribution overhead (15% fixed) 20
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