mba-1-sem-accounting-for-managers-dec-2016

MBA 1 sem Accounting for Managers Dec 2016

 

Time 3 Hours) [Max. Marks 80

Note : Attempt any two questions in Section A. Each question carries 10 marks. Attempt any three questions in Section B. Each question carries 20 marks.

Section A

 1. What is Depreciation? What is the need for providing depreciation? What are the causes of depreciation?

 2. "A good system of costing serves as a means of control over expenditure and helps to secure economy in manufacture." Discuss.

 3. What is Activity Based Costing? Describe its significance for manufacturing concern.

 4. "Management accounting has been evolved to meet the needs of management." Explain this statement fully.

Section B

5. On 31st Dec., 2012, the bank column of X & Co's Cash Book showed a debit balance of Rs. 9,550. On examination of the cash book and the pass book, following points were noted:

(a) Cheques issued but not presented for payment upto 31-12-12 amounted to Rs. 4,200.

(b) There was a debit of Rs. 300 in the pass book for locker's rent.

(c) Cheques deposited but not cleared upto 31-12-12 amounted to Rs. 2,800

(d) Insurance premium of Rs. 1,400 were directly paid by the bank.

(e) Interest on deposits with the U. T. I. Rs. 1,200 was directly credited in the bank.

(f) A cheque of Rs. 3,000 was deposited directly in the bank by the customer.

 

Prepare a Bank Reconciliation Statement as on 31-12-12 and find out the balance of pass book.

 

6. R. K. Ltd. has to quote a price for Job No. 456. The cost estimator has produced the following data :

Direct Materials          34 units @ Rs. 2 per unit

Direct Labour              Dept. A - 12 hours @ Rs. 2 per hour

                                    Dept. B - 20 hours @ Rs. 1.80 per hour

 The following additional information is extracted from the company's budgets :

Dept. A variable overheads Rs. 18,000 for 18,000 hours working

Dept. B variable overheads Rs. 18,000 for 10,000 hours working

Fixed overhead for the company Rs. 1,00,000.

Total hours to be worked Rs. 50,000

Profit is taken at 20% of the selling price.

You are required to prepare a Job Cost Sheet.

 

7. A product passes through three processes A, B and C. The normal wastage of each process is as follows : A - 3%, B - 5% and C - 8%. Wastage of each process was sold as : A - 25 p., B - 50 p. and C Re. 1 per unit. 10,000 units were issued to Process A in the beginning of October 2013 at a cost of Re. 1 per unit. The other expenses were as follows:

                                                                                                Process

                                                                                    A                     B                     C

Sundry Materials                     Rs.                              1,000               1,500              500

Labour                                     Rs.                               5,000               8,000               6,500

Direct Expenses                      Rs.                               1,050               1,188               2,009

Actual Output                         units                            9,500               9,100               8,100

Prepare the Process A/c, Abnormal Wastage and Abnormal Gain Account.

8. You are given the following information :

August 2012                           Sales 1,30,000                         Profit 10,000

September 2012                      Sales 90,000                            Loss 10,000

Calculate :

(a) PN Ratio.

(b) Fixed Overheads.

(c) Level of activity is Rs. 25,000 is to be earned as profit.

(d) Expected profit if sales are budgeted at Rs. 1,80,000.

9. The standard cost of a chemical mixture Is as follows :

            40% of Mat. A @ Rs. 20 per kg

            60% of Mat. B @ Rs. 30 per kg

A standard loss of 10% of input is expected in production. The cost records for a period showed the following usag :

            90 kg Mat. AO cr Rs.18 per kg

            110 kg of Mat. B @ Rs. 34 per kg

The quantity produCed was 182 kg of good product.

Calculate all material variances.