PirMehr Ali Shah

Arid Agriculture University, Rawalpindi

Office of the controller of Examinations

Mid Exam / FALL 2020 (Paper Duration 24 hours)

To be filled by Teacher

Course No.: MGT-423                                                                          Course Title: Cost Accounting

Total Marks: 18                                                                                     Date of Exam: 03.12.2020

Degree: BS Coomerce            Semester: 3rd                                                        Section: …

Q.No. 1 2 3 4 5 6 7 8 9   10 Marks

Obtained/

TotalMarks

Marks

Obtained

                       
Total Marks in Words:
Name of the teacher: M. Aleem Akhtar
Who taught the course:Signature of teacher / Examiner:

To be filled by Student

 

Registration No.: ………………………………………….……… Name:……………………………………………………..

 

 

Answer the following questions.

Q.No.1      Marks (3)

Prepare Income Statement with following data.

 

Answer:                                                                                                                                                                              

                                                                                                                                                                                               

                                                                                                                                                                                               

                                                                                                                                                                                               

 

 

 

 

 

 

 

Q.No.2            Marks (5)

 

Following is trial balance of Israr Industrial Company Limited as on January 31, 2108.

  Debit (Rs.) Credit (Rs.)  
Notes Receivable 27,405 Notes Payable 17,300
Accounts Receivable 32,200 Account Payable 5600
Cash 39,500 Taxes Payable 12,000
Finish goods 14,800 Rent Payable 2500
WIP 16,300 Sales 423,610
Raw Material 35,600 Capital 100,000
Prepaid Insurance 2700 Retained earnings 25,800
Equipment 126,000 Accumulated depreciation 40,400
Material Purchased 123,000    
Direct Labor 82,000    
FOH 80,705    
Selling Cost 36,800    
Admin. Cost 10200    

 

Following further information are also available: FOH applied at rate of 80% of direct labor cost. Inventories as on December 31, 2018: Material… Rs. 16200, WIP. Rs 40,500 and Finish goods. Rs21,300. Debit balance of FOH costs account Rs.15105 Represents under applied FOH. This variance is distributed over entire production of the period.

Required: (a) Statement of cost of goods manufactured and sold for the year ended December 31, 2018 showing cost of goods sold at normal and actual.

(b) Income statement for the year ended December 31, 2018 and balance sheet as on date.

 

 

Answer:                                                                                                                                                                              

                                                                                                                                                                                               

                                                                                                                                                                                               

                                                                                                                                                                                               

 

 

 

 

 

 

 

 

 

Q.No.3.        Marks (6)

Topper Inc. had following inventories on March 1:  Finish goods Rs. 15000, WIP Rs. 19070 and Materials Rs. 14000.

The work in process control three jobs: Job No. 62 Materials Rs. 2800, Labor Rs. 2100 and Applied FOH Rs. 1680. Job No. 63 Materials Rs. 3400, Labor Rs. 2700 and Applied FOH Rs.2160. Job No. 64 Materials Rs. 1800, Labor Rs. 1350 and Applied FOH Rs.1080.

The following information pertains to March operations:

 

Required: (1) Prepare job order cost sheets to past beginning inventories data  (2) Journalize the March transactions with current posting to general ledger inventory accounts and to job cost sheets.  (3) Prepare schedule of inventories on March 31.

 

 

Answer:                                                                                                                                                                              

                                                                                                                                                                                               

                                                                                                                                                                                               

                                                                                                                                                                                               

Q.No.4           Marks (4)

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Answer: