Maharaja Agrasen Institute of Management Studies

Affiliated to GGS IP University, Recognized u/s 2(f) of UGC

Recognized by Bar Council of India, ISO 9001: 2015 Certified Institution
Sector 22, Rohini, Delhi -110086, India; www.maims.ac.in

Department of Business Administration

Academic Year: 2023-24
Semester: 2nd
Assignment No.-1
(Unit No. -1 &2)

Course/ Subject Code: BBA 102 Course/ Subject Title: Cost Accounting
Issue Date: 29 February 2024 Last Date of Submission: 10 March 2024

Note:
1. The student should attach proper cover page for each assignment clearly mentioning Student’s complete
Name, University Enrolment No., Program, Semester, Class, Section, Assignment Number, and Subject
Title. Format of Cover page is attached herewith.
2. Each assignment should be prepared by the student individually in his/her own handwriting.
3. A4 size ruled sheets should be used for writing the assignment.
4. Black or Blue pens should be used for writing the assignment.
5. The student should use examples and illustrations in support of the answers.
6. Do not use plastic folder for submission of assignment. Just staple properly all pages of an assignment.
During online education mode, upload scanned copy of the complete assignment including cover page
latest by due date at the link/ mode specified by the Subject-Teacher.

CO
Questions
No.
Q1 Attempt any five:
(a) Nature of Cost Accounting
(b) Cost Accounting vs Financial Accounting.
(c) Objectives of Cost Accounting
(d) Cost centres vs cost units CO1
(e) Expired vs Unexpired costs
(f) Product vs Period Cost

Q2: a) Write short notes on any two of the following:

(i) Weighted Average Method
(ii) Perpetual vs Periodic Inventory System

b) A firm maintains its stores ledger on the FIFO method. During the month of Jan, 2017, the following
receipts and issues of materials were made. Record these transactions in the stores ledger.
Receipts
Jan 1 Balance 50 units @ Rs. 4 per unit
CO2
Jan 5 Purchase Order No. 10, 40 units @Rs. 3 per unit.
Jan 8 Purchase Order No. 12, 30 units @ Rs. 4 per unit.
Jan 15 Purchase Order No. 11, 20 units @ Rs. 5 per unit
Jan 25 Purchase Order No. 13, 40 units @ Rs. 3 per unit
Issues
Jan 10 Material Requisition No. 4, 70 units
 Maharaja Agrasen Institute of Management Studies
Affiliated to GGS IP University, Recognized u/s 2(f) of UGC
Recognized by Bar Council of India, ISO 9001: 2015 Certified Institution
Sector 22, Rohini, Delhi -110086, India; www.maims.ac.in

Jan 12Material Requisition No. 5, 10 units

Jan 20Material Requisition No. 6, 20 units
Jan 24Material Requisition No. 7, 10 units
Jan 27Shortage 5 units
OR
a) Write short notes on:
(i) EOQ model
(ii) ABC Analysis

b) Medical Aids Co. manufactures a special product A. The following particular were collected for
the year 2016:
Cost of placing an order Rs 100
Annual carrying cost per unit Rs 15
Normal usage 50 units per week
Minimum usage 25 units per week
Maximum usage 75 units per week
Re-order period 4 to 6 weeks
Compute from the above:
(i) Re-order quantity
(ii) Re-order level
(iii) Minimum level
(iv) Maximum level
(v) Average Stock level (Weeks in a year 52).

Q3) a) Write short notes on:

(i) Idle time CO3
(ii) Casual workers vs out workers
(iii) Treatment of overtime
b) A worker under the Halsey method of remuneration has a day rate of `12 per week of 48 hours,
plus a cost of living bonus of 10 p. per hour worked. He is given 8 hours task to perform, which he
performs in 6 hours, he is allowed 30% of the time saved as premium bonus. What would be his
earnings under Halsey Plan and Rowan Plan.

OR

a) What are the causes of Labour Turnover? Suggest remedial measures to reduce the Labour
Turnover.
b) From the following data, find out the Labour Turnover Rate by applying:
(i) Flux method
(ii) Replacement method
(iii) Separation method
No. of the workers on the payroll:
At the beginning of the month 500
At the end of the month 600
During the month, 5 workers left, 20 persons were discharged and 75 workers were recruited. Of
these, 10 workers were recruited in the vacancies of, while the rest were engaged for and expansion
scheme.
 Maharaja Agrasen Institute of Management Studies
Affiliated to GGS IP University, Recognized u/s 2(f) of UGC
Recognized by Bar Council of India, ISO 9001: 2015 Certified Institution
Sector 22, Rohini, Delhi -110086, India; www.maims.ac.in

Q4) A machine costs Rs. 90,000 and is deemed to have a scrap value of 5% at the end of its effective CO4
life (19 years.) Ordinarily the machine is expected to run for 2,400 hours per annum but it is estimated
that 150 hours will be lost for normal repairs and maintenance and further 750 hours will be lost due to
staggering. The other details in respect of machine shop are:
a) Wages, bonus & provident fund contribution of each of two operators. Rs.6,000 per year
(Each operator is incharge of two machines)
b) Rent and Rates for the shop Rs. 3,000 per year
c) General lighting of the shop Rs. 250 per month
d) Insurance premium for the machine Rs. 200 per annum
e) Cost of repairs and maintenance per machine Rs. 250 per month
f) Shop supervisor’s salary Rs. 500 per month
g) Power consumption of the machine per hour 20 units, rate of power per 100 units, Rs. 10.
h) Other factory overheads attributable to the shop Rs. 4000 per annum
There are four identical machines in the shop. The supervisor is expected to devote one-fifth of his
time for supervising the machine. Compute a comprehensive machine hour rate from the above
details.

OR

In a Light Engineering Factory, the following particulars have been collected for the three monthly period
ending 31 st December 2013. Compute the departmental overhead rates for each of the production
department assuming that overheads are recovered a s a percentage of direct wages.