Fundamental of Cost Accounting – Practical Questions
- Calculate Raw Materials Consumed from the following information:-
Purchased raw material = Rs. 15,00,000
Expenses incurred on purchase of raw material = Rs. 1,00,000
Increase in stock of raw material = Rs. 4,50,000
Wages Rs. 9,52,000
Direct expenses Rs. 4,68,000
(a) Rs. 16,00,000
(b) Rs. 20,50,000
(c) Rs. 11,50,000
(d) Rs. 25,70,000 - Total cost of a product: Rs. 10,000
Profit: 25% on Selling Price
Profit is:
(a) Rs. 2,500
(b) Rs. 3,000
(c) Rs. 3,333
(d) Rs. 2,000 - Calculate cost of sales from the following:
Net Works cost: Rs. 2,00,000
Office & Administration Overheads: Rs. 1,00,000
Opening stock of WIP: Rs. 10,000
Closing Stock of WIP: Rs. 20,000
Closing stock of finished goods: Rs. 30,000
There was no opening stock of finished goods.
Selling overheads: Rs. 10,000
(a) Rs. 2,70,000
(b) Rs. 2,80,000
(c) Rs. 3,00,000
(d) Rs. 3,20,000 - Calculate value of closing stock from the following:
Opening stock of finished goods (500 units) : Rs. 2,000
Cost of production (10000 units) : Rs. 50,000
Closing stock (1000 units):?
(a) Rs. 4,000
(b) Rs. 4,500
(c) Rs. 5,000
(d) Rs. 6,000 - Material consumed is Rs. 5,00,000 Opening stock of raw material is Rs. 50,000 and Closing stock of raw material is Rs. 25,000. What is the cost of raw material purchased?
(a) Rs. 4,50,000
(b) Rs. 4,75,000
(c) Rs. 5,25,000
(d) Rs. 5,00,000 - Royalty paid on sales Rs.89,000 and Software development charges related to product is Rs.22,000. Calculate Direct Expenses.
(a) Rs.22,000
(b) Rs.1,11,000
(c) 89,000
(d) None of these - Material consumed is Rs. 5,00,000 and increase in raw material of is Rs. 25,000. What is the cost of raw material purchased?
(a) Rs. 4,50,000
(b) Rs. 4,75,000
(c) Rs. 5,25,000
(d) Rs. 5,00,000 - If selling price of a product is Rs.85,800 and the profit margin on cost is 10%, the amount of profit will be:
(a) Rs. 7,800
(b) Rs. 8,580
(c) Rs. 7,200
(d) Rs. 9,533 - X Limited provides you the following data for the month May, 2017 :
Closing stock as on 31st May, 2017 : 80 units
Production : 280 units
Sales: 330 units
Based on the above data, the opening stock as on 1st May, 2017 would be :
(a) 70 units
(b) 130 units
(c) 50 units
(d) 410 units - Calculate the prime cost from the following information :
Direct material purchased : Rs. 1,00,000
Direct material consumed for production : Rs.90,000
Direct labour : Rs.60,000
Carriage: 5,000
Direct expenses : Rs.20,000
Manufacturing overheads : Rs.30,000
(a) Rs. 1,85,000
(b) Rs. 1,80,,000
(c) Rs. 2,15,000
(d) Rs. 1,75,000 - An organization sold 4,000 units and have closing finished goods 3,500 units and opening finished goods units were 1,000.The quantity of units produced would be:
(a) 7,500 units
(b) 6,500 units
(c) 4,500 units
(d) 8,500 units - Sales are Rs. 4,50,000. Beginning finished goods were Rs. 23,000. Ending finished goods are Rs. 30,000. The cost of goods sold is Rs. 3,00,000. What is the cost of goods manufactured?
(a) Rs. 3,23,000
(b) Rs. 3,30,000
(c) Rs. 2,93,000
(d) None of the given options - If Units sold = 10,000; Closing finished goods = 2,000; Opening finished goods = 1,500; What will be the value of units manufactured?
(a) 9,500
(b) 10,500
(c) 13,500
(d) 6,500 - Calculate the amount of direct labor if: Direct material = 15,000; Direct labor = 70% of prime cost
(a) 6,429
(b) 30,000
(c) 10,500
(d) 35,000 - If Direct Material = 12,000; Direct Labor = 8,000 and other Direct Cost = 2,000 then what will be the Prime Cost?
(a) 12,000
(b) 14,000
(c) 20,000
(d) 22,000 - Consider the following data pertaining to the production of a company for a particular month :
Opening stock of raw material Rs. 11,570
Closing stock of raw material Rs. 10,380
Purchase of raw material during the month Rs. 1,28,450
Total manufacturing cost charged to product Rs. 3,39,165
Factory overheads are applied at the rate of 45% of direct labour cost.
The amount of factory overheads applied to production is
(a) Rs. 65,025
(b) Rs. 94,287
(c) Rs. 95,020
(d) Rs. 1,52,624 - The following information was taken from Smart Company‘s accounting records for the year ended March 31, 2013 :Rs.
Increase in raw materials inventory 15,000
Decrease in finished goods inventory 35,000
Raw materials purchased 4,30,000
Direct labour payroll 2,00,000
Factory overhead 3,00,000
Freight 45,000
There was no work in process inventory at the beginning or end of the year. Smart‘s 2,000 cost of goods sold is :
(a) Rs. 9,50,000
(b) Rs. 9,65,000
(c) Rs. 9,75,000
(d) Rs. 9,95,000 - If:
Cost of opening finished goods Rs. 2,000
Cost of goods to be produced Rs. 6,000
Operating expenses Rs. 1,000.
Which of the following is the cost of goods available for sale?
(a) Rs. 8,000
(b) Rs. 4,000
(c) Rs. 7,000
(d) Rs. 9,000 - Following information relates to the production department of a factory :
Materials used : Rs.80,000
Direct labour : Rs.60,000
Overheads : Rs.40,000
On an order carried out in the department, materials consumed amounted to Rs.16,000. The overheads chargeable to this order on the basis of direct materials will be —
(a) Rs.8,000
(b) Rs.9,000
(c) Rs.8,500
(d) Rs.9,800 - Following information has been collected from cost records of Bright Ltd. :
Direct material : Rs.5,00,000
Direct labour : Rs.3,00,000
Factory overheads : 20% of factory cost
The amount of factory overheads will be-
(a) Rs.1,60,000
(b) Rs.2,00,000
(c) Rs.1,80,000
(d) Rs.1,96,000