B.

COM- V SEMESTER-COST AND MANAGEMENT ACCOUNTING- III (PRACTICAL)

CHAPTER 1- JOB AND BATCH COSTING
1. Vijaya Traders have undertaken a job No.202 for which the material cost is `4,000, direct labour Rs.2,000.
And direct expenses are Rs.3,000. The factory overhead is to be charged at 25% of factory cost.
Administrative overhead is to be charged at 20% of the cost of production. Prepare job cost sheet showing
the price to be quoted if the concern wants to make a profit of 20% in executing this order.
2. Material cost of job no. 101 is Rs.12,000. And labour cost is Rs.8,000. Factory overhead is 20% of factory
cost. Administrative overhead is 16.67% of cost of production. Selling and distribution overhead is 25% of
cost of sales. What price should be quoted for the job to obtain 20% profit on sales price?

3. The information given below has been taken from the cost records of factory in respect of job no.707
Direct material: Rs.4010
Wages Dept A: 60 hours @ 3 per hour
Dept B: 40 hours @ 2 per hour
Dept C: 20 hours @ 5 per hour
Works overhead (variable): Dept A: Rs.5,000 for 5,000 hours
Dept B: Rs.3,000 for 1,500 hours
Dept C: Rs.2,000 for 500 hours
Fixed works overhead estimated at Rs.20,000 for 10,000 working hours
Calculate the cost of the job no.707 and the price for the job to give profit of 25% on selling price.
[2009,2010,2011,2012,2014, 2015(6 & 12 M)]

4. The following figures have been obtained from the cost records of manufacturing company for Oct 2015.
Cost of materials Rs.2,40,000 Wages Rs.2,00,000 Factory overhead Rs.1,20,000
Administration exps Rs.1,34,000 Selling exps Rs. 89,600 Distribution exps Rs.56,000; Profit Rs.1,68,000
A work order was executed in November 2015 and the following expenses were incurred: materials
Rs.32,000; wages Rs.20,000. Assuming that the rate of factory overhead went up by 20%, distribution by
10% and selling and administration charges by 12.5%, at what price should the job be quoted so as to earn
the same rate of profit on the selling price?
Factory overhead is based on direct wages and distribution and selling charges are based on factory cost.

5. The following figures have been obtained from the cost records of manufacturing company for Oct 2015.
Cost of materials Rs.90,00 Direct Wages Rs.75,000 Factory overhead Rs.45,000
Administration exps Rs.42,000 Selling & Distribution exps Rs.52,500 Profit Rs.60,900
A work order was executed in November 2015 and the following expenses were incurred: materials
Rs.1,20,000; labour cost Rs.75,000. Assume that the selling and distribution have gone up by 15%. Factory
overhead is based on direct wages and distribution and selling charges are based on factory cost.
At what price should the job be quoted so as to earn the same rate of profit on the selling price?

6. Component B is made entirely in cost centre 100. Material cost is Rs.6 per component and each component
takes 10 minutes to produce. The machine operator is paid Rs.7.20 per hour and the machine hour rate is
Rs.4.50. The setting up cost of machine to produce component B takes 2 hours and 20 minutes. On the basis
of this information, prepare a cost sheet showing the production and setting up costs, both in total and per
component, assuming that a batch of a)100 component and b) 200 components produced.
(2014,12 marks)

7. A & company produces goods against orders. Its manufacturing section consists of 3 departments X,Y and Z.
it is the practice of concern to prepare quarterly budget for the purposes of control and absorption of
overheads. Following information is extracted from the first quarter budget of the company.
Particulars Total Rs. Dept.X(Rs.) Dept.Y(Rs.) Dept.Z(Rs.)
Material 60,000 10,000 20,000 30,000
Direct labour cost 23,500 7,000 8,000 8,500
Variable factory overheads 15,000 5,000 4,000 6,000
Fixed factory overheads 15,000 - - -
Administrative overheads 10,000 - - -
Machine hours 20,000 6,000 4,000 10,000
The factory overheads are absorbed on the basis of machine hours and the administrative overheads are
absorbed as a percentage of factory cost.
The concern received an order from its regular customer for the supply of a specific variety of products that
passes through 2 departments only X and Y. In respect of the order, the following particulars are available.
Dept.X(Rs.) Dept.Y(Rs.)
Material cost 1,500 2,500
Direct labour cost 700 800
Machine hours 600 400
Prepare job order cost sheet and ascertain the price of the order, if the margin of 25% on sales is added to
the cost of production. (2013, 12 marks)
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B.COM- V SEMESTER-COST AND MANAGEMENT ACCOUNTING- III (PRACTICAL)
8. The following information relates to the manufacturing of a component- AM-20 in a factory.
Cost of material Rs.1.20 per unit Machine Hour rate Rs.30
Operator’s wages Rs.14.40 per hour setting up time of the machine 2 hours 20 minutes
Time required for production 10 minutes per unit.
Prepare a cost sheet showing the production costs and setting up costs and cost per unit when the batch
consists of a)100 units and b) 1000 units. (2009,2015, 12 marks)

9. A factory uses job costing. The following cost data is obtained from its books for the year ended 31-12-2011.
Direct materials Rs.90,000 Direct wages Rs.75,000 Profits Rs.60,900
Selling and distribution Rs.52,500 Administrative Rs.42,000 Factory Rs.45,000
Prepare a job cost sheet
In 2012, the factory overhead an order for a number of jobs. It is estimated that the direct materials
required will be Rs.1,20,000 and direct labour will cost Rs.75,000. What would be the price for these jobs if
the factory overheads to earn the same rate of profit on sales assuming that the selling and distribution
overheads have gone up by 15%? The factory recovers factory overheads as a percentage of direct wages
and administration and selling and distribution overheads as a percentage of works cost, based on cost rates
prevailing in the previous year. (2008, 12 marks)

EBQ:
10. The cost of setting up of a machine for the production is Rs.240 irrespective of the size of the batch. The
carrying cost of the inventory is estimated to be 5 paise per month per unit. The demand for the product is
250 units per month and this demand is constant. Calculate the EBQ . (2008 2011, 6 marks)

11. Annual demand for the parts is 8000 units. Setting up cost Rs.200. cost of manufacture per unit Rs.400. rate
of interest per annum 10%. Calculate the EBQ. (2009, 6 marks)

12. High-tech Ltd. is committed to supply 2000 units per month of a product to its dealer on a steady basis. It is
estimated that it costs 10 paise as inventory holding cost per unit per month and that setup cost per batch is
Rs. 324. Calculate the EBQ (2015, 6 marks)

13. Monthly demand for the component is 2000 units. Setting up cost per batch is Rs. 120. Annual rate of
interest is 6%. Cost of manufacture per unit Rs. Calculate EBQ. (2012, 6 marks)

******************************************
CHAPTER 2- CONTRACT COSTING
1. The Gujarat engineering Co. Ltd. undertakes large contracts. On 31 st December 2015, when annual accounts
are prepared, the position of a bridge contract, which was commenced on 1-4-2011 was as follows.
Materials Rs. 6,00,000 Material on hand Rs.24,000
Wages Rs.7,00,000 Plant sent to site Rs.1,00,000
Wages accrued Rs.10,000
The value of work certified was Rs.14,40,000 of which Rs.10,80,000 had been received. Work finished but
uncertified was Rs.40,000. The plant on site on 31 st December was Rs.80,000. The contract price was
Rs.24,00,000. Prepare contract account and show entries in balance sheet.

2. ABC constructions Ltd. undertook a contract of constructing a canteen building. From the following
particulars prepare the canteen contract a/c.
Materials at site(1-1-2015) Rs.2,000 Materials Purchased Rs.50,000
Materials supplied from stores Rs.10,000 Materials returned to stores Rs.1,000
Materials stolen Rs.2,000 Materials destroyed by fire Rs.200
Materials transferred to cinema contract Rs.500 Materials costing Rs.1,000 were sold for Rs.800
Materials recd from hospital contract Rs.20,000 Materials in hand at the end of the year Rs.10,000

3. Nirman Nimiti company ltd. supply the following particulars relating to the contract no.205 are supplied to
you for the year ending 30-6-2014.
Materials : sent from stores Rs. 80,000 Material returned to stores Rs.500
Supplied by stores Rs. 5,000 work certified Rs.2,00,000
Wages Rs.70,000 work uncertified Rs.5,600
Plant installed at site Rs.15,000 Materials sold(cost Rs.200) Rs.300
Direct expenditure Rs.4,000 plant lost by fire Rs.1,000
th
Establishment charges Rs.3,000 value of plant on 30 June Rs.12,000
Wages accrued on 30-6-2014 Rs.500 materials at site on 30th june Rs.1,000
Contract price is Rs.5,00,000. Cash received from the contractee is Rs.1,60,000. Prepare contract account,
contractee’s account and show the relevant entries in balance sheet.

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B.COM- V SEMESTER-COST AND MANAGEMENT ACCOUNTING- III (PRACTICAL)
4. The following is the summary of the entries in a contract ledger as on 31-12-2015 in respect of contract
no.51
Materials bought directly Rs.35,000 Materials from stores Rs.7,000
Wages Rs.18,000 Direct expenses Rs.7,000
Establishment charges Rs.8,000 Plant Rs.34,200
Scrap sold (plant ) Rs.1,820 materials at site Rs.5,000
The further information is as follows.
Accruals on 31-12-2015 were, wages Rs.900, direct expenses Rs.1,200. The cost of work uncertified included
materials Rs.2,600, wages Rs.1,000 and expenses Rs.1,500.
Plant worth Rs.2,000 and materials worth Rs.3,000 were destroyed by fire.
Rs.4,000 worth of plant sold for Rs.3,000 and materials costing Rs.5,000 sold for Rs.6,000
Depreciation till December 2015 on plant Rs.10,000
Cash received from contractee Rs.60,000 being 80% of work certified. Contract price is Rs.1,00,000
Show the contract account, WIP account and the entries in balance sheet.

5. The following particulars are taken from the books of a contractor on 31-12-2015.
Wages Rs.8,75,000 General Stores Rs.40,000
Wages Rs.35,000 Establishment Charges Rs.66,000
Inspection fees Rs.15,000 Scrap (Materials ) Sold Rs.6,000
Materials : purchased Rs.80,000
Transfer from other contracts Rs.2,00,000
Issued from other stores Rs.5,50,000
A cement mixing plant was purchased on 1-1-2015. For Rs.80,000. Installation charges Rs.20,000
Of the plant and materials charged to the contract, plant which cost Rs.3,000 and material which cost Rs.
2,500 were lost. On June 30, plant was transferred to another contract. An additional plant was purchased
on 1st October for Rs.2,00,000. The contract price was Rs.50,00,000. Cash received on 31-12-2015
Rs.20,00,000 being 80% of the work certified. The cost of work done but not certified was Rs.75,000. The
value of material on hand was Rs.20,000. Charge the depreciation on plant at 10%.
Prepare contract account. Show how WIP account will appear in the balance sheet on 31-12-2015.
(2011, 24 marks)
6. A firm of contractor’s undertook the contract no.777 in 2015. The contract price was Rs.6,00,000. The
following particulars relate to contract no.777
Materials issued from stores Rs.1,50,000 Wages paid Rs.2,36,000
Materials purchased for the contract Rs.30,000 Architect fees Rs.12,000
Materials transferred from contract no.750 Rs.10,000 Establishment charges Rs.10,000
Plant installed at cost Rs.70,000 Wages accrued on 31-12-2011 Rs.4,000
Direct expenses due on 31-12-2011 Rs.5,000 Direct expenses paid Rs.8,000
Of plant and materials charged to contract, plant costing Rs.5,000 and materials Rs.4,000 were lost by an
accident. Materials costing Rs.2,500 were sold at a profit of Rs.500. on 31-12-5011, plant which cost Rs.3,000
was transferred to contract no.761. on 31-12-2011, the value of work certified was Rs.4,80,000 and 80% of
the same was received in cash. The cost of work done but not certified as on this date was Rs.3,000. Charge
the depreciation on plant at 10%. Prepare contract a/c, contractee’s account WIP a/c and show the relevant
figures in balance sheet of the firm.

7. A company of builders having an authorized capital of Rs.1,00,000 divided into 1,000 ordinary shares of
Rs.100 each, commenced operations on 1 st January 2015. During the year it was engaged in a contract. The
contract price being Rs.4,00,000. The trial balance extracted from their books on 31 st December,2011 stood
as follows.
Particulars Amount(Rs) Amount(Rs)
Share capital being 80% paid up 80,000
Sundry creditors 8,000
Land & Building at cost 34,000
Cash at bank 9,000
Materials 80,000
Plant 15,000
Wages 1,05,000
Expenses 5,000
Cash received being 80% of work certified 1,60,000
2,48,000 2,48,000
Of the plant and materials charged to the contract, plant costing Rs.2,000 and materials costing Rs.2,000
were destroyed by an accident. On 31 st December 2015 plant which cost Rs,4,000 was returned to store.
Value of materials on site was Rs.4,000, cost of work uncertified was Rs.2,000. Charge the depreciation at
the rate of 10% on plant. Prepare the contract account for the year 2011 and the balance sheet as on 31 st
December 2011 and show your calculation of the amount to be transferred to profit and loss account.
(2008, 24 marks)

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B.COM- V SEMESTER-COST AND MANAGEMENT ACCOUNTING- III (PRACTICAL)
8. A firm building contractors began to trade on 1-4-2015. The following was the expenditure on contract for
Rs.3,00,000. Materials issued to contract Rs.51,000. Plant used for the contract Rs.15,000, wages Rs.81,000,
other expenses Rs.5,000. Cash received on account to 31 st march 2016 amounted to Rs.1,28,000 being 80%
of the work certified. Of the plant and materials charged to the contract, plant which costs Rs.3,000 and
material which cost Rs.2,500 were lost on 31 st march. Plant cost Rs.2,000 was returned to stores. The cost of
work done but uncertified was Rs.1,000 and materials costing Rs.2,300 were in hand on site. Charge 15%
depreciation on plant. Prepare contract account (2010, 12 marks)

9. Vijaya Constructions Ltd. undertook a contract for Rs.48,00,000. The trial balance as on 31-03-2016 is as
below.
Dr (Rs.) Cr (Rs.)
Share capital: 30,00,000
Sundry debtors and creditors 4,00,000 10,00,000
Contractee’s account 20,00,000
Bank 5,00,000
Land and building 12,00,000
Contract no.948: materials 16,00,000
Labour 12,00,000
Overheads 1,00,000
Plant 10,00,000
60,00,000 60,00,000
a) The following additional information is available.
b) Closing stock of materials at contract site Rs.16,000
c) Materials returned to stock Rs.10,000
d) Plant costing Rs.1,00,000 sold for Rs.92,000 on 31-12-2015
e) Plant returned to stocks costing Rs.6,00,000
f) Materials lost Rs.6,000
g) Plant lost due to fire Rs.20,000
h) Work certified 80% of contract price
i) Cash received on account till 31-03-2016, of 80% of work certified
j) Depreciation on plant at 10% per year and building at 5% per year.
Prepare contract no.948 a/c, contractee’s a/c, balance sheet as on 31-03-2016 (2010, 24 marks)

10. The contract ledger of Sharma and company showed the following expenditure on account of a contract on
31-12-2015.
Materials Rs.2,10,000 Sundry Expenses Rs.15,000 Wages Rs.2,93,000
Plant Rs.70,000 Establishment expenses Rs.10,000
The contract was started on 1-1-2015 and the contract price was Rs.10,00,000. Cash received to date was
Rs.4,80,000 representing 80% Aof the work certified. The value of plant on 31 st December 2015 was
Rs.20,000 and value of materials Rs.6,000. The cost of work finished but not certified was Rs.50,000. Some of
the materials costing Rs.20,000 were found unsuited and were sold for Rs.16,000 and a part of the plant
costing Rs.5,000 was unsuited and was sold for a profit of Rs.1,000. In order to calculate the profit made on
31-12-2015, the contractor estimated further expenditure that would be incurred in completing the contract
and took to the credit of P & L a/c for the year that proportion of the estimated net profit to be realized on
the contract which the value of work certified bore to the contract price. The estimates were as under:
a) The contract would be completed by 30-6-2016
b) A further sum of Rs.30,000 would have to be spent on plant and the residual value of the plant on
the completion of the contract would be Rs.12,000.
c) The materials required in addition to those on 31-12-2015 would cost Rs.1,00,000 and that further
sundry expenses Rs.7,000 would be incurred.
d) The wage for the 6months would be Rs.1,69,000
e) The establishment expenses would cost the same amount per month as in the previous year.
f) Total Rs.18,000 would be sufficient to meet the contingencies.
Prepare contract account and show your calculation of the profit to be credited to P & L a/c for the year
(2009, 24 marks)

11. A contractor secured a contract to supply and erect machinery for the sum of Rs.7,50,000. He was to receive
payment from time to time equal to 90% of the work certified. He commenced the work on 1-1-2015 and
incurred the following expenditure during 2015.
Plant and tools Rs.70,000; Machinery and stores Rs.2,00,000; Sundry expenses Rs.30,000;
Wages Rs.1,50,000; Establishment charges Rs.40,000.
A part of machinery costing Rs.20,000 was unsuited and was sold immediately at a profit of Rs.5,000. The
value of plant and tools on 31 st December 2015 was Rs.40,000 and the value of machinery and stores were
Rs.30,000. Cash received was Rs.4,38,750 representing 90% of the work certified.

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In order to calculate the profit made on the contract upto 31-12-2015, the contractor estimated the
following further expenditure for completing the contract and took to the P & L a/c for the year that
proportion of the estimated profit to be realized on the contract which the certified value of work done bore
to contract price.
a) The contract would be completed in further period of 6 onths
b) Plant and tools would have residual value of Rs.10,000 upon completion of the contract
c) Cost of machinery and stores required in addition to those in stock on 31-12-2015 would be
Rs.1,00,000. Sundry expenses Rs.20,000 would be incurred. Wages for the 6 months would be
Rs.80,000
d) Establishment charged would cost the same per month as in the previous year
e) 2.5% of the total cost of the contract ( excluding this %) should be provided for the contingencies.
Prepare contract a/c, show the calculation of profit to be credited to P&L a/c for the year.(2011, 24 marks)

12. A contractor secured a contract to supply and erect machinery for the sum of Rs.7, 50,000. He was to receive
payment on account from time to time equal to 90% of the work certified. He commenced work on 1 st
January 2011 and incurred the following expenditure during 2011.
Plant & tools Rs70,000
machinery and stores Rs.2,00,000
Sundry expenses Rs.30,000
Wages Rs.1,50,000
Establishment charges Rs.40,000
A part of the machinery costing Rs.20,000 was unsuited to the contract and was sold immediately at a profit
of Rs.5,000. The value of plant and tools on 31 st December,2011 was Rs.40,000 and the value of machinery
and stores then in hand was Rs.30,000. Cash received was Rs.4,38,750 representing 90% of the work
certified.
In order to calculate the profit made on the contract upto 31 st December 2011,the contractor estimated the
following further expenditure for completing the contract and took to the credit of Profit & Loss account for
the year that proportion of the estimated profit to be realized on the contract which the certified value of
work done before the contract price.
a) The contract would be completed in a further period of 6 months.
b) Plant and tools would have a residual value of Rs.10,000 upon completion of contract.
c) Cost of machinery and stores required in addition to those in stock on 31 st December 2011 would be
Rs.1,00,000. Sundry expenses Rs.20,000 would be incurred.
d) Wages for the 6 months would be Rs.80,000
e) Establishment charges would cost the same per month as in the previous year.
f) 2.5% of the total cost of the contract (excluding this %) should be provided for contingencies.
Prepare contract account for the year ended 31 st December 2011 and show your calculations of profit to be
credited to P&L account for the year. (2012, 24 marks)

13. Bedra constructions Ltd undertook a contract for 48Lakhs. The trial balance as on 31 st March 2013 is as
follows. Prepare Contract No.948 A/c, Contractee’s A/c , balance sheet as on 31 st march 2013
Dr. (Rs.) Cr.( Rs.)
Share capital 30,00,000
Sundry debtors and Creditors 4,00,000 10,00,000
Contractee’s account 20,00,000
Bank 5,00,000
Land and building 12,00,000
Contract No.948: Materials 16,00,000
Labour 12,00,000
Overheads 1,00,000
Plant 10,00,000
60,00,000 60,00,000
a) The following additional information is available:
b) Closing stock of materials at contract site Rs.16,000
c) Materials returned to stock Rs.10,000
d) Plant costing Rs.1,00,000 sold for Rs.92,000 on 31 st march 2013
e) Plant returned to stores costing Rs.6,00,000 on 31 st December 2012
f) Materials lost Rs.6,000 & Plant lost due to fire Rs.20,000
g) Work certified 80% of contract price
h) Cash received on account till 31st march 2013 of 80% of work certified.
i) Depreciation on plant at 10% per year and building at 5% per year. .(2013, 24 marks)

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14. Swastika Ltd undertook a contract for Rs.5,00,000 on 1 st January 2013. From the following particulars
obtained from the books prepare a contract a/c for the year ending 31 st December 2013.
Particulars Amount(Rs.) Particulars Amount(Rs.)
Materials 1,20,000 Plant issued 40,000
Wages 1,50,000 Working expenses 6,000
Administration expenses 10,000 Sale of materials 10,000
Work certified 3,50,000 Plant in hand on 31-12-2013 20,000
Cost of work uncertified 16,000
The contractor wished to take profit on this contract on estimation basis and the following estimation was
made:
a) The contract could be completed in a further period of 6 months.
b) The plant will have a residual value of Rs.5,000 upon the completion of this contract.
c) The additional wages to complete the contract would come to Rs.51,000
d) A further sum of Rs.4,000 will be spent on working expenses.
e) The administration expenses will be Rs.5,000 more
f) The materials required further will cost Rs.65,000. (2014, 24 marks)

15. Cost incurred on Contract No.420 upto 31 st March 2014 amounted to Rs.1,50,100.
Cost of work uncertified Rs.21,900
Contract price Rs.4,00,000
Cash received on account Rs.1,40,000 (80% of work certified)
The contractor wishes to take profit on this contract on estimation basis and the following estimates were
made:
a) That the contract would be completed on 30 th November 2014
b) That the further wages required be Rs.71,500
c) That the further stores and materials required in addition to those at site on 31 st march 2014 would
be Rs.68,600 (stores and materials at site on 31 st march 2014 Rs.3400)
d) That the further plant and tools required in addition to those at site on 31 st march 2014 would be
Rs.25,000 (Plant and tools at site on 31 st march 2014 Rs.6200) which would have residual value of
Rs.3,000 on the completion of work.
e) That the establishment expenses cost Rs.800 p.m
f) That 2% of total cost (including this percentage) would be charged as provision for contingencies.
Prepare Contract No.420 Account and find out the Profit to be taken to the credit of Profit and Loss Account.
(2015, 12 marks)

16. From the following trial balance of Sharadhi Ltd. foe the year ending 31-3-2014 draw up the contract a/c,
contractee’s a/c WIP a/c ad balance sheet.
Dr. (Rs.) Cr. (Rs.)
Cash received from contractee - 9,60,000
Buildings 4,60,000 -
Creditors - 1,80,000
Bank 1,87,000 -
Share capital - 12,00,000
Materials 5,00,000 -
Wages 4,50,000 -
Expenses 1,18,000 -
Plant 6,25,000 -
23,40,000 23,40,000
The work on contract commenced on 1-4-2013. Materials worth Rs.4,25,000 were sent to site of the
contract but those of Rs.15,000 were destroyed in an accident. Wages of Rs.4,50,000 were paid during the
year. Plant costing Rs.1,00,000 was used on the contract for the whole year. On 30-9-2013, plant costing
Rs.25,000 were destroyed due to fire. Plant worth Rs.5,00,000 were used from 1-4-2013 to 31-12-2013 and
then it was returned to stores. Materials worth Rs.10,000 were at site on 31-3-2014. The contract price was
Rs.15,00,000 and contractee pays 80% of the work certified. Uncertified work amounted to Rs.37,500.
Expenses charged to the contract were 25% of the wages. Plant is to be depreciated at 10% for the year.
(2015, 24 marks)

17. Calculate the value of plant at site on 31-12-2011 in contract costing and value of plant transferred to
another contract from the following particulars.
Plant for the contract was purchased on 1-1-2011 for Rs. 1,05,000. Its installation expense was Rs.5,000.
Rs.10,000 worth plant were destroyed by fire. On 1-10-2011, the plant was transferred to another contract
and on the same day another plant was bought for Rs.1,00,000. Plant which costs Rs.12,000 was returned to
stores on 21-12-2011. Rate of depreciation is 10% p.a. (2009, 6 marks)

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CHAPTER 3- PROCESS COSTING
1. The following details are available from the books of Jay Cee Engineering Works in which 2 processes are
employed. Prepare process accounts, abnormal loss and abnormal gain account.
Process A Process B
Materials 2000 tons @Rs.50 per ton
Other materials Rs.10,000 Rs.7,375
Factory overhead 50% of wages 40% of wages
Wages Rs.30,000 Rs.40,000
Wastage 5% 20%
Scrap 10% 5%
Scrap sold at Rs.10 per unit Rs.20 per unit
Actual output 1500 units 1225 units

2. A product passes through 3 processes A,B an C. the normal wastage is b-3%, B- 5% & C-8%. Wastage of
Process A was sold for 25 paise per unit, that of B at 50 paise per unit and that of C at Re.1 per unit. 10000
units were issued to Process A at a cost of Rs.1 per unit. Prepare process accounts
Process A Process B Process C
Sundry materials Rs.1,000 Rs.1,500 Rs.500
Labour Rs.5,000 Rs.6,500 Rs.1,050
Direct expenses Rs.1,050 Rs.1,188 Rs.1,050
Actual output(units) 9,500 9,100 8,100 (2010, 24 marks)

3. The product of the company passes through 3 distinct processes to completion. During the quarter ending
31-3-2012, the cost and production were as under:
A (Rs.) B(Rs.) C(Rs.)
Other Material 20,000 30,000 32,000
Direct Labour 30,000 40,000 50,000
Direct Expenses 5,000 3,000 2,000
Normal loss in output 10% 5% 10%
Scrap value (per unit) 30 50 60
Production (units) 920 870 800
Total production overhead is Rs.60,000. 1,000 units @ Rs.50 per unit were introduced to Process A.
production overhead is allocated to each process on the basis of 50% of direct labour. Prepare Process a/cs.
(2009,2015 24 marks)

4. Mangalore fertilizers corporation manufactures 3 grades of fertilizers. The details are as foolows.
A (Rs.) B(Rs.) C(Rs.)
Materials uses 30,000 tons 20,000 tons 10,000 tons
Cost per ton Rs.20 Rs.10 Rs.5
Wages Rs.1,00,000 Rs.60,000 Rs.40,000
Manufacturing expenses Rs.50,000 Rs.40,000 Rs.10,000
Sent to warehouse 25% 50% 100%
Transferred to next process 75% 50% ---
Sale of scrap per ton Rs.10 Rs.15 Rs.18
In each process, 4% of the total weight put in is lost and 6% is scrapped. No profit is added in the course of
processing but all grades of fertilizers are sold so as to show 25% gross profit on process cost.
(2013, 24 marks)

5. A product passes through 3 processes A,B and C. the details of expenses incurred on 3 processes as below.
Particulars Process A Process B Process C
Materials issued 10,000 units --- ---
Cost per unit Rs.100 --- ---
Sundry materials Rs.10,000 Rs.15,000 Rs.5,000
Labour Rs.30,000 Rs.80,000 Rs.65,000
Direct expenses Rs.6,000 Rs.18,150 Rs.27,200
Selling price per unit Rs.120 Rs.165 Rs.250
Management expenses during the year were Rs.80,000 and selling expenses were Rs.50,000. These are not
allocable to the processes. Actual output of 3 processes was: A-9300 units, B-5,400 units & C-2,100 units.
Two thirds of the output of process A and one half of process B was passed on to the next process and the
balance was sold. The entire process C was sold. The normal loss of 3 processes calculated on the input of
every process was: A-5%, B-15% and C-20%. The loss of process A was sold at Rs.2 per unit, that of B @ Rs.5
per unit and that of C @ Rs.10 per unit. Prepare process accounts and statement of profit.
( 2012, 24 marks)

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B.COM- V SEMESTER-COST AND MANAGEMENT ACCOUNTING- III (PRACTICAL)
6. The product of the company passes through 3 distinct processes to completion. The wastage in each process
is A-2%, B-5% and C-10%. The wastage of process A and B is sold at Rs.20 per 100 units and that of Process C
at Rs.160 per 100 units. Following is the information regarding the production in January 2012.
Particulars Process A Process B Process C
Materials Rs.24000 Rs.16000 Rs.8000
Wages Rs.32000 Rs.24000 Rs.12000
Machine expenses Rs.4000 Rs.4000 Rs.6000
Factory expenses Rs.7000 Rs.7600 Rs.8400
20000 units have been issued to process A at a cost of Rs.40,000. Process A 19,500 units, process B 18,800
units, process C 16,000 units. There was no stock in any process in the beginning and at the end of January
2012. Prepare process cost accounts, abnormal loss and gain account. (2008, 24 marks)

7. A product transfer through 2 processes A and B and thereafter it is transferred to finished stock. From the
following information, you are required to prepare process accounts
Process A Process B
Materials consumed Rs.24,000 Rs.14,000
Direct labour Rs.28,000 Rs.18,000
Manufacturing expenses Rs.23,100 Rs.26,468
Input in Process A. 20000 units at Rs.20,000
Output 18,800 units 17000 units
Normal wastage 5% 10%
Value of normal wastage Rs. 10 per 100 units Rs.10 per 100 units
(2011, 12 marks)
INTER PROCESS PROFIT:
8. A certain product passes through 2 processes before it is completed. The output of process I is transferred to
Process II at a profit of 20% on the transfer price and the output of process II is transferred to finished stock
at a profit of 25% on transfer price. There is no stock in the beginning or at the end of the year.
Particulars Process I Process II
Direct materials 10,000 -
Direct labour 10,000 14,000
Overhead 4,000 10.000
Sale of finished stock is Rs.1,00,000. Prepare process accounts and P&L a/c (2010, 12 marks)

INTER PROCESS PROFIT WITH STOCK:

9. Bharath Company Ltd. produces a product through 2 distinct processes. Following information is for the
month of July 2012.
Particulars Process A Process B
Opening stock Rs.40,000 Rs.48,000
Materials Rs.80,000 Rs.84,000
Wages Rs.60,000 Rs.60,000
Production o/h Rs.56,000 Rs.24,000
Closing stock Rs.2,000 Rs.24,000
Profit on transfer price 25% 20%
Inter process profit in opening stock --- Rs.8,000
Stock in process is valued at prime cost. Sales during the month Rs.7,00,000. Prepare process accounts
showing profit in each stage and finished stock a/c. (2009,2015, 12 marks)

10. The product of the company passes through 3 distinct processes to completion. The output of each process
is charged to next Process at a price calculated to give a profit of 20% on the transfer price. The output of Z is
charged to finished stock on similar basis. There was no partly finished work in any process on 31 st
December, on which date, the following information was obtained.
Particulars Process X Process Y Process Z
Direct materials Rs.4000 Rs.6000 Rs.2000
Direct labour Rs.6000 Rs.4000 Rs.8000
Stock on 31/12 Rs.2000 Rs.4000 Rs.6000
Stocks on each process were valued in hand on 1 st January and question of overhead were ignored. Of the
goods passed into finished stock, Rs.4,000 remained in hand on 31 st December and the balance has been
sold for Rs.36,000. Show the process accounts and finished stock account. (2013, 12 marks)

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11. A certain product passes through 2 processes before it is transferred to finished stock. The following
information is obtained for the month of December
I (Rs.) II (Rs.) Finished stock (Rs.)
Opening stock 7,500 9,000 22,500
Direct material 15,000 15,750 -
Direct wages 11,200 11,250 -
Production overheads 10,500 4,500 -
Closing stock 3,700 4,500 11,250
Profit % on transfer price to the next process 25% 20% -
Inter process profits for opening stock - 1,500 8,250
Sales during the period were Rs.1,40,000. Prepare process cost accounts and finished stock a/c, showing
profit element at each stage. (2014, 12 marks)
12. The information given below is extracted from the cost accounts of a factory producing a commodity in the
manufacture of which 3 processes are involved. Prepare process cost accounts showing the cost of the
ouput and cost per unit at each stage of manufacture.
A (Rs.) B(Rs.) C(Rs.)
Direct wages 640 1,200 2,925
Machine expenses 360 300 360
Factory on cost 200 225 240
Raw material consumed 2400 --- ---
Production 36,000 UNITS --- ---
Wastage 1,000 UNITS 1,500 UNITS 500 UNITS
Stock on 1-7-2013 --- 4,000 UNITS 16,500 UNITS
Stock on 31-7-2013 --- 1,000 UNITS 5,500 UNITS
(2013, 12 marks)

13. The following details are extracted from the costing records of an oil mill for March 2012. Purchase of 500
tons of copra costing Rs. 2,00,000
Crushing (Rs.) Refining (Rs.) Finishing (Rs.)
Labour 2,500 1,000 1,500
Power 600 360 240
Other materials 100 2,000 ---
Repairs 280 330 140
Steam 600 450 450
Expenses 1,320 660 220
Cost of drums -- -- 7,500
Sacks sold 400 -- -
Production (tons) 300 250 248
175 tons of copra residue sold for Rs. 11,000. Loss in weight in crushing process is 25 tons. 45 tons of
byproducts got in refining process valued at Rs.6,750. Prepare the process accounts. (2008,2012 12 marks)

14. The following details are extracted from the costing records of an oil mill for March 2012.
Purchase of 5400 tons of copra costing Rs. 2,20,000
Crushing (Rs.) Refining (Rs.) Finishing (Rs.)
Labour 2,750 1100 1650
Power 660 396 264
Other materials 110 2200 --
Repairs 308 363 154
Steam 660 495 495
Expenses 1452 726 242
Cost of casks 8250
3,200 tons of crude oil was produced. 2,600 tons of oil was produced by the refining process and 2,550 tons
of refined oil were finished for delivery. Coconut sacks sold Rs.440. 1,925 tons of coconut residue sold for
Rs.12,100. Loss in weight in crushing process is 275 tons. 500 tons of byproduct obtained from refining
process at Rs.7,425. Prepare necessary process accounts showing the cost per ton of production at each
stage of manufacture. (2011, 2014 12 marks)

15. The output from process A totaled 5,000 units. It was considered that 400 units were an abnormal loss.
Normal loss allowed was 10%. Additional information obtained was as under:
Material @ Rs.10 per unit, labour Rs.16,000, overhead Rs.13,400, wastage realized Rs.5 per unit. Prepare
process A account and abnormal loss account. (2008, 6 marks)

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B.COM- V SEMESTER-COST AND MANAGEMENT ACCOUNTING- III (PRACTICAL)
CHAPTER 4- JOINT PRODUCT AND BY-PRODUCT COSTING
A) AVERAGE UNIT COST METHOD & B)PHYSICAL UNITS METHOD:
1. Amruth industries Ltd. operates a processing plant to produce 3 joint products X,Y and Z. the following
particulars are provided to you from the books of the company. Find out the cost of joint products under
a) average unit cost method, b) physical units method. Pre separation costs are Rs. 1,00,000
Joint products Units produced Raw material used (tons)
X 10,000 10,000
Y 4,000 20,000
Z 6,000 20,000
(2011, 12 marks)
2. One ton of raw material put into a common process yields 4 joint products, P, Q, R and S. their weight being
63kgs, 117kgs, 180kgs and 540kgs respectively. The balance in weight is considered as normal wastage.
Based on the total processing cost of Rs. 20,000 per ton of raw materials input, you are required to
apportion the joint costs to products P,Q,R and S on the bases of weight. (2014, 6 marks)

C) NET VALUE METHOD:

3. From the following information, find out the profit made by each product, apportioning joint cost on the
sales value basis:
Joint cost Product X Product Y
Direct materials 1,26,000
Power 25,000
Petrol, oil etc 5,000
Labour 7,500
Other charges 41,000
Total 2,04,500
Selling costs 20,000 80,000
sales 1,52,000 1,68,000
(2010, 12 marks)
In a manufacturing company 10,000kg of A is processed to produce 6,000 kg of B and 4,000 kg of C. the
joint costs before separation point came to an amount of Rs.24,000. From the following particulars calculate
the apportionment of joint costs and profit of each product under:
a) Physical measurement method and b) Market value after further processing. C) market value at
separation point
B(Rs.) C(Rs.)
Unit selling price at separation point 5.00 3.75
Unit selling price after further processing 7.00 7.50
Further processing cost after separation 5,000 7,500
(2013, 6 marks)
4. In processing 10,000kgs of material X gives out 7,000kgs of A and 3,000kgs of B. the joint cost is Rs.11,500.
From the following data, show the apportionment of joint cost and profit of each product on the assumption
that the joint products are sold after the further processing and joint costs are apportioned in the ratio of
sales value at split-off point.
A(Rs.) B(Rs.)
Selling price at split off point 2.00 3.00
Further processing cost after separation 2,000 1,000
Selling price after further processing 3.00 4.50
(2015, 6 marks)
5. The Swan chemicals Ltd. Produces 3 joint products A,B and C. the joint costs for June 2014 was Rs.64,000. It
is estimated that profit on each of the 3 products will be 30%, 25% and 20% respectively. The subsequent
expenses were: A- Rs.3,600; B- Rs.2,500 and C- Rs.1,000 and sales for June 2014 were: A- Rs.48,000; B-
Rs.32,000 and C- Rs.20,000. Prepare a statement showing apportionment of joint expenses.

CHAPTER 5- ACCOUNTING FOR BY-PRODUCTS

1. The following particulars are extracted from the records of Universal Manufacturing Industry Ltd. for the
month of August 2015.
It manufactured 1800kg of main product AX at a cost of Rs.32,000
In the course of manufacture, it produced 250kg of by product Bz.
Sales during the month were AX-1600kg at Rs.35 per kg and BZ 250kg fr Rs.1,500.
Advertising expenses for the month were Rs.4,500 to AX and Rs.250 to BZ.
Record the above particulars and calculate the profit under
a) Other income method
b) Total sales less total cost method
c) Sales revenue of by-product deducted from cost of production
d) Net sales value of by-product credited to main product.

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2. From the following figures relating to a chemical company show the main product account and P&L a/c for
the month of august 2011 when the sale value of by product is treated as miscellaneous income.
Direct materials (5000 units) Rs.75,000, Direct Labour Rs.40,000, Manufacturing overhead at 100% of direct,
wages. Total units of main product produced 5,000 units. Sale: 4,000 units at Rs.80 per unit. Closing stock
was 1,000 units. Amount realized from sale of byproduct Rs.2,000. (2009, 6marks)

REVERSE COST METHOD:

3. A factory is engaged in production of chemical X and in the course of its manufacture a by-product Y is
produced. For the month of August 2010, the following cost data are available.
Separate expenses(Rs.)
Joint Expenses (Rs.)
X Y
Materials 38,400 14,000 1,500
Labour 23,400 15,000 2,600
overheads 7,000 3,000 500
The output for the month was 142 tons of X and 49 tons of Y. the selling price of Y was Rs.280 per ton and
estimated profit is 50% of selling price. Prepare X and Y account showing the apportionment of joint
expenses. (2009, 12 marks)

4. Mayura Company produces ‘A’ as a main product, B and C as its byproducts. The following expenses have
been incurred for the above products.
Separate expenses(Rs.)
Joint Expenses (Rs.)
A B C
Materials 5,000 2,000 900 1,300
Labour 4,500 1,000 800 800
On cost 4,000 500 300 400
Selling price 21,000 10,000 9,000
Profit on sale 50% 50% 33 1/3%
Show the apportionment of joint expenses and prepare necessary accounts. (2008,2011, 12 marks)

5. From the following data ascertain the amount of net profit for the period under total cost less post split off
cost plus selling and distribution expenses method.
Main product produced and sold during the period 12,000 units at Rs.25 per unit. Total joint cost
Rs.1,60,000, by product produced and processed further after the split off point at a cost of Rs.10,000. Sale
of by-product Rs.25,000. Administration and selling expenses on main product Rs.12,000, on by-product
Rs.1,000. (2012, 6 marks)

6. Product P yields by-products Q and R. the joint expenses of manufacture are

Materials Rs.10,000 Labour Rs.8,000 and On cost Rs.9,000
Subsequent expenses are as follows.
P(Rs.) Q(Rs.) R(Rs.)
Materials 2,000 1,600 1,800
Labour 2,400 1,400 1,700
On cost 2,600 1,000 1,500
Sales 42,000 20,000 18,000
Estimated profit on sales 50% 50% 33 1/3%
Show how you apportion the joint expenses of manufacture and also prepare necessary accounts
(2014, 12 marks)

7. A factory producing article P, also yields Q and R as by-products. The joint cost of manufacture is
Materials Rs.1,00,000 Labour Rs.20,000 and Overhead Rs.80,000
Subsequent expenses are as follows.
P(Rs.) Q(Rs.) R(Rs.)
Materials 16,000 15,000 11,000
Labour 6,000 3,000 5,000
Overhead 8,000 7,000 4,000
30,000 25,000 20,000
Selling price 1,50,000 1,20,000 1,00,000
Estimated profit on selling price 30% 25% 20%
MShow how you apportion the joint expenses of manufacture and also prepare necessary accounts
(2015, 24 marks)
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B.COM- V SEMESTER-COST AND MANAGEMENT ACCOUNTING- III (PRACTICAL)
CHAPTER 5- OPERATING COSTING
1. Coastal Carrier Company has a truck of 8 ton capacity. The truck carries goods between Rampur and Udaipur
covering a distance of 50km. each way. It makes one round trip each day. On onward trip freight Is available
to the extent of full capacity and on return journey it is 20% of the capacity. The cost of the truck is
Rs.3,78,000 and its life is estimated to be 20years after which it may fetch a scrap value of Rs.18,000. Annual
tax and insurance are estimated to be Rs.1,98,200 and Rs.28,800 respectively.
The following information are supplied to you for the month of January 2012. Diesel, Oil per trip, each way
Rs.600. Repairs Rs.1,875. Drivers wage Rs.2,000. Conductor’s wage Rs.1,500. The truck was laid off on
account of repairs for 6 days during the month of January 2012. You are required to ascertain:
a) operating cost per ton-km and
b) rate per round trip that the company should charge if a profit of 50% on the freightage is to be
earned (2008, 24 marks)

2. Karnataka Transport Ltd. owns a fleet of 10 trucks each costing Rs.6,00,000. The company has employed one
manager to whom it pays Rs.5,000 p.m , an accountant who gets Rs.3,ooo p.m. The company has got its
trucks insured at 3% on the cost. The other expenses are as follows.
Driver’s salary Rs.4,000 p.m. Cleaner’s salary Rs.2,000 p.m. Mechanic’s salary Rs.3,000 p.m. Repairs and
maintenance Rs.12,000 p.a. per truck. Diesel consumption:- 3 k.m per liter. The estimated life of the truck is
5 years. Other information: distance travelled by each truck per day is 200kms. Normal loading capacity is
100 quintals. Capacity carried on an average 90%. Percentage of trucks laid up for repairs 5%. Effective days
in a month were 25 days. Calculate cost per quintal km. (2009, 24 marks)

3. Mr. Athul Pinto has been given a permit to run a bus in between 2 towns which are 25 kms apart. From the
following information, assuming 15% profit on takings, workout the bus fare to be charged to each
passenger.
Commission to driver and conductor @ 5% of the takings to be shared equally by them. The bus will make 2
round trips every day. The seating capacity of the bus is 40 passengers. On onward journey 80% of the seats
are occupied and on return journey 75% of the seats are occupied. The bus will operate for 30 days during
the month.
Cost of the bus Rs.20,00,00 Tyre and tubes per month Rs.3,000
Annual tax 0 Depreciation @ 12% p.a
Diesel for 100kms Rs.72,000 Salary of conductor per month Rs.8,000
Other expenses per month Rs.1,000 Salary of driver per month Rs.10,000
Garage rent per month Rs.8,000 Salary of accountant per month Rs.5,400
Repair charge per month Rs.2,000 Permit fees per month Rs.3,600
Insurance per annum Rs.4,000
Rs.24,000
(2010, 24 marks)
4. Mr. Balbir Singh has been given a permit to run a bus in between 2 towns which are 25 kms apart. From the
following information, assuming 10% profit on takings, workout the bus fare to be charged to each
passenger.
Commission to driver and conductor was @ 10% of the takings to be shared equally by them. The bus will
make 3 round trips every day. The seating capacity of the bus is 30 passengers. The bus will operate for 25
days during the month.
Cost of the bus Rs.12,00,00 Tyre and tubes per month Rs.3,000
Annual tax 0 Depreciation @ 12% p.a
Diesel for 100kms Rs.24,000 Salary of conductor per month Rs.8,000
Oil and stores per month Rs.380 Salary of driver per month Rs.10,000
Garage rent per month Rs.2,000 Salary of accountant per month Rs.6,000
Repair charge per month Rs.2,000 Permit fees per month Rs.1,000
Insurance per annum Rs.4,500 Miscellaneous Expenses per month Rs.8,000
Rs.36,000
(2012, 24 marks)
5. A company having a fleet of trucks undertakes to carry waste material. They have the following capacity
vehicles.
No.of vehicles Capacity
40 5 tons
20 4 tons
50 3 tons
On an average each vehicle makes 5 trips a day and in each trip covers an average distance of 5 kms each.
The truck carries only 75% of its capacity. 20% of the vehicles are laid up for repairs every day.
Following charges are incurred during the month:

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Salary of supervisor Rs.20,000 Garage rent Rs.30,000

Salary of foremen 3 nos. each Rs.6,000 Electricity charges Rs.10,000
Consumable stores Rs.1,60,000 Lubricants Rs.14,000
Diesel Rs.6,00,000 Replacement of tyres Rs.60,000
Wages of drivers Rs.2,000 each for 110 drivers Other expenses Rs.24,000
Wages of cleaners Rs.1,000 each for 220 cleaners
During the month, old tubes and tyres were sold for Rs.30,000. Assuming that a month consists of 30 days,
calculate the cost per ton km. for conveying waste. (2011, 24 marks)

6. Mr. Avatar Singh owns a bus runs between Delhi and Chandigarh and back for 10 days in a month. The
distance from Delhi to Chandigarh is 150kms. The bus completes the trip from Delhi to Chandigarh and back
on the same day.
The bus goes another 10 days in a month towards Agra and the distance between Delhi and Agra is
120kms. This trip is also completed in the same day. For the rest of 4 days of its operations in a month it runs
in the local city. The daily distance covered in the local city is 40 kms.
Calculate the rate Mr. Avatar Singh should charge per passenger km when he wants to earn a profit of
33.33% on takings. The other information is as follows:
Cost of the bus Rs.60,000 Token tax Rs.600 pa
Depreciation rate 20% Lubricant oil for 100 kms Rs.10
Salary of driver Rs.350 pm Repairs and maintenance Rs.500 pm
Salary of conductor Rs.350 pm Permit fee Rs.284 pm
Salary of part time accountant Rs.160 pm Normal capacity 50 passengers
Insurance Rs.1,680 pm
Diesel: 4 kms per litre Rs.1 per ltr
The bus is generally 90% of the capacity when it goes to Chandigarh and 80% when it goes to Agra. It always
full when it runs within the city. Passengers’ tax is 20% of its net takings. (2012, 24 marks)

7. A bus with capacity of 50 passengers makes a round trip from Delhi to Gazipur via Nawalbad per day. The
distance between Delhi and Nawalbad is 75kms and between Nawalbad and Gazipur is 25kms. During the
onward journey the bus is full of its capacity upto Nawalbad but only 60% full between Nawalbad and
Gazipur. On the other hand, on the return trip, it is full of its capacity from Gazipur to Nawalbad but 80% of
the capacity between Nawalbad and Delhi. The following information is provided.
The bus runs on an average 25 days. Cost of the bus is Rs.25,00,000. Estimated scrap value after 10 years
Rs.2,50,000. Annual road tax Rs.25,000. Insurance charges per year Rs.24,000.garage rent per year
Rs.12,000. Driver’s salary Rs.15,000 pm. Cleaner’s wages Rs.10,000 pm. Accountant’s salary Rs.12,000pm.
Supervisor’s salary Rs.10,000 pm. Cost of diesel per litre Rs.60.00, kilometers run per litre of diesel 4 kms,
proportionate charges for tyres per km Rs.2.00, repairs and maintenance per km Rs.5.00. interest on capital
@ 5%. You are required to compute the cost per passenger km of the operating the bus.
(2014, 24 marks)
8. Sugama Tourists runs a bus between Kundapura and Mangalore via Udupi. The distance between Kundapura
and Udupi is 35kms and between Udupi and Mangalore is 60kms. During the onward journey the bus is full
of its capacity up to Udupi but only 80% full between Udupi and Kundapura. On the other hand, on the
return trip, it is full of its capacity from Mangalore to Udupi but 75% of the capacity between Udupi and
Kundapura. The following information is provided.
The bus runs on an average 25 days. Cost of the bus is Rs.30,00,000. Estimated scrap value after 10 years
Rs.20,000. Annual road tax Rs.5,000. Insurance charges per year Rs.10,000. Garage rent per year Rs.24,000.
Driver’s salary Rs.15,000 pm. Conductor’s salary Rs.8,000 pm, Cleaner’s wages Rs.3,000 pm. Cost of diesel
per litre Rs.50.00, kilometers run per litre of diesel 4 kms, proportionate charges for tyres per km Rs.0.50.
Capacity of the bus is 50 passengers and the bus makes a round trip from Kundapura to Mangalore on an
average 25 days in the month.
You are required to compute:
a) the cost per passenger km of the operating the bus
b) assuming 10% profit on the takings for the company, work out the bus fare to be charged in
between Kundapura and Udupi and Udupi and Mangalore for each passenger. (2015, 24 marks)

9. A company having a fleet of trucks undertakes to carry waste material. They have the following capacity
vehicles.
No. of vehicles Capacity
40 5 tons
20 4 tons
50 3 tons

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B.COM- V SEMESTER-COST AND MANAGEMENT ACCOUNTING- III (PRACTICAL)
On an average each vehicle makes 5 trips a day and in each trip covers an average distance of 5 kms each.
The truck carries only 75% of its capacity. 20% of the vehicles are laid up for repairs every day. Assuming that
a month consists of 30 days, calculate the total ton kms for conveying waste. (2014, 6 marks)

10. SRS travels, operates a 40 seat capacity Volvo Bus in a month as follows.
CAPACITY FROM TO DISTANCE
First 10 days full Kundapura Hassan 160kms
Next 15 days 75% Kundapura Hubli 250kms
Next 5 days 60% Kundapura Mangalore 100kms
The total operating cost for the month is Rs. 3,77,000. Ascertain cost per passenger/km (2015, 6 marks)

11. From the following information, calculate total kilometers and total passenger kms
No.of buses: 5; Days operated in a month – 25; Trips by each bus- 4; Distance of route- 25kms (one side);
capacity of the bus- 50 passengers; Normal passenger travelling-90%. (2013, 6 marks)

12. From the following information, calculate total passenger kms

No.of buses: 10; Days operated in a month – 25; Trips by each bus- 2; Distance of route- 25kms (one side);
capacity of the bus- 50 passengers; Normal passenger travelling-80%. (2012, 6 marks)

13. Raksha transport Co. owns a bus runs between Delhi and Chandigarh and back for 10 days in a month. The
distance from Delhi to Chandigarh is 240kms. The bus completes the trip from Delhi to Chandigarh and back
on the same day.
The bus goes another 10 days in a month towards Agra and the distance between Delhi and Agra is
190kms. This trip is also completed in the same day. For the rest of 4 days of its operations in a month it runs
in the local city. The daily distance covered in the local city is 70 kms
The bus is generally 90% of the capacity when it goes to Chandigarh and 80% when it goes to Agra. It
always full when it runs within the city. Calculate the total passenger kms of the vehicle (2011, 6 marks)

14. Suraksha Transport Company has 4 mini trucks, each with a capacity of 5 ons. Each truck makes 6 trips a day
between 2 places, 30kms apart. In the onward journey full load of bricks and in the return journey on an
average 20% of capacity filled with provisions. Trucks are laid down for repairs and rest for 5 days in a month
of 30 days. Calculate the effective to kms. (2010, 6 marks)
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