CA-V April 2023 (ATKT) Past Paper PDF

APRIL - 2023 (ATKT) Time: 3 Hours Total Marks:100 N.B. (1) All questions are compulsory (2) Figures to the right indicate full marks allotted to the question. (3) Working notes wherever necessary should form part of your answer (4) Calculate figures up...

APRIL - 2023 (ATKT) Time: 3 Hours Total Marks:100 N.B. (1) All questions are compulsory (2) Figures to the right indicate full marks allotted to the question. (3) Working notes wherever necessary should form part of your answer (4) Calculate figures up to two decimal points wherever required Q.1 (a): Select the most appropriate option and rewrite the full sentence (Any Ten): (10) 1. Prime cost plus variable overhead is known as ________. (a) Production Cost (b) Marginal Cost (c) Total Cost (d) Cost of Sales 2. _______ include all direct cost and all indirect cost. (a) Total Cost (b) Administration Cost (c) Selling Cost (d) Prime Cost 3. Perpetual inventory system involves ________. (a) Bincard and Stores Ledger (b) Bill of material and material requisition (c) Purchase requisition and purchase order (d) Inward and outward invoices 4. Material control involves ________. (a) Only consumption of material (b) Only issue of material (c) Only purchase of material (d) Purchase, storage and issue of material 5._______ discount is offered to purchaser on buying large quantities (a) Credit (b) Cash (c) Seasonal (d) Quantity 6. Time study is for ________. (a) Measurement of work (b) Fixation of standard time (c) Ascertainment of actual hours (d) Ascertainment of labour cost 7.Normal idle time ________. (a) can be avoided (b) cannot be avoided (c) can be minimised (d) can be controlled 8. Labour turnover is caused by _______. (a) only low wages (b) only discharge (c) only dissatisfaction with job (d) low wages, discharge and dissatisfaction with job 9. Expenditure over and above prime cost is known as ________. (a) Overhead (b) Factory cost (c) Cost of sales (d) Cost of production 10. Directors' remuneration and expenses form a part of _______. (a) Production overhead (b) Administration overhead (c) Selling overhead (d) Distribution overhead 11. Which of the following items is included while preparing a cost sheet? (a) Property tax on factory building (b) Goodwill written off (c) Transfer to reserves (d) Provision for taxation 12. Salary paid to partner is ________. (a) Office and administrative overheads (b) Not a part of cost sheet (c) Selling and distribution overhead (d) Factory overheads Q.1 (b): State whether the following statements are True or False (Any Ten): (10) 1. Costs which have been incurred in past are known as Historical Cost. - True 2. Normal cost is an unusual cost whose occurrence is usually irregular and unexpected to some abnormal situation. - False 3. Cost unit is a form of measurement of volume of production or services. - True 4. Carriage inward is not really an overhead at all but it is a Direct Cost. - True 5. Buffer stock is that material which is held in reserve to meet a sudden order or any contingency. - True 6. Average method of pricing the material issues is useful when material prices are fluctuating. - True 7.Piece Rate Plan differentiates between efficient and inefficient workers. - True 8. Cost of stores in allocated on the basis of direct wages. - False 9. Depreciation on plant and machinery is part of works overheads. - True 10. Cost of storage space is an example of carrying cost. - True 11. Under valuation of closing stock in costing increases costing profit. - False 12. Primary packaging charges is an example of selling and distribution overheads. - False Q.2: From the following balances prepare a cost sheet. (20) Particulars ₹ Opening Stock of Raw Material 1,20,000 Opening Stock of Work in Progress 45,600 Opening Stock of Finished Goods 86,400 Wages Direct 83,200 Wages Indirect 4,400 Purchase of Raw Material 1,05,600 Sales 3,37,600 Factory Rent and Power 24,000 Depreciation on Plant and Machinery 5,600 Carriage Inward 2,400 Factory Expenses 16,000 Office Rent and Rates 4,000 Office Expenses 10,400 Carriage Outward 4,000 Commission and Advertising 16,000 Closing Stock: Raw Material 1,46,400 Closing Stock: Work in Progress 56,000 General Stock of Finished Goods 49,600 OR Q.2: The following are the details of purchase and sales made during the month of March 2023. (20) Date Particulars Units Rate Per Units (₹) 1-3-2023 Opening Balance 1,500 10 3-3-2023 Purchase 7,500 12 4-3-2023 Sales 4,500 13 6-3-2023 Sales 4,500 13 8-3-2023 Purchases 4,500 10 9-3-2023 Sales 3,000 12 10-3-2023 Sales 750 11 You are required to prepare: 1. Stock Ledger Account under FIFO Method 2. Stock Ledger Account under Weighted Average Method. Q.3: Mr. Anand an employee of a company gets the following emoluments and benefits. (20) Basic Wages ₹70,000 per month Dearness Allowance 100% of Basic wages Employer's Contribution to Provident Fund 10% of Basic wages Employer's Contribution to E.S.I. 5% of Basic wages Bonus 20% of Basic wages Other Allowances ₹76,500 p.a He works for 3,000 hours per annum, out of which 500 hours are normal idle time. Mr. Anand worked 50 effective hours on a Job Y, where the cost of direct material is ₹40,000 and overheads are 40% of combined cost of material and labour. The sale value of Job Y is quoted to earn profit of 50% on cost. You are required to find out effective hourly cost of Mr. Anand and the expected sales value of Job Y. OR Q.3 (a): Calculate the comprehensive machine hour rate from the following details. (10) Machinery Purchased ₹9,00,000 Installation Charges ₹1,00,000 Life of Machine 5 years Working Hours per year 2,500 Repair Charges ₹5,000 per annum Electric Power consumed 10 units per hour @ ₹3 per unit Lubricant Oil ₹80 per day of 8 hours Consumable Stores ₹200 per day of 8 hours Wages of Machine Operator ₹160 per day of 8 hours Q.3 (b): The following information relating to type of raw material is available. (10) Annual Demand 2,000 units Unit Price ₹20 Ordering Cost Per Order ₹20 Storage Cost 2%p.a. Interest Rate 8%p.a. Calculate Economic Order Quantity and Total Annual Inventory Cost of the Raw Material. Q.4: Amit Company has five departments P, N, R, S and T. The actual cost for a period are as follows: (20) Particulars ₹ Repairs 70,000 Rent 62,500 Depreciation 35,000 Supervision 42,000 Insurance 48,000 Employer's Liability of Employees' Insurance 30,000 Light 90,000 The following data are also available regarding the five departments: Particulars P N R S T Area (Square feet) 140 120 110 90 40 Number of Workers 15 25 15 10 5 Total Wages (₹) 10,000 8,000 5,000 5,000 2,000 Value of Plant (₹) 20,000 18,000 16,000 10,000 6,000 Value of Stock (₹) 15,000 10,000 5,000 2,000 - Prepare a Statement of Primary Distribution of Overheads. OR Q.4 (a): Calculate the earnings of a worker under: (10) 1. Halsey Plan 2. Rowan Plan from the following particulars. 1. Hourly rate of wages guaranteed 10 per hour. 2. Standard time for producing 1 article is 5 hours. 3. Actual time taken by the worker to produce 10 articles is 40 hours. Q.4 (b): Prepare a Reconciliation Statement from the following Cost Sheet and related Trading and Profit and Loss Account to match the Financial Profit with that of Cost Sheet. (10) Cost Sheet Particulars ₹ Purchase of Raw Material 3,000 Less: Closing Stock of Raw Material 500 Raw Material Consumed 2,500 Add: Direct Wages 1,000 PRIME COST 3,500 Add: Works Overhead 3,000 WORKS COST 6,500 Add: Administrative Overhead 1,500 COST OF PRODUCTION 8,000 Add: Selling and Distribution Overhead 2,200 COST OF SALES 10,200 Add: Profit 9,800 SALES 20,000 Trading and Profit and Loss Account Particulars ₹ Particulars ₹ To Purchase 3,000 By Sales 20,000 To Wages 1,000 By Profit on Sale of Asset 1,000 To Indirect Wages 500 By Closing Stock - Raw 500 To Factory Expenses 2,000 Material To Administrative 1,000 Overhead 2,000 To Sales Expenses 1,000 To Distribution Expenses 50 To Interest 100 To Bad Debts 10,850 To Net Profit 21,500 21,500 Q.5 (a): Explain the use of Relevant Cost, Sunk Cost, Imputed Cost, Opportunity Cost, Shut Down cost for decision making. (10) Q.5 (b): What do you mean by an Overhead? Explain the classification of overhead based on behaviour of cost. (10) Q.5: Write Short notes on any four of the following: (20) Indirect Costs Re-order Level Labour Turnover Production Overheads Under-Absorption of Overheads Inventory Turnover Ratio