TM
SOLUTIONS MANUAL
All Chapters Included
,COST ACCOUNTING
PROBLEMS AND SOLUTIONS
R. Palaniappan
Former - Head
Department of Commerce
Government Arts College, Salem
Visiting Faculty, Institute of Cost and Works Accountants of India
and
Institute of Company Secretaries of India
[Salem Chapter]
Dr. N. Hariharan
(M. Com., M. Phil., Ph.D.)
Senior Fellow – Faculty of Accounting and Finance
Botho University, Gaborone, Botswana
&
Founder Chairman and Hon. Director
CEAT – Centre for Excellence in Accounting and Taxation, Pune
www.ce-at.in
Director
CIMA Programme, CEAT – Listed Learning Partner, Pune
(Chartered Institute of Management Accountants, London)
Former Vice-Principal
Shree Chandraprabhu Jain College, Chennai
Visiting Faculty
Institute of Company Secretaries of India
Southern India Regional Council, Chennai
, Contents
Preface v
Acknowledgements vii
1. Cost Analysis: Cost Classification and Cost Sheet 1
2. Materials Cost Control 20
3. Materials Costing 39
4. Labour Cost Control 59
5. Methods of Wage Payment 74
6. Overheads–Nature and Classification 98
7. Accounting for Overheads and Control 106
8. Administration, Selling and Distribution Overheads 152
9. Cost Ledger 156
10. Reconcitiation of Cost and Financial Accounts 172
11. Integral Accounting 180
12. Output Costing/Unit Costing/ Single Costing 192
13. Job Costing and Batch Costing 225
14. Contract Costing/Terminal Costing 245
15. Process Costing 295
16. Joint Products, By-products and Main Products Costing 344
17. Service Costing or Operating Costing 366
18. Marginal Costing 404
19. Budget and Budgetary Control 446
20. Standard Costing and Variance Analysis 473
, 1
C h a p t er
Cost Analysis: Cost Classification
and Cost Sheet
A. Short Answer Type Questions:
1. Compute materials consumed from the following:
Opening stock of materials 20,000
Purchase of materials 1,25,000
Carriage on purchases 15,000
Sale of materials scrap 7,000
Closing stock of materials 18,000
Solution: Computation of materials consumed:
Opening stock materials 20,000
Add: Purchase of materials 1,25,000
Carriage on purchase 15,000
1,60,000
Less: Closing stock of materials 18,000
Sale of materials scrap 7,000 25,000
Materials consumed 1,35,000
2. Compute materials consumed from the following:
Purchase of direct materials 3,50,000
Carriage inward 27,000
Carriage outward 18,000
Sale of factory scrap 10,000
Sale of direct materials scrap 15,000
Contd...
SOLUTIONS MANUAL
All Chapters Included
,COST ACCOUNTING
PROBLEMS AND SOLUTIONS
R. Palaniappan
Former - Head
Department of Commerce
Government Arts College, Salem
Visiting Faculty, Institute of Cost and Works Accountants of India
and
Institute of Company Secretaries of India
[Salem Chapter]
Dr. N. Hariharan
(M. Com., M. Phil., Ph.D.)
Senior Fellow – Faculty of Accounting and Finance
Botho University, Gaborone, Botswana
&
Founder Chairman and Hon. Director
CEAT – Centre for Excellence in Accounting and Taxation, Pune
www.ce-at.in
Director
CIMA Programme, CEAT – Listed Learning Partner, Pune
(Chartered Institute of Management Accountants, London)
Former Vice-Principal
Shree Chandraprabhu Jain College, Chennai
Visiting Faculty
Institute of Company Secretaries of India
Southern India Regional Council, Chennai
, Contents
Preface v
Acknowledgements vii
1. Cost Analysis: Cost Classification and Cost Sheet 1
2. Materials Cost Control 20
3. Materials Costing 39
4. Labour Cost Control 59
5. Methods of Wage Payment 74
6. Overheads–Nature and Classification 98
7. Accounting for Overheads and Control 106
8. Administration, Selling and Distribution Overheads 152
9. Cost Ledger 156
10. Reconcitiation of Cost and Financial Accounts 172
11. Integral Accounting 180
12. Output Costing/Unit Costing/ Single Costing 192
13. Job Costing and Batch Costing 225
14. Contract Costing/Terminal Costing 245
15. Process Costing 295
16. Joint Products, By-products and Main Products Costing 344
17. Service Costing or Operating Costing 366
18. Marginal Costing 404
19. Budget and Budgetary Control 446
20. Standard Costing and Variance Analysis 473
, 1
C h a p t er
Cost Analysis: Cost Classification
and Cost Sheet
A. Short Answer Type Questions:
1. Compute materials consumed from the following:
Opening stock of materials 20,000
Purchase of materials 1,25,000
Carriage on purchases 15,000
Sale of materials scrap 7,000
Closing stock of materials 18,000
Solution: Computation of materials consumed:
Opening stock materials 20,000
Add: Purchase of materials 1,25,000
Carriage on purchase 15,000
1,60,000
Less: Closing stock of materials 18,000
Sale of materials scrap 7,000 25,000
Materials consumed 1,35,000
2. Compute materials consumed from the following:
Purchase of direct materials 3,50,000
Carriage inward 27,000
Carriage outward 18,000
Sale of factory scrap 10,000
Sale of direct materials scrap 15,000
Contd...
