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Bpm:226 Cost Accounting Question Paper

Bpm:226 Cost Accounting

Course:Bachelor Of Science In Project Planning And Management

Institution: Moi University question papers

Exam Year:2016

Answerer question one and any other three questions
1 a) briefly discuss the following material valuation methods indicating the advantages for each method.
(i) First In First Out (FIFO) (5 marks)
(ii) Last in First out (LIFO) (5 marks)
(iii) Weighted average (5 marks)
(b) You have been provided with the following data for Abacus ltd stores for the month of July 2016
Date Units Purchased Price per unit (Ksh) Units used
1st January 4500 36 -
6th January 5000 42 -
13th January - - 6000
15th January 3400 60 -
17th January 4500 80 -
26th January - - 8000
28th January 3200 95 -
31st January - - 2000
Calculate the value of stocks using the FIFO method. (10 marks)

Question two
(a) Define standard costing (5 marks)
(c) Discuss the advantages of standard costing (5 marks)
(c) Explain the functions of Budgeting (5marks)
(d) Explain variance analysis (5 marks)
(e)Discuss any two limitations of budgets (5 marks)

Question Three
a) Explain the term Economic Order quantity ( 5 marks )
b)The following Information is given for store ABC

Annual Demand 360,000 units
Maximum usage 1200 units per day per day
Minimum usage 800 units per day
Normal usage 900 units per day
Re order quantity 3200 unit
Reorder period 12-24 days
Cost of ordering is Ksh 600 per unit
Cost of holding is 50% of cost of ordering.
Required:
Calculate
i. Re order level (5Marks)
ii. Minimum stock level (5Marks)
iii. Maximum stock level ( 5marks )
iv. Economic order quantity (5marks)
Question Four
a) Distinguish between Piece rate and Time rate labor remuneration methods by giving advantages and disadvantages of each method (5 Marks)
b) Onyango Kamau takes 40 hours to a job in a construction site. Time allowed for such a job is 50 hours the rate paid is Khs 102.50 per hour on a daily rate
Calculate the comparative works cost for the job given the following information. Material cost is Kshs 600 and factory overheads is 125% of wages using the below methods.
i. Time rate (5 marks)
ii. Piece rate (5marks)
iii. Hasley plan (5marks)
iv. Rowans Plan (5 marks)

Question five
a) Distinguish between Cost accounting and Management accounting (10 Marks)
b) Write brief notes on Activity Based Costing and Just in Time Inventory System.( 15 Marks )
Question Six
a) Explain the term contract costing? (10 marks)

b) The following information relate to both production and service department of a food processing factory:
Amount directly allocated to production departments:
A - Shs. 340,000
B - Shs. 460,000
ii) Amounts to be apportioned from service departments:
X - Shs. 140,000
Y - Shs. 180,000
It is estimated that department X will do 50% for A; 20% for B; 30% for Y, and department Y will do 40% for A; 30% for B; 30 % for X.
Required:
Apportion the costs of service department to the cost department to the production departments using repeated distribution method. (Give your answer to the nearest shillings). (10Marks)
(b) Distinguish between overhead allocation and overhead apportionment. (5 Marks

Bpm:226 Cost Accounting Question Paper

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