Cost Accounting

Daffodil International University Faculty of Business & Entrepreneurship Department of Accounting Program: BBA in Accounting Semester: Fall 2026 Examination: Midterm Time: 1 Hour 30 minutes Full Marks: 25 Course Code: 0411-202 Course Title: Cost Accounting Section: 5A Teacher: MRI Answer all the questions Question No. 1: [Marks: 3+3] (a) Compare between product cost and period cost with example. [CLO 1 Level 2] (b) Illustrate the terms (i) Minimum stock level (ii) Maximum stock level (iii) EOQ [CLO 1 Level 2] Question No. 2: [Marks 9] The following cost and inventory data for the just completed year are taken from the accounting records of Eccles Company for the month ended September 30, 2026 Cost incurred | Amount in Taka Advertising expense | 1,00,000 Direct Labor cost | 90,000 Purchases of raw materials | 1,32,000 Rent, factory building | 80,000 Indirect labor | 56,000 Sales commissions | 35,000 Utilities, factory | 9,000 Maintenance, factory equipment | 24,000 Supplies, factory | 700 Depreciation, office equipment | 8,000 Depreciation, factory equipment | 40,000 Factory supervisor's salary | 12,000 Administrative expenses | 21,000 Sales salaries | 9,650 Transportation in | 2,000 Inventories: Beginning and ending balances of inventories are as under: | September 1 | September 30 Raw materials | 8,000 | 10,000 Work-in-process | 5,000 | 20,000 Finished goods | 70,000 | 25,000 Required: a) Prepare a schedule of cost of goods manufactured b) Prepare the cost of goods sold section of Eccles Company's income statement for the month c) Assume that, during the month total sales revenue were Tk. 6,47,000. Prepare an Income Statement for the month CLO 2 Level 3 Question 3: [Marks 6] Following data are related to the purchase department of Al Galib Company, a renowned manufacturer in Dhaka Division: Ordering Quantity in units | Price per unit (in Tk) Less than 5,000 | 500 5,000 and less than 10,000 | 450 10,000 and less than 15,000 | 400 15,000 and less than 20,000 | 350 20,000 and above | 310 Al Galib Company requires 45,000 units of materials per year and materials inventory carrying cost is 15% per year. The company estimated that to place a purchase order Tk. 250 is required per order. Required: (i) Determine the most economic order quantity by using a tabular format. (ii) Determine the EOQ if there is no discount offer and the price per unit is Tk. 525 [CLO 2 Level 5] Question 4: [Marks 4] Following information are related to the production department of Shafi Frozen Foods Ltd.: Normal wage rate per hour is Tk. 39. Standard time per piece of Chicken Ball is 5 (five) seconds. Output of the production workers in a day are as below: Jaman: 86 units; Sumon: 80 units; Mortuza: 96 units; Shihab: 73 units and Bashudev: 105 units Working hours per day: 8 Instruction: Analyze the above information and determine the earnings of the workers under Merrick differential piece rate system and also calculate the average labor cost of the company. CLO 3 Level 4