M.Com. (Semester III) (CBCS) Examination Nov/Dec-2018
ADVANCED ACCOUNTANCY (Paper III)
Time: 2½ Hours Max. Marks: 70
Instructions: All questions are compulsory.
Figures to the right indicate full marks.
Q.1 Choose the alternatives given below. 14
is the technique and process of ascertaining costs.
Cost Accounting Management Accounting
Costing Financial Accounting
Which of the following is an accounting record?
Bill of materials Bin Card
Stores ledger All of these
Items excluded from cost
Income Tax Discount on debentures
Dividend All of the above
Wage sheet is prepared by
Payroll department Personnel department
Accounts department Costing department
Which of the following methods of wage payments does not guarantee wages on
time basis?
Halsey premium system Piece rate system
Rowan premium system Taylor's differential piece rate system
Prime Cost includes
Direct Material Direct Labour Direct expenses
Direct Material Direct Labour only
Indirect Material Indirect Labour
None of the above
The allotment of whole items of cost to cost centers or cost units is called
Cost allocation Cost apportionment
Overhead absorption Cost classification
The capital value is the basis for allocation and apportionment of
Rent Time office
Delivery expenses Depreciation
Direct Material is a
Manufacturing cost Administrative cost
Selling distribution cost Any of the above
10) Bad debt is an example of
Production overheads Administrative overheads
Selling overheads Distribution overheads
11) According to variability overheads are classified into groups.
Two Three
Four Five
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12) The wages of clerical staff is the example of
Office salary Indirect wages
Direct expenses Chargeable expenses
13) The separation method is useful for measurement of
Material Turnover Labour Turnover
Issue of Material Valuation of wastage
14) Store keeper should initiate a purchase requisition when stock reaches:
Minimum level Maximum level
Re-order level Average level
Q.2 Answer the following.
Two components A B are used as follows: 07
Normal usage 50 units per week each
Minimum usage 25 units per week each
Maximum usage 75 units per week each
Reorder quantity A 300 units, B 500 units
Reorder period A 4 to 6 weeks, B 2 to 4 weeks
Calculate for each component:
Reorder level
Minimum level
Maximum level
Average stock level
Explain the elements of cost. 07
Q.3 Answer the following.
From the following particulars find out the economic order quantity. 07
Annual Demand 18000 units
Ordering Cost 120 per units
Inventory Carrying Cost per Annum Rs. 20
Distinguish between Cost Accounting and Financial Accounting. 07
Q.4 X Ltd. has purchased and issued the materials in the following order: 14
January 2017
1 Purchased 300 units Rs. 5 per unit
4 Purchased 600 units Rs. 4 per unit
6 Issued 500 units
10 Purchased 700 units Rs. 5 per unit
15 Issued 800 units
20 Purchased 300 units Rs. 6 per unit
25 Issued 100 units
Ascertain the quantity of closing stock as on 31st January 2017 and state what will be
its value (in each case) if issues are made under the following methods:
FIFO LIFO
OR
Q.4 Compute the earning of a worker under
Time Rate Method
Piece Rate Method
Halsey Plan
Rowan Plan
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Information given
Wage Rate Rs. 2 per hour
Dearness Allowance Rs. 1 per hour
Standard Hours 80
Actual Hours 50
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Q.5 ABC Ltd. is a manufacturing company having three production departments B and
two service departments X and Y. The following is the budget for December 2016
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Total
Rs.
A
Rs.
B
Rs.
C
Rs.
X
Rs.
Y
Rs.
Direct Material 1,000 2,000 4,000 2,000 1,000
Direct Wages 5,000 2,000 8,000 1,000 2,000
Factory Rent 4,000
Power 2,500
Depreciation 1,000
Other Overheads 9,000
Additional Information
Area (sq. ft.) 500 250 500 250 500
Capital Value (Rs. Lakhs) of
assets
20 40 20 10 10
Machine Hours 1000 2000 4000 1000 1000
Horse power of Machine 50 40 20 15 25
A Technical assessment of the apportionment of expenses of service department is
as under
A B C X Y
S e rvice Department X 45 15 30 10
Y 60 35 5
You are required to prepare
1. A statement showing distribution of overheads to various departments
2. A statement showing re-distribution of service departments expenses to
production departs
3. Machine hour rates of the production department B and C
OR
Q.5 The following extract of costing information relates commodity for the year ended 30th
June 2017.
14
Stock on 1st January 2017 Stock on 30th June 2017
Raw Materials 22,000 Raw Materials 24,464
Finished Products
(1600 tonnes)
17,600 Finished Products
(3200 tonnes)
35,200
Purchase of Raw Material 1,32,000 Work-in-progress on 1st Jan 2017 5,280
Direct wages 1,10,000 Work-in-progress on 30th June
2017
17,600
Rent, Rate, Insurance and
Works cost
44,000 Cost of factory supervision 8,800
Carriage Inward 15,844 Sales finished products 3,30,000
Advertising discount allowed and selling cost 75 paise per tonnes sold 25,600 tonnes
of commodity was produced during the period.
You are required ascertain:
1. Value of Raw materials consumed
2. Cost of production
3. Cost of sales
4. Net profit
5. Net profit per tonne of the commodity