M.Com. (Semester (CBCS) Examination Oct/Nov-2017
ADVANCED COSTING
Day Date: Saturday, 18-11-2017 Max. Marks: 70
Time: 02.30 PM to 05.00 PM
Instructions: All questions are compulsory.
Use of calculation is allowed.
Q.1 Choose the alternatives given below. 14
includes the presentation of information derived there from for the
purpose of management decision making.
Financial accounting Cost accounting
Advanced accounting All of the above
mean determination of cost of product or services by any technique
or process.
Cost Costing
Cost accounting Opportunity cost
Direct material plus direct labour plus direct expenses is called
Total cost Works cost
Factory cost Prime cost
A Cost is a unit of product, service or time in terms of which costs
are ascertained or expressed.
Centre Allocation
Sheet Unit
The main purpose of ascertaining the cost of a is to control the
cost and to fix the responsibility of the person in charge of a cost centre for the
control of cost that centre.
Cost unit Total production
Total cost Cost center
can be easily identified with a specific job, contract or work order.
Direct expenses Indirect expenses
Variable cost Semi variable cost
Workers are those who are not on the pay roll of the factory.
Casual Permanent
All All of these
is an extra time over and above the normal working hours.
Actual time Standard time
Over time Time taken
High labour increases the cost of production and decreases the
profitability.
Attendance Efficiency
Turnover Incentives
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10) The need of arises in non integral accounting system.
Auditing Financial statement
Reconciliation Cost sheet
11) If time allowed to workers is 400 hours, time taken is 300 hours rate per hour
is Rs. 12 then earning of workers under Halsey Plan is Rs.
4800 8400
3600 4200
12) Which of the following item is not included in financial books?
Interest on capital Loss on sale of fixed assets
National rent Heavy donations.
13) When costing loss is Rs. 5,600 administrative overheads under absorbed
being Rs. 400 the loss as per financial accounts should be
Rs. 600 Rs. 6,000
Rs. 5,200 Rs. 2,500
14) is composite accounting system where under all financial and
Cost transactions are recorded in one set of book.
Non integrated Integral system
Cost accounting Financial accounting
Q.2 Write short notes. 14
Advantages of Integrated accounting system.
Methods of remunerating labour.
Q.3 The following particular apply to a factory where Mr. X and Y works. 07
Normal Rate per hour Rs. 5
Standard output per hour Rs. 5
In order to produce 200units time taken by the worker as follows.
Mr. X 20 hrs. and Mr. Y 30 hrs.
Calculate earning per worker under Halsey premium system and Rowan
premium system.
Calculate cost of goods sold in each of the following case. 07
Cost of goods produced Rs. 9,00,000. Opening stock of finished goods Rs.
3,00,000, closing stock of finished goods Rs. 2,00,000.
Cost of 9,000 units produced Rs. 9,00,000. Opening stock of finished
goods 3,000 units Rs. 120 per unit. Closing stock of finished goods
4,000 units. FIFO method is used.
Q.4 From the following information prepare a statement showing cost and profit
per unit.
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Direct materials Rs. 45,000
Direct labour 331
of direct material cost
Direct expenses 20% of direct material and direct labour cost
Factory overheads 1
9th of prime cost
Administrative overheads 25% of works cost
Selling expenses 10% of cost of goods sold
Units produced 100
Units remain unsold 10% of unit produced
Profit 1
6th of sales
OR
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Q.4 Prepare statement of cost and profit form the following data provided by M/s.
Bhima Ltd. For the year ending 31.3.2016
Raw material 15,000
Direct material 9,000
Machine hours 900
Machine hour rate Rs. 5
Production Rs. 17,100 units
Sales Rs. 16,000 units
Selling price per unit Rs. 4
Selling overheads per unit 50 paise
Office overheads are 20% works cost.
Also prepare a reconciliation statement, if factory, office and selling expenses
are Rs. 5,000, Rs. 5,000 and Rs. 10,000 respectively while closing stock is
valued at Rs. 2,500 in financial accounts.
Q.5 Time allowed for a job is 10 hours, Actual time taken for completing the job
individually by workers F and G were 4 and 3 hours
respectively. The basic wages per hour is Rs. 2 for each worker. Calculate
total earning per hour for each worker separately under Halsey and Rowan
Scheme of incentive payment.
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OR
From the following information prepare statement showing cost and profit per
unit and in total
Cost of materials Rs. 13 per unit.
Labour cost Rs. 7.50 per unit
Factory overheads are absorbed 60% of labour cost.
Administration overheads are absorbed 20% of factory cost.
Selling overheads are charged Rs. 2.50 per unit sold
Opening stock of finished goods 500 units Rs. 19.75
Closing stock of finished goods 250 units.
Sales 10250 units at profit of 20% on sales.