M.Com (Semester III) (CBCS) Examination Oct/Nov-2017
ADVANCED ACCOUNTANCY
Day Date: Thursday, 16-11-2017 Max. Marks: 70
Time: 10.30 AM to 01.00 PM
Instructions: All questions are compulsory.
Figures to the right indicate full marks.
Use of calculator is allowed.
Q.1 Choose the alternatives given below. 14
The amount of expenditure (Actual or notional) incurred on or attributable to a
specific thing or activity is called
Cost Costing
Cost accounting Cost Sheet
The techniques and process of ascertaining the cost is called
Cost Costing
Cost accounting Total cost
The total of all direct expenses is called
Overheads Indirect expenses
Prime cost Fixed expenses
Bin Card is maintained by
Accounts department Production department
Costing department Store keeper
Statements showing various elements of cost is known as
Cost sheet Cost Unit
Store Ledger Account Balance Sheet
Opening stock of raw material plus purchases of raw material minus closing
stock of raw material is equal to
Total Cost Material Consumed
Prime Cost Cost of Sales
If time allowed is 100 hours, time taken is 80 hours and rate per hour is Rs.20
then earning of worker according to Halsey plan is Rs.
2000 1600
1800 3600
are neither fixed nor variable.
Capital Fixed
Variable Semi Variable
the portion of the total cost which varies according to the change
in the output.
Variable Cost Fixed Cost
Semi Variable Cost Total Cost
10) Maximum Stock Level is 40,000 kgs and Average Stock Level is 30,000 kgs
then the Minimum Stock Level is kgs.
70,000 20,000
10,000 30,000
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11) is the aggregate of Indirect materials, Indirect wages and Indirect
expenses.
Direct Expenses Fixed Cost
Overheads Total Cost
12) level is always higher than the minimum stock level.
Minimum Stock Danger Stock
Maximum Stock Reorder Stock
13) Variable cost is also known as
Indirect Cost Fixed Cost
Direct Cost Sunk Cost
14) example of fixed overhead.
Wages Depreciation
Material Production Overhead
Q.2 Write short answer. 14
Classification of Cost.
Methods of Remuneration.
Q.3 From the following information calculate Reorder level, Minimum level,
Maximum level and Average level of stock.
07
Rate of Consumption Minimum 250 kg per week
Maximum 750 kg per week
Normal 400 kg per week
Reorder period Minimum 3 week
Maximum 7 week
Normal 4 week
Reorder quantity 2000 kg
During the first week of April 2016 a workman Mr. Kalyan Manufactured 300
articles. He receives the wages for a guaranteed 48 hours a week at the rate
of Rs.4 per hour. The estimated time to produce one article is 10 minutes and
under incentive scheme the time allowed is increased by 20%.
Calculate his gross wages according to
Piece work with a guaranteed wages
Halsey premium bonus of 50% to workmen.
07
Q.4 From the following information prepare a statement showing the cost and profit
per unit.
14
Direct Material Consumed Rs.4,00,000
Direct Labour 40% of direct material cost
Direct expenses 50% of direct labour cost
Factory overheads 25% of prime cost
Office expenses have been absorbed Rs.150 per 10 units produced.
Selling expenses have been applied Rs. 500 per 100 units sold.
Opening finished stock 800 units Rs.85.50 per unit
Closing finished stock 400 units
Finished goods sold 16400 units
Profit 1/6th of sales
OR
A worker under the Halsey Method of remuneration has a day rate of Rs.72 per
week of 48 hours plus a cost of living bonus of Re 0.60 per hour worked. He is
given an 8 hours task to perform which he accomplishes in 6 hours. He is allowed
30% of the time saved as premium bonus. What would be his total hourly rate of
earning and what difference would it make if he was paid under the Rowan
Method.
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Q.5 From the following Stores transactions for July 2016. Prepare store ledger using
FIFO method.
14
1 Opening Balance 200 units value Rs. 2000
4 Receipts 300 units Rs.12 per unit
7 Issues 400 units
10 Receipts 400 units Rs.14 per unit
19 Issues 300 units
22 Receipts 200 units Rs. 16 per unit
28 Issues 300 units
30 Shortage in stock 20 units
OR
Yes Ltd. has three production department and four service departments. The
expenses for departments as per primary distribution are as follows.
14
Production Department Rs.
A 60,000
B 52,000
C 48,000
1,60,000
Service Department
Stores 8,000
Time keeping and Accounts 6,000
Power 3,200
Canteen 2,000
19,200
The following information is also available in respect of production department.
Dept. A Dept. B Dept. C
Horse Power Machine 300 300 200
Number of workers 20 15 15
Value of stores requisition in Rs. 2500 1500 1000
Apportion the cost of Service Department to the Production Department.