M.Com. (Semester IV) Examination Oct/Nov-2017
ADVANCED ACCOUNTANCY
Day Date: Friday, 17-11-2017 Max. Marks: 50
Time: 02.30 PM to 04.30 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. 10
level is always higher than the minimum stock level.
Opening Closing
Reorder Danger
Factory Cost is also called as
Factory overheads Works on Cost
Works Cost Cost of Production
EOQ is also called as
Reorder Quantity Re-order Level
Order Point Minimum Level
is based on the assumption that the goods which are
received last are issued first.
FIFO LIFO
Simple Average Specific Price
Direct material plus Direct Labour plus Direct Expenses is equal to
Factory Cost Prime Cost
Cost of Production Total cost
The amount of overhead absorbed in production is more than the amount of
actual overheads incurred is called
Over absorption Officers
Variable overhead Fixed overheads
an extra time of work over and above the normal working hour.
Abnormal time Over time
Idle time Ideal time
the quantitative record of stores receipts, issues and balance, it is
kept by the store keeper.
Store ledger Bin Card
Material requisition Material return note
the aggregate of indirect material, indirect wages and indirect expenses.
Direct expenses Overheads
Prime cost Capital expenses
10) If time allowed is 10 hours, time taken is 8 hours and rate per hour is Rs.20,
then earning according to Halsey plan is
Rs.200 Rs.180
Rs.160 Rs.220
Page 2 of 3
SLR-CJ-43
Q.2 Write short answer. 10
Elements of Cost
Stock Levels
Q.3 From the following information calculate works cost. 05
Purchases of Raw Materials Rs.2,00,000
Opening Stock of Raw Materials Rs.1,50,000
Factory Overheads Rs.2,00,000
Wages Paid Rs.1,00,000
Closing Stock of Raw Materials Rs.1,00,000
Selling and Distribution Overheads Rs.50,000
A firm employs ten workers at hourly rate of Rs.200. They worked for 400 hours
each, and completed the job. For which standard time allowed was 480 hours for
each worker.
Calculate labour cost for the job under Halsey Plan.
05
Q.4 From the following information calculate Re-order stock level, Minimum stock
level, Maximum stock level and Average stock level.
10
Rate of consumption:- Minimum 250 kgs. Per week
Maximum 750 kgs. Per week
Normal 400 kgs. Per week
Re-order Period:- Minimum 3 weeks
Maximum 7 weeks
Normal 4 weeks
Re-order Quantity:- 2000 kgs
OR
Prepare Store Ledger Account by Simple Average Method from the following
information.
1 July 2016 Receipts 4000 units Rs.50
11 July 2016 Receipts 1000 units Rs.70
20 July 2016 Receipts 3000 units Rs.60
4 July 2016 Issues 1200 units
12 July 2016 Issues 1600 units
28 July 2016 Issues 2600 units
Q.5 ABC Ltd. provides the following cost details for the month January 2016. 10
Direct Materials Rs.8,00,000
Factory Overheads Rs.4,00,000
Office and Administration Overheads Rs.3,00,000
Selling and Distribution Overheads Rs.5,00,000
Direct Labour Rs.10,00,000
Profit Rs.2,00,000
Prepare Cost Sheet giving the details Prime Cost, Works cost, Cost of
Production, Cost of Sales and sales.
OR
Page 3 of 3
SLR-CJ-43
Q.5 The following annual charges are incurred in respect of a machine in a shop
where manual labour is almost nil and where work is done by five machines
exactly of similar types and specification.
1. Rent and Rates (proportional to the flower space occupied) for the shop
Rs.4800
2. Depreciation of each machine Rs.500
3. Repairs and maintenance for five machines Rs.1,000
4. Power consumed (as per meter) 5 paise per unit for the shop Rs.3,000
5. Electric charges for light in the shop. Rs.540
6. Attendants:
There are two attendants for the five machines and they are each paid Rs.60
per month.
7. Supervision:
For the five machines in the shop there is one supervisor whose emoluments
are Rs.250 p.m.
8. Sundry supplies such lubricants, jute and cotton waste etc. for the shop
Rs.450.
9. Hire purchase installment payable for the machine (including Rs.300 as
interest) Rs.1,200.
Machine usage 10 units of power per hour. Calculate the machine hour rate for
the machine for the year.