M.Com. (Semester (CBCS) Examination, 2017
ADVANCED COSTING(PAPER-II)
Day Date: Thursday, 20-04-2017 Max. Marks: 70
Time: 02.30 PM to 05.00 PM
N.B. All questions are compulsory.
Figures to the right indicate full marks.
Use of Calculator is allowed.
Q.1 Choose the correct alternatives form the following. 14
Process of ascertainment of cost is known as
Costing Cost reporting 1
Cost control None of the above
An example of fixed cost is
Material consumed Depreciation
Factory power Packing material
Bonus under Halsey Plan is paid at
50% of time saved 75% of time saved
80% of time saved 90% of time saved
The total of all Direct Expenses is called as
Fixed cost Variable cost
Step cost Prime cost
When standard output is 10 units per hour and actual output is 12
units per hour, the efficiency is
80% 100% 120% 12%
is a composite accounting system where
under all financial and cost transactions are recorded in one set of
book.
Non-integrated Cost accounting
Standard costing None of these
Ideal time is
Time spent by workers in factory
Time spent by workers in office
Time spent by workers off their work
Time spent by workers on their job
In reconciliation statement, expenses shown only in financial
accounts are
Added to financial profits Deducted from financial profits
Ignored Added to costing profit
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SLR-Q-8
Prime cost plus factory overhead is known as
Marginal cost Works cost
Total cost Cost of Sales
10) Integral accounts eliminate the necessity of operating
Cost ledger control account Stores ledger control account
Overhead adjustment account All of these
11) Warehouse Expenses is an example of
Production overhead Selling overhead
Distribution overhead None of the above
12) Indirect costs are known as
Fixed costs Overheads
Variable costs None of the above
13) Under Emerson's efficiency system, no bonus is payable when
efficiency is up to
50% 66 83 100%
14) The term implies integration or merger of both
financial and cost accounts.
Integral Integrated Accounts R
Both a b Non-Integrated
Q.2 from the following prepare a reconciliation statement of
M/s. XYZ Co. as on 30.06.2014
07
1. Net profit as per financial accounts Rs. 40,340.
2. Income tax provision made Rs. 30,000.
3. Materials purchased of Rs. 5,000 units were recorded in cost
at standard cost Rs. 24 per unit, where as in finance it was
recorded at actual cost Rs. 22 per unit.
4. Old bad debts recovered Rs. 20,500.
5. Loss on sale of furniture was Rs. 4,120.
What do you mean by Labour Turnover? How is it measured? 07
Q.3 Journalize the following transactions in the books of a
company maintaining integrated accounts.
07
Credit purchases Rs. 12,00,000
Production Wages paid Rs. 7,00,000
Stock issued to production orders Rs. 8,00,000
Works overhead charged to production Rs. 4,50,000
Administrative overheads charged to
production
Rs. 1,50,000
Works expenses paid Rs.4,60,000
Works overhead outstanding Rs.1,20,000
Compute the earning of a worker under: 07
Time Rate method
Piece Rate method
Halsey Plan
Rowan Plan
Wage Rate Rs. 2 per hour
Dearness Allowance Rs. 1 per hour
Standard hours 80
Actual hours 50
Q.4 From the books of accounts of M/s. ASC enterprise the
following details have been extracted for the quarter ending 31st
March 2014.
14
Particulars Rs.
Opening stock of materials 2,70,000
Closing stock of materials 3,00,000
Purchases of materials 12,48,000
Direct wages 3,57,600
Direct expenses 1,20,000
Indirect wages 24,000
Salaries to administrative staff 60,000
Carriage inward 48,000
Carriage outward 37,500
Manager's Salary 72,000
General charges 37,200
Legal charges for criminal suit 20,000
Commission on sales 28,000
Fuel 96,000
Electricity charges (Factory) 72,000
Directors Fees 36,000
Repairs to Plant and Machinery 63,000
Rent, Rates and Taxes Factory 18,000
Rent, Rates and Taxes office 9,600
Depreciation on Plant and Machinery 45,000
Deprecation of Furniture 3,600
Salesmen's salaries 50,000
Audit Fees 18,000
1. The Manager's time is shared between the factory and office in
the ration of 20:80.
2. Carriage Outward includes Rs. 7,500 being carriage inward on
Plant and Machinery.
3. Selling price is 120% of cost price.
From the above details prepare a Cost Sheet and ascertain Sales
and Profit.
OR
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From the following prepare a Statement of Reconciliation and
find out Profit/Loss as per financial records.
14
Particulars Rs.
Net loss as per cost records 1,72,400
Works overhead under recovered in costing 3,120
Administrative overheads over recovered in
costing
1,700
Depreciation in financial accounts 11,200
Depreciation in cost account 12,500
Interest received 8,750
Obsolescence loss in financial account 5,700
Provision for income tax 40,300
Opening stock
Financial records
Cost records
52,600
54,000
Closing stock
Financial records
Cost records
52,000
49,600
Interest charges in cost account only 6,000
Preliminary expenses w/off 950
Q.5 Calculate the total monthly remuneration of three workers B
and C from the following data.
14
Standard production per month per worker: 1000 units
Actual production during the month:
A-850 units B-750 units C-950
Piece work rate is 10 paise per unit of production.
Additional production bonus is Rs. 10 for each percentage of
actual production exceeding 80% of standard production.
Dearness allowance Fixed at Rs. 50 per month.
OR
Following is a summarized Profit and Loss account of SAC
industries for the year ended 31st March, 2014.
Profit and Loss Account for the year ended 31st March, 2014
Particulars Rs. Particulars Rs.
To material
Consumed 2,00,000
By Sales (12,000
units) 4,80,000
To wages 75,000
By closing stock
(Finished goods, 3000
units) 66,000
To Factory
Expenses
Paid 52,400
Add:
Outstanding 2,200
54,600
By interest on
securities 17,000
To Administrative
overheads 52,500
By profit on sale of
asset 1,20,000
To selling and
distribution overheads 96,000
To Interest on loan 14,000
To Income tax 7,500
To Net Profit 1,83,000
6,83,000 6,83,000
The cost accounting record for the above period showed the
following.
1. Material consumed at Rs. 10 per unit produced.
2. Direct wages at Rs. 6 per unit produced.
3. Factory overheads were absorbed at 25% of prime cost.
4. Administrative overheads were absorbed at Rs. 5 per unit
produced.
5. Selling and distribution overheads were absorbed at Rs. 7 per unit
sold.
You are required to prepare a cost sheet for the year ended 31st
March, 2014 and a statement of reconciliation.