M.Com. (Semester III) (CBCS) Examination, 2017
ADVANCED ACCOUNTANCY (PAPER-III)
Day Date: Tuesday, 18-04-2017 Max. Marks: 70
Time: 10.30 AM to 01.00 PM
N.B. All questions are compulsory.
Figures to the right indicate full marks.
Q.1 Choose the alternatives given below. 14
The primary parking materials such as cartons card board boxes
etc are the examples of
Selling overheads Distribution overheads
Direct material Administrative expenses
Prime cost includes
Direct Material Direct Labour Direct Expenses
Direct Material Direct Labour only
Indirect Material Indirect Labour.
None of the above.
Wage sheet is prepared by
Pay Roll Department Personal Department
Accounts Department Costing Department
Which of the following method of wage payments does not
guarantee wages on time basis?
Halsey premium system Piece rate system
Rown premium system Taylors differential price rate system
The capital value is the basis for allocation and apportionment of
Rent Time office
Delivery expenses Depreciation
Item excluded from cost
Income tax Discount on debentures
Dividend All the above
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
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SLR-Q-48
When prices fluctuate widely the method that will smooth out the
effect of fluctuations is
Simple average Weighted average
FIFO LIFO
10) The Allotment of whole items of cost to cost centers or cost units is
called
Cost allocation Cost apportionment
Overhead absorption Cost classification
11) The separation method is useful for measurement of
Material turnover Labour turnover
Issue of material Valuation of wastage
12) Administrative overheads are recorded as a percentage of
Direct material Direct wages
Prime cost Works cost
13) Storekeeper should initiate a purchase requisition when stock
reaches
Minimum level Maximum level
Reorder level Average level
14) Which of the following document is used for time keeping?
Daily Time sheet Time card
Job card All of these
Q.2 The following data relates to the manufacturing of standard
product during the four weeks ending 31st March 2016.
07
Rs.
Raw material consumed 20,000
Direct wages 12,000
Machine hours worked 1000 hrs.
Machine hours rate 2.00
Office overheads 15% on works cost
Selling overheads 37paise per unit
Unit produced 20,000
Unit sold Rs. 2.50 each
Prepare a statement of:
Cost Sheet
The profit earned
Write short note on Cost classification. 07
Q.3 The following information is available in respect of a material of
XYZ Co. Ltd.
07
Reorder Quantity 12000 units
Lead (i.e. delivery) time 4 to 8 weeks
Maximum consumption 4,000 units per week
Normal consumption 3,000 units per week
Minimum consumption 1,550 units per week
Ascertain:
1. Reorder level
2. Minimum level
3. Maximum level
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SLR-Q-48
Write a short note on Labour turnover. 07
Q.4 The following particulars have been extracted in respect of material
prepare a stores ledger Account showing the receipts and issues,
pricing the material issued on the basis of weighted average cost
method.
07
Jan 01 Purchased 300 units Rs. 5 per unit
04 Purchased 600 units Rs. 4 per unit
06 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
OR
Labour force was at the beginning 900 and at the end 1,100 during the
period 15 persons quit and 25 persons are discharged. 150 workers
were engaged out of them 20 persons were appointed in the vacancy
caused.
07
Calculate labour turnover rate during the period under.
Separation method
Replacement method
Flex method
Q.5 Superclass Co. Ltd. has three production departments Y and Z and
two service departments A B.
14
The following estimated figures for a certain period have been made
available.
Rs.
Rent and Rates 10,000
Lighting and Electricity 1,200
Indirect wages 3,000
Power 3,000
Depreciation of Machinery 20,000
Other expenses and sundries 20,000
Following are further details which are also available.
Total X Y Z A B
Floor space (sq.mtr) 10,000 2,000 2,500 3,000 2,000 500
Light points (Nos.) 120 20 30 40 20 10
Direct wages 20,000 6,000 4,000 6,000 3,000 1,000
Horse power of
machines 300 120 60 100 20
Cost of machinery

1,00,000 24,000 32,000 40,000 2,000 2,000
Working hours 4,670 3,020 3,050
The expenses of service departments A and B are to be
allocated as follows.
X Y Z A B
20 30 40 10
40 20 30 10
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SLR-Q-48
You are required calculate overhead absorption rates per hour in
respect of the three production departments.
What will be the total cost of an article with material cost of Rs. 80
and labour cost of Rs. 40 which passes through and Z for
and 4 hour respectively.
OR
A machine was purchased on January 1st 2016 for Rs. 5 lacs. The total
cost of all machinery inclusive of the new machine was Rs. 75 Lacs.
The following further information are available.
14
Expected life of the machine 10 years.
Scrap value at the end of ten year Rs. 5,000.
Repairs and maintenance for the machine during the year Rs.
2,000.
Expected number of working hours of the machine per year
4,000 hours.
Insurance premium annually for all the machines Rs. 4,500.
Electricity consumption for the machine per hour 75 paisa per
unit 25 units.
Area occupied by the machine 100 sq.ft.
Area occupied by other machines 1500 sq. ft.
Rent per month of the department Rs. 800
Lighting charges for 20 points for the whole department out of
which three points are for the machine. Rs. 120 per month.
Computer the machine hour rate for the new machine on the
basis of the data given above.