M.Com. (Semester IV) Examination, 2017
ADVANCED ACCOUNTANCY (PAPER-III)
Day Date: Wednesday, 19-04-2017 Max. Marks: 50
Time: 02.30 AM to 04.30 PM
N.B. Figures to the right indicate full marks.
Q.1 Choose the alternatives given below. 10
Direct material is a
Manufacturing cost Administrative cost
Selling and distribution cost Distribution overhead
Wages of clerical staff is the example of
Office Salary Indirect wages
Direct Expenses Chargeable Expenses
The total cost is generally divided according to their nature under the
broad headings.
Two Three Four Five
Bad debt is an example of
Production overhead Administrative overhead
Selling overhead Distribution overhead
According to variability overheads are classified into
groups.
Two Three Four Five
Separation method is useful for measurement of
Material turnover Labour turnover
Issue of material Valuation of wastage
Which of the following document is used for time keeping?
Daily time sheet Time card
Job card All of these
Store keeper should initiate a purchase requisition when stock

Minimum level Maximum level
Re-order level Average level
Administrative overheads are recorded as a percentage of
Direct material Direct wages
Prime cost Works cost
Page 1 of 3
SLR-Q-70
10) Economic order quantity is also called
Re-order level Re-order period
Economic batch quantity Re-order quantity
Q.2 Write a short note on classification of cost. 05
Write a short note on labour turnover. 05
Q.3 From the following particulars find out the economic order quantity: 05
Annual Demand-12000 units
ii) Ordering cost-Rs. 90 per order
iii) Inventory carrying cost per annum-Rs. 15.
Shriram Enterprises manufactures a special product The
following particulars collected for the year 2015.
05
Monthly demand of ZED 1000 units.
Cost of placing an order Rs. 100
Annual carrying cost per unit Rs. 15
Normal usage 50 units per week
Minimum usage 25 units per week
Maximum usage 75 units per week
Re-order period 4 to 6 weeks.
Compute from the above:
Re order Quantity
Re order level
Minimum level
Maximum level
Average stock level
Q.4 ABC Ltd. has purchased and issued the materials in the following
order:
10
Jan 2015 1 Opening stock is 100 units Rs. 2 p u.
4 Purchased 80 units at Rs. 2.50 per unit
8 Issued 80 units
18 Purchased 160 units at Rs. 2.80 per unit
20 Issued 150 units
25 Purchased 90 units at Rs. 3 per unit
30 Issued 60 units.
Prepare a stores ledger under LIFO method with a base stock of
100 units.
OR
ii) Three Workers Govind, Ram and Shyam, having worked for 8
hours, produced 90, 120 and 140 pieces of a product X on a
particular day in a factory. The time allowed for producing 10 units
of x is 1 hour and their hourly rate is Rs. 4. Calculate for each of the
three workers earnings for the day under the
Straight Piece rate
Halsey Premium bonus sharing)
Rowan's Premium bonus methods of labour remuneration.
Page 2 of 3
SLR-Q 70
Q.5 The following data were collected related to the manufacture of a
Standard Product during the month of April 2015.
10
Raw Material Rs. 80,000
Direct wages Rs. 48,000
Machine hours worked 8,000 hours
Machine hour rate Rs. 4
Administration overheads 10% of works cost
Selling overheads Rs. 1.50 per unit
Units produced 4,000
Units sold 3,000
Selling price Rs. 50 per unit
You are required to prepare a cost sheet in respect of the above
mentioned data showing.
Cost per unit
Profit for the month of April, 2015
OR
ii) Calculate Machine hour rate for the recovery of overheads for a
group of 3 machines from the following data:
Original cost of 3 machines
Depreciation at 10% per Annum
(Straight Rate Method)
Rs. 60,000
Repairs and Maintenance cost average Rs. 20 per day.
Power 30 paisa per running hour
per machine.
Supervision for the group of machines Rs. 1200 per month
Allocation of rent for 3 machines on a
floor areas basis
Rs. 160 per month
Share of manufacturing overheads Rs. 300 per month for the
group of machines.
Normal working days 300 in a year.
Normal operation 1 shift of 8 hours
Normal allowance for repairs,
maintenance, charge over, idle time
etc.