B.Com. (Part III) (Semester (CBCS) Examination, 2018
advanced cost accounting (Paper
Day and Date Friday, 7-12-2018 Max. Marks 70
Time 10.30 a.m. to 1.00 p.m.
N.B. All questions are compulsory.
Figures to the right indicate full marks.
Use of calculator is allowed.
1. Choose the correct alternative 14
Factory cost is also known as
Works cost Total cost Fixed cost Prime cost
cost is remain constant at various level of Production.
Variable cost Total cost Fixed cost None
is prepared to ascertain total cost of Production and Cost per
unit.
Cost sheet Cost account
Cost budget Production statement
Showroom rent, warehouse charges are the examples of
Works on cost
Selling and distribution overheads
Administrative overheads
Factory overheads
Request for purchase of materials in Particular Form to purchase department
is termed as
Purchase order Purchase requisition
Purchase receipt Purchase budget
aims at improving the efficiency by reducing and controlling
cost.
Control cost Ascertainment of cost
Office cost Statement of cost
Remuneration paid to Physical and Mental efforts used in Production is
known as
Wages Commission Profit Dividend
Pair, Bale and Litre are the examples of
Cost unit Cost centre Cost volume All of these
shows the details of receipts, issues and balance of materials
in stock at any time.
Bin card Store ledger
Purchase order Inspection report
10) The aggregate of direct materials, direct labour and direct expenses is
termed as
Prime cost Total cost Factory cost Works cost
11) record gives the information of receipt, issues and balance of
materials with quantity and money values.
Bin Card Store Ledger
Inspection report Purchase requisition
12) department is working for accounting and control of labour cost.
Payroll department Time keeping department
Personnel department All of these
13) system of time keeping is useful in small work and when worker
attends to several jobs in a day.
Daily time sheet Weekly time sheet
Job card Labour cost card
14) In industry litre cost unit is used to ascertain cost.
Timber Chemical Cement Cotton
2. Write short note on. 14
Bin card.
Cost unit and Cost centre.
Set P
*SLRCO54* SLR-CO 54
3. Write short answer. 14
Distinguish between Financial Accounting and Cost Accounting.
From the following information of Modern Ltd., calculate the amount of
material consumed and Prime cost during the month July 2017.
Rs.
Stock of materials on 1-7-2017 1,25,000
Material purchased 1,65,000
Carriage Inward 5,000
Custom charges 2,500
Stock of materials on 31-7-2017 52,000
Direct wages 1,10,000
Direct expenses 65,000
4. The following expenditure incurred in Ajay Ltd. for manufacturing of Product
for three month ended 31st March 2017 14
Particulars A mount
Direct materials used 65,750
Expenses on purchases of materials 5,000
Productive wages payable 900
Materials used in Factory 2,100
Sale of scrap raw materials 750
Salary to watch and ward staff 1,100
Warehouse rent 3,500
Factory supervision 1,800
Material used in office 600
Cost of special drawings 3,300
Advertising 1,500
Expenses of management 1,200
Set P
SLR-CO 54 *SLRHO266*
Delivery van expenses 1,000
Direct Labour 9,100
Hire of plant 1,700
Office supplies and expenses 2,200
Assuming that all products are sold, what should be selling price to obtain a profit
of 20% on value of turnover
Prepare a Statement of cost showing Prime, Works cost, Cost of Production, Total
cost and Profit during the period.
OR
The following is the record of receipts and issues of material in 'Ashwini' Ltd.
during the month April 2018 14
Date
1 Opening stock 200 kgs
3 Received from supplier 400 kgs (GRN
5 Issued to Production department 240 kgs (S.R. No. 70)
10 Issued to production department 160 kgs (S.R. No. 72)
12 Received from supplier 500 kgs (GRN
15 Issued to production department 400 kgs (S.R. No. 75)
16 Received from supplier 200 kgs (GRN
18 Received from supplier 150 kgs (GRN 11)
21 Issued to Production department 200 kgs (S.R. No. 79)
24 Issued to Production department 150 kgs (S.R. No. 82)
28 Issued to Production department 100 kgs (S.R. No. 82)
(GRN denotes Goods Record Note) and (S.R. No. Store Requisition No.)
Minimum level of material stock is 20, Re-order level is 35 and Re-order
quantity is 50.
Prepare Bin card No. 83 showing necessary details with all the
transactions.
Set P
5. From the following information, calculate Gross wages and Net carry home
wages of workers working in the Ltd. for the month July 2017 14
Particulars Workers
Mohan Manoj Rohit
Basic wages 18,000 18,000 18,000
Dearness allowance 62% 65% 70%
Provident fund (on basic wages) 10% 10% 10%
Employees State Insurance
(on basic wages)
Over time 18 hours 10 hours 15 hours
Over time is paid for at double the normal rate plus Dearness Allowance. The Normal
Working hours are 200 for this month.
OR
Following details have been obtained from the record of 'Rachana' Ltd. Pune
for the month ended 30-06-2016 14
Opening stock of raw materials 30,000 Show-room expenses 7,000
Direct wages 55,000 Establishment on cost 12,000
Purchase of raw materials 87,000 Testing lab expenses 4,000
Heating and lighting 6,000 Branch office expenses 8,000
Counting house salaries 20,000 After sale service expenses 8,000
Carriage inwards 3,000 Sales 2,50,000
Commission on sales 5,000
Wages payable 5,000
Technical Director's fees 10,000
Closing stock of materials 40,000
Prepare statement of cost showing
Prime cost Factory cost
Cost of production Total cost
Profits.