B.Com. III (Semester (New CBCS) Examination, 2018
Advanced Cost Accounting (Paper II)
Day and Date Saturday, 8-12-2018 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 correct alternatives. 14
Inter firm comparison is not possible without costing.
Uniform Batch Operating Marginal
costing is a practice of using same costing principles in the
number of firms in same industry.
Process Uniform Contract Standard
costing eliminates unhealthy competition.
Differential Service Uniform Job
In Job costing method every is charged with its own cost.
process services income job
Where production is done on the basis of customers own specification
method is used for ascertaining cost is called as costing.
Job Uniform
Contract Production
A product which has practically no sales or utility value is called
Scrap Wastage
Defectives Finished product
Under process costing output of the process becomes of the
next process.
Production Finished goods
Input Normal loss
Losses due to machine breakdown and accidents are called loss.
Natural Normal Capital Abnormal
Seat
No. Set P
Set P
SLR-CO 60 *SLRCO60*
If actual loss is less than the normal loss then it is called as
Abnormal gain Abnormal loss
Normal loss Normal gain
10) is that form of operation costing which applies where standardised
goods are produced.
Batch costing Process costing
Operating costing Contract costing
11) loss can be estimated in advance on the basis of past experience
of the industry.
Abnormal Capital Normal Revenue
12) Value of work certified minus cash received from contractee is equal to
Notional profit Work uncertified
Contract price Retention money
13) Service costing is also called as costing.
Operating Batch Process Uniform
14) in contract costing is to safeguard the interest of both parties
against unfavourable changes in prices.
Sub-contract Escalation clause
Cost plus contract Retention money
2. Write short notes on any two. 14
Uniform costing.
Profit on incomplete contract.
Operating costing.
3. According to the factory Job Cost Ledger Job No. 555 has incurred the
following prime cost.
Materials (Direct) 2 quintals 50 kg. at Rs. 200 per quintal
Wages (Direct) Department X 18 hrs. at Rs. 3 per hour
Department Y 32 hrs. at Rs. 2.50 per hour
Set P
*SLRCO60* SLR-CO 60
Budgetted overheads for the year based on normal capacity
variable overheads
Department X Rs. 54,000 for 9,000 direct labour hours
Department Y Rs. 75,000 for 10,000 direct labour hours
Fixed overheads
Total budgetted fixed expenditure Rs. 1,54,000
Total budgetted direct labour hours for whole factory 22,000 hrs.
Calculate the cost of Job No. 555. 7
The cost records show the following expenses of manufacturing 200 units
of product in a process.
Materials Rs. 4,000
Labour Rs. 1,500
Overheads Rs. 500
The standard normal wastage in production is 10% and it can be sold in the
market at Rs. 15 per unit. The actual production is 150 units due to gross
carelessness of the workers. Prepare process account. 7
4. The following balances were extracted from the books of a building contractors
at 31st March 2018.
Material issued to site Rs. 62,720
Wages paid Rs. 73,755
Wages outstanding on 31-3-2018 Rs. 720
Plant issued at site Rs. 6,000
Direct charges paid Rs. 2,515
Direct charges outstanding Rs. 210
Establishment charges Rs. 5,650
Stock of material at site on 31-3-2018 Rs. 1,200
Value of work certified on 31-3-2018 Rs. 1,65,000
Cost of work not yet certified Rs. 3,500
Cash received from contractee Rs. 1,41,075
The work was commenced on 1st April 2017 and the contract price agreed at
Rs. 2,45,000.
Prepare contract account for the year providing for depreciation of plant at
25%. calculate profit or loss on the contract. 14
OR
Product ABC requires three distinct processes and after the third process, the
product is transferred to finished stock. You are require to prepare process
II and III accounts from the following information.
Particular Total Process I Process II Process III
Rs. Rs. Rs. Rs.
Direct Material 5,000 4,000 600 400
Direct Labour 4,000 1,500 1,600 900
Direct Expenses 800 500 300
Production overheads 6,000
Production overheads to be allocated to different processes on the basis of
150% of direct wages. Production during the period was 200 units. Assume
there is no opening and closing stock. 14
5. Maharaja Transport Service Company is running 4 buses between two towns
which are 50 kms apart. Seating capacity of each bus is 40 passengers.
The following particulars were obtained from the company's books for the month
of August 2018.
Rs.
Wages of drivers, conductors and cleaners 2,400
Salary of office and supervisory staff 1,000
Diesel oil and other oil 4,000
Repairs and maintenance 800
Taxation Insurance etc. 1,600
Depreciation 2,600
Interest and other charges 2,000
Calculate cost per passenger kilometer. 14
OR
From the following data for the year prepare cost sheet showing the cost of
electricity generated per Kwh by the power station.
Total units generated 10,00,000 Kwh
Operating labour Rs. 50,000
Repairs and maintenance Rs. 50,000
Lubricants, spares and stores Rs. 40,000
Plant supervision Rs. 30,000
Administration overheads Rs. 20,000
Coal consumed per Kwh for the year is 2.5 kg.
Re. 0.02 per kg charge depreciation
10% on capital cost of Rs. 2,00,000. 14