B.Com. III (Semester (Old-CGPA) 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.
ii) Figures to the right indicate full marks.
iii) Use of calculator is allowed.
1. Choose the correct alternative. 14
High material turnover ratio indicate material.
Slow moving Fast moving
Out of fashion Average moving
is maintained by Store-keeper.
Bin Card Store ledger
Cost Accounts Financial accounts
Annual consumption is 60,000 kg and no. of orders to placed are 5 then
E.O.Q. is kg.
30,000 12,000 10,000 24,000
The techniques and process of ascertaining the cost is called
cost accounting cost
costing cost sheet
Under ABC analysis of material control stands for items.
High value L ow value
minimum value middle value
cost per unit remain constant.
Fixed Variable Direct Period
is the size of the order at which cost of placing an order and
cost of carrying stock are minimum.
ABC Analysis Bin Card E.O.Q. Store ledger
Period cost is also called as cost.
Fixed Variable Marginal Total
method is suitable in situation of rising prices of material.
FIFO HIFO L IFO EOQ
10) Maximum consumption × maximum period
Maximum stock level Minimum stock level
Re-ordering level Average level
11) The purpose of cost accounting is
Cost ascertainment Cost control
avoiding wastage all of the above
12) Cost unit of Tea powder is
L iter Kg Metre Sq.ft.
13) level is that level of material at which a new order of material
is placed.
Average Minimum Maximum Reorder
14) Factory cost office overheads
Factory cost Cost of production
Cost of sale Sales
2. Write short notes any two. 14
ABC Analysis.
Difference between Bin card and Store ledger.
Material Turnover Ratio.
3. Compute EOQ from the following information. 14
Annual consumption 8000 kg.
Cost of placing one order Rs. 50
Cost per unit Rs. 40
Storage and carrying cost on average inventory.
Calculate material turnover ratio for material X and Y.
Particulars Material X Material Y
Opening stock 40,000 80,000
ii) Purchase during the years 1,92,000 2,60,000
iii) Closing stock 24,000 40,000
4. Two components A and B are used as under 14
Normal usage 100 units per week each
Minimum usage 50 units per week each
Reorder quantity A 600 units per week each
B 500 units
Reorder period A 8 to 12 weeks
B 4 to 8 weeks
Calculate for each component A B
Reorder level
Maximum level
Minimum level
Average level.
OR
Prepare a store ledger account under FIFO method. 14
Date Particulars Quantity Rate Per unit
1-3-2016 Purchase 2000 10
6-3-2016 Purchase 300 12
9-3-2016 Issued 1200
10-3-2016 Purchase 200 14
13-3-2016 Issued 1000
15-3-2016 Purchase 300 13
17-3-2016 Issued 200
31-3-2016 Purchase 200 10
5. Prepare a cost sheet from the following information 14
Material consumed Rs. 50,000
Direct wages Rs. 30,000
Works overheads 100% of Direct wages
Office overheads 20% on Factory cost
Set P
Selling overheads Re. 1 per unit sold
Units produced 20,000 units
Opening stock of finished goods Nil
Sale 18,000 units at Rs. 10 per unit.
OR
Prepare a cost sheet from the following information. 14
Rs.
Opening stock Raw material 10,000
WIP 15,000
Finished Goods 12,000
Closing stock Raw material 20,000
WIP 5,000
Finished Goods 8,000
Material purchase 90,000
Factory overheads 50,000
Office overheads 30,000
Direct wages 40,000
Selling overheads 20,000
Profit 20% on sales