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P.T.O.
MAR IVANIOS COLLEGE (AUTONOMOUS)
THIRUVANANTHAPURAM
Reg. No. :.………………… Name :.………………….
Sixth Semester B.Com. Degree Examination, April 2018
First Degree Programme under CBCSS
Core Course: Commerce XV
AUCO642: Applied Costing
Common for Regular 2015 and Reappearance 2014 Admn.)
Time: 3 Hours Max. Marks: 80
SECTION A
Answer ALL questions in one or two sentences.
1. What is cost sheet?
2. What is work certified?
3. What is meant by escalation clause?
4. What is specific order costing?
5. What is CVP analysis?
6. What is meant by basic standard?
7. What do you mean by joint product?
8. What is profit-volume graph?
9. Define marginal costing.
10. Define Economic Batch Quantity.
(10 1 10 Marks)
SECTION B
Answer any EIGHT questions, each in a short paragraph not exceeding 50 words.
11. What is job ticket What is its usefulness?
12. Calculate EBQ from the following:
Annual demand for the components 2400 units
Setting up cost per batch Rs. 100
Manufacturing cost per unit Rs. 200
Carrying cost per unit p. a.
13. Write short note on Sub-contract and Extra work.
14. What is material yield variance?
15. Distinguish joint product and by-product.
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16. Calculate the amount of payment received from contractee from the following:
Contract price Rs. 5,00,000, work certified 60%
payment received from contractee 80%.
17. Calculate the sales required to earn profit of Rs. 20,000 from the following data: Fixed cost Rs. 40,000, P/V Ratio 25%.
18. A lorry capable of carrying 5 tonnes of goods normally carries 80% of the load on the outward journey and 40% of the inward journey. The journey is 300 kms for one side. It takes two days to complete the return trip. In a year of 300 days, compute the tones kms.
19. What are the features of operating costing?
20. Distinguish abnormal loss and abnormal gain.
21. What is contribution margin?
22. What is daily log sheet? What are it uses?
2 16 Marks)
SECTION C
Answer any SIX questions, each in a paragraph not exceeding 120 words.
23. Distinguish marginal costing and absorption costing.
24. Discuss the argument in favour and against the accounting of profit on incomplete contracts.
25. Describe the treatment of abnormal gain in process accounts.
26. What is material cost variance What are the causes of MCV?
27. From the following information, calculate the
Effective kilometers p. a. Effective passenger kilometers p. a.
Total fuel consumption Total cost of fuel Cost of fuel per km
Distance of one way route 40 kilometers
Round trips per day 3
Days operated in a month 25
Seating capacity 50 passengers
Seating capacity occupied 80%
Fuel consumption 1 liter per 6 kms
Rate of fuel Rs. 15 per liter
28. Contract price Rs. 5,60,000, Current cost incurred to date Rs. 5,00,000, Value of work certified Rs. 4,20,000, Cost of work uncertified Rs. 2,000, Estimated additional costs likely to be incurred to complete the unfinished work Rs. 2,00,000. Calculate the amount of profit to be transferred to Profit and Loss account.
29. You are given the following information:
Fixed Expenses Rs. 4,000. Break Even Point Rs. 10,000
You are required to calculate: P/V Ratio, Profit when sales are Rs. 20,000 Sales to earn a profit of Rs. 6,000, New BEP in selling price is reduced by 20% New BEP if variable cost is increased by 25%.
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30. Product A requires 100 Kgs of materials at the rate of Rs. 40 per Kg. The actual consumption of material for the manufacturing of that product came to 120 Kgs of materials at the rate of Rs. 45 per Kg. Calculate Material cost variance, Material price variance and material usage variance.
31. What are the applications of marginal costing?
4 24 Marks)
SECTION D
Answer any TWO questions, not exceeding four pages.
32. S Ltd. Provides you the following information:
I half of the year II half of the year
Total Sales Rs. 15,00,000 Rs. 6,00,000
Profit (Loss) Rs. 3,00,000 (Rs. 1,50,000)
Required to calculate:
P/V Ratio, Fixed cost for the year, BEP for the year, Profit when sales are Rs. 20,00,000, sales required to earn a profit of Rs. 5,00,000.
33. The standard cost of a certain chemical mixture is:
40% material A at Rs. 400 per kg
60% material B at Rs. 600 per kg
A standard loss of 10% is anticipated in production.
The following particulars are available for the month of December:
180 kg of material A has been used at Rs. 360 per kg
220 kg of material B has been used at Rs. 680 per kg
The actual production of is 369 kg. Calculate all material cost variances.
34. Bharath undertook a contract No. 501 for Rs. 5,00,000 on 1st July, 2016. On 31st March, 2017, when the accounts were closed, the following information was available:
Material issued to site Rs. 55,000 Wages paid Rs. 18,000
Direct expenses paid Rs.6,000 General overheads 20% of Wages
Site office cost Rs.10,000 Costs of sub contract Rs. 15,000
Plant Rs.2,00,000 Wages accrues at the end Rs. 2,000
Direct expense prepaid Rs. 1,000 Material at site at the end Rs. 5,000
Cost of work uncertified Rs. 20,000
Cash received Rs. 2,00,000 being 80% of work certified
The plant was installed on the respective date of the contract and depreciation is to be provided at 10% p. a.
You are required to prepare Contract Account, Contractee's Account and show the relevant items appear in the Balance Sheet.
35. Explain the objectives of Contract costing. Explain the rules for crediting profit on incomplete contract.
15 30 Marks)