University Of Pune Question Paper
M.Com. (Semester I) Examination, 2013
Advanced Cost Accounting and Cost Systems
Special Paper – I
ADVANCED COST ACCOUNTING
(Group – B)
(2008 Pattern)
Time : 3 Hours Max. Marks : 100
Instructions : 1) Attempt all questions.
2) Figures to the right indicate full marks.
3) Use of Calculator is allowed.
1. A) Fill in the blanks : (5)
1) Overhead is an aggregate of ________ and _________ and ___________
2) In contract costing the cost unit is _____________
3) Operating costing is a variation of __________ category of costing method.
4) When actual loss in a process is less than the anticipated loss, the
difference between the two is considered to be ____________
5) The process of physical verification of stores throughout the year is termed
as ___________
B) State whether the following statements are true or false : (5)
1) The perpetual inventory system enables management to ascertain stock
without physical verification.
2) The difference between the time clocked and time booked is termed as
idle time.
3) The concept of economic batch quatity is similar to that of economic order
quantity.
4) Service costing is applied in canteens.
5) The output of one process may be transferred to another process at cost
or at market price.
P.T.O.
Seat
No.
[4370] – 105 -2-
2. Explain the concept of material control ? Discuss the different stages involved in
the purchase procedure. (15)
OR
What are the essential features of a good wage system ? Compare and contrast
time rate and peace rate systems of wage payment.
3. Write short notes (any 3) : (15)
a) Characteristics of product life cycle.
b) Farm Costing.
c) Job Evaluation.
d) Under-Absorption and Over-Absorption of overheads.
e) Objectives of Inventory Control.
4. Following particulars have been extracted from the books of Reliable Company : (20)
Indirect materials Rs. Indirect Wages Rs.
Shop No. 1 12,000 Shop No. 1 12,600
Shop No. 2 18,000 Shop No. 2 17,700
Shop No. 3 6,000 Shop No. 3 16,000
Tool room 3,600 Tool room 11,100
Stores 4,800 Stores 4,500
Factory Office 1,800 Factory Office 6,600
Factory Rent 30,000
Insurance 6,000
Depreciation 10% 30,000
Power 27,000
Light and Heat 12,000
-3- [4370] – 105
Further information regarding the operations are given below :
Depts Area
(Sq. metre)
Book Value of
machinery
(Rs.)
Effective
H.P.
Direct
hours
Labour
Cost
(Rs.)
Machinery
hours
Production
Shop No. 1 1000 75,000 90 3,00,000 90,000 1,60,000
Shop No. 2 750 1,35,000 90 3,00,000 60,000 2,40,000
Shop No. 3 1,500 30,000 - 2,00,000 50,000 -
Service :
Tool room 500 45,000 20 - 50,000 -
Stores 750 7,500 - - - -
Factory
Office 500 7,500 - - - -
You are required to prepare an overhead analysis sheet for the departments of
Reliable Co. for the year showing the basis of apportionment.
5. The following information relate to Contract No. 135. You are required to prepare
the Contract A/c and the Contractee’s A/c assuming that the amount due from
the contractee was duly received : (20)
Rs.
Direct materials 41,500
Direct wages 32,000
Stores issued 22,000
Loose tools 5,800
Tractor expenses :
Running materials 5,600
Wages of drivers 7,000 12,600
Other direct charges 6,300
The contract price was Rs. 1,90,000 and the contract took 13 weeks in its
completion. The value of loose tools and stores returned at the end of the period
was Rs. 500 and Rs. 7,000 respectively. The plant was also returned at a value
of Rs. 32,000 after charging depreciation at 20%. The value of the tractor was
Rs. 42,000 and depreciation was to be charged on the contract @15% p.a. The
administration and office expenses are to be provided at 10% on works cost.
6. The following figures show the cost of two processes of manufacture. The
production from process II is passed to finished stock account : (20)
Process I Process II
Rs. Rs.
Direct materials 2,000 3,020
Direct wages 3,500 4,226
Production overheads 1,500 2,000
1,000 units are introduced at a cost of Rs. 5 per unit. Other information is as
follows:
Normal Loss Actual Loss
Process I 10% of input 920 units
Process II 5% of input 870 units
The wastage realizes Rs. 3 per unit in Process I and Rs. 5 per unit in Process II.
Prepare process accounts.
——————
M.Com. (Semester I) Examination, 2013
Advanced Cost Accounting and Cost Systems
Special Paper – I
ADVANCED COST ACCOUNTING
(Group – B)
(2008 Pattern)
Time : 3 Hours Max. Marks : 100
Instructions : 1) Attempt all questions.
2) Figures to the right indicate full marks.
3) Use of Calculator is allowed.
1. A) Fill in the blanks : (5)
1) Overhead is an aggregate of ________ and _________ and ___________
2) In contract costing the cost unit is _____________
3) Operating costing is a variation of __________ category of costing method.
4) When actual loss in a process is less than the anticipated loss, the
difference between the two is considered to be ____________
5) The process of physical verification of stores throughout the year is termed
as ___________
B) State whether the following statements are true or false : (5)
1) The perpetual inventory system enables management to ascertain stock
without physical verification.
2) The difference between the time clocked and time booked is termed as
idle time.
3) The concept of economic batch quatity is similar to that of economic order
quantity.
4) Service costing is applied in canteens.
5) The output of one process may be transferred to another process at cost
or at market price.
P.T.O.
Seat
No.
[4370] – 105 -2-
2. Explain the concept of material control ? Discuss the different stages involved in
the purchase procedure. (15)
OR
What are the essential features of a good wage system ? Compare and contrast
time rate and peace rate systems of wage payment.
3. Write short notes (any 3) : (15)
a) Characteristics of product life cycle.
b) Farm Costing.
c) Job Evaluation.
d) Under-Absorption and Over-Absorption of overheads.
e) Objectives of Inventory Control.
4. Following particulars have been extracted from the books of Reliable Company : (20)
Indirect materials Rs. Indirect Wages Rs.
Shop No. 1 12,000 Shop No. 1 12,600
Shop No. 2 18,000 Shop No. 2 17,700
Shop No. 3 6,000 Shop No. 3 16,000
Tool room 3,600 Tool room 11,100
Stores 4,800 Stores 4,500
Factory Office 1,800 Factory Office 6,600
Factory Rent 30,000
Insurance 6,000
Depreciation 10% 30,000
Power 27,000
Light and Heat 12,000
-3- [4370] – 105
Further information regarding the operations are given below :
Depts Area
(Sq. metre)
Book Value of
machinery
(Rs.)
Effective
H.P.
Direct
hours
Labour
Cost
(Rs.)
Machinery
hours
Production
Shop No. 1 1000 75,000 90 3,00,000 90,000 1,60,000
Shop No. 2 750 1,35,000 90 3,00,000 60,000 2,40,000
Shop No. 3 1,500 30,000 - 2,00,000 50,000 -
Service :
Tool room 500 45,000 20 - 50,000 -
Stores 750 7,500 - - - -
Factory
Office 500 7,500 - - - -
You are required to prepare an overhead analysis sheet for the departments of
Reliable Co. for the year showing the basis of apportionment.
5. The following information relate to Contract No. 135. You are required to prepare
the Contract A/c and the Contractee’s A/c assuming that the amount due from
the contractee was duly received : (20)
Rs.
Direct materials 41,500
Direct wages 32,000
Stores issued 22,000
Loose tools 5,800
Tractor expenses :
Running materials 5,600
Wages of drivers 7,000 12,600
Other direct charges 6,300
The contract price was Rs. 1,90,000 and the contract took 13 weeks in its
completion. The value of loose tools and stores returned at the end of the period
was Rs. 500 and Rs. 7,000 respectively. The plant was also returned at a value
of Rs. 32,000 after charging depreciation at 20%. The value of the tractor was
Rs. 42,000 and depreciation was to be charged on the contract @15% p.a. The
administration and office expenses are to be provided at 10% on works cost.
6. The following figures show the cost of two processes of manufacture. The
production from process II is passed to finished stock account : (20)
Process I Process II
Rs. Rs.
Direct materials 2,000 3,020
Direct wages 3,500 4,226
Production overheads 1,500 2,000
1,000 units are introduced at a cost of Rs. 5 per unit. Other information is as
follows:
Normal Loss Actual Loss
Process I 10% of input 920 units
Process II 5% of input 870 units
The wastage realizes Rs. 3 per unit in Process I and Rs. 5 per unit in Process II.
Prepare process accounts.
——————
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