Solapur University Question Paper
M.Com. – I (Semester – I) (New) Examination, 2014
ADVANCED COSTING (Gr. b) (Paper – I)
Day and Date : Saturday, 19-4-2014 Max. Marks : 50
Time : 3.00 p.m. to 5.00 p.m.
N.B. : 1) All questions are compulsory.
2) Figures to the right indicate full marks.
3) Use of calculator is allowed.
1. Choose correct alternative : 10
1) Overhead incurred Rs. 30,000 and overhead absorbed Rs. 28,200. There is
under absorption of Rs. ________
A) 1,800 B) 28,200 C) 30,000 D) None of these
2) Indirect cost can also be described as _______
A) Variable cost B) Overhead cost
C) Total cost D) Prime cost
3) Which of the following expenses is apportioned on the basis of the number of
employees ?
A) Selling B) Welfare C) Factory D) Distribution
4) The allotment of whole items of cost to cost centres or cost units is called
_____________
A) Cost apportionment B) Cost allocation
C) Cost classification D) Overhead absorption
5) _____________ is quantitative record of stores receipts, issues and balance,
it is kept by store keeper.
A) Store ledger B) Bin card
C) Material return note D) Material requisition
6) The techniques and process of ascertaining the cost is called ________
A) cost B) profit C) costing D) total cost
7) ____________ method of pricing is based on the assumption that materials
which are received first are issued first.
A) HIFO B) LIFO
C) FIFO D) Weighted average
SLR-NN – 15 -2-
8) _______________ stock level is always higher than the minimum stock level.
A) Danger B) Opening C) Reorder D) Closing
9) Which type of market is created by the use of uniform costing system ?
A) Natural market B) Competitive market
C) Monopolistic market D) Foreign market
10) Interfirm comparison is facilitates by using _______ costing system.
A) Marginal B) Pre-determined
C) Uniform D) Historical
2. Write short notes : 10
A) Objectives of Uniform costing
B) Difference between financial and cost accounting.
3. A) The following transactions took place in respect of a material :
Date Receipts Issues
March Units Rate Units
2013
2 200 2.00 –
10 300 2.40 –
15 – – 250
18 250 2.60 –
20 – – 200
Prepare Store Ledger by pricing the issues at simple average rate. 5
B) Hero Ltd. has two production departments and two service departments and
provide you the following data :
Particulars Production Department Service Department
A B CD
Direct materials 40,000 30,000 20,000 10,000
Direct wages 20,000 15,000 10,000 5,000
Direct expenses 10,000 7,500 5,000 2,500
Indirect materials 5,000 5,000 5,000 5,000
Indirect wages 2,500 2,500 5,000 2,500
Common Indirect expenses Rs. 20,000. Prepare statement showing allocation
of overheads. 5
-3- SLR-NN – 15
4. Prepare Store Ledger Account from the following details using LIFO method of
pricing the issue of materials. 10
April 1 – Opening balance 10850 kg @ Rs.130 per kg
’’ 2 – Purchased – 20,000 kg @ Rs. 134 per kg
’’ 3 – Issued – 6750 kg to production
’’ 5 – Issued – 8500 kg to production
’’ 6 – Received back – 550 kg from production being surplus
’’ 7 – Purchased – 17,550 kg @ Rs. 128 per kg
’’ 8 – Issued – 11,250 kg to production
’’ 9 – Physical stock verification revealed a loss of 250 kg
’’ 10 – Issued – 8950 kg to production.
OR
Godrage Ltd. has three production departments and four service departments.
The expenses for the departments as per primary distribution are as follows :
Production Department :
A Rs. 60,000
B Rs. 52,000
C Rs. 48,000 1,60,000
Service Departments :
Stores Rs. 8,000
Time Keeping and Accounts Rs. 6,000
Power Rs. 3,200
Canteen Rs. 2,000 19,200
The following information is also available in respect of the production department.
Dept. A Dept. B Dept. C
Horse power of machine 300 300 200
Number of workers 20 15 15
Value of stores requisition Rs. 2,500 Rs. 1,500 Rs. 1,000
Apportion the cost of service departments over production departments. 10
SLR-NN – 15 -4-
5. From the following information calculate : 10
1) Re-order level
2) Minimum level
3) Maximum level
4) Average stock level
5) Danger level
Rate of minimum consumption – 250 kg per week
Maximum consumption – 750 kg per week
Normal consumption – 400 kg per week
Recorder period – Minimum – 3 weeks
Maximum – 7 weeks
Normal – 4 weeks
For emergency purchase – 2 weeks
Re-order quantity – 2000 kg.
OR
The budgeted expenses for the year are as follows :
Direct materials Rs. 9,000
Direct wages @ Rs. 10 per hour Rs. 20,000
Direct expenses Rs. 1,000
Works overheads Rs. 5,000
Administration overheads Rs. 3,500
Works overheads are charged at labour hour rate and administration overheads
are charged as a percentage on work cost.
The details of Job No. 101 are as follows :
Direct materials Rs. 2,250
Direct wages Rs. 5,000
Direct expenses Rs. 250
Calculate rate of absorption of administration overheads and what price should be
charged to Job No. 101 so as to earn 1/6th profit on sales. 10
_____________________
M.Com. – I (Semester – I) (New) Examination, 2014
ADVANCED COSTING (Gr. b) (Paper – I)
Day and Date : Saturday, 19-4-2014 Max. Marks : 50
Time : 3.00 p.m. to 5.00 p.m.
N.B. : 1) All questions are compulsory.
2) Figures to the right indicate full marks.
3) Use of calculator is allowed.
1. Choose correct alternative : 10
1) Overhead incurred Rs. 30,000 and overhead absorbed Rs. 28,200. There is
under absorption of Rs. ________
A) 1,800 B) 28,200 C) 30,000 D) None of these
2) Indirect cost can also be described as _______
A) Variable cost B) Overhead cost
C) Total cost D) Prime cost
3) Which of the following expenses is apportioned on the basis of the number of
employees ?
A) Selling B) Welfare C) Factory D) Distribution
4) The allotment of whole items of cost to cost centres or cost units is called
_____________
A) Cost apportionment B) Cost allocation
C) Cost classification D) Overhead absorption
5) _____________ is quantitative record of stores receipts, issues and balance,
it is kept by store keeper.
A) Store ledger B) Bin card
C) Material return note D) Material requisition
6) The techniques and process of ascertaining the cost is called ________
A) cost B) profit C) costing D) total cost
7) ____________ method of pricing is based on the assumption that materials
which are received first are issued first.
A) HIFO B) LIFO
C) FIFO D) Weighted average
SLR-NN – 15 -2-
8) _______________ stock level is always higher than the minimum stock level.
A) Danger B) Opening C) Reorder D) Closing
9) Which type of market is created by the use of uniform costing system ?
A) Natural market B) Competitive market
C) Monopolistic market D) Foreign market
10) Interfirm comparison is facilitates by using _______ costing system.
A) Marginal B) Pre-determined
C) Uniform D) Historical
2. Write short notes : 10
A) Objectives of Uniform costing
B) Difference between financial and cost accounting.
3. A) The following transactions took place in respect of a material :
Date Receipts Issues
March Units Rate Units
2013
2 200 2.00 –
10 300 2.40 –
15 – – 250
18 250 2.60 –
20 – – 200
Prepare Store Ledger by pricing the issues at simple average rate. 5
B) Hero Ltd. has two production departments and two service departments and
provide you the following data :
Particulars Production Department Service Department
A B CD
Direct materials 40,000 30,000 20,000 10,000
Direct wages 20,000 15,000 10,000 5,000
Direct expenses 10,000 7,500 5,000 2,500
Indirect materials 5,000 5,000 5,000 5,000
Indirect wages 2,500 2,500 5,000 2,500
Common Indirect expenses Rs. 20,000. Prepare statement showing allocation
of overheads. 5
-3- SLR-NN – 15
4. Prepare Store Ledger Account from the following details using LIFO method of
pricing the issue of materials. 10
April 1 – Opening balance 10850 kg @ Rs.130 per kg
’’ 2 – Purchased – 20,000 kg @ Rs. 134 per kg
’’ 3 – Issued – 6750 kg to production
’’ 5 – Issued – 8500 kg to production
’’ 6 – Received back – 550 kg from production being surplus
’’ 7 – Purchased – 17,550 kg @ Rs. 128 per kg
’’ 8 – Issued – 11,250 kg to production
’’ 9 – Physical stock verification revealed a loss of 250 kg
’’ 10 – Issued – 8950 kg to production.
OR
Godrage Ltd. has three production departments and four service departments.
The expenses for the departments as per primary distribution are as follows :
Production Department :
A Rs. 60,000
B Rs. 52,000
C Rs. 48,000 1,60,000
Service Departments :
Stores Rs. 8,000
Time Keeping and Accounts Rs. 6,000
Power Rs. 3,200
Canteen Rs. 2,000 19,200
The following information is also available in respect of the production department.
Dept. A Dept. B Dept. C
Horse power of machine 300 300 200
Number of workers 20 15 15
Value of stores requisition Rs. 2,500 Rs. 1,500 Rs. 1,000
Apportion the cost of service departments over production departments. 10
SLR-NN – 15 -4-
5. From the following information calculate : 10
1) Re-order level
2) Minimum level
3) Maximum level
4) Average stock level
5) Danger level
Rate of minimum consumption – 250 kg per week
Maximum consumption – 750 kg per week
Normal consumption – 400 kg per week
Recorder period – Minimum – 3 weeks
Maximum – 7 weeks
Normal – 4 weeks
For emergency purchase – 2 weeks
Re-order quantity – 2000 kg.
OR
The budgeted expenses for the year are as follows :
Direct materials Rs. 9,000
Direct wages @ Rs. 10 per hour Rs. 20,000
Direct expenses Rs. 1,000
Works overheads Rs. 5,000
Administration overheads Rs. 3,500
Works overheads are charged at labour hour rate and administration overheads
are charged as a percentage on work cost.
The details of Job No. 101 are as follows :
Direct materials Rs. 2,250
Direct wages Rs. 5,000
Direct expenses Rs. 250
Calculate rate of absorption of administration overheads and what price should be
charged to Job No. 101 so as to earn 1/6th profit on sales. 10
_____________________
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