M.Com. DEGREE EXAMINATION, APRIL 2017.
Fourth Semester
Commerce
ADVANCED COST ACCOUNTING
(2013 onwards)
Time 3 Hours Maximum 75 Marks
Section A x 3 15)
Answer all questions.
All questions carry equal marks.
1. What is meant by cost accounting?
2. Write a note on tenders.
3. List out the objectives of job costing.
4. Calculate BEP in units and value for the following
Total cost Rs. 50,000
Total variable cost Rs. 30,000
Sales (5,000 units) Rs. 50,000
5. What do you mean by activity based costing?
Sub. Code
611401
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Section B 10 50)
Answer all questions choosing either or
6. From the following information, calculate
Economic order quantity
Reorder level
Maximum level
Minimum level
Normal usage 150 units per day, Minimum usage
100 units per day, Maximum usage 200 units per
day, Reorder period 50 to 60 days, The annual
usage is 50,000 units, The cost of purchase is
Rs. 100 per order, Cost per unit is Re. 1.00 and
Carrying cost is 10% per annum.
Or
Kumaresh Ltd., has three production departments.
and and two service departments and
The following figures are extracted from the
records of the company:
Rs.
Rent and rates 5,000
Indirect wages 1,500
Depreciation of machinery 10,000
General lighting 600
Power 1,500
Sundries 10,000
Following further details are available
Total A B C D E
Floor space in square feet 10,000 2,000 2,500 3,000 2,0000 500
Light points 60 10 15 20 10 5
Direct wages 10,000 3,000 2,000 3,000 1,500 500
H.P of machines 150 60 30 50 10
Value of machinery 2,50,000 60,000 80,000 1,00,000 5,000 5,000
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Apportion the 'cost to various department on the
most equitable basis by preparing a primary
departmental distribution summary.
7. You are required to compile a statement showing
cost and profit from the information given
Materials consumed
Prime cost
Works cost
Cost of production
Cost of Sales
Profit and
Sales
Rs.
Materials purchased 00,000
Wages 00,000
Direct expenses 20,000
Opening stock of materials 40,000
Closing stock of materials 60,000
Factory overhead is absorbed at 20 on wages.
Administration overhead is 25% on the works cost.
Selling and distribution overheads are 20% on the
cost of production. Profit is 20% on sales.
Or
From the following information of Vels Construction
Company, prepare the contract account for 2009.
Also show what part of the profit on the contract
should be taken credit of in 2009. The contract was
for Rs. 8.00.000.
Rs.
Materials issued from stores 1,50,000
Wages paid 2,20,000
General charges 8,000
Plant installed at site on 1st July 2009 40,000
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Materials on hand at close 8,000
Wages accrued due 8,000
Work Certified 4,00,000
Work completed but not certified 12,000
Cash received 3,00,000
Materials transferred to other contract 8,000
Depreciation of plant is to be provided at 10% per
annum
2,000
8. What is job costing? State its merits and demerits.
Or
The product of a company passes through two
processes to completion known as A and B. From
past experience it is ascertained that loss is
incurred in each process as:
Process Process
In each case the percentage of loss is computed on
the number of units entering the process concerned.
The loss of each process possesses a scrap value.
The loss of processes A and B is sold at Rs.5 per 100
units
The output of each process passes immediately to
the next process and the finished units are passed
into stock.
Process A
Rs.
Process B
Rs.
Materials consumed 6,000 4,000
Direct labour 8,000 6,000
Manufacturing expenses 1,000 1,000
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20,000 units have been issued to process A at a cost
of Rs. 10,000. The output of each process has been
as under:
Process A 19,500 and proces B 18,800.
Prepare process accounts.
9. From the following data calculate
P/V Ratio
Profit when sales are Rs. 20,000
New Breakeven point if selling price is
reduced by 20% Fixed expenses Rs. 4,000
Break even sales Rs. 10,000
Or
Product X requires 2O Kgs. of materials at
Rs. 4 per kg. The actual consumption of material for
the manufacturing of product X came to 24 kgs. of
material at Rs. 4.50 per kg. Calculate.
Material cost variance
Material price variance
Material usage variance
10. Discuss the steps involved in activity based costing.
Or
Enumerate the learning curve effect on labour cost
in the long run.
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Section C x 10 10)
Compulsory
11. From the following data relating to 'two vehicles X and
compute the cost per running km.
X
Rs.
Y
Rs.
Cost of vehicles 25,000 15,000
Road license (annual) 750 750
Garage rent (annual) 700 400
Supervision and salaries (annual) 1,200 1,200
Driver wages as hour 3 3
Cost of petrol per litre 3 3
Repairs and maintenance per km 1.65 2.00
Tyre allocation per km 0.80 0.60
Estimated life of vehicle 1,00,000 75,000
Kilometers run (annual) 15,000 6,000
Kilometers run per litre 20 15
You are required to charge interest on the cost of vehicles
at per annum. The vehicles run 20 km per hour on an
average.