Answer any five questions:-
1.
a) “Costing is an aid to management”. Enumerate the main points in support of
this statement. (10)
b) Distinguish between: - (5x2)
i)
Fixed overhead & variable overhead.
ii) Cost
of sales & cost of goods sold.
2.
a) What do you understand by economic order quantity? Discuss what factors are
to be taken into consideration for deciding this quantity. (10)
b) The stores materials of a Co. on
1/7/1997 were 1000 units @ Rs2 per unit. Further purchase were made during the month
as follows: - (10)
4th July 200 units @ Rs2.50 per unit
10th July 500 units @ Rs3.00 per unit
20th July 1000 units @ Rs3.50 per unit
The issues during the period
were as follows:-
12th July 1600
units
28th July 900
units
What
would be the value of closing stock at the end of the month on the basis of
materials being treated According to FIFO method.
3.
a) What is labour turnover? What are its causes & its effects on labour
cost? (10)
b) During a certain week in Sep, 97’ a
worker manufactured 240 articles. Working hour during a week 48 hours. Standard
rate Rs5 per hour & standard time to manufacture on article 15 minutes. Calculate
his grass wages for the week according to Halsey Premium Bonus plan. (10)
4.
From the following particulars furnished below. Compute the machine hour rate:-
(20)
Cost of machine Rs90000
Cost of installation Rs10000
Scrap value at the end of 10 yrs Rs5000
Indirect wages & materials
per year Rs500
Supervision cost for four (4)
similar machines per year Rs16000
Insurance premium for the
machines per quarter Rs200
Rent of the machine shop per
month Rs400
Electricity cost for the machine
shop per month Rs100
Power consumption of the machine
is 20 units per actual working hour. Power cost is 50 paisa per unit.
The total area of the machine
shop is 600 sq.m. of which the machine occupies only 150 sq.m. There are 200
light paints in the machine shop of equal voltage of which it utilizes only 40
paints. It is estimated that machine will normally work 2700 hours in a year,
but will remain idle for 200 hours.
5.
a) Define normal & abnormal loss. (10)
b) Product A passes through two process I
& II & then to finished stock. From the following data prepare the
process accounts. (10)
Particulars Process
I Process
II
Input 2000 1900
Material
consumed 30000 20000
Wages 20000 20000
Overhead 7200 6170
Normal
loss 5% 10%
Scrape
value (per unit) 2 3
6.
a) Distinguish between:- (5x2)
i)
Budgetary control & Standard costing.
ii) Standard
cost & Estimated cost.
b) From the following data calculate
materials yield variance:-
(10)
Standard
mix Actual
mix
Materials A 200 units @ Rs12 160 units @ Rs13
Materials B 100 units @ Rs10 140 units @ Rs10
Standard loss allowed is 10% of
input. Actual output 275 units.
7.
Explain with example:- (5x4)
1) Job
evaluation.
2) Group
bonus scheme.
3) Absorption
of overhead
4) Break
even analysis.
8.
a) The following figure are available from the books of XYZ Ltd. For the year
ended 31/12/1997.
Rs.
Material consumed 10000
Wages 8000
Factory overhead 6000
Office & administrative
overhead 4500
Selling overhead Rs2 per unit
Profit for the year = 20% on
cost of sales
Unit produced & sales 3000
Prepare a cost sheet. (10)
b) In the next year the factory received
an order of 750 units. In the year due to inflation, the cost structure has
been changed by the following ways :-
Price of materials increased by 10%
Rate of wages increased by 20%
Factory overhead decreased by 20%
Selling reduced to Rs1.50
If
the Co. wants to earn a profit higher then 10% of profit earned in last year,
what will be the sale price of the job? (10)