Answer any five questions:-
1.
Explain the different method of costing. State in what types of industries each
of these methods can be applied. (20)
2.
Describe the routine for control of the purchases & receipts of materials
from suppliers. (20)
3.
Define ‘selling overhead’ & ‘distribution overhead’. How are these overhead
appointed to the products? (10+10)
4.
Define normal & abnormal process losses. Why such losses occur? How are
these losses dealt with a cost account? (20)
5.
The following particulars have been obtained from the cost records of an
industrial concern:-
a. Stock
of raw materials on 1/1/1987 Rs10000
b. Stock
of finished products on 1/1/1987 (2000 tons) Rs 8000
c. Purchase
of raw materials Rs60000
d. Direct
wages Rs50000
e. Carriage
inward Rs 1000
f.
Factory rent Rs20000
g. Stock
of raw materials on 31/12/1987 Rs11000
h. Stock
of finished products on 31/12/1987 (4000
tons)
i.
Work in progress on 1/1/1987 Rs 2400
j.
Work in progress on 31/12/1987 Rs 8000
k. Sales
of finished products Rs150000
l.
Cost of factory supervision Rs 4000
Advertising
& selling costs were Rs0.40 per ton sold. 32000 tons of the commodities
were produced during the period.
From
the given particulars, prepare the following two statements: - (10+10)
a.
Statement of cost of production of goods produced.
b.
Statement of net profit per ton of the commodity.
6.
Write short notes on: - (5x4)
a. Stores
ledger
b. Re-order
level
c. Cost
unit
d. Cost
control
7.
Compute the machine hour rate from the following data: - (20)
Cost of machine Rs100000
Installation charges Rs 10000
Estimated scrape value after the
expiry of its life (15 yrs) Rs 5000
Rent of the shop per month Rs 200
General lighting of the shop per
month Rs 300
Insurance premium for the
machine per annum Rs 960
Repairs expenses per annum Rs 1000
Power consumption – 10 units per
hour
Rate of power per 100 units Rs 20
Estimated working hours per
annum 2200. This includes setting up time of 200 hours.
Shop supervision’s salary per
month Rs 600
The machine occupies 1/4th
of the total area of the shop. The supervision denotes 1/5th of his
time for supervising .
8.
From the following data show the total earnings per hour of each workers
separately under: a) The Halsey b) The Rowan premium schemes
Workers A B C D E
Time allowed-hours 3 4 5 6 7
Actual time- hours 5 3 4 5 3
Basic wages per hours (Rs) 2 2 2 2 2 (10+10)