Madurai Kamraj University (MKU) 2006 M.Com Commerce ADVANCED COST ACCOUNTING - Question Paper

MAY 2006 PAPER XI ADVANCED COST ACCOUNTING
Time: 3 hours Maximum: 100 marks
ans any 3 ques.. part A -(3 x 20 =60 marks)
1. (a) describe Cost Accounting. State the objectives of Cost Accounts. (b) discuss the systems of
Cost Accounting.
2. (a) describe overhead. discuss the various methods of classification of Overhead. (b) Distinguish
ranging from allocation and apportionment of costs.
3. (a) What is idle time? Indicate the afferent categories into which the idle time can be classified.
(b) elaborate the causes of labor turnover?
4. (a) provide a brief account of ABC control method and perpetual method. (b) define the concept
of "Cost (or) Market price" whichever is low?
5. (a) elaborate the essentials of sound wage system? (b) discuss collective bonus system.
part B-(2 x 20 =40 marks)
6. (a) compute the Economic Order Quantity, if the annual demand for the product is 5,000 units,
ordering cost is Rs. 30 per order and the carrying cost is Rs. six per unit per year.
(b) compute re-order point if the daily consumption is 200 units and the lead time is 10 days.
(c) compute re-order point from the above info if safety stock is 500 units.
7. The receipts side of Store Ledger Account indicates the subsequent details:
500 units purchased @ Rs. 3.00 700 units purchased @Rs. 3.10 400 units purchased @ Rs. 3.20
Successive problems were made of 300 and 1,000 units. What would be the placements of the problems
under the FIFO method?
8. Standard time fixed for a job in a manufacturing concern is 20 hours. Time rate is 50 paise per
hour. The true time taken by the worker A, B and C is 10 hours, eight hours and 15 hours
respectively. compute total remuneration of A, B and C on basis of (a) Halsey Plan (b) Rowan Plan.
9. compute the normal and overtime wages payable to a workman from the subsequent data:
Days Hours worked Monday eight hrs Tuesday 10 hrs Wednesday nine hrs Thursday 11 hrs
Friday 9hrs Saturday four hrs Normal working hours per day -8 Normal rate per hour -Rs. 0.50
Overtime -upto nine hours in a day at single and over nine hours at double rate.
10. Trigger industries turns out only 1 article, the prime cost standards for which have been
established as follows:
Per-completed piece Material-5 Ibs @ Rs. 4.20 Rs.21 Labour -3 brs @ Rs. three Rs.9 The production
schedule for the Month of July, 1998 needed completion of 5000 pieces. However 5,120 pieces
were truly completed. Purchase for the month of July 1998 amounted to 30,000 Ibs of materials
at the total invoice price of Rs. 1,35,000 Production record for the month of July 1998 showed the
subsequent true results: Material requisitioned and used 25,700 Ibs Direct Labour -15,150 hours Rs.
48,480. compute improper material and labour vanance.

Earning:   Approval pending.