Acharya Nagarjuna University (ANU) 2005 M.Com Commerce IV - ADVANCED COST AND MANAGEMENT ACCOUNTING - Question Paper

M.Com. (Final) DEGREE EXAMINATION, JULY 2005.
Second Year
(A - ACCOUNTING)
Paper IV - ADVANCED COST AND MANAGEMENT ACCOUNTING

Time : 3 hours Maximum : 100marks

part A - (5 X four = 20 marks)
ans any 5 of the subsequent.

1. (a) Cost Accounting Vs Financial Accounting.
(b) Cost behaviour
(c) Break - even point
(d) Job costing Vs Contract costing
(e) Economic order volume
(f) Difference ranging from joint products and by products
(g) Essentials of a good report
(h) Inter process profits
(i) Factory ledger
(j) Cash budget.

part B - (4 X 10 = marks)
ans any 4 of the subsequent.

2. define the uses of variance analysis.

3. What is profit quantity ratio ? define its importance.

4. explain the different steps needed for introduction of cost accounting system.

5. From the subsequent data, compute :
(a) P/V ratio
(b) Break - even sales using P/V ratio
(c) Sales to make Rs. 4,50,000 profit.
Fixed cost RS. 90,000
VC per unit :
Direct materials Rs. 5
Direct wages Rs. 2
Direct overheads 100% on direct wages
Unit selling price Rs.12.

6. From the subsequent imformation, prepare a cost statement for the year ending 31.12.2004.

1.1.04 31.12.04
Rs. Rs.

Stock of raw materials 30,000 40,000
Work - in - progress 18,000 10,000
Stock of finished goods 8,000 6,000

Rs.
Purchase of raw materials 5,00,000
Carriage inwards 12,500
Wages 1,50,000
Works manager's salary 20,000
Factory employees salary 50,000
Power 10,000
Office staff salaries 42,000
General expenses 32,000
Selling expenses 9,500
Income tax 1,000
Dividends 2,000
Sales for the year 10,00,000

7. The info provided beneath relates to Job No. 707 :

Material Rs. 4,010

Wages :
Dept A 60 hours @ Rs. three per hour
Dept B 40 hours @ Rs. two per hour
Dept C 20 hours @ RS. five per hour

Overhead expenses :
Fixed Rs. 20, 000 for 10,000 working hours

Variable :
Dept, A - Rs. 5,000 for 5000 hours
Dept, B - Rs, 1,500 for 1500 hours
Dept C - Rs, 2,000 for 500 hours.

compute cost of Job No. 707 and its sale price to provide a profit of 25 % on sale price

8. calculate various labour variances :
Particulars Standard Actual
Wage rate Rs.16 p.u. -
Wage paid - Rs. 18, 000
Output 900 units 880 units
Time taken 40 hours 45 hours

part C - (2 X 20 = 40 marks)
ans any 2 of the subsequent.

9. discuss the scope of Cost Accounting and how it is various from Management Accounting.

10. discuss the subsequent :
(a) Cost Ledger
(b) Cost Reports
(c) Cost Control Accounts.

11. A company of builders having an authorised capital of Rs. 1,00,000 divided into 1,000 ordinary shares of Rs. 100 every commenced opperations on first January 2004 and engaged the contract. The contract price was Rs. 4,00,000. The Trial balance extracted from their books on 31.12.2004 stood as follows :

Rs. Rs.
Share capital Rs. 80 paid up 80,000
Sundry creditors 8,000
Land and buildings at cost 34,000
Cash at bank 9,000
Materials 80,000
Plant 15,000
Wages 1,05,000
Expenses 5,000
Cash received being 80% of the work certified 1,60,000

2,48,000 2,48,000

Of the plant and materials charged to the contract, plant cost Rs. 2,000 and materials costing Rs. 2,000 were destroyed by an accident. On 31st Dec. 2004 plant which cost Rs. 4,000 was returned to the stores, value of materials on site was Rs. 4,000. Cost of work done but not certified was Rs. 2000. Charge depreciation 10 % on plant and carry to profit and loss a/c 2/3 of the profit. Prepare the contract account for the year and Balance Sheet on 31.12.2004 and show your computation of the amount to be credited to Profit and Loss Account.

12. Standard cost for making 100 kgs chemical D with the subsequent mix is as follows :
Chemical A - 30 kgs (Rs. four per Kg)
Chemical B - 40 kgs (Rs. six per Kg)
Chemical C - 80 Kgs (Rs. 6per Kg)
In a batch of 500 kgs of chemical D making the subsequent mix was used :
Chemical A - Rs. 588 for 140 kgs
Chemical B - Rs. 1066 for 220 kgs
Chemical C - Rs. 2860 for 440 kgs
calculate material variances.

Earning:   Approval pending.