University of Delhi 2006-3rd Year B.Com Costing Regular Year : Part I - Question Paper

Q. 1. Distinguish ranging from :
(a) Cost unit and Cost centre ;
(b) Reconciliation statement and Reconciliation account;
© Variable and Semi-variable cost;
(d) Absorption costing and Marginal costing.

Q. 2. (a) elaborate the assumptions on which marginal costing technique is based ? 7
(b) calculate machine Hour Rate from the subsequent info :
(i) The machine room will work on 90% capacity throughout the year and that a breakdown of 10% is reasonable.
(ii) There are 3 days holiday at Deepawali; 2 days at Holi and 2 days at Christmas, exclusive of Sundays. The factory works eight hrs. a day and four hrs. on Saturdays.
(iii) Number of machines (each of identical type) 40.
(iv) Expenses per annum:
Rs.
Power - 3,120
Lubricating oil - 66
Light - 640
Repairs to machines - 1,446
Salaries to foreman - 1,200
Depreciation - 785.60

Q. 3. (a) explain the perpetual inventory system in connection with material control. How is it various from periodic inventory system ?
(b) “Evolution of Cost Accountancy is the result of deficiencies in Financial Accounting System.” explain the statement

Q. 4. (a) A product passes through 3 distinct processes A, B and C. The normal loss of units in every process is 5%, 10% and 15% and the identical is sold at Rs. 2, Rs. 4, Rs. five per unit respectively. Expenses for the month were as follows :
Process
A-B-C
Sundry Materials - 5,200 - 3,960 - 5,924
Wages 4,000 - 6,000 - 8,000
true output in units 1,900 - 1,680- 1,500
2000 units @ Rs. three per unit were put into Process ‘A’. The total overheads are Rs. 18,000 which are to be re-covered at 100% of wages. Prepare necessary Process ACCount.
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(b) From the subsequent figures, prepare a recon ciliation statement:
Cost - Financial
Books - Books
Profit - 50,000 - ?
Marketing overheads - 8,000 - 8,000
Provision for bad debts — 5,000
Factory overheads 8,500 - 7,000
Director’s fees — 2,000
Income Tax paid — 15,000
Rent of owned Premises - 6,000 —
Depreciation - 11,250 - 12,000
Share transfer fee (Cr.) — 1,000
Administrative overheads - 5,000 - 8,000

Q. 5. Write short notes on any 3 of the following:
(a) Labour turnover rate;
(b) Abnormal gains;
© A.B.C. Analysis;
(d) Items excluded from Cost Accounts
e) Break-even point.

Earning:   Approval pending.