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

Q. 1. (a) discuss the main differences ranging from Financial Accounting and Cost Accounting.
(b) describe the terms Fixed Costs, Variable Costs and Semi variable Costs and provide examples of every one.

Q. 2. (a) From the subsequent info prepare Stores Ledger Card under LIFO and FIFO system. compute the value of Closing Stock under both the systems:
1968
Jan. one Opening Stock - 200 pieces @ Rs. 2.00 every
Jan. five Purchases - 100 pieces @ Rs. 2.20 every
Jan. 10 Purchases - .150 pieces @ Rs. 2.40 every
Jan. 20 Purchases - 120 pieces @ Rs. 250 every
Jan. 22Issue - 150 pieces
Jan. 25 problem - 100 pieces
Jan. 27 problem - 100 pieces
Jan. 28 problem - 200 pieces
(b) elaborate the causes of under/over absorption of overheads ? How will you deal with them in Cost Accounts?

Q. 3. (a) From the subsequent data compute :
(i) P.V. Ratio;
(ii) Profit when sales are Rs. 20,000;
(iii) New Break-even Point if selling price is decreased by 20%.
Fixed Expenses - Rs. 4,000
Break-even Point - Rs. 10,000
(b) From the subsequent info you are needed to prepare :
(i) Cost Sheet for Articles X and Y.
(ii) Profit and Loss Account as per financial books.
(iii) Reconciliation ranging from profit as per cost books and as per financial books.
Article X - Article Y
Rs. - Rs.
Material consumed - 36,000 - 48,400
Labour - 63,000 - . 83,600
Rs.
Works overhead (Actual) - 1,42,000
Office expenses (Actual) - 95,700
Number of - Price per
Articles sold - Article
- Rs.
X180 - 1,450
Y220 - 1,600
There was neither opening stock nor any closing stock.
Works overhead are charged 100% on labour and office overhead are charged at 25% on works cost.

Q. 4. (a) The product of Company A passes through 2 processes A and B and then to finished Stock Account. In every process 5% of the total weight is lost and 10% is scrap which realises from Process A Rs. 80 per tonne and Process B Rs. 200 per tonne respectively.
The subsequent are the figure relating to both the processes :
Process A - Process B
Material (tonnes) - 1,000 - 70
Cost of material per
tonne (Rs.) - 125 - 200
Wages (Rs.) - 28,000 - 10,000
Expenses (Rs.) - 8,000 - 5,250
Output (Tonnes) - 830 - 780
Prepare Process Accounts, Abnormal Loss Account and Abnormal Gain Account.
(b) describe Break-even Point. How can the break even point be computed?

Q. 5. (a) What do you understand by Noraml and Abnormal Idle Time? How would you deal with them in Cost Accounts ? 10
(b) What is machine hour rate? What procedure is followed while computing machine hour rate?

Earning:   Approval pending.