University of Mumbai 2008-1st Year Diploma Financial Management Pgdfm costing - Question Paper
Costing May 2009
v o nouis/ t joial farKs : 100
N. B.: (1) Answer any five que stions. <0$% (0$ p-(> 03
(2) All questions carry 20 marks each. Qp
(3) Working notes and assumptions wherever necessary should be specified.
1. (a) A Z industries produces a product after passing through three processes. 20
Details for Jan 2008 is :
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Factory cost Added |
(b) Stock of finished GoodsOpening Rs. 20,000
Closing Rs. 30,000
(c) Process Profit for Opening Stock
A - Nil - B Rs. 1395 - C - Rs. - 2690 and finished goods Rs. 6534
(d) Total sales is Rs. 4,00,000
Prepare Process Accounts, Finished Stock Account and Statement of Reafised Profit.
2. Alpha and Beeta are competing companies. Thetr Revenue Statement for 2007 are 20
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Alpha |
Beeta | |
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Sales Rs. |
4 00.000 |
8.00.000 |
|
Variable Cost |
2,00,000 |
6.0C>000 |
|
Fixed Cost |
1,00.000 |
1,00,000 |
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Profit |
1,00,000 |
1,00,000 |
You are required to compute for each company.
(i) P. V. Ratio
(ii) Break Fven Point
(iii) Margin of Safety
(iv) Profits in rising Demand
(v) Profits in falling Demand.
3. Gamma Ltd. foilows standard costing system : The Standard costs for 20
Rs.
Material M 5 kg @ Rs. 21- 10.00
Wages 5 Hrs @ Rs. 6 30.00
Variable Overhead 10.00
Fixed Overhead (Tgtat Cost Rs. 60.000) 10.00
ToW
During February, 2008 actual production was 5,800 units Actual Costs incurred.
M 27500 units @ Rs. 2.20 60,500
Wages 30000 Hours @ Rs. 6.20 1,86,000
Variable Overhead 60,000
Fixed Overheads 62,003
Total
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Cost (f) |
Product |
Product |
Product |
|
- A ' |
M | ||
|
Budgeted Sate Units |
2.400 |
3,000 |
2,000 |
|
Sale Price |
Rs. 70 |
: 60 |
50 |
|
Material |
Kg. 5 |
3 |
4 |
|
Labour Hour |
Hour 4 |
3 |
2 |
|
Material Price |
4 |
4 |
4 |
|
Labour Hour Rate |
Rs. 3 |
3 |
3 |
|
Variable Overhead per unit Rs. 7 |
13 |
8 | |
|
Fixed cost per unit Rs. |
10 |
10 |
10 |
|
Maximum Output | |||
|
saie-units |
4,000 |
5,000 |
3,000 |
|
required to suggest most profitable product mix if | |||
|
Material Available is -21,000 kg | |||
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Labour Hour Available - |
18,600 Hours | ||
|
s Ltd. provides following data of past 3 years when capacity utilised anc | |||
|
I were. | |||
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Capacity Used |
55% |
: 65% |
75% |
|
Material Cost |
11,00,000 |
13,00,000 |
15,00,000 |
|
Wages Cost |
5,50,000 |
6,50,000 |
7,50,000 |
|
Factory Overheads |
3,10,000 |
3,30,000 |
3,50,000 |
|
Administrator Overhead |
1,60,000 |
1,60,000 |
1,60,000 |
|
Selling Overhead |
3,20,000 |
3,60,000 |
4,00,000 |
|
Profits |
6,10,000 |
7,00,000 |
7,90,000 |
|
Sales |
30,50,000 |
35,00,000 |
39,50,000 |
Production Capacity Is 75*000 units. For ensuing year company proposes to utilitie 80% of capacity. The company expects overall increase in cost as follows ' Material Cost per unit 8%
(a)
(b)
Wages Cost per unit 5
Factory Overhead Variable 5%
Factory Overhead Fixed 10% .
Administrative Overheads 20%
Selling Overheads Vanabie 8%
Selling Overhead Fixea 15%
Profit as percentage of sales will remain same as in earlier years.
Prepare Budget for ensuing year indicating contribution and profit.
6. (a) "Fixed Cost per unit is vanabie and variable cost per unit is fixed Comment. 20 (b) Explain the Company Law provisions relating to Cost Accounting.
7. Compare and contrast (any two) ; 20
(a) Standards apd Budget
(b) Period Cos! and Product Cost
(c) Operation Costing and Operating Costing
8. Write short notes(arty four} , 20
(a) Profit on incomplete contract
(b) Equivalent Production
(:} Break Even Point ' f
M) Cash Budget {
Limiting Factor
f (
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