Babasaheb Bhimrao Ambedkar University 2007 M.Com Insurance Management .Advanced Accounting MC-319 For NS - Question Paper

M.Com.Advanced Accounting MC-319 For NS May 2007

Time : 3 hours Maximum : 100 marks
PART A — (5 × eight = 40 marks)
ans any 5 ques..
1. What is ABC analysis of stock control? discuss its merits and demerits.
2. Describe the objectives of cost accounting.
3. Outline the general principles to be borne in mind in designing a wage incentive scheme.
4. State the basic differences ranging from joint products and
by products.
5. Discuss briefly the basis of apportionment of expenses.
6. How do you treat waste, scrap and spoilage in cost accounts?
7. What is cost sheet? How do you prepare it?
8. What is standard costing? Bring out its merits and demerits.
PART B — (4 × 15 = 60 marks)
ans any 4 ques..
9. A company maintained separate cost and financial accounts and the costing profit for 2005 differed to that revealed in financial accounts, which was shown as Rs. 50,000.
The subsequent info is available :
(a) Cost accounts Financial accounts
Rs. Rs.
Opening stock of raw material 5,000 5,550
Closing stock of raw material 4,000 5,300
Opening stock of finished goods 12,000 15,000
Closing stock of finished goods 14,000 16,000
(b) Dividends of Rs. 1,000 were received by the company.
(c) A machine with net book value of Rs. 10,000 was sold during the year for Rs. 8,000
(d) The company charges 10% interest on its opening capital employed of Rs. 80,000 to its process costs. You are needed to determine the profit figure which was shown in the cost accounts.
10. In a factory, there are 2 service departments X and Y and 3 production departments A, B and C.
In April 2005, the departmental expenses were :
Departments : A B C X Y
Rs. 6,50,000 6,00,000 5,00,000 1,20,000 1,00,000
The expenses of the service departments are allotted on a percentage basis as follows :
A B C X Y
X 30% 40% 15% – 15%
Y 40% 30% 25% 5% –
Prepare a statement showing the distribution of the expenses of the 2 service departments to the production departments on the basis of repeated distribution method.
11. A product is found after it passes through 3 distinct processes. Prepare process account, abnormal loss account and abnormal gain account.
Particulars Process A Process B Process C
Materials (Rs.) 2600 1980 2962
Direct wages (Rs.) 2000 3000 4000
Normal loss 5% 10% 15%
Sale of scrap (per unit) Rs. 2 Rs. 4 Rs. 5
Production (units) 950 units 840 units 750 units
General expenses of Rs. 9000 is recovered as direct wages. 1000 units of raw materials at Rs. three every were introduced to Process A.
12. Compute maximum level, minimum level and reorder level from the subsequent data :
Reorder volume – 1,500 units
Reorder period – four to six weeks
Maximum consumption – 400 units per week
Normal consumption – 300 units per week
Minimum consumption – 250 units per week
13. From the subsequent calculate necessary material
variances :
Standard Actual
Material Quantity Price Amount Quantity Price Amount
Kg. Rs. Rs. Kg. Rs. Rs.
A 500 6 3000 400 6 2400
B 400 3.75 1500 500 3.60 1800
C 300 3 900 400 2.80 1120
1200 1300
Less : Normal (-) Actual
loss 120 loss 220
1080 5400
1080 5320
14. A company of builders undertook a contract to construct a building for Rs. 20,00,000. At the end of the year, the company had received Rs. 7,20,000 being 90% of work certified. Work done but not certified was Rs. 20,000. subsequent expenditure were incurred :
Material Rs. 2,00,000; labour Rs. 5,00,000 and Plant
Rs. 40,000. Material costing Rs. 10,000 were damaged. Plant is considered as having depreciated at 25%. Prepare contract account.

Earning:   Approval pending.