ECO-1.0j

BACHELOR'S DEGREE PROGRAMME

Term-End ExaminationDecember, 2009

O ELECTIVE COURSE : COMMERCE

OECO-10 : ELEMENTS OF COSTING

Time : 2 hours Maximum Marks : 50

(Weightaye : 70%)

Note : Attempt any two questions from section A and any two

questions from section B

SECTION A

Distinguish between cost accounting and financial 10accounting.

(a) What are the advantages and disadvantagesof Time Wage System ? 5+5=10

(b) Describe the technique of ABC analysis ofinventory control.

3. Write notes on any two of the following :

Time Booking.

Abnormal Loss.

Components of total cost.

Absorption of factory overheads.

5+5=10

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SECTION B

4. The following are the particulars relating to a 10+5contract which has begun on 1 st January 2007,

at a contract price of Rs. 5,00,000. Theaccounting year ended on 31 st December, 2007.

Particulars Rs.Machinary 30,000

Materials 1,70,600

Wages paid 1,48,000Direct expenses 6,330

Out Standing wages 5,380Uncertified Work 9,000

Overheads 8,240Materials returned to stores 1,600

Materials on hand(31st Dec.2007) 3,700

Machinary on hand(31st Dec.2007 22,000Work certified 3,90,000Cash received 3,51,000

Prepare contract account for the period ended31st Dec, 2007 showing the amount of profit thatmay be taken to the credit of P/L a/c of the year.Also show the amount of the work-in-progressas it would appear in the balance sheet of the year.

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5. (a) Calculate the inventory turnover ratios ofmaterials X and Y for the year 2007 fromthe following information : 8+7=15

Material X Material Y

Rs. Rs.Opening Stock 40,000 60,000

Purchase during theperiod 2,80,000 80,000

Closing Stock 20,000 40,000

(b) The following is the record of receipts andissues of a certain material in the factoryduring october 2006 :

1/10/2006 Balance 10,000 Units @ Rs.10.007/10/2006 Received 4,000 Units @ Rs.12.5014-10-06 Received 6,000 Units @ Rs.15.0016-10-06 Issues 16,000 Units24-10-06 Received 8,000 Units @ Rs. 16.5028-10-06 Issues 10,000 Units

Prepare stores Ledger Account on"Weighted Average" Basis.

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3 P.T.O.

6. (a) From the following information prepare acost sheet : 7+8=15

ItsMaterials Consummed 21,800Direct Wages 17,200

Direct Expenses 1,200

Administrative overhead 3,500Selling overhead 3,900

Sales 69,700Factory overhead 9,900 j

(b) Explain the main features of Taylor'sDifferential piece rate system and Merrick'sdifferential piece rate system.

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ECO-10 4

1. .aft. -10

trift-T chi ,

TRIVT

f-crizri-, 2009

1-4 I O., )i : curukrq

1.#-.311-10 : (-mid k I 4-0 d

RTRT : 2 Erri- 37faid77 3.�T : 50

(y-. chi 70%)

717: #40e.

mq.-t

45"T

MI411 fdrth-zr r T 3 I 10

(a) 1:11tts 3 Vf976 01-11

5+5=10

(b) F.-N=1u] 14-1 ABC rclkc qu f ci ch-n ch 111 oqRs611

3. Pii-irof6d -4 -A fi e 7)-7 TAM trirfcrPit fffft§f7

TPTal IfiTT 5+5=10

317714TP:1 I r-f

(c) riNid 4 .id cl-) (Components)

(d)t'13gfZ .&FE431-a-tEra1

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5 P.T.O.

(..4s `u'

4. 1 79--d-1- 2007 -) AT

F-14-iroRAd t I 5,00,000 T. t I

13f 31 "f- TPIT 2007 c( 31-r I 10+5=15

T.CI CU U I

30,0004-RI .-R

Trrrft 1,70,600

-1:17-Vr (is -rff a-Ci 4I) 1,48,000

6,330cq V qr

1 12170 5,380

9,00034-71Trro-ru -rzf

8,2406'-I o'--l q

TE'r# ail a14(-1 ri-) , i TrriTth 1,600

3,700"qt 1441 (31-12—o7)

22,0007t Trt9t (31-12—o7)

3,90,00051 4-HIfu m -i--4

3,51,000IIH q 77fr

31 fq--:11 17 2007 ch) - 1141-Ff t 10 t-T-111—dT

TRfi-

ur fwzrr Am' t afff q(1-1-LIA

(balance sheet) f9Tritirrq1-9---r-4 (work-in-progress)

rn1 Trfw zr-Td f--ur-7

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5. (a) a 2007 t TrilTrAl. X i i Y 3TT-a-4

31—fir d. (stock turnover ratios) chl F-1 4-1 R-1 rt.1 d

3-RITT 1T{ I 8+7=15

Tirl:IT)1 Y.w 4-1 4,11 X

T. T.

40,000 60,0001;1TTFT9T T-71T

7V-42,80,000 80,000

20,000 40,0003-fraTr EMI

(b) 3-1-4:7-{ 2006 t kdZrt t*7117t

"g TfIT$ -P-11 f9-41=H (receipts and issues)

1 4--10 9-11' I

1/10/2006 tEt 10,000 m1-4 10.00 Sfa x

7/10/2006 71:1 ci;) 4,000 ciii-if 12.50 T yrd

14-10-06T ant 6,000 ci-)iii 15.00 T 1;Ifff 77"1"

16-10-06 Thtfliff 16,000 cili-ii

24-10-06 -571* 8,000 cf-d-ii 16.50 T

28-10-06 f9-TifiTff .111 10,000 ci->iii

9.1Tf7 311TM 14Z-fTT (Weighted Average

Method) t 311t17 TEY{ t Urff11717

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6. (a) F-1 4--Irring d 37?-417 ITT clIncf , ci citu f (cost

7+8=15sheet) c1-9177 I

F.

21,800-1:Frrrr TrriTt

17,200Ic-. -T -I=17-Tt

1,200c 7-11 .7 '71-

3,500771-1Tif-1* 3TI-ft--1 4

3,900fd-Wq4R<>=1'-f

of-E*-zi 69,700

9,900l'i rt3 y f toqq

(b) brit rn1 chi g IvR fa y Ted 9-ft ch

chi -41vR fTAT- f--qtEmA

oq Rsq f I

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