ECO-10
No. of Printed Pages : 8
BACHELOR'S DEGREE PROGRAMME
Term-End Examination
June, 2012
CD
CO
ELECTIVE COURSE : COMMERCE
ECO-10 : ELEMENTS OF COSTING
Maximum Marks : 50
(VVeightage 70%)
Time : 2 hours
Note : Attempt any two questions from section-A and any
two questions from section-B.
SECTION-A
1.
Explain the concept of centralised Purchasing, 2,8
and state the steps involved in procurement.
2.
(a) Define 'costing' and outline its main 6,4
objectives.
(b) Explain any two methods of costing and
identify industries where these can be used.
3.
Write short notes on any two of the following :
(a)
Inventory Turnover Rate.
(b)
FIFO Method of pricing issue of materials.
(c)
Rowan Premium Plan
(d)
Functional classification of overheads
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5,5
P.T.O.
SECTION-B
4.
The product of a manufacturing concern passes
through two processes A and B and then to
finished stock Account. It is ascertained that in
each process normally 5% of the total weight of
input is lost and 10% is scrap which realises
Rs. 160 and Rs. 400 per ton from proces A and
process B respectively.
15
The following data is availabe for the month of
March, 2010 relating to both processes:
A
B
Materials (in tons)
1,000
70
250
400
Rs. 56,000
20,000
Rs. 16,000
10,500
830
780
repare process accounts showing cost per ton of
each process. There was no stock of work -inprogress in any process.
Cost of materials per ton
Wages
Mfg. Expenses
Output in tons
5.
Rs.
(a) The financial accounts of a company 10, 5
showed a net loss of Rs. 1,14,640 for the year
2009-10. The cost accounts of the cumpany
showed a net loss of Rs. 74,200. On
scrutinising the figures of both sets of books,
the following facts were revealed :
(i)
Director fees not charged in cost
accounts Rs. 2,600.
(ii) Provision for bad debts made in
financial accounts Rs. 2,280.
(iii) Bank interest credited in financial
accounts Rs. 120.
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2
6.
(iv) Obsolescence loss charged in financial
accounts Rs. 33,200.
(v) Overheads shown in the financial
accounts were Rs. 23,280 whereas
overheads shown in cost accounts
were estimated at Rs. 24,000; and
(vi) Depreciation recoverd in cost
accounts Rs. 16,000 whereas
depreciation in financial accounts
appeared at Rs. 19,200.
Prepare a statement reaconciling the amount of
loss shown in financial accounts and cost
accounts.
(b) How do you deal with interest on capital in
cost accounts ? Explain with necessary
arguments.
(a) Compute Machine hour rate (MIIR) from 10, 5
the following data :
Rs.
10,00,000
Cost of machine
1,00,000
Installation charges
50,000
Estimated scrap value
(after 15 years of working life)
Rent for the sho. •er Month
Lighting for the shop (per Month)
Insurance of the machine (per annum)
Repairs of the machine (per Month)
Power consumption 10 units per hour
Power Rate for 100 units
Estimated working hours per annum
were 2000 hours
Su ervisor's salar )er month
ECO-10
3
2,000
3,000
9,600
10,000
200
6,000
P.T.O.
The machine accupies 1/4th of the shop area. The 8, 7
supervisor is expected to devote 1/5th of his time
for supervising the work of the machine.
(b) The following receipts and issues were made
of an item of stores :
July 1
Received 2000 units at
Rs. 30,000
Aug 1
Received 2000 units Rs. 24,000
Aug 31
Issued 2,400 units
Sept 1
Received 2,000 units at
Rs. 36,000
Sept 30
Issued 2,400 units
Prepare stores Ledger Account on the basis
of LIFO method.
ECO-10
4
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ECO-10
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ECO-10
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ECO-10
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