ECO-10 Elements of Costing

ECO-1.0j
BACHELOR'S DEGREE PROGRAMME
Term-End Examination
December, 2009
O
O
ELECTIVE COURSE : COMMERCE
ECO-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
accounting.
10
(a) What are the advantages and disadvantages
5+5=10
of Time Wage System ?
(b) Describe the technique of ABC analysis of
inventory control.
3.
Write notes on any two of the following :
Time Booking.
Abnormal Loss.
Components of total cost.
Absorption of factory overheads.
ECO-10
1
5+5=10
P.T.O.
SECTION B
4.
The following are the particulars relating to a 10+5
contract which has begun on 1 st January 2007,
at a contract price of Rs. 5,00,000. The
accounting year ended on 31 st December, 2007.
Particulars
Machinary
Materials
Wages paid
Direct expenses
Out Standing wages
Uncertified Work
Overheads
Materials returned to stores
Materials on hand
(31st Dec.2007)
Machinary on hand
(31st Dec.2007
Work certified
Cash received
Rs.
30,000
1,70,600
1,48,000
6,330
5,380
9,000
8,240
1,600
3,700
22,000
3,90,000
3,51,000
Prepare contract account for the period ended
31st Dec, 2007 showing the amount of profit that
may be taken to the credit of P/L a/c of the year.
Also show the amount of the work-in-progress
as it would appear in the balance sheet of the year.
ECO-10
2
5.
(a) Calculate the inventory turnover ratios of
materials X and Y for the year 2007 from
the following information :
8+7=15
Opening Stock
Purchase during the
period
Closing Stock
Material X Material Y
Rs.
Rs.
40,000
60,000
2,80,000
20,000
80,000
40,000
(b) The following is the record of receipts and
issues of a certain material in the factory
during october 2006 :
1/10/2006 Balance 10,000 Units @ Rs.10.00
7/10/2006 Received 4,000 Units @ Rs.12.50
14-10-06
Received 6,000 Units @ Rs.15.00
16-10-06
Issues
16,000 Units
24-10-06
Received 8,000 Units @ Rs. 16.50
28-10-06
Issues
10,000 Units
Prepare stores Ledger Account on
"Weighted Average" Basis.
ECO-10
3
P.T.O.
6.
(a) From the following information prepare a
7+8=15
cost sheet :
Materials Consummed
Direct Wages
Direct Expenses
Administrative overhead
Selling overhead
Sales
Factory overhead
Its
21,800
17,200
1,200
3,500
3,900
69,700
9,900 j
(b) Explain the main features of Taylor's
Differential piece rate system and Merrick's
differential piece rate system.
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ECO-10
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(b)
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(c)
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ECO-10
5
P.T.O.
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4.
1 79--d-1- 2007
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F-14-iroRAd t I 13f
AT
5,00,000 T. t I
31-r I
31 "f- TPIT 2007 c(
10+5=15
T.
CI CU U I
4-RI .-R
30,000
Trrrft
1,70,600
-1:17-Vr (is -rff a-Ci 4I)
1,48,000
qr
6,330
1 12170
5,380
cq V
34-71Trro-ru-rzf
9,000
6'-I o'--l q
8,240
1,600
TE'r# ail a14(-1 ri-) , i TrriTth
1441 (31-12—o7)
"qt
7t
Trt9t
3,700
(31-12—o7)
22,000
51 4-HIfu m
IIH
-i--4
3,90,000
q 77fr
3,51,000
31 fq--:11 17 2007 ch) - 1141-Ff
t 10 t-T-111—dT
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fwzrr Am' t afff
q(1-1-LIA
(balance sheet) f9Tritirr q1-9---r-4 (work-in-progress)
rn1 Trfw zr-Td
ECO-10
f--ur-7
6
5.
(a)
a 2007 t TrilTrAl. X i i
Y
3TT-a-4
d. (stock turnover ratios) chl F-1 4-1 R-1 rt.1 d
31—fir
3-RITT 1T{
1;1TTFT9T T-71T
7V-4
3-fraTr EM
8+7=15
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I
(b) 3-1-4:7-{ 2006 t .w 4-1 4,11 X
Tirl:IT)1 Y
T.
T.
40,000
60,000
2,80,000
80,000
20,000
40,000
kdZrt t*7117t
"g TfIT$ -P-11 f9-41=H (receipts and issues)
1 4--10
9-11' I
1/10/2006
tEt
7/10/2006
71:1 ci;)
14-10-06T
16-10-06
24-10-06
28-10-06
ant
Thtfliff
-571*
10,000 m1-4 10.00
Sfa x
4,000
ciii-if 12.50 T yrd
6,000
ci-)iii 15.00 T 1;Ifff 77"1"
16,000
cili-ii
8,000 cf-d-ii 16.50 T
f9-TifiTff .111 10,000
ci->iii
9.1Tf7 311TM 14Z-fTT (Weighted Average
Method) t 311t17 TEY{ ECO-10
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t Urff11717 P.T.O.
6.
(a)
37?-417 ITT clIncf , ci citu f (cost
7+8=15
F-1 4--Irring d
sheet) c1-9177 I
F.
-1:Frrrr
Ic-.
21,800
TrriTt
17,200
-T -I=17-Tt
1,200
c7-11 .7 '71771-1Tif-1* 3 T I-ft--1 4
3,500
fd-Wq4R<>=1'-f
3,900
f-E*
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69,700
l'i
9,900
rt3 y f toqq
(b) brit rn1 chi g IvR fa y
chi -41vR fTAT-
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ECO-10
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