Master of Commerce (M.Com.) Part I SEM II 2016 2017 Nov 2017 ACCOUNTS COURSE II PAPAER I ADV. COST ACCOUNTING Question Paper - Mumbai University | munotes

Questions asked in this paper

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1. Q2 However, question No.3 consists questions on Two topics, one on uniform costing & interfirm comparison and second on integrated & Non-integrated. The students are advised to attempt the question on the topic related to their syllabus
2. Q3 Figures to the right indicate full marks allotted to the question
3. Q4 Working notes should form part of the answer
4. Q1 Care Hospital operates a fitness center to provide counseling on nutrition, exercise and health care for major surgery patients after their release from the hospital. Average patient will make three visits to the centre Each visit lasts 40 minutes. The hospital has estimated the following costs of operating the center Hospital expects to have an average of 500 visits per month. What should be the amount to be charged to each patient in order to cover the above costs? 15 marks
5. Q1 Union Transport Co. supplied the following details in respect of truck of 5 tonne capacity The truck carries goods to and from the city covering a distance of 50 kms each way. On outward trip freight is available to the extend of full capacity and on return 20% of capacity. Assuming that truck runs on 25 days in and completes one trip per day 15 marks
   • (b) Rate per ton-km company should charge if a profit of 50% on freight is to be earned
6. Q2 Agarwal and Co. sold 7,000 units at Rs.100 per unit in the year 2015 and of Rs.10,000. It sold 9,000 units at Rs. 100 per unit in the year 2016 and earned profit of Rs.10,000. From the above information you are required to calculate 15 marks
   • (1) Break even point in value and volume
   • (2) Margin of safety in Rs. and units for the year 2016
   • (3) Number of units to be sold to earn profit of Rs.50,000
7. Q2 Max Industries Limited produces and markets Industrial containers and packing cases. Due to competition, the company proposes to reduce the selling price If the present level of profit is to be maintained, indicate the number of units to be sold if the proposed reduction in selling price is 5%, 10% and 15% The following additional information is available Show the calculations in Tabular Form 15 marks
8. Q3 The following are the financial data.of 3 companies in an industry involved in the manufacturing of a Capital Employeed per unit is determined.as follows: There is no sale or addition.on fixed assets during the year. The companies have not changed the method and the rate of depreciation. The difference, between the opening balance and closing balance of fixed assets indicates the amount of depreciation on the fixed assets. You are required to calculate the uniform price that should be fixed for the common product? 15 marks
9. Q3 Following is the Profit and Loss Account of Satabdi Company Ltd, for the year ending December, 2009 and the Balance sheet on that date Vertical Income Statement for the year ending 31.12.09 (Rs. In Less: Cost of Goods Sold: Cost of Goods Sold ( 300.00) Vertical Balance Sheet 31.12.09 (Rs.in 15 marks
   • (1) SOURCES OF FUNDS:
   • (1) OWNED FUNDS: Add: Reserves and Surplus 25.00 Add: Profit For the Year 35.00 60.00 (II) APPLICATION OF FUNDS:
   • (2) Working Capital: Calculate the following ratios : and compare with Industry Ratios
   • (a) Debtors Turnover ratio and Debt Collection Period in Days. (b) Stock Working Ratio (c) Current Ratio
   • c) Current Ratio 3:1
   • e) Operating Ratio 80%
10. Q3 A company operates on historic job cost accounting system which is not integrated with a financial accounts. At the beginning of a month, the balances.in cost ledger were: During the month, the following transactions took place Issued to Production 50 Issued to General Maintenance 6 Issued to Building construction 4 For Building Construction 10 Absorbed in Building Construction 20 At the end of the month, the stock of raw material and work-in-progress was Rs.55 lakhs and Rs.25 lakhs, respectively. The loss arising in the raw material accounts is treated as factory overheads. The building under construction was completed during the month. Company’s gross profit margin is 20% on sales Prepare the relevant control accounts to record the above transactions in the cost ledger of the company. Also show Trial Balance at the month end 15 marks
11. Q3 Messrs Esbee Ltd. maintain Accounts of Cost and Financial Accounts. From the following details, write up control accounts in the general ledger of the factory and prepare a Trial Balance: Transaction during the year were as follows: 15 marks
12. Q4 (a) Choose the correct option and rewrite the complete sentence 5 marks
    • (i) Under marginal costing cost is classified on the basis Of e function e element e behaviour e None of the above
    • (ii) Operating Costing is not applicable (iii)
    • (iv) P/v ratio is indicated Break-even chart by e Inter Section of fixed cost and total cost line e Inter Section of total cost and sales line e angle of incidence between total cost and sales line e Angle between total cost and fixed cost lines
    • (v) Cost per kilogram of steam supplied is used by. organization e None of the above
13. Q4 b) State whether the following statements are True or False 5 marks
    • i) Increase in Price leads to lower margin of Safety
    • ii) In marginal costing the price can be fixed on the basis of any variable cost
    • iii) Opportunity cost need not be considered
    • v) Fixed cost is a period cost under marginal costing
14. Q4 Match the columns 5 marks
    • i) Margin of Safety e Not relevant for decision making
    • iv) Operating costing e Method of Costing e Technique of costing
    • v) cost e Choice of alternatives
15. Q4 three 15 marks
    • a) What are the limitations of Marginal Costing?
    • b) Explain meaning and characteristics of Operating Costing
    • c) Write Short Note Book’
    • d) Distinction between Absorption Costing and Marginal Costing
    • e) Explain briefly ‘Uniform Costing’
    • f) Write Short note on ‘Non-integral System of Accounting’

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