Ifiiltil liltlilililtliltililfiil NS - 439

6h
V Semester B.Com. Examinati6n, November/December 2016
(CBCS) (Semester Scheme) (Fresh) (2016-17 and Onwards)
COMMERCE
5.4 : Costing Methods
Time : 3 Hours Max. Marks : 70
lnstruction : Answers should be written completely either in English or
in Kannada.

SECTION _ A
1 . Answerany f ive of the following. Each question carries 2 marks. (5x2=10)
a) What is retention money ?
b) What is abnormal loss ?
c) What is meant by work uncerlified ?
d) What is meant by job cost sheet ?
e) What is economic batch quantity ?
f)
What are standing charges in operating costing ?
g) Give the meaning of by-products.

SECTION _ B
Answerany three of the following" Each question carries six marks. (3x6=18)
2. Calculate the cost and selling price of the job after adding 2A"/" protit on total cost.
Materials Rs. 12,030.
-
Wages Dept. A - 60 hrs at Rs. 50/hr
Dept. B - 40 hrs at Rs. 30/hr
Dept. C - 20 hrs at Rs. 25lhr
Variable O/H - Rs. 20 per hour
Fixed C/H - Rs. 25,000 for 1000 hours.
3. Briefly explain treatment of normal loss and abnormal loss in process accounts.
4. Following is the information relating to a contract.
Rs.
Contract price 6,00,000
Raw Materials 1,20,000
Wages 1,60,000
Sub-contract 5,000
P.T.O.
 -2- I llllllil lfll lil llll llill llll lill
NS - 439

Plant 20,000
Materials transferred to other contract 2,000
Generalexpenses 7,600
At the end of the year, cash received from the contractee was
Rs. 2,40,000
end of the year
being g0% of *or[ certified. Value of materials unused at the
account'
was Rs. 18,OOO. Plant to be depreciated at 2o%. Prepare contract
5. A transport company is running 5 busses between two
cities which are 40 kms
The actual passengers
apart. The seating capacity of each bus is 50 passengers.
carried were 80% of the capacity. Each bus makes one round
trip per day' All
the busses run on all the days of the month'
calculate total passenger kms forthe month of september'
6. calculate EBQ and No. of batches from the following :

Annual consumPtion 50,000 units

Setting-uP cost Per batch Rs.100
Cost of manufacture Fls.20lunit
Rate of interest 1o%
Carrying cost 0.50 Paise Per unit P.a. (50 Paise)

SECTION _ C
(3x14=42)
Answerany three of the following. Each question carries 1 4 marks'
7. A product passes through 3 processes for its completion. For the year ending
31-3-2013 the following are the details :
Processes
Particulars Total x YZ
(Rs.) (Rs.) (Rs.) (Rs.)

Materials 84,820 20,000 30,200 u,620

Labour 1,20,000 30,000 40,000 50,000

Prod. O/H 60,000

Direct expenses 7,260 5,000 2,260
Normal loss 10"/" 57" 1A%

Sale of scrap Per unit (in Rs.) 3 56

Production in units 920 870 800

1000 units at Rs. 50 per unit were introduced to Process -

X. Prod. o/H to be
allocated on the basis of direct labour'
prepare process accounts, abnormal loss and abnormalgain accounts'
 ilillll lllll lll lllll lllll llll llll
NS - 439
I

B. A) A company manufactures a main product- M and two by-products X and Y'

The cost data is as under
Particulars M X Y

Sales (Rs.) 1'50'OOO 12'OO0 7'000

Production cost
a) Before seParation (Rs') 75'000
b) After separation (Rs') 23'OOO 2'2OO 1'800

Ratio of distribution of
selling expenses 85% 10% 5%

Administrative cost (Rs') 12'O0O 1'500 1'000

Net Profit on sales 20% 15% 10%

joint cost among three products
Prepare a statement of apportionment of
using reverse cost method'
B)Atransportcompanyhas4bussesrunningbetweentwocitieswhichare
is 60 passengers' The actual
60 kms apart. Seating ."p".iiy oi each nui
round trip per tY
capacity J*ri"J is B0%. rairr bus makes one 919.{*9
total prii"ng"r kmsforthe month of September assumtng
total kilometers and
lhal2l%of the busses ott t6e road always for repairs and maintenance'
"r" for
9. A person owns a bus which runs between Bangalo.re.and YVs.ole and back
l0daysinamonth.ThedistancebetweenB,lore-andMysoreisl40kms.Thebus
completesone,ounotripeachday'Thebusgoesforanotherl0daysinthemonth
is 200 kms. The bus
and chitradurga
to chitradrrgf.'iri" oiiilnie n"t*"en B'rore
4 daysof iti operation in a month'
completes o?.'" .rnO trip each day, forthe rest
ih tne local trip is 60 kms'
it runs in the io"aicii,. ine Oaity distance covered
wants to earn a profit of 25"/"
calculate the rate, the person snouto charge, if he
onhistakings.TheotherdetailsareaSfollows:
Cost of the bus 6,00,000
DePreciation 15% P.A'
SalarY of the driver 4,000 P'M'
SalarY of the conductor 3,000 P'M'
Accountant salary 1 ,800 P'M'
lnsurance 12,000 P.A'
Dieselconsumption5kmsperlitrecostingRs.40perlitre
Token tax 2,500 P.A'
Lubricant oil Rs. 10 for 50 kms'
Repairs and maintenance Rs' 5,000 p'm'
peimit fee Rs. 3,800 Per 6 months'
Normal caPacitY 50 Passengers'
ThebusisgenerallyoccupiedS0%ofitscapacitywhenitgoestoMysoreand city'
g0% when iigo". to crritraourga. lt is normally fullwhen it runs with in the
 I lllillil llllr lll lllll lllll lill llll
NS - 439

10. The following data relates to a building construction contract for Rs. 10,00,000.
2005 2006
(Rs.) (Rs.)
3,00,000 84,000
Materials issued
2,30,000 1,05,000
Direct wages
22,000 10,000
Direct expenses
6,000 1,400
lndirect expenses
Work certified 7,50,000 10,00,000

Work uncertified 8,000

5,000 7,000
Material at site (31112)
14,000 2,000
Plant issued
6,00,000 10,00,000
Cash received from the contractee

Value of plant at the end of 2005 and 2006 was Rs. 7,000 and
Rs. 5,000
respectivelY.
Showfor 2005 and 2006'
a) Contract A/c
b) Contractee A/c.
units of
11. lndia products Ltd., has received an enquiry for the supply of 2,00,000
fixed investment
specialtype of machine screws. The management has estimated
of Fls. 6 takhs and working capital investment of Rs' 3,20,000 for the above
project. The following further estimates are also made.

1) Requirement of raw materials 2o,oo0 kgs at Rs. 23 per kg.

payable at double
2) Required labour hours 1B,O0O of which 2,000 are overtime
the normal labour hour rate. Normal LHR ls Rs' 10'
3) Works O/H - Fls. 10 Per LHR.

4) There are no admn. o/H but selling and dist. exp. are Rs. 2,31,000. Amount
realised from the sale of scrap is Rs' 20,000'
You
Management intends to have a return of 25% on the total capital employed.
price to be
are required to prepare estimated job cost sheet to ascertain the
quoted.