(6 pages)

OCTOBER 2012

P/ID 77716/MBN2A

Time : Three hours

Maximum : 100 marks

SECTION A (10 3 = 30 marks)

Answer any TEN questions.
All questions carry equal marks.
Write short notes on the following :
1.

Cost accounting.

2.

Costing system.

3.

Tenders.

4.

Purchase control.

5.

EOQ analysis.

6.

LIFO.

7.

Overheads.

8.

Apportionment.

9.

Selling and distribution.

10.

Profitability.

11.

Fund flow statement.

12.

Absorption costing.
SECTION B (5 6 = 30 marks)
Answer any FIVE questions.
All questions carry equal marks.

13.

Describe briefly any two methods of costing with

their scope and characteristics.

14.

From the following data, you are required to

determine the economic order quantity
Annual usage

8,000 units

Cost per unit

Re. 0.30

Buying cost

Rs. 7 per order

carrying cost as percentage of average inventory

holding 15%.
15.

Explain the advantages of ABC analysis.

16.

Distinguish between the fixed overheads and

semi -variable overhead.
2

P/ID 77716/MBN2A

17.

The following is the Balance Sheet of a firm :

Rs.

Share capital

Rs.

30,000 Fixed assets

16,500

Creditors

8,000 Cash

1,000

Bills payable

2,000 Books debts

6,000

Provision for tax

3,500 Bills receivables

2,000

Stock
Prepaid expenses
43,500

17,500
500
43,500

Comment upon the liquidity of the firm.

18.

State the significance of accounting ratios in the

analysis of financial statements.

19.

What is the meaning of schedule of changes in

working capital? Explain its importance.

20.

Calculate the P/V ratio and break-even point from

the following particulars :
Rs.
Sales

5,00,000

Fixed costs

1,00,000

Profit

1,50,000
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P/ID 77716/MBN2A

SECTION C (2 20 = 40 marks)
Answer any TWO questions.
All questions carry equal marks.
21.

Mr. Gopal furnishes the following data relating to

the manufacture of Standard product during the
month of April.
Raw materials consumed Rs. 15,000
Direct labour charges

Rs. 9,000

Machine hours worked

900

Administrative overheads 20% on work cost

Machine hours rate

Rs. 5

Selling overheads

Rs. 0.50 per unit

Units produced

17,100

Units sold

18,000 at Rs. 4 per unit

You are required to prepare a cost sheet from the

above showing :
(a)

The cost per unit.

(b)

Profit per unit sold and profit for the period.

4

P/ID 77716/MBN2A
[P.T.O.]

22.

From the following transaction, prepare separately

the store ledger accounts, using the following
pricing methods
(a)

The FIFO and

(b)

The LIFO.
Jan 1
5

Opening balance 100 units @ Rs. 5 each

Received 500 units @ Rs. 6 each

20

Issued 300 units

Feb 5

Issued 200 units

Received 600 units @ Rs. 5 each

March 10

Issued 300 units

12

Issued 250 units

23.

Discuss the meaning and scope of management

accounting.

24.

From the following data, calculate the break-even

point :
Rs.
Selling price per unit

20

Direct material cost per unit

Direct labour cost per unit

P/ID 77716/MBN2A

Rs.
Direct expenses per unit

Overheads per unit

Fixed overheads (total)

20,000

If sales are 20%, above the break-even point,

determine the net profit.

P/ID 77716/MBN2A