ETHIRAJ COLLEGE FOR WOMEN

DEPARTMENT OF COMMERCE (HONOURS)

I – CONTINUOUS ASSESSMENT (MAR 2021)
COSTING METHODS AND TECHNIQUES
DATE : 17.03.2021 MAX.MARKS : 50
SUBJECT CODE : HC18/4C/CTS TIME : 10 a.m to
11.30 a.m
ANSWER ALL THE QUESTIONS
SECTION – A (5 X 2 = 10)
1. What is the meaning of Work Certified and Uncertified ?
2. Give the reasons for difference in profits disclosed by cost and Financial accounts.
3. Define Job Costing
4. K Ltd is committed to supply 24,000 bearing per annum to D Ltd. It is estimated that
it costs 10 paise as inventory cost per bearing per month and the set up cost per run of
bearing manufacture is Rs.324. Find out EBQ
5. P Ltd took up job no.101 during 2004.
Materials supplied Rs.3000, Wages Rs.900, chargeable expenses Rs.150, Materials
transferred to another job Rs.300, Materials returned to stores Rs.150, Invoiced to
customers for Rs.5000. Find Profit/Loss

SECTION – B (3 X 8 = 24)
6. The following is the profit and loss a/c of X Co. for 2013
Particulars Rs. Particulars Rs.
To materials 90,000 By Sales 2,10,00
0
To wages 80,000 By closing stock of 35,000
finished goods
To factory expenses 45000 Work-in-progress:
Materials 5000
Wages 4000
Factory exp 1000 10,000
To office expenses 10000
To Net profit 30000
2,55,00 2,55,00
0 0
 During the year 10,000 units were produced and 8000 units were sold. Factory
expenses in costing were absorbed at 80% of wages, office expenses at Rs.3 per unit. Prepare
a statement profit as per cost records and reconcile it with financial profit.
7. The following expenses were incurred on a contract on 31.12.2009
Materials Rs.2,00,000
Wages Rs.65,000
Other expenses Rs.35,000
Rs.3,20,000 was received from the contractee being 80% of work certified. Work
uncertified was Rs.25,000. You are required to calculate the profit to be credited to
profit and loss account is the contract price is (a) Rs.6,40,000 (b)Rs.10,00,000 (c )
20,00,000
8. A shop floor supervisor of a small factory presented the following costs for Job
N0.300 to determine Selling Price.
Per
Unit(Rs.)
Materials 70
Direct Wages:18hrs@Rs.2.50 45
(Dept.X : 8 hrs; Y:6hrs
;Z:4hrs)
Chargeable expenses 5
120
Add:33 1/3% for expenses 40
Total Cost 160
Analysis of the Profit/Loss A/c of 2016 shows the following
Particulars Rs. Particulars Rs.
To Materials used 1,50,000 By Sales less returns 2,50,000
To Direct wages
X 10,000
Y 12,000
Z 8000 30,000
To special store item 4000
To overheads
X 5000
Y 9000
Z 2000 16,000
 To selling expenses 20,000
To Net profit 30,000
You are required to :
(a) Draw a Job Cost sheet
(b) Calculate and enter revised cost using 2016 actual figures as basis
(c) Add 20% to Total cost to determine selling price.
SECTION – C (1 X 16 = 16)
9. A construction Co showed their accounts as on 31.12.1999. It undertook two contracts
on 1st April 1999 and 1St July 1999
Contract A Contract B
Materials 2,85,000 2,30,000
Wages 4,40,000 4,50,000
General expenses 19,000 13,000
Work Certified 8,00,000 6,40,000
Cash received 6,00,000 4,80,000
Work Uncertified 24,000 32,000
Expenses outstanding 5000 2000
Wages accrued 14,000 15,000
Materials on hand 14,000 15,200
Plant installed 80,000 64,000
Contract price 12,00,000 10,00,000
The plants were installed on the respective dates of the contracts, depreciation
to be taken at 15%p.a
Write up Contract A/c and extracts from the Balance sheet from the above particulars.