No.

of Printed Pages : 8 ECO-10

CD BACHELOR'S DEGREE PROGRAMME

Term-End Examination
C\1
CD December, 2012
ELECTIVE COURSE : COMMERCE
ECO-10 : ELEMENTS OF COSTING
Time : 2 hours Maximum Marks : 50
(Weightage 70%)
Note : Attempt any two questions from section - A and any
two questions from section - B.
SECTION-A
1. Describe the various factors that are taken into 7+3
account for installation of a costing system in an
organisation, and state the main difficulties
involved in installation of such a system.

2. (a) What do you understand by inventory 5, 5

control ? State its main objectives.
(b) Distinguish between time keeping and time
booking and enumerate two methods of
each.

3. Write short notes on any two of the following : 5, 5

(a) Stores records
(b) Requisites of a good method of pricing issue
of materials
(c) Payroll Accounting
(d) Memorandum Reconciliation Account

ECO-10 1 P.T.O.
 SECTION-B
15
4. A firm of building contractors started its work on
a building on 1-1-2009. Following were the
expenditure on the contract for Rs. 3,00,000
during the year 2009 :

Rs.

Materials issued to contract 51,000

Plant issued to contract 15,000

Wages 81,000

Other expenses 5,000

Cash received on account upto 31-12-2009

amounted to Rs. 1,28,000 being 80% of the work
certified. Of the plant and materials charged to
contract, plant costing Rs. 3,000 and materials
costing Rs. 2,500 were lost. On 31-12-2009, plant
costing Rs 2,000 was returned to stores. The cost
of work done but uncertified was Rs. 1,000 and
materials costing Rs. 2,300 were in hand at site.
Depreciation on plant is charged at 15% p.a. Two
thirds of the profits received are to be taken to
Profit and Loss Account.

Prepare the Contract Account and show the

working notes and the necessary data relating to
work progress in the balance sheet.

ECO-10 2
5. (a) Prepare cost sheet from the following data
10, 5
and ascertain the cost and profit per unit.
Rs.
Raw materials consumed 4,00,000
Direct Wages 2,00,000
Factory Overheads 40,000
Office overheads
(10% of works cost)
Selling overheads 36,000
Units produced 2,000
Units sold 1,800
Selling price per unit Rs. 500
(b) What is abnormal process gain ? How do
you deal within cost accounts ?
6. (a) The following data are available in respect
of material ZM-3 : 9, 6
Supply period 2 to 4 months
Consumption Rate
Maximum 300 units per month
Minimum 50 units per month
Normal 150 units per months
Annual 1,800 units
Storage costs are 25% of stock value.
Ordering costs are Rs. 200 per order. Price
per unit of material Rs. 32.
Compute :
(i) Reorder level
(ii) Minimum stock level
(iii) Maximum stock level

ECO-10 3 P.T.O.
 (b) Explain the principles of apportionment of
factory overheads with examples.

ECO-10 4
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ECO-10 5 P.T.O.
 4.0 U -731

4. f9-141-0-r t-kqtch1 fat 4,4 .4 -) TR 1 15

2009 ch.). f9-1=6-7 'T1-4 ;410-54 t*-711. I 3,00,000 T.

tt ad 2009 I-1 I--1 FM d :

T.

51,000

Fri f9-4-F-1:17 71-fa 15,000

81,000

3F:f 5,000

31 f7:tq-T, 2009 doh tk- T-dT 1,28,000 T.

-174 .TT 80 3f-d7Tff 2.T1 I f9-7ffiT-d

3,000 T. chi ril+Id TT 1:Fta -ff2IT 2,500 chl

0141c-1 ch1 ciPik I 31 f---4q-T, 2009 ch
2,000 T. ci-1 optcr cnk furl , iii
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TIT2T fqq-TUT (data relating to work-

in-progress) ch) 4---R -qfi-a fq-UT- I

ECO-10 6
5. (a) 14-1 cirocr 3Tf-*-*' opid fa---a-Tut -aft
10, 5
7R1-r Ord T*-r (11,1d Hronci-r :

-Erzt- rr fwqr III 4,00,000

2,00,000
34Rce44 40,000
chlq (14 dLi to4i41

(1197# 10 .511
-
d 7T-d)

toqei 36,000
3:1TF0 c:11W-II 2,000
f-
d-Wzr 1,800
500 T. s1rd
(b) 3-171T4T-431 cteil -7-e:174 t? (114Icf r'UfT '4 TR

c;oicfri -k# fwqr t?

6. (a) ZM-3 TfliTt 4,siq r14-if i Oci

t : 9, 6
TEITTt TR;1711 4l 31--qfq 2 4 11114

711*i 7
300 chi*if Slyd 14174
50 mrcf -TR
150 Yrcf HR-I
qrrIfT 1,800 *chiV.11.

ECO-10 7 P.T.O.
 r► ici (-di* 25% t I 3-1TkT (order)
200 T. t I TITI:It
T*-11 ►► 4 ► c1 32T. t :
(i) 1I-9-tltqf ► 141 (Reorder level)
(ii) k-d► ch Trim, cl2.TT
(iii) TitiTr 11 1
--F-
4R1
(b) d'AR0e44). aTT-1749. (apportionment)
ft -d "4. o ►► tse-i►

ECO-10 8