MAHARANIS WOMENS COMMERCE & MANAGEMENT COLLEGE, MYSORE
DEPARTMENT OF COMMERCE UG (2023-24)
IV SEM BCOM ‘C’ – COSTING METHODS & TECHNIQUES
GROUP ASSIGNMENT (IA Part of C2)
PART A
Answer any FIVE of the following questions. Each question carries TWO marks. 5 x 2 = 10
1. What is the meaning of Job Costing and Contract Costing?
2. Give two examples each for Process Costing and Service Costing industries.
3. Write a note on ABC costing.
4. What is a P V ratio and BEP?
5. State any four types of Budgets.
6. Write a note on Variance Analysis.
7. Calculate the PV ratio from the following data: Sales ₹15,00,000, Fixed cost is
4,00,000 and Profit is 2,00,000.
PART B
Answer any TWO of the following questions. Each question carries TEN marks. 2 x 10 = 20
8. From the given data for the year ending 31st March 2024 provided by AB
factory, prepare a Job Cost Sheet and find out the profit percentage on sales.
Direct Materials ₹4,00,000
Direct Wages ₹3,40,000
Profit ₹2,50,000
Distribution And Selling Overheads ₹2,00,000
Office Overheads ₹1,60,000
Work Overheads ₹1,20,000
9. What is Marginal Costing? What are the assumptions of Marginal Costing?
10. Calculate the Cost per running kilometer of a Bus owned by Mr. Siddharth from the
following data-
Particulars Rs.
Cost of Bus 12,50,000
Road license fees per year 37,500
Supervisor Salary annual 90,000
Repairs and maintenance per km 75
Dhanalakshmi H S MWCMC
Tire cost per km 50
Garage rent per year 80,000
Insurance premium annual 42,500
Driver’s wages per hour 200
Cost of petrol per litre 90
Kms run per litre 15 km
Estimated km per year 20,000 km
Estimated life of Bus 1,25,000 km
The Bus runs 25 km per hour on average
11. From the following information calculate the=
a) Material cost variance
b) Material price variance
c) Material usage variance
Standard output to be produced 2000 units
Standard material per unit 10 kgs
Standard price per unit ₹20
Actual output 1900 units
Actual material used 18,500 kgs
Actual price per unit ₹15
12. Prepare a Flexible Budget at 80% and 100% operating capacity from the
following data. The below-mentioned figures related to 50% capacity (1000
units)
Raw material ₹100 per unit
Labour ₹50 per unit
Factory overheads ₹10,000 (50% fixed)
Office overheads ₹20,000 (100% fixed)
Selling overheads ₹8000 (80% variable)
PART C
Answer any TWO of the following questions. Each question carries FIFTEEN marks. 2x15 = 30
13. The Mumbai construction limited having an Authorized capital of ₹25,00,000 divided
into 25,000 equity shares of ₹100 each commenced the contract work on 1st January
2023 they were engaged on one contract of which the contract price was Rs 50,00,000.
The trial balance extracted from their books on 31st December 2023 is as under:
Dhanalakshmi H S MWCMC
Particulars Rs. Rs.
Share capital (equity shares) 9,00,000
Sundry creditors 1,00,000
Land and building 4,00,000
Bank 30,000
Cash received is 80% of work certified 16,00,000
Charged to Contract:
Materials 8,00,000
Plant 3,00,000
Wages 10,20,000
Expenses 50,000
TOTAL 26,00,000 26,00,000
Out of plant and materials charged to the contract, plant costing ₹40,000 in materials costing
₹30,000 were destroyed in an accident. On 31st December 2023 plant which cost of ₹60,000 was
returned to stores. The value of materials on site on 31st December, 2023 was 30,000 and the cost
of work done but not certified was ₹40,000 on the same date. Charge 10% depreciation on the
plant. Prepare Contract account and prepare a balance sheet as on 31st December 2023.
14. A product passes through three processes before completion in a Factory. From the
following given particulars prepare Process accounts:
Particulars PI P II P III
Other Materials 6,00,000 3,60,000 2,40,000
Wages 33,00,000 36,00,000 30,00,000
Work expenses 9,00,000 12,00,000 6,00,000
Other expenses 1,50,000 1,80,000 60,000
Actual output in units 3,540 3,246 2,900
Loss in weight 5% 4% 2%
Normal wastage 5% 6% 8%
Sale of normal wastage per unit 40 100 120
4,000 tons of input were issued to Process I at Rs.1,000 per unit.
15. The Sales and Profit of Bhaskar are as follows for 2022 and 2023 –
YEAR SALES RS. PROFIT RS.
2022 12,00,000 90,000
2023 14,00,000 1,30,000
Calculate the following:-
a) Profit Volume Ratio b) B.E.P c) Margin of safety for 2022
d) Sales required to earn a profit of Rs.8,00,000 e) Profit when sales are
Rs.11,00,000
Sd/-
Teaching Faculty
Dhanalakshmi H S MWCMC
