1. What are the different methods of costing? State the industries to which they can be applied. (20)

2. (a)The following data are available in respect of material ZM – 3 :

Supply period                                             2 to 4 months

Consumption rate

Maximum                                             300 units per month

Minimum                                               50 units per month

Normal                                                 150 units per month

Annual                                                         1800 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

(b) Explain the principles of apportionment of factory overheads with example. (10+10)

3. Explain the terms minimum level, maximum level and ordering level of stock. What are the factors that govern the fixation of these level. (20)

4. M/S Buildcon Ltd. Undertook a contract construct a multi – storey building on 1-5-2018. The contractee agreed to pay 80% of the work certified and retain 20% till the completion of contact. The details of the expenditure and other details during the period 2018– 19 are given below. The contract price was Rs. 50,00,000.

                                                                                                        Rs.

• Raw Materials used                                                           9,00,000
• Labour paid                                                                       7,50,000
• Carriage                                                                               37,000
• Administration Cost                                                           2,43,000
• Wages payable                                                                    30,000
• Work Certified                                                                   29,00,000
• Work Uncertified                                                                 2,00,000
• Cash received                                                         80% of Work certified 

You are required to prepare Contract Account, Contractee’s Account for the last year 2018-19 and the Balance Sheet (Asset Side) as would appear in Contractors’s books as on 31-3-2019. (20)

Supply period 2 to 4 months Consumption rate Maximum 300 units per month Minimum 50 units per month Normal 150 units per month Annual 1800 units

5. Write short notes on the following:

(a) Costing

(b) Economic Order Quantity

(c) Process Costing

(d) Office and Administration Overheads (4X5)