TUTOR MARKED ASSIGNMENT

Course Code : ECO – 10

 Course Title : Elements of Costing

Assignment Code : ECO – 10/TMA/2016-17

 Coverage : All Blocks

Maximum Marks: 100

Attempt all the questions.

1. Define Cost Accounting. What are its main objectives? How does it help in planning and control of business operations of an enterprise?

2. (a) Two components A and B are used as follows: Normal usage 50 per week each Minimum usage 25 per week each Maximum usage 75 per week each Re-order quantity A 300 B 500 Re-order period 4 to 6 weeks Calculate for each component

 (i) Re-order level

 (ii) Minimum level

(iii) Maximum level

(b) What is meant by perpetual inventory control system? Describe its advantages.

3. Define overheads. Discuss various principles of apportionment of overheads. Give few examples of the bases used for apportionment.

4. Explain the need for reconciliation of cost and financial accounts. Describe the procedure to be adopted for their reconciliation.

5. X Manufacturing Company’s product passes through two distinct processes A and B then to Finished Stock. It is known from past experience that wastage occurs in the process as follows: in Process A, 5% of the units entering the process and in Process B, 10% of the units entering the process. The scrap value of wastage in process A is Rs. 16 per 100 units and in Process B is Rs. 20 per 100 units. The process figures are:

                                                                                             Process A  .                               Process B

                                                                                                 Rs.                                               Rs.

Materials consumed                                                           6,000                                            3,000

Wages                                                                                 7,000                                            4,000

Manufacturing Expenses                                                   2,000                                            2,000

5,000. units were brought into Process A, costing Rs. 5,000. The outputs were: Process A=4,700 units, Process B=4,150 units. Prepare Process Accounts showing the cost of the output.