IGNOU BCOC-138 June 2025 Previous Year Question Paper

Q1.Explain the procedure of purchasing the raw material in a manufacturing concern, citing suitable examples.

Q2.(a) What is meant by inventory turnover ? Discuss the importance of inventory turnover ratio in the control of inventory. 10

(b) Describe the problems arises in pricing the issue of material.

Q3.(a) What is time booking ? Discuss the purposes and methods of time booking with suitable examples. 10

(b) How are overheads classified ? Explain with suitable examples.

Q4.(a) What are the main causes of Under or Over absorption of overheads ? How are Under or Over absorption of overheads disposed off ? 3+7

(b) From the following details, calculate operating cost per passenger km and per km of a bus: 10 A bus covers a distance of 15 km between two cities. On an average, it does not remain on road for five days in a month. It takes 5 round trips each day. Its capacity is 50 passengers and on an average 80% of the seats remains full. Driver's salary per month 300 Salary of conductors and cleaners per month 500 Petrol, etc. per month 3,500 Cost 80,000 Insurance, Taxes, etc. p.a. 3,000 Repairs and Renewals p.a. 4,000 Estimated life 5 years

Q5.M/s. Agrawal Construction Company took a contract on 1-1-2023 for the construction of a Cinema Hall. The contract price was = 20,00,000. Following were the details on 31st Dec., 2023 : Materials purchased from the market 3,50,000 Materials issued from stores 3,80,000 Wages paid 6,00,000 Plant issued to site 1,00,000 Establishment expenses 90,000 Materials transferred from other contracts 4,20,000 Materials sold (Cost = 50,000) 60,000 Material stolen 40,000 Sale of waste materials 250 Materials returned to store 80,000 Plant sold on 1st July, 2023 (Cost % 50,000) 30,000 Contract completed on 31-12-2023. Prepare Contract Account and charge 15% depreciation per annum on plant.

Q6.A factory produces chemical ‘R’ and in the course of its manufacture a by-product ‘S’ is produced which is made saleable after a separate process. For the month of February

Q7.cost data are as under : Joint Separate Expenses Expenses Materials | 1,92,000] 73,600 7,800 Wages 1,17,000| 76,800} 26,420 Overheads 34,500 15,000 5,440 The output for the month was 1,420 tons of R and 490 tons of S. Sales value of ‘S’ averaged % 240 per ton. Assuming 50% estimated profit on sales value of by-product ‘S’, show the cost per ton of product R.

Q8.The Trading and Profit & Loss Account of a company were as follows : Trading and Profit & Loss Account Purchases 25,210 Less : Closing Stock 4,080 | 21,130 Direct Wages 10,500 Works Expenses 12,130 Selling Expenses 7,100 Administrative Expenses 5,340 Depreciation 1,100 Net Profit 20,300 Sales—50000 units @ = 1.50 each 75,000 Discount Received 260 Profit on sale of land 2,340 The profit as per cost accounts was only Reconcile the financial and cost profits, using the following information : 20

(a) Cost accounts values of closing stock

(9) The works expenses in cost accounts were taken as 100% of the direct wages.

(c) Selling and administrative expenses were charged in cost accounts at 10% of sales and % 0.10 per unit respectively.

(d) Depreciation in the cost accounts was

Q9.800. 8+7 ₹ 50,000) 30,000 श्रम 1,17,000 | 76,800] 26,420 aa 1,1

(00)