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Topic 4 - Self Assesment (Advanced Job Costing Problem)

The document contains two questions regarding costing and pricing for different manufacturing jobs. The first question provides direct costs and overhead rates for Job No. 415 and asks to calculate the total cost and selling price to provide a 25% profit margin. The second question provides expense and sales data for 2014 and asks to calculate the price per unit that would provide a 10% profit margin given planned increased production volume.

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ajay negi
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73 views1 page

Topic 4 - Self Assesment (Advanced Job Costing Problem)

The document contains two questions regarding costing and pricing for different manufacturing jobs. The first question provides direct costs and overhead rates for Job No. 415 and asks to calculate the total cost and selling price to provide a 25% profit margin. The second question provides expense and sales data for 2014 and asks to calculate the price per unit that would provide a 10% profit margin given planned increased production volume.

Uploaded by

ajay negi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Section C Questions:

1. The following direct costs were incurred on Job No. 415 of standard Radio company.
Material s Rs 4010
Wages: Department A: 60 Hours @ Rs 3 Per Hr
B: 40 Hours @ Rs 2 Per Hr
C: 20 Hours @ Rs 5 per Hr

Overhead expenses for these three departments were estimated as follows:


Variable Overheads: Department A: Rs 5,000 for 5,000 labour hours
B: Rs 3,000 for 1,500 labour hours
C: Rs 2,000 for 500 labour hours
Fixed overheads:
Estimated at Rs 20,000 for 10,000 normal working hours.
You are required to calculate the cost of Job 415 and calculate the price to give profit of 25%
on selling price.

2. Revathi Engineering company ltd. Manufacturing and sold 2000 Iron boxes in 2014.
Following are the particulars obtained from the records of the company.
Particulars Amount

Cost of Materials 1,60,000


Wages paid 2,40,000
Rent (Admin) 20,000
General expenses 40,000
Manufacturing expenses 1,00,000
Salary (Office) 1,20,000
Selling expenses 60,000
Sales 8,00,000

The company plans to manufacture 2400 Iron boxes in the year 2014. You are required to
submit a statement (estimated cost sheet) showing the price at which the Iron boxes
should be sold to show a profit of 10% on selling price.

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