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Tutorial 2

The document is a tutorial on job costing, providing cost figures for a manufacturing company and requiring calculations for work cost, total cost, and pricing for a product. It includes specific job details for job XYZ, including direct material, labor wages, variable overheads, and fixed expenses, with a focus on calculating the total cost and profit margins. The tutorial emphasizes the importance of understanding direct labor and overhead expenses in determining product pricing.

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ncckumar07
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2 views1 page

Tutorial 2

The document is a tutorial on job costing, providing cost figures for a manufacturing company and requiring calculations for work cost, total cost, and pricing for a product. It includes specific job details for job XYZ, including direct material, labor wages, variable overheads, and fixed expenses, with a focus on calculating the total cost and profit margins. The tutorial emphasizes the importance of understanding direct labor and overhead expenses in determining product pricing.

Uploaded by

ncckumar07
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

Tutorial 2 –Job Costing

Date on Tutorial: 20.01.2026 Submission Date: 23.01.2026

Answer the following questions:

1.​ The accounts of a manufacturing company show the following cost figures for the previous order.
Material consumed – Rs. 3, 50,000; Direct labour – Rs. 2, 70,000; Work overhead expenses – Rs.
81,000; General overhead expenses – Rs. 56080. Show the work cost, total cost of the
manufacturer. The factory overhead depends upon direct labour and administration overhead
depends upon work cost. What is the price the company should quote for their product which
consumes Rs. 7400 for material and Rs.6000 for wage and a profit of 20%.
2.​

2. The information provided related to job XYZ,


Direct Material - Rs. 3500
Wage for Machine X - 80 hr - Rs.500 per hour
Wage for Machine Y - 60 hr - Rs. 300 per hour
Wage for Machine Z - 40 hr - Rs.200 per hour.
The variable overheads are for
Machine X –Rs. 40000 for 5000 hours
Machine Y –Rs. 20000 for 3000 hours
Machine Z –Rs. 10000 for 1500 hours
Fixed expenses estimated as Rs.200000 for 10,000 working hours.
Calculate the cost of job with profit of 25%

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