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Job Cost Analysis for Job No. 718

The document outlines the cost calculation for Job No. 718, detailing materials, labor, machine usage, and overhead expenses. It provides specific figures for each cost component, including a breakdown of direct wages and machine hour rates. The final works cost for the job is calculated to be Rs. 1,000.

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charleschirwa477
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22 views2 pages

Job Cost Analysis for Job No. 718

The document outlines the cost calculation for Job No. 718, detailing materials, labor, machine usage, and overhead expenses. It provides specific figures for each cost component, including a breakdown of direct wages and machine hour rates. The final works cost for the job is calculated to be Rs. 1,000.

Uploaded by

charleschirwa477
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Problem ,1.

Prime Cost

Works Cost

Cost of Production

Total Cost

Selling Price

Rs. 1,20,000 75,000

1,95,000 45,000

2,40,000 48,000

2,88,000 69,000

3,57,000 71,400

4,28,400

Job No. 718 was commenced on 10th October, 2005 and completed on 1st November, 2005. Materials
used were Rs. 600 and labour charged directly to the job was Rs. 400. Other informations were as
follows: Machine No. 215 used for 40 hours; the machine hour rate is Rs. 3.50 Machine No. 169 used for
30 hours; the machine hour rate is Rs. 4 Six welders worked on the job for 5 days of 8 hours each; the
direct labour ?our rate for welders is 20 paise. Other expenditures of the concern not apportioned for
calculating the machine hour or the direct hour rates amounted to Rs. 20,000, total direct wages for the
period being Rs. 20,000. AscerIBin the works cost of Job No. 718. ([Link].)

Solution

Job Cost Sheet Job No. 718

Date started 10-10-2005

Particulars

Materioals Labour

Factory overhead Machine No. 215 (40 hrs. @ Rs. 3.50 each) Machine No. 169 (30 hrs. @ Rs. 4 each)
Welders (6 x 5 x 8 x 0.20) Other expenses (100% of direct wages*)

Prime €ost

Works Cost
*Note : Other expenses are charged at 100% of direct wages as calculated below:

Other expenses . x Direct wages

20,000 100 = 20,000 x 100 = 100%

Date finished 1-11-2005

Rs.

140 120 48 400

Rs.

600 400 1,000

708

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