Page 204 - DCOM202_COST_ACCOUNTING_I

Cost Accounting – I

Notes Solution:
Job Cost Sheet for Job No. 510

Particulars Amount (`)
Materials 7,000
Wages 100 hours @ ` 7 700
Variable overheads : 100 hours @ ` 3 (1) 300
Total Cost 8,000
Profit 1,000
Billed Amount 9,000

Working note: Rate of variable overheads per hour = 15,000/5,000 = ` 3
(1)
Example2:
The following informations have been obtained from the costing records of Kartik Metal is
respect of Job No. 264:

Materials ` 5,200
Wages:
Department X 180 hours @` 3 per hour
Department Y 120 hours @` 5 per hour

Department Z 60 hours @` 2 per hour
Variable Overheads:
Department X ` 10,000 for 5,000 direct labour hours
Department Y ` 9,000 for 3,000 direct labour hours
Department Z ` 4,000 for 2,000 direct labour hours

Fixed Overheads:
Estimated ` 30,000 for 10,000 normal working hours.
Calculate the cost of Job No. 264 and also find the price to be charged so as to earn a profit
25% on selling price.

Solution:

Job Cost Sheet for Job No. 264
Particulars Amount (`)
Materials 5,200
Wages :
Department X 180 hrs. × ` 3 540
Department Y 120 hrs. × ` 5 600
Department Z 60 hrs. × ` 2 120 1,260
prime Cost 6,460
Overheads :
Variable :
Department X 180 hrs. @ ` 2 360
Department Y 120 hrs. @ ` 3 360
Contd…

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