Page 207 - DCOM202_COST_ACCOUNTING_I

Unit 10: Job and Batch Costing

Solution: Notes

Job Cost Sheet for the Year Ending 31st March, 2008
Particulars Amount (`)
Direct materials 90,000
Direct wages 75,000
prime Cost 1,65,000
Factory overhead 45,000
Works or Factory Cost 2,10,000
Administration overhead 42,000
Cost of production 2,52,000
Selling and Distribution overhead 52,500
Cost of Sales 3,04,500
Profit 60,900
Sales 3,65,400
Working notes: Overhead recovery rates have been ascertained as under:
,
45 000
1. percentage of factory overhead on direct wages = × 100 = 60%
75 000
,
42 000
,
2. Percentage of administrative overhead on works cost = × 100 = 20%
210 000
,
,
,
52 500
3. Percentage of selling and distribution overhead on works cost= × 100 = 25%
,
210 000
,
,
60 900 2
=
4. Percentage of profit on sales = × 100 16 %
365 400 3
,
,
Job Cost Sheet for the Year 2008-09
Particulars Amount (`)
Direct material 10,00,000
Direct labour 6,00,000
prime Cost 16,00,000
Factory overhead (60% on direct wages) 3,60,000
Factory or Works Cost 19,60,000
Administration overheads (20% on works cost) 3,92,000
Cost of production 23,52,000
Selling and Distribution overhead (25% on works cost + 15% of ` 4,90,000) 5,63,500
Cost of Sales 29,15,500
Profit (20% of cost on sales or 16 2/3% of sales value) 5,83,100
Sales 34,98,600

Example: In respect of a factory, the following figures have been obtained for the year
2008:
Cost of materials ` 1,00,000; Direct labour ` 90,000; Factory overhead ` 50,000; Administrative
overhead ` 77,200; Selling expenses ` 54,800; Distribution charges ` 38,000; Profit ` 84,000.

LOVELY PROFESSIONAL UNIVERSITY 201