Page 217 - DCOM202_COST_ACCOUNTING_I

Unit 10: Job and Batch Costing

10.8 Review Questions Notes

1. Define job costing. What are the main features of job costing? Give a proforma of cost sheet
under such a system.
2. What is the concept of job costing? Discuss its advantages and limitations.
3. What is a job cost sheet? What kind of data generally appear on job cost sheet?
4. What is job costing? How does it differ from contract costing? Explain.

5. What is batch costing? How does it differ from job costing? Explain.
6. Write an explanatory note on job cost sheet by providing a proforma cost sheet.
7. Briefly explain the purpose of job costing and the procedure for ascertaining the job costs.
8. What is batch costing? What are its salient features?

9. What is meant by Economic Batch Quantity? How is it computed?
10. Following information is extracted from the job ledger in respect of Job No. 324:
Materials ` 6,800, Wages 80 hours @ ` 5 per hour, and Variable overheads incurred for all
jobs ` 10,000 for 4,000 labour hours.

Find out the profit if the job is billed for ` 9,000.
11. From the following particulars relating to four jobs of a manufacture, ascertain the total
cost of each job:

Works overhead is 45% of prime cost and office overhead is 15% on works or factory cost.
12. The following information were obtained from the books of Kartik Company in respect of Job
No. 222:
Materials ` 10,000

Wages:
Deptt. X: 81 hours @ ` 4 per hour
Deptt. Y: 54 hours @ ` 3 per hour
Deptt. Z: 27 hours @ ` 3 per hour
Variable overheads:

Deptt. X: 5,400 man hours ` 10,800
Deptt. Y: 2,000 man hours ` 4,000
Deptt. Z: 1,000 man hours ` 1,000
Fixed overheads: ` 6,000 for 12,000 man hours worked normally.

Calculate cost of Job No. 222 and also its selling price if profit is assumed to be 10% on
selling price.
13. From the following figures relating to three jobs, find out the total cost of each job:
Charge factory overheads 50% on wages and administrative and general overheads 10% on
works cost.

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