Butik Jelita receives a special order from a local agency requesting it to custom made 20 pieces of dresses to be worn in a special event. The owner, Puan Julia labels this special order as Job A27. The following is the information to produce ONE (1) piece of the dress. Items Quantity Price Direct materials: Material A 4 meters RM30 per meter Material B 2 meters RM10 per meter Direct labours: Cutting department 4 hours RM20 per hour Sewing department 6 hours RM12 per hour Machine hours: Cutting department 2 hours Sewing department 5 hours Production overheads: Cutting department Absorbed at RM6.00 per direct labour hour Sewing department Absorbed at RM4.00 per machine hour Other information: The company hires a special sewing machine which cost RM5,000 to fulfil this whole Job A27. The selling and distribution overheads are calculated based on 5% of the prime cost. The administrative overhead is charged based on 5% of the production cost. The owner has set a profit margin of 20% for this job. Required: Prepare a job cost sheet for Job A27 (for the whole 20 pieces of dresses), showing clearly: - Prime cost Production cost Non-Production cost Total cost Total selling price
Butik Jelita receives a special order from a local agency requesting it to custom made 20 pieces of dresses to be worn in a special event. The owner, Puan Julia labels this special order as Job A27. The following is the information to produce ONE (1) piece of the dress. Items Quantity Price Direct materials: Material A 4 meters RM30 per meter Material B 2 meters RM10 per meter Direct labours: Cutting department 4 hours RM20 per hour Sewing department 6 hours RM12 per hour Machine hours: Cutting department 2 hours Sewing department 5 hours Production overheads: Cutting department Absorbed at RM6.00 per direct labour hour Sewing department Absorbed at RM4.00 per machine hour Other information: The company hires a special sewing machine which cost RM5,000 to fulfil this whole Job A27. The selling and distribution overheads are calculated based on 5% of the prime cost. The administrative overhead is charged based on 5% of the production cost. The owner has set a profit margin of 20% for this job. Required: Prepare a job cost sheet for Job A27 (for the whole 20 pieces of dresses), showing clearly: - Prime cost Production cost Non-Production cost Total cost Total selling price
Butik Jelita receives a special order from a local agency requesting it to custom made 20 pieces of dresses to be worn in a special event. The owner, Puan Julia labels this special order as Job A27. The following is the information to produce ONE (1) piece of the dress. Items Quantity Price Direct materials: Material A 4 meters RM30 per meter Material B 2 meters RM10 per meter Direct labours: Cutting department 4 hours RM20 per hour Sewing department 6 hours RM12 per hour Machine hours: Cutting department 2 hours Sewing department 5 hours Production overheads: Cutting department Absorbed at RM6.00 per direct labour hour Sewing department Absorbed at RM4.00 per machine hour Other information: The company hires a special sewing machine which cost RM5,000 to fulfil this whole Job A27. The selling and distribution overheads are calculated based on 5% of the prime cost. The administrative overhead is charged based on 5% of the production cost. The owner has set a profit margin of 20% for this job. Required: Prepare a job cost sheet for Job A27 (for the whole 20 pieces of dresses), showing clearly: - Prime cost Production cost Non-Production cost Total cost Total selling price
Butik Jelita receives a special order from a local agency requesting it to custom made 20 pieces of dresses to be worn in a special event. The owner, Puan Julia labels this special order as Job A27. The following is the information to produce ONE (1) piece of the dress.
Items
Quantity
Price
Direct materials:
Material A
4 meters
RM30 per meter
Material B
2 meters
RM10 per meter
Direct labours:
Cutting department
4 hours
RM20 per hour
Sewing department
6 hours
RM12 per hour
Machine hours:
Cutting department
2 hours
Sewing department
5 hours
Production overheads:
Cutting department
Absorbed at RM6.00 per direct labour hour
Sewing department
Absorbed at RM4.00 per machine hour
Other information:
The company hires a special sewing machine which cost RM5,000 to fulfil this whole Job A27.
The selling and distribution overheads are calculated based on 5% of the prime cost.
The administrative overhead is charged based on 5% of the production cost.
The owner has set a profit margin of 20% for this job.
Required:
Prepare a job cost sheet for Job A27 (for the whole 20 pieces of dresses), showing clearly: -
Prime cost
Production cost
Non-Production cost
Total cost
Total selling price
Definition Definition Accounting technique that tracks the costs of materials, labor, and overhead for a particular job. The main purpose of job costing is to determine the profit or loss for each job. Repetitive work or poorly allocated employees can be addressed for the upcoming project through job costing.
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