Subject: Cost managemet & accounting PQ – 2* The following data relates to M/s. Zubair Co. for the month of August 2018 ( who maintains Job Order Cost System ) . DATA a) Material purchased on account Rs. 145,000 b) Material requisitioned and Factory Labour used Material Factory Labour Job No. 201 Rs. 12,000 Rs. 20,000 Job No. 202 Rs. 8,000 Rs. 15,000 Job No. 203 Rs. 25,400 Rs. 13,500 Job No. 204 Rs. 16,600 Rs. 21,500 Job No. 205 Rs. 15,000 Rs. 8,200 Job No. 206 Rs. 9,000 Rs. 4,600 For general factory use Rs. 5,000 Rs. 8,000 c) Factory overhead cost incurred on account Rs. 70,800 d) Depreciation of Machinery Rs. 10,000 e) The Factory overhead rate is 110 % of direct labour cost. f) Job completed: No. 201, 203, 204 and 206. g) Job No. 201, 203 and 204 were shipped and customers were billed for Rs. 104,000, Rs. 105,000 and Rs. 106,000. REQUIRED: ii) Prepare Accounts in Ledger of the Company for the Accounts, Work-in-Process and Finished Goods.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Subject: Cost managemet & accounting
PQ – 2*
The following data relates to M/s. Zubair Co. for the month of August 2018 ( who maintains Job Order Cost System ) .
DATA
a) Material purchased on account Rs. 145,000
b) Material requisitioned and Factory Labour used
Material Factory Labour
Job No. 201 Rs. 12,000 Rs. 20,000
Job No. 202 Rs. 8,000 Rs. 15,000
Job No. 203 Rs. 25,400 Rs. 13,500
Job No. 204 Rs. 16,600 Rs. 21,500
Job No. 205 Rs. 15,000 Rs. 8,200
Job No. 206 Rs. 9,000 Rs. 4,600
For general factory use Rs. 5,000 Rs. 8,000
c)
d) Depreciation of Machinery Rs. 10,000
e) The Factory overhead rate is 110 % of direct labour
f) Job
g) Job No. 201, 203 and 204 were shipped and customers were billed for Rs. 104,000, Rs. 105,000 and Rs. 106,000.
REQUIRED:
ii) Prepare Accounts in Ledger of the Company for the Accounts, Work-in-Process and Finished Goods.
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