The following expenses were incurred for a job during the year ended on 30st jun 2020 J.D Direct Materials Direct wages Chargeable expenses Factory overheads Selling &distribution overheads Administrative overheads Single price for the above job was J.D300,000. You are required to prepare a statement showing the profit earned during the year ended 30.6.2020 from the job and an estimated price of a job which is to be executed in the year 2020-21, charging the same percentage of profit on sales as it was during the year 2020-21. Materials, 40,000 70,000 15,000 35,000 35,000 60,000 wages and chargeable expenses will be required of J.D100,000, J.D140,000 and J.D50,000 respectively for the job. The various overheads should be recovered on the following basis while calculating the estimated price: (a). Factory overheads as a percentage of direct wages. (b). Administrative and selling and distribution overheads as a percentage of factory cost.

The following expenses were incurred for a job during the year ended on 30st jun 2020 J.D Direct Materials Direct wages Chargeable expenses Factory overheads Selling &distribution overheads Administrative overheads Single price for the above job was J.D300,000. You are required to prepare a statement showing the profit earned during the year ended 30.6.2020 from the job and an estimated price of a job which is to be executed in the year 2020-21, charging the same percentage of profit on sales as it was during the year 2020-21. Materials, 40,000 70,000 15,000 35,000 35,000 60,000 wages and chargeable expenses will be required of J.D100,000, J.D140,000 and J.D50,000 respectively for the job. The various overheads should be recovered on the following basis while calculating the estimated price: (a). Factory overheads as a percentage of direct wages. (b). Administrative and selling and distribution overheads as a percentage of factory cost.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Define production cost report.
Define the term process-costing system.
How standard costing control the business activity
Describe the flow of costs through a process costing system.
Adoption of Activity based costing?
explain the concept of equivalent units in cost accounting
Differentiate between operating costs and administrative costs?
Why do we require product, task order, and process cost data?
Identify and discuss the factors that affect the focus and practice of cost management.
What is cost management, and how does it differ from management accounting and cost accounting?
the role of costing and impact on profitability.
What are Traditional and Activity-Based Cost Management Systems?