You are required to: (a) Draw up a Job Cost Sheet; (b) Calculate and enter the revised costs using the previous year's figures as a basis; (c) Add to the total job cost 10% for profit and give the final selling price.
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.
![As newly appointed Cost Accountant, you find that the selling price of Job No. 9669 has
been calculated on the following basis:
Particulars
Materials
Direct Wages – 22 hours at 25GHS per hour
Department:
GHs'
12.08
5.50
A – 10 hours
B- 4 hours
C - 8 hours
Plus 33% on Prime Cost
17.58
5.86
23.44
An analysis of the previous year's profit and loss account shows the following:
Particulars
GHs` | Particulars
GHs'
Materials Used
Direct Wages:
77,500 Factory
Overheads:
5,000 A
6,000 B
4,000 C
A
2,500
B
4,000
1,000
Selling Costs
30,000
You are required to:
(a) Draw up a Job Cost Sheet;
(b) Calculate and enter the revised costs using the previous year's figures as a basis;
(c) Add to the total job cost 10% for profit and give the final selling price.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc07a63ea-2cf0-4871-bf8e-56da53a3e9af%2F65f8cdd9-91b5-4a3d-8067-0cbcf5ccacd4%2Fydsuax_processed.jpeg&w=3840&q=75)
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