B comp. uses a job costing system. The following cost data are available from the books for the year ended 31st, December, 2012: Direct materials I.D 900000 Direct wages I.D 750000 Selling & distribution expenses I.D 525000 Administrative exp. I.D 420000 Manufacturing O.H I.D 450000 Profit I.D 609000 a-Prepare a cost sheet indicating the prime cost, manufacturing cost, cost sales and sales value. b- In 2013 the comp. received an order for a number of jobs.
It is estimated that the direct materials would be I.D 1200000 and direct labor would cost I.D 750000.What would be the price for these jobs if the comp. intends to earn the same rate of profit on sales, assuming that the selling and distribution expenses has gone up 15%. The comp. recovers manufacturing overhead as a percentage of direct wages and administrative and selling and distribution expenses as a manufacturing cost, based on the cost rates prevalent in the previous year.