Question 1: A factory employs a job costing system. The given cost data are available from the books for the year ended 31st March:
Rs.
Direct material 9,00,000
Direct wages 7,50,000
Profit 6,09,000
Selling and distribution overheads 5,25,000
Administrative overheads 4,20,000
Factory overheads 4,50,000
Required:
a) Make a cost sheet pointing out the prime cost, works cost, cost of sales and sales value.
b) In the present year, the factory has received an order for a number of jobs. It is estimated that the direct materials would cost Rs. 12,00,000 and direct labor Rs. 7,50,000. What would be the price for these jobs if the factory intends to earn the similar rate of profit on sales, supposing that the selling and distribution overheads have gone up by 15%? The factory recovers its factory overheads as a percentage of the direct wages and its administrative and selling and distribution overheads as a percentage of works costs, based on the cost rates common in the prior year.
Question 2: Component SW-10X is made completely is machine shop No. ASW-II. Material costs Rs. 20 per component. Each component takes 6 minutes to generate and the machine operator is paid Rs. 15 per hour. Machine hour rate is Rs. 72 per hour.
The setting up of the machine to generate the component takes 3 hours for the operator. You are required to make cost sheets exhibiting the setting up costs and the production costs both in totals (that is, for the batch) and per component, supposing a batch size of:
a) 100 components
b) 150 components and
c) 200 components