JOB COSTING

(1) From the following data taken from the books of M/s New
World Company Ltd., prepare a Cost Sheet showing (a) Prime
Cost; (b) Factory Cost; and (c) Total Cost of Production for the
period ended 30thJune, 2023:
Rs.
i. Fuel and gas 50
ii. Foreman’s Wages 80
iii. Raw materials consumed 6500
iv. Warehouse charges 150
v. Electricity consumed
Factory 250
Office 150 400
vi. Wages paid to labour 150
vii. Storekeepers wages 20
viii. Mangers Salary 200
ix. T. V. Advertisement 200
x. Directly chargeable expenses 350
xi. Rent :
Factory 300
Office 50 350
xii. Repair and Renewals :
Factory Building 150
Machinery 2000
Office Building 50 2200
xiii. Director’s fees 5
xiv. Office Stationary 20
 xv. Telephone charges 50
xvi. Carriage outward 50
xvii. Postage and Telegram 50
xviii. Depreciation
Office Building 20
Plant and Machinery 280 300
xix. Consumable store 500
xx. Salesmen’s commission 150
xxi. Sales Department Travelling 50
Expenses

(2) A company makes two distinct types of electronic toys X and

Y. The total expenses during a period as shown by the books for
the assembly of 600 of X and 800 of Y are as under:
Rs. Rs.
Materials 19800 Depreciation 2200
0
Direct Wages 12000 Labour amenities 1500
Stores overhead 19000 Works general 30000
Running expenses of 4400 Administration and 26800
machines selling
Other data available to you are :
X Y
Materials cost ratio per unit 1 2
Direct labour ratio per unit 2 3
Machine utilisation ratio per unit 1 2
Calculate the cost of each toy per unit giving reasons for the
basis of apportionment of expenses adopted by you.
UNIT COSTING
(1) AB and Co. manufactures two types of pens P and Q. The
cost data for the year ended 30th September, 2023 is as
follows:
Rs.
Direct materials 400000
Direct wages 224000
Production Overhead 96000
720000
It is further ascertained that:
1. Direct materials in type P cost twice as much direct
materials in type Q
2. Direct Wages for type Q were 60% of those for type P.
3. Production Overheads was of same rate for both types
4. Administration overhead for each was 200% of direct
labour
5. Selling costs were 50 paise per pen for both types
6. Production during the year: Type P: 40000, Type Q:
120000
7. Sales during the year: Type P: 36000, Type Q: 100000
8. Selling prices were Rs. 14 per pen for type P and Rs. 10 per
pen for type Q.
Prepare a statement showing per unit cost of production, total
cost, profit and also total sales value and profit separately for
two types of pen P and Q.