COST ACCOUNTING

ASSIGNMENT NO. 02

Following are the details of jobs completed during the month

Job no. 1200 Job no. 1400
Direct material used:
Material A 1,000 meters at Rs. 12 2,500 meters at Rs 18
Material B 1,850 kgs at Rs 9 6,250 kgs at Rs. 4

Direct labor used:

Department X 1,800 hours at Rs. 7 / hour 1,560 hours at Rs 9 / hour
Department Y 960 hours at Rs 12 per hour 675 hours at Rs 18 per hour

Factory overhead:
Department X Rs 4.5 per hour Rs 5.5 per hour
Department Y Rs 6 per hour Rs. 7 per hour

Factory overhead is based on direct labor hours. Company sold goods 40% above cost of Job
1200 and Job 1400 at 45% above cost to customer

Required: Job order cost sheet for both the jobs

Required
a. A Job Cost Sheet for Job No. 1400
b. Mr. Shujaa is a carpenter and makes furniture for clients as per their demand in his shop.
Which costing system do you think is to be followed by him.

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