Job Costing - Vijay Kumar

Job Costing Job Costing involves the calculation of costs involved in a construction "job" or the manufacturing of goods done in discrete batches. These costs are recorded in ledger accounts throughout the life of the job or batch and are then summarized in the final trial balance before the preparing of the job cost or batch manufacturing statement.

Problem 1 From the following particulars prepare the cost sheet for job no.75 and find out the value of the job. Materials used for the job Rs. 6,000 Productive Wages Rs. 4,600 Direct Expenses Rs. 500 Provide 60% on productive wages for works on cost and 12.5% on works cost for office on cost. Profit to be realised on the selling price 15%. Ans: 18,344

Problem 2 What is the cost of a job consuming materials of Rs. 8,000 Wages for 200 labour Rs. 5 per hr in department A Rs. 4 per hr in department B The overheads of the factory amounted to Rs. 15,000 for 7,500 total working hrs of all departments Ans : 10,000

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