- It involves a great deal of clerical work in recording daily the cost of materials issued ,wages paid and overheads chargeable to each job or work order which adds to the cost of cost accounting. Thus it is expensive.
- The scope of committing mistakes is enough as the cost of one job may be wrongly posted to the cost of other job.
- Determination of overhead rate may involve budgeting of overhead expenses and the bases of overhead apportionment.
- Job costing is a historical costing which ascertains the cost of a job or product after it has been manufactured. It does not facilitate control of cost unless it is used with standard or estimated costing.
Wilfykil answered the question on April 16, 2019 at 09:22
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Date posted: April 16, 2019. Answers (1)
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Date posted: April 16, 2019. Answers (1)
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Date posted: April 16, 2019. Answers (1)
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Date posted: April 16, 2019. Answers (1)
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REQUIRED
Prepare
i) A statement of cost showing various elements of cost.
ii) A statement of profit.
Date posted: April 16, 2019. Answers (1)
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Required:
You are to ascertain
(i) Cost of raw materials used
(ii) Cost of output for the period
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(iv) net profit for the period
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Date posted: April 16, 2019. Answers (1)
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Date posted: April 16, 2019. Answers (1)
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Prepare a cost sheet showing
a) Cost per unit and
b) Profit for the month
Date posted: April 16, 2019. Answers (1)
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i. Prepare a production cost statement
ii. Prepare a profit statement
Date posted: April 16, 2019. Answers (1)
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Date posted: April 16, 2019. Answers (1)
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Date posted: April 16, 2019. Answers (1)
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Date posted: April 16, 2019. Answers (1)
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Trading and Profit and Loss A/C
The costing records show:
a) Book value of closing stock Kshs. 780,000
b) Factory overheads have been absorbed to the extent of Kshs. 189,000
c) Sundry income is not considered.
d) Administrative expenses are recovered at 3% of selling price.
e) Total absorption of direct wages Kshs. 246,000
f) Selling prices include 5% for selling expenses.
Date posted: April 16, 2019. Answers (1)
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The following figures are supplied to you by contractor for the year ending 31st December, 1981
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Date posted: April 16, 2019. Answers (1)
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A building contractor took a contract to build a building on 1st Jan 1980. The contract price was agreed at Kshs. 800,000. The contractor has made the following expenditure during the year:
Materials - 50,000
Direct labor - 30,000
Plant - 80,000
Direct expenses - 20,000
From the following extra information prepare a Contract Account for the year. Also show the amount in work in progress, which will be shown in the balance sheet of the contractor.
Value plant 31/12/1980 - 60,000
Stock of material 31/12/1980 - 10,000
Material returned to store - 2,000
Work certified - 150,000
Cash received - 140,000
Cost of work uncertified - 8,000
Date posted: April 16, 2019. Answers (1)
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From the information given below relating to an unfinished contract ascertain:
a) Profit on work – certified
b) Cost of work in progress at the end of year.
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Date posted: April 16, 2019. Answers (1)
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Crystal Construction Limited engaged in contract works has the following Trial Balance on 31st December 1975
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Date posted: April 16, 2019. Answers (1)
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A company of contractors begun to trade on 1st January, 2008. During 2008 the company was engaged on only one contract of which the contract the contract price was Kshs. 500,000. Of the plant and materials charged to contract: plant costing Kshs. 5,000 and material costing Kshs. 4,000 were lost in an accident. On 31st December, 2008, plant costing Kshs. 5,000 were returned to stores. Cost of work uncertified but finished Kshs. 2,000 and materials costing Kshs. 4,000 were in the hand at site. Charge 10% depreciation on plant and compile contract a/c and balance sheet from the following:-
Date posted: April 16, 2019. Answers (1)
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AB undertook a contract for Kshs. 1,500,000 on an arrangement that 80% of the value of the work done as certified by the engineer of the contractee should be paid immediately and that the remaining 20% be retained until the contract was completed.
In 2005, the amount expected was materials Kshs. 180,000, wages Kshs. 170,000, carriage Kshs.600, 000, cartage Kshs 1,000 sundry expenses Kshs. 3,000. The work was certified for Kshs.375, 000 and 80% of this was paid as agreed.
In 2006 the amount spent were: materials Kshs. 220,000, wages Kshs. 230,000, carriage Kshs. 23,000, cartage Kshs. 2000 sundry expenses Kshs. 4,000, ¾ of the contract was certified as done by 31st Dec. and 80% of this was received accordingly. The value of work uncertified was ascertained at Kshs. 20,000.
In 2007, the amount spent was: materials Kshs. 126,000, wages Kshs.170, 000, carriage Kshs. 6,000, sundry expenses Kshs.3, 000 and on 30th June, the whole contract was completed. Prepare contract account, contractees account and extract balance sheet (only asset side) as would appear each of this year in the books of the contractor assuming that the balance due to him was received on completion of the contract.
Date posted: April 16, 2019. Answers (1)
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Construction Ltd. is engaged on two contracts A and B during the year. The following particulars are obtained at the end of the year (Dec. 31)
During the period materials amounted to Kshs. 9,000 have been transferred from contract A to contract B.
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(b) Contractees accounts
(c) Extract from balance sheet as at Dec. 31.
Date posted: April 16, 2019. Answers (1)