Job Costing – NBC Institute

MI – Nov 2020 – L1 – SA – Q4 – Costing Techniques

Calculation of the prime cost of a job given the overheads and selling price.

Question

A company calculates the prices of jobs by adding overheads to prime cost and adding 30% to total costs as profit margin. A job was sold for N1,690,000 and incurred overheads of N694,000. The prime cost of the job is:

A. N489,000

B. N606,000

C. N996,000

D. N1,300,000

E. N1,400,000

Answer

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Tags: Job Costing, Overheads, Prime Cost, Profit Margins
Level: Level 1

Topic: Costing Techniques
Series: NOV 2020

MI – May 2021 – L1 – SA – Q5 – Costing Methods

Define notional profit in contract costing.

Question

Notional profit is:

A. Profit made by all companies in a nation
B. Profit estimated on an on-going contract at the end of a financial year
C. Profit earned from all branches of a business nationwide
D. Estimated profit on a job about to be commenced
E. Profit earned on a contract just concluded

Answer

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Tags: Contract Accounting, Job Costing, Notional Profit
Level: Level 1

Topic: Costing Methods
Series: MAY 2021

MI – Mar-Jul 2020 – L1 – SA – Q11 – Accounting for Cost Elements

Identify the document used to record the start and finish time of an operation by a worker.

Question

The document filled by a worker to record the starting and finishing time of his own operation is known as:

A. Job cost sheet
B. Completion of job sheet
C. Job time sheet
D. Job materials requisition sheet
E. Clock card

Answer

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Tags: Cost Elements, Job Costing, Labour Costing, Time Recording
Level: Level 1

Topic: Accounting for Cost Elements
Series: MAR/JULY 2020

MA – Nov 2016 – L2 – Q2a – Budgetary control

Calculate the overhead absorption rates and determine the total costs and selling price of a specific job in a manufacturing company.

Question

Smooth Sailing Ltd is a medium-sized company that specializes in the construction of iron gates for clients. It has three production departments through which all jobs are processed: Assembling, Welding, and Finishing. The following data relates to the year ended 30 September 2015:

Budgeted Data:

	Assembling	Welding	Finishing
Overheads (GH¢)	64,050	108,900	83,520
Direct labour hours	–	–	14,400
Machine hours	5,250	6,600	–

Job CA2 was undertaken during the last month of the year recording the following:

Direct materials:

From stores: GH¢16,500
Bought-in: GH¢12,600

Direct labour:

Assembling: 450 hours @ GH¢8/hr
Welding: 535 hours @ GH¢8/hr
Finishing: 1,235 hours @ GH¢6/hr

Machine hours:

Assembling: 425
Welding: 532
Finishing: –

Trials and testing cost of GH¢5,400 is incurred on each job.

It is company policy to make a mark-up of 50% of profit on each job.

Required:

i) Calculate an appropriate overhead absorption rate for each department for the year ended 30 September 2015. (5 marks)

ii) Determine the total costs, and hence, the price of Job CA2. (10 marks)

Answer

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Tags: Cost Calculation, Job Costing, Labour Hours, Machine Hours, Overhead Absorption Rate, Pricing
Level: Level 2

Topic: Budgetary control
Series: NOV 2016

IMAC – NOV 2019 – L1 – Q1 – Job Costing

Calculate overhead absorption rates and estimate the costs and invoice price for a job.

Question

You have just been appointed the full-time Management Accountant for Genuine Jobbers Limited, a company based in the North Industrial Area in Accra that produces cartons to meet customers’ specific requirements. You have been tasked to determine the cost and invoice price per job for the forthcoming period and have been provided with the following:

Budgeted statement of profit or loss for the financial year ended 31 March, 2020:

The sales department is currently negotiating a price for an enquiry for job number 45A/2020 and the following information has been provided for that purpose:

Direct costs estimates:

	GH¢
Direct material	18,000
Direct labour: Grinding department 400 hours @ GH¢10 each	4,000
Finishing department 300 hours @ GH¢12 each	3,600

Note:

It is recommended that production overheads are charged to jobs on the basis of direct labour hours worked.
Selling and administrative expenses are charged at 10% of production cost.
It is a policy of the company to make a profit margin as budgeted on each job.

Required:
a) Compute the overheads absorption rates for each of the production departments. (4 marks)
b) As the Management Accountant, estimate the costs of Job 45A/2020 in the light of the information provided, and hence an invoice price for the Sales Manager’s use. (16 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Invoice Price Calculation, Job Costing, Overhead Absorption
Level: Level 1

Topic: Job Costing
Series: NOV 2019

MI – Nov 2020 – L1 – SA – Q4 – Costing Techniques

Calculation of the prime cost of a job given the overheads and selling price.

Question

A. N489,000

B. N606,000

C. N996,000

D. N1,300,000

E. N1,400,000

Answer

Find Related Questions by Tags, levels, etc.

Tags: Job Costing, Overheads, Prime Cost, Profit Margins
Level: Level 1

Topic: Costing Techniques
Series: NOV 2020

MI – May 2021 – L1 – SA – Q5 – Costing Methods

Define notional profit in contract costing.

Question

Notional profit is:

Answer

Find Related Questions by Tags, levels, etc.

Tags: Contract Accounting, Job Costing, Notional Profit
Level: Level 1

Topic: Costing Methods
Series: MAY 2021

MI – Mar-Jul 2020 – L1 – SA – Q11 – Accounting for Cost Elements

Identify the document used to record the start and finish time of an operation by a worker.

Question

The document filled by a worker to record the starting and finishing time of his own operation is known as:

A. Job cost sheet
B. Completion of job sheet
C. Job time sheet
D. Job materials requisition sheet
E. Clock card

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cost Elements, Job Costing, Labour Costing, Time Recording
Level: Level 1

Topic: Accounting for Cost Elements
Series: MAR/JULY 2020

MA – Nov 2016 – L2 – Q2a – Budgetary control

Calculate the overhead absorption rates and determine the total costs and selling price of a specific job in a manufacturing company.

Question

Budgeted Data:

	Assembling	Welding	Finishing
Overheads (GH¢)	64,050	108,900	83,520
Direct labour hours	–	–	14,400
Machine hours	5,250	6,600	–

Job CA2 was undertaken during the last month of the year recording the following:

Direct materials:

From stores: GH¢16,500
Bought-in: GH¢12,600

Direct labour:

Assembling: 450 hours @ GH¢8/hr
Welding: 535 hours @ GH¢8/hr
Finishing: 1,235 hours @ GH¢6/hr

Machine hours:

Assembling: 425
Welding: 532
Finishing: –

Trials and testing cost of GH¢5,400 is incurred on each job.

It is company policy to make a mark-up of 50% of profit on each job.

Required:

i) Calculate an appropriate overhead absorption rate for each department for the year ended 30 September 2015. (5 marks)

ii) Determine the total costs, and hence, the price of Job CA2. (10 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cost Calculation, Job Costing, Labour Hours, Machine Hours, Overhead Absorption Rate, Pricing
Level: Level 2

Topic: Budgetary control
Series: NOV 2016

IMAC – NOV 2019 – L1 – Q1 – Job Costing

Calculate overhead absorption rates and estimate the costs and invoice price for a job.

Question

Budgeted statement of profit or loss for the financial year ended 31 March, 2020:

The sales department is currently negotiating a price for an enquiry for job number 45A/2020 and the following information has been provided for that purpose:

Direct costs estimates:

	GH¢
Direct material	18,000
Direct labour: Grinding department 400 hours @ GH¢10 each	4,000
Finishing department 300 hours @ GH¢12 each	3,600

Note:

It is recommended that production overheads are charged to jobs on the basis of direct labour hours worked.
Selling and administrative expenses are charged at 10% of production cost.
It is a policy of the company to make a profit margin as budgeted on each job.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Invoice Price Calculation, Job Costing, Overhead Absorption
Level: Level 1

Topic: Job Costing
Series: NOV 2019

Question Tag: Job Costing

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MI – Nov 2020 – L1 – SA – Q4 – Costing Techniques

Calculation of the prime cost of a job given the overheads and selling price.

MI – May 2021 – L1 – SA – Q5 – Costing Methods

Define notional profit in contract costing.

MI – Mar-Jul 2020 – L1 – SA – Q11 – Accounting for Cost Elements

Identify the document used to record the start and finish time of an operation by a worker.

MA – Nov 2016 – L2 – Q2a – Budgetary control

Calculate the overhead absorption rates and determine the total costs and selling price of a specific job in a manufacturing company.

IMAC – NOV 2019 – L1 – Q1 – Job Costing

Calculate overhead absorption rates and estimate the costs and invoice price for a job.

MI – Nov 2020 – L1 – SA – Q4 – Costing Techniques

Calculation of the prime cost of a job given the overheads and selling price.

MI – May 2021 – L1 – SA – Q5 – Costing Methods

Define notional profit in contract costing.

MI – Mar-Jul 2020 – L1 – SA – Q11 – Accounting for Cost Elements

Identify the document used to record the start and finish time of an operation by a worker.

MA – Nov 2016 – L2 – Q2a – Budgetary control

Calculate the overhead absorption rates and determine the total costs and selling price of a specific job in a manufacturing company.

IMAC – NOV 2019 – L1 – Q1 – Job Costing

Calculate overhead absorption rates and estimate the costs and invoice price for a job.

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MI – Nov 2020 – L1 – SA – Q4 – Costing Techniques

Calculation of the prime cost of a job given the overheads and selling price.

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MI – May 2021 – L1 – SA – Q5 – Costing Methods

Define notional profit in contract costing.

You're reporting an error for "MI – May 2021 – L1 – SA – Q5 – Costing Methods"

MI – Mar-Jul 2020 – L1 – SA – Q11 – Accounting for Cost Elements

Identify the document used to record the start and finish time of an operation by a worker.

You're reporting an error for "MI – Mar-Jul 2020 – L1 – SA – Q11 – Accounting for Cost Elements"

MA – Nov 2016 – L2 – Q2a – Budgetary control

Calculate the overhead absorption rates and determine the total costs and selling price of a specific job in a manufacturing company.

You're reporting an error for "MA – Nov 2016 – L2 – Q2a – Budgetary control"

IMAC – NOV 2019 – L1 – Q1 – Job Costing

Calculate overhead absorption rates and estimate the costs and invoice price for a job.

You're reporting an error for "IMAC – NOV 2019 – L1 – Q1 – Job Costing"

MI – Nov 2020 – L1 – SA – Q4 – Costing Techniques

Calculation of the prime cost of a job given the overheads and selling price.

You're reporting an error for "MI – Nov 2020 – L1 – SA – Q4 – Costing Techniques"

MI – May 2021 – L1 – SA – Q5 – Costing Methods

Define notional profit in contract costing.

You're reporting an error for "MI – May 2021 – L1 – SA – Q5 – Costing Methods"

MI – Mar-Jul 2020 – L1 – SA – Q11 – Accounting for Cost Elements

Identify the document used to record the start and finish time of an operation by a worker.

You're reporting an error for "MI – Mar-Jul 2020 – L1 – SA – Q11 – Accounting for Cost Elements"

MA – Nov 2016 – L2 – Q2a – Budgetary control

Calculate the overhead absorption rates and determine the total costs and selling price of a specific job in a manufacturing company.

You're reporting an error for "MA – Nov 2016 – L2 – Q2a – Budgetary control"

IMAC – NOV 2019 – L1 – Q1 – Job Costing

Calculate overhead absorption rates and estimate the costs and invoice price for a job.

You're reporting an error for "IMAC – NOV 2019 – L1 – Q1 – Job Costing"

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