Job Cost Sheet help

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:31AM in AAT student discussion
Hello Everyone,

Im in need of your help, I have been give the following info and been asked to put together a job cost sheet however i dont know where to start!!!!

Using the following data as appropriate prepare a job cost sheet for a customers order, the estimates of materials, labour and machine time is as follows:

Material all in stock valued FIFO £1500
(replacement cost is £1650)

Labour Operations 20hrs @ 9.00 per hour
Assembly 17hrs @ 11.20 per hour
Packing 12hrs @ 10.60 per hour

Machine time - estimate 30 hours

Machine Dept Packing
Assembly

Overheadslast year £20,000 £8,000 £4,000
OH This yrs Budget £22,000 £9,000 £5,000

Labour hrs last yr £10,000 £8,000 £4,000
Lab Hrs this Yr Bud £9,000 £10,000 £4,000

Machine hours lstyr £9,000
this yr bud £10,000


This is the layout i have to answer on:

JOB COST SHEET

£ £

DIRECT MATERIAL

LABOUR:
OPERATORS
ASSEMBLY
PACKING

PRIME COST

PRODUCTION OVERHEADS:
MACHINERY

ASSEMBLY
PACKING

TOTAL COST

THANK YOU

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Job Cost Sheet help

    This doesn't look particularly beautiful here because I can't lay it out as on a spreadsheet but I hope it helps. Note ECR standards do not require an understanding of Relevant Costs, but I valued the material on this basis.

    £ £

    DIRECT MATERIAL 1,650

    LABOUR:
    OPERATORS 20 x £9 180
    ASSEMBLY 17 x £11.20 190
    PACKING 12 x £10.60 127
    PRIME COST 2,148
    PRODUCTION OVERHEADS:
    hrs OAR
    MACHINERY 30 £2.20 66

    ASSEMBLY 17 £0.90 15
    PACKING 12 £1.25 15
    TOTAL COST 2,244
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Job Cost Sheet help

    Thank You very much!!!!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Job Cost Sheet help

    That is what i got but for some reason i was unsure!

    I now have another tiny question if anyone could please point me in the right direction of how to start off?

    A factory job cost card number XYZ123 shows the following price cost:
    Direct Materials - 55.5 tons of steel @ £286 per ton
    Direct Wages - Depo A - 60 hrs @ £13 per hour
    Depo B - 80 hrs @ £12 per hour

    The budget for the year reveals the following:

    Variable Overheads
    Depo A £24,000 for 36,000 direct labour hrs
    Depo B £40,000 for 50,000 direct labour hrs

    Fixed Overheads
    Total budgeted direct labour hrs for the whole factory 90,000
    Total budgeted expenditure £67,500

    Required

    A) Calculate the cost of job XYZ123
    B) Estimate the percentage profit obtained if the price quoted to the customer was £17,995

    Do i work this out in exactly the same way?

    Thanks
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Job Cost Sheet help

    Yes. Follow Sandy's answer as a guide. Assuming that the comapny is using absorption costing then the split of overheads between fixed and variable is not relevant. Calculate an OAR for each dept based on the two added together.

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