Hashim Engineering Works produces special machines made to customer specifications. The following data pertain to Job Order
Question:
Hashim Engineering Works produces special machines made to customer specifications. The following data pertain to Job Order No. 987:
Customer: Zeeshan Machine ShopDate started: 05/4/2020
Customer's Order No.: C696Date finished: 05/18/2020
Dated: April 27Total job cost: ?
Description: 18 drilling unitsSales price: 3,268,000
Material Requisition:
Date Requisition # Cost
11 May 978 PKR 368,000
18 May 1,060 PKR 208,000
Job Time Sheet:
Date Department Hours Rate/hour
11 May 1 600 PKR 656
11 May 2 300 PKR 640
18 May 1 400 PKR 656
18 May 2 140 PKR 640
Machine Hour:
Date Department Hours
11 May 2 200
18 May 2 120
FOH cost is applied at PKR 320 per direct labor hour in department 1 and PKR 288 per machine hour in department 2. Marketing and administrative costs are charged to each order at a rate of 10% of the selling price.
Required:
1.Prepare the job order cost sheet.
2.What percentage of profit did the company make on this order?