Process plant division The process plant division of a group of companies has built a food packaging machine to a customer's requirements . A price of £49,000 has been quoted with the intention of achieving a profit of 25% on the selling price.

Production overhead is absorbed at the predeterm ined rate of £10 per direct labour hour in the assembly department and £15 per machine hour in the machining department.
Commissioning costs - i.e., installation and initial running-in of the machine at the custome r's site - wer e £750 and these are to be treated as a direct production cost.
Selling and general administration costs are charged to jobs at the rate of 33 ~ % of production cost.
You are required to prepare a job order cost sheet, and insert on it the information given above in such a way as to be useful to management.

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Customer: Customer's order no.: Job order no.: Date work started: Date job completed in factory: Date delivered: Date commissioned: Bond Foods Ltd 7206 dated 3 February 19X6 1412 5 March 19X6 29 April 19X6 2 May 19X6 6 May 19X6