2.2 Fatima Company uses job-order cost system. The following data were obtained from its records at the end of last year:

Particulars	BD
Selling and Distribution overheads	8000
Profit	16000
Administrative overheads	6000
Direct materials	40000
Factory overheads	10000
Direct wages	20000

2.2a Prepare a job cost sheet indicating prime cost, works cost, production cost, cost of sales and sales value. (7 marks)

Fatima Company / Job order cost sheet for last year
Particulars	BD
Direct materials Direct wages Prime cost Add factory overhead Work cost ADD adminstrive overhead Production cost Add selling and distrubrion overhead Cost of sales Profit sales	40000 20000 60000 10000 70000 6000 76000 8000 84000 16000 100000

2.2b This year, Fatima received an order for several jobs. It is estimated that there will be similar costs for direct materials and wages of last years order as mentioned in part 2.2a of this question. What should be the price for these jobs given the following information:

• The company wants to earn 20% of profit on sales
• Selling overheads have increased by 20%
• Factory recovers factory overheads as a percentage of direct wages while administration and selling overheads as a percentage of work cost.

Prepare the new job cost sheet for this year using the above information. (15 marks)

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Fatima Company Estimated Job order cost sheet for this year
Particulars	BD	BD