CASE STUDY

Butik Jelita receives a special order from a local agency requesting it to custom made 20 pieces of dresses to be worn in a special event. The owner, Puan Julia labels this special order as Job A27. The following is the information to produce ONE (1) piece of the dress.

Items	Quantity	Price
Direct materials:
Material A	4 meters	RM30 per meter
Material B	2 meters	RM10 per meter
Direct labours:
Cutting department	4 hours	RM20 per hour
Sewing department	6 hours	RM12 per hour
Machine hours:
Cutting department	2 hours
Sewing department	5 hours
Production overheads:
Cutting department	Absorbed at RM6.00 per direct labour hour
Sewing department	Absorbed at RM4.00 per machine hour

Other information:

1. The company hires a special sewing machine which cost RM5,000 to fulfil this whole Job A27.
2. The selling and distribution overheads are calculated based on 5% of the prime cost.
3. The administrative overhead is charged based on 5% of the production cost.
4. The owner has set a profit margin of 20% for this job.

Required:

Prepare a job cost sheet for Job A27 (for the whole 20 pieces of dresses), showing clearly: -

1. Prime cost
2. Production cost
3. Non-Production cost
4. Total cost
5. Total selling price