Question
Gemilang Songket produces elegance songket gown for international market. The company uses job order costing for cost accumulation and pricing purposes. The company receives two
Gemilang Songket produces elegance songket gown for international market. The company uses job order costing for cost accumulation and pricing purposes. The company receives two (2) job orders, Job No. 8008 Bamboo Shoots Motif and Job No.8081 Chevron Motif from a customer in Singapore. The following costs were incurred on jobs: Job No. 8008 Bamboo Shoots (RM) Job No. 8081 Chevron (RM) Direct materials: Issued 16,500 20,000 Returned 1,000 0 Indirect materials used 1,000 500 Direct labour 12,000 15,000 Direct expenses 1,350 1,270 Direct labour rate 12 per hour 10 per hour Overhead application rate (OAR) 10 per direct labour hour 15 per direct labour hour Hire of electronic jacquard looms machine 1,200 1,600 Distribution expenses 10% of Production cost 15% of Production cost Designer consultation fees 220 240 The company adds 60% markup on cost in determining the amount to be charged for each job done. Required: (a) Prepare a job cost schedule for Job No. 8008 showing prime cost, production cost, total cost and selling price. (22 marks) (b) Identify THREE (3) functions of job cost sheet.
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