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Q.07 John advertises on November 15, 2020 received on order from Smith cosmetics Limited for manufacturing and installation of a huge neon sign for a

Q.07 John advertises on November 15, 2020 received on order from Smith cosmetics Limited for manufacturing and installation of a huge neon sign for a contract price of Rs. 1,80,000. Job No. 676-PN was allotted and manufacturing was begun on November 21, 1990. The costs are changed to the jobs periodically by means of weekly summaries. Following costs were related to job No. 676-PN:

Week Ended

Nov. 23

Nov. 30

Dec. 7

Dec. 14

Rs.

Rs.

Rs.

Rs.

Direct Materials

15,000

25,000

17,000

13,000

Direct Labour

2000

13,000

21,000

15,0000

Factory overhead is applied @ 25% of prime cost. The job was completed on December 14, 2017. Selling expenses are applied to the job @ 3% of contract price and administration expenses @2% of contract price.

Required:

Prepare a Job Cost Sheet containing above information. (Marks:5)

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