Question 1:

Firm had losses of `94,000 as per their books for the year ended. The books however disclosed a net loss of 20,000 for the same period. The following information as follows.

Income-tax provided 1,08,000

Interest on loan funds in Financial Accounts 4,90,00

Transfer fees (credit in financial books) 48,00

Stores adjustment (credit in financial books) 8,000

Dividend received 64,00

Factory Overheads under-absorbed 10,000

Administration Overheads over-absorbed 20,000

Depreciation charged in Accounts 50,000

Depreciation charged in Cost 5,50,00

Interest on investments not included in Cost 92,000

Question 2:

Q received a job order for supply of plumbing materials. Following are the details related with the job work:

Direct Materials

Q uses a weighted average method for the pricing of materials issues. Opening stock of materials

- 15mm GI Pipe, 12 units of (15 feet size) @ `600 each

- 20mm GI Pipe, 10 units of (15 feet size) @ ` 660 each

- Other fitting materials, 60 units @ ` 26 each

- Stainless Steel Faucet, 6 units @ ` 204 each

- Valve, 8 units @ ` 404 each Purchases:

During the year:

- 20mm GI Pipe, 30 units of (15 feet size) @ ` 610 each

- 10 units of Valve @ ` 402 each :

- Other fitting materials, 150 units @ ` 28 each

- Stainless Steel Faucet, 15 units @ ` 209 each:

- 15mm GI Pipe, 35 units of (15 feet size) @ ` 628 each

- 20mm GI Pipe, 20 units of (15 feet size) @ ` 660 each

- Valve, 14 units @ ` 424 each

Issues for the hostel job:

- 20mm GI Pipe, 2 units of (15 feet size)

- Other fitting materials, 18 units

- 15mm GI Pipe, 8 units of (15 feet size)

- Other fitting materials, 30 units

- 20mm GI Pipe, 2 units of (15 feet size)

- 15mm GI Pipe, 10 units of (15 feet size)

- Other fitting materials, 34 units

- Valve, 6 units

- Other fitting materials, 60 units

- Stainless Steel Faucet, 15 units

Direct Labour:

Plumber: 180 hours @ `100 per hour (includes 12 hours overtime) Helper: 192 hours @ `70 per hour (includes 24 hours overtime) Overtimes are paid at 1.5 times of the normal wage rate.

Overheads:

Overheads are applied @ `26 per labour hour.

Pricing policy:

It is company's policy to price all orders based on achieving a profit margin of 25% on sales price.

You are required to

(a) CALCULATE the total cost of the job.

(b) CALCULATE the price to be charged from the customer.

Question 1: Firm had losses of '94,000 as per their books for the year ended. The books however disclosed a net loss of 20.000 for the same period. The following information as follows. Income-tax provided : 1.08,000 Interest on loan funds in Financial Accounts 4,80,00 Transfer fees (credit in financial books) 48,00 Stores adjustment (credit in financial books) _8,000 Dividend received 84,00 Factory Overheads under-absorbed 10.000 Administration Overheads over-absorbed 20,000 Depreciation charged in Accounts 50.000 Depreciation charged in Cost 5,50,00 Interest on investments not included in Cost 92.000 Question 2: Q received a job order for supply of plumbing materials. Following are the details related with the job work: Direct Materials Q uses = weighted average method for the pricing of materials issues. Opening stock of materials 15mm GI Pipe, 12 units of (15 feet size) @ 600 each 20mm GI Pipe. 10 units of (15 feet size) @ 680 each Other fitting materials, 80 units @ '26 each Stainless Steel Faucet, 6 units @ 204 eachQuestion 2: Q received a job order for supply of plumbing materials. Following are the details related with the job work; Direct Materials Q uses a weighted average method for the pricing of materials issues, Opening stock of materials 15mm GI Pipe. 12 units of (15 feet size) @ '600 each 20mm GI Pipe, 10 units of (15 feet size) @ 660 each Other fitting materials, 80 units @ *26 each Stainless Steel Faucet, 6 units @ 204 each Valve, 8 units @ ' 404 each Purchases: During the year. 20mm GI Pipe. 30 units of (15 feet size) @ '610 each 10 units of Valve @ 402 each : Other fitting materials, 150 units @ * 28 each Stainless Steel Faucet, 15 units @ 200 each: 15mm GI Pipe, 35 units of (15 feet size) @ '628 each 20mm GI Pipe. 20 units of (15 feet size) @ 680 each Valve. 14 units @ 424 each Issues for the hostel job: 20mm GI Pipe. 2 units of (15 feet size) Other fitting materials, 18 units 15mm GI Pipe. & units of (15 feet size) Other fitting materials, 30 units 20mm GI Pipe, 2 units of (15 feet size) 15mm GI Pipe. 10 units of (15 feet size) Other fitting materials, 34 units Valve, 6 units Other fitting materials, 60 units Stainless Steel Faucet, 15 units Direct Labour:Stainless Steel Faucet, 15 units Direct Labour: Plumber. 180 hours @ '100 per hour (includes 12 hours overtime) Helper. 192 hours @ '70 per hour (includes 24 hours overtime) Overtimes are paid at 1.5 times of the normal wage rate Overheads: Overheads are applied @ '28 per labour hour. Pricing policy: Itis company's policy to price all orders based on achieving a profit margin of25% on sales price. You are required to (8) CALCULATE the total cost of the job. (b) CALCULATE the price to be charged from the customer