QUESTION 2 Duo Fantastic Trading received an order from Naem Enterprise which named as Job NE, to renovate its conference room which is to be completed in 5 days. The material needed for the order as follow: Fabric Satin Silk Consumption (in meter) 180 220 Cost per meter (RM) 60 70 150 35 Lace Direct labour consist of three skilled workers and five semi-skilled workers. Skilled workers are paid RM150 per day per worker and semi-skilled workers are paid RM125 per day per worker. The company also need to lease special sewing machine in order to complete the job. The cost of leasing the machine is RM50 per day. Production overhead cost is 10% on prime cost and delivery and administration cost is RM450 and RM130 respectively. Required: a. Prepare the job cost sheet for Job NE showing clearly the Prime cost, Production cost and Total Cost. (12 marks) b. C. i. ii. iii. iv. V. Compute the selling price for the job if the company decide to have a 40% of profit margin. State the following either TRUE or FALSE statements: (3 marks) The main purpose of job costing is to establish the profit or loss on each job. Batch costing is a form of costing which applies where a quantity of identical items are manufactured as a batch. Examples of industries which adopt batch costing are including readymade garments, drugs and pharmaceuticals, spare parts and component parts. Job costing involves examination on direct and indirect costs which divided into three specific parts: prime cost, production overhead and non-production overhead. By preparing job cost statement, the company able to identify under or over absorb of the overhead on that particular job.