Question 3 (Approximate completion time 30 mins) CLO 5 (Total 25 marks) ABC Limited is a jobbing company On 1 June 2020, there was one uncompleted job in the factory The job card for this work is summarized as follows Job Card, Job No 1002 Cost to date $ Direct materials 700 Direct labour (100 hours) 400 Factory overhead ($5 per direct labour hour) 600 Factory Cost to date 1,700 During June, three new jobs were started in the factory, and costs of production were as follows Direct Materials $ Issued to Job 1002 6,000 Job 1003 9,000 Job 1004 8,000 Material transfers $ Job 1004 to job 1003 900 Job 1002 to Job 1004 1,500 Materials returned to store $ From Job 1002 1,200 Direct labour hours recorded Job 1002 250 hrs Job 1003 300 hrs Job 1004 480 hrs The cost of labour hours during June 2020 was $4 per hour, and production overhead is absorbed at the rate of $5 per direct labour hour Completed jobs were delivered to customers as soon as they were completed, and the invoiced amounts were as follows Job 1002 $10,000 Job 1004 $24,000 Administration and marketing overheads are added to the cost of sales at the rate of 20 of factory cost Required Prepare the summarized job costs cards for each job, and calculate the profit on each completed job (22 marks) Differentiate between job and contract costing (3 marks)

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Question 3 (Approximate completion time: 30 mins) [CLO 5] (Total 25 marks) ABC Limited is a jobbing company. On 1 June 2020, there was one

Question 3 (Approximate completion time: 30 mins) [CLO 5] (Total 25 marks)

ABC Limited is a jobbing company. On 1 June 2020, there was one uncompleted job in the factory. The job card for this work is summarized as follows:

Job Card, Job No. 1002
Cost to date:	$
Direct materials	700
Direct labour (100 hours)	400
Factory overhead ($5 per direct labour hour)	600
Factory Cost to date	1,700

During June, three new jobs were started in the factory, and costs of production were as follows:

Direct Materials	$
Issued to:
Job 1002	6,000
Job 1003	9,000
Job 1004	8,000

Material transfers	$
Job 1004 to job 1003	900
Job 1002 to Job 1004	1,500

Materials returned to store	$
From Job 1002	1,200

Direct labour hours recorded
Job 1002	250 hrs
Job 1003	300 hrs
Job 1004	480 hrs

The cost of labour hours during June 2020 was $4 per hour, and production overhead is absorbed at the rate of $5 per direct labour hour. Completed jobs were delivered to customers as soon as they were completed, and the invoiced amounts were as follows:

Job 1002	$10,000
Job 1004	$24,000

Administration and marketing overheads are added to the cost of sales at the rate of 20% of factory cost.

Required:

Prepare the summarized job costs cards for each job, and calculate the profit on each completed job. (22 marks)
Differentiate between job and contract costing. (3 marks)