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QUESTION TEN (Group 7 and 19) Muchimba Co is a jobbing company. On 1 June 2018, there was one uncompleted job in the factory. The

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QUESTION TEN (Group 7 and 19) Muchimba Co is a jobbing company. On 1 June 2018, there was one uncompleted job in the factory. The job card for this work is summarised as follows. Costs to date Direct materials Direct labour (120 hours) Factory overhead (K2 per direct labour hour) Factory cost to date Job card, job no 6832 K 630 840 Durine lune throe now inhe wore ctarted in the fartoru and coctc of nroduction were as follows. Ine cost or labour nours ouring June LU18 was ks per nour, and production overnead is absorbed at the rate of K. per direct labour hour. Production overheads incurred during the month amounted to K3,800. Completed jobs were delivered to customers as soon as they were completed, and the invoiced amounts were as follows. Administration and marketing overheads are added to the cost of sales at the rate of 20% of factory cost. Actual costs incurred during June 2018 amounted to K4,418. Required (a) Prepare the job accounts for each individual job during June 2018. (13 Marks) (b) Prepare the summarised job cost cards for each job, and calculate the profit on each completed job.(12 Marks) [Total 25 Marks] QUESTION TEN (Group 7 and 19) Muchimba Co is a jobbing company. On 1 June 2018, there was one uncompleted job in the factory. The job card for this work is summarised as follows. Costs to date Direct materials Direct labour (120 hours) Factory overhead (K2 per direct labour hour) Factory cost to date Job card, job no 6832 K 630 840 Durine lune throe now inhe wore ctarted in the fartoru and coctc of nroduction were as follows. Ine cost or labour nours ouring June LU18 was ks per nour, and production overnead is absorbed at the rate of K. per direct labour hour. Production overheads incurred during the month amounted to K3,800. Completed jobs were delivered to customers as soon as they were completed, and the invoiced amounts were as follows. Administration and marketing overheads are added to the cost of sales at the rate of 20% of factory cost. Actual costs incurred during June 2018 amounted to K4,418. Required (a) Prepare the job accounts for each individual job during June 2018. (13 Marks) (b) Prepare the summarised job cost cards for each job, and calculate the profit on each completed job.(12 Marks) [Total 25 Marks]

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