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Smith Lid, a firm of painting contractors, organises their books of account so as to account for their contract on a job cost basis. Balances,

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Smith Lid, a firm of painting contractors, organises their books of account so as to account for their contract on a job cost basis. Balances, June 1st: 1 Materials Control Accounta $ 9,300 Jobs in process - Material Labour Overhead Total No.50 700 500 250 1,450 No.51 p 570 350 175 1,095 Completed jobs - No.49 1,020 850 580 2,450 Cost information for June: Purchases of materials $ 3,800m Raw material issues - Job Now 50 51a 52 53 54a Stores Totala $ a 70 130 625 1,645 1,410 220 4, 100 Material on hand (physical check) 30th June $ 8,8001 Direct Wages: 1 Job No. $p Hours 50a 150a direct labour hours 300a 51p 190m direct labour hours 380a 52p 520 direct labour hours 1,200 53a 1,370m direct labour hours 2,800 54p 940m machine hours 200 Indirect wages 580 labour hours 1,0000 Jobs 50 and 51 were produced in Dept 1. The budgets prepared in respect of this department were Direct Labour $400 and Factory Overhead $800. (200% of Direct Labour Cost)1l - Jobs 52 and Job 53 were produced in Dept 2. The budget prepared for Factory Overhead for Dept 2 was $2,500 to be recovered over 5,000 direct labour hours. (50 c per direct labour hour)1l I Job 54 was carried out in Dept 3. The budget of Factory Overhead of $500 was to be recovered over 250 machine hours. ($2.00 per machine hr)1] ii The jobs were charged out as belowz1l Required: Prepare1l a) Job card summary for all jobs.1l b) An Income Statement for June showing costs and results for each job charged out.1] Job Cost Carda Job No. 49m 50m 51m 52 53m 54u Total Material Opening Balance Input Laboura Opening Balance by Inputa Factory O/H App/ Opening Balance Inputa Total Finished Goods b Cost of Goods Solda a p (b) Trading Statement Job No. 49m 50m 51 m 52 53 Total Sales C.O.G.S. Gross Profit/(Loss)

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