Smith Ltd, 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:

Materials Control Account					$ 9,300
Jobs in process -	Material	Labour	Overhead	Total
No.50	$ 700	500	250	1,450
No.51	570	350	175	1,095
Completed jobs -
No.49	1,020	850	580	2,450

Cost information for June:
Purchases of materials								$ 3,800
Raw material issues -
Job No	50	51	52	53		54	Stores	Total
$	70	130	625	1,645		1,410	220	4,100

Material on hand (physical check) 30th June $ 8,800

Direct Wages:

Job No.	$		Hours
50	150	direct labour hours	300
51	190	direct labour hours	380
52	520	direct labour hours	1,200
53	1,370	direct labour hours	2,800
54	940	machine hours	200
Indirect wages	580	labour hours	1,000

Expense distribution for period:

Item	Total	Dept 1	Dept 2	Dept 3
	$	$	$	$
Rent	1,000	300	600	100
Plant Repairs	230	70	60	100
Plant depreciation	170	40	50	80
Factory Office	500	100	325	75
Management Exp.	425	100	275	50
Stores	220	40	160	20
Indirect Wages	580	100	430	50
	$ 3,125	$ 750	$ 1,900	$ 475

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 )

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 )

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)

The jobs were charged out as below:

Job No.	$
49	2,500
50	2,000
51	1,600
52	1,900
53	1,525

Required: Prepare

( a ) Job card summary for all jobs..

( b ) A Income Statement for June showing costs and results for each job charged out.

NOTE: You may use the templates on the following page for your answers.

This page has been left blank for your answer to Question 3.

( a )

	Job Cost Card
Job No.		49	50	51	52	53	54		Total
Material
Opening Balance
Input
Labour
Opening Balance
Input
Factory O/H Appl
Opening Balance
Input
Total
Work in Process
Finished Goods
Cost of Goods Sold

( b )

		Trading Statement
Job No.			49	50	51	52	53	Total
	Sales
-	C.O.G.S.
=	Gross Profit/(Loss)