SMQ limited is a jobbing company. At the start of the first quarter 2019 there was one unfinished job in the factory.

The job card for this week is summarized below:

Job Card No. 1521 (Costs to date):

Direct materials - $450,000

Direct Labour - $200,000

Factory Overheads - $120,000

Total - $770,000

Cost of production for jobs during the quarter were as follows:

Direct materials issued:

Job 1521 - $750,000

Job 1522 - $820,000

Job 1523 - $600,000

Job 1524 - $500,000

Material transfers:

Job 1524 1523 - $70,000

Job 1521 1522 - $100,000

Materials returned to store:

Job 1521 - $40,000

Job 1522 - $30,000

Direct labour hours:

Job 1521 350

Job 1552 40

Job 1523 320

Job 1524 260

The cost of labour hours during the quarter was $300 per hour, and production overhead was charged at a rate of $150 per direct labour hour.

The invoiced/selling price amounts were:

Job 1521 - $3,375,875

Job 1522 - $1,200,000

Job 1524 - $1,183,750

Administration and marketing overheads were added to the cost of sales at the rate of 25% of factory costs. Jobs were delivered to customers as soon as they were completed.

i. Prepare the summarized job cost card for each job and calculate the profit or loss made from each completed job.

ii. Differentiate between job costing and contract costing in your own words