Question $1$

Drinker Ltd received an order for $1200$ bottles of champagne. The units were manufactured as Job #$525$ and passed through three cost centres. Mixing, Bottling and Packing whose overhead absorption rates are as follows:

Mixing $$80$ per machine hour

Bottling $$36$ per labour hour

Packing $$48$ per man hour

The following production costs and data were recorded:

Direct Materials $$5,040$

Labour: $,$ Mixing $320$ hours @ $$22\mathrm{.}00$ per hour

Bottling $,560$ hours @ $$16\mathrm{.}00$ per hour

Packing $240$ hours @ $$18\mathrm{.}00$ per hour

$160$ machine hours were recorded in Mixing, and General and Administration overheads are absorbed at $20\%$ of production cost. Profit is calculated at $40\%$ mark$-$up$.$

Required:

A$.$ Calculate the total cost and selling price for job #$525$ showing a summarized job card.

$(20$ marks$)$

B$.$ Prepare the Job Account for job #$525.$

$(5$ marks$)$

$($Total $25$ marks,