Question 1 John Limited is a company that manufactures furniture. They have accepted an order to...

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Question 1 John Limited is a company that manufactures furniture. They have accepted an order to supply chairs for a hotel chain, Job No. 124 The estimated costs of Job No 124 are as follows:- - 800 metres of wood at a price of 43 per metre - 2700 square metres of fabric at a price of 7.50 per square metre - 25 Kg of stuffing at a price of 60 per kg The work will take 1400 hours to complete: 950 hours for manufacturing and 450 hours for finishing. Employees working in the factory are paid 6.50 per hour for manufacturing and 5.50 for finishing. Specialised equipment will be hired for 8 weeks at a cost of 750 per week. Factory overheads are charged at 20% of direct labour costs. Selling and distribution overheads are charged at 12.5% of prime cost. Administration overheads are charged at 15% of production cost. Required: Prepare a Job Cost Statement (Job Cost Card) for Job No. 124, providing a profit of 15% on total cost. HINTS Include the following in your statement 1. Detailed analysis and classification of costs 2. Order of costs listed logically 3. Accurate sub-totals for Prime Cost and Factory Production Cost 4. Overheads included on bases shown 5. Profit applied correctly 6. All figures rounded to the nearest Question 1 John Limited is a company that manufactures furniture. They have accepted an order to supply chairs for a hotel chain, Job No. 124 The estimated costs of Job No 124 are as follows:- - 800 metres of wood at a price of 43 per metre - 2700 square metres of fabric at a price of 7.50 per square metre - 25 Kg of stuffing at a price of 60 per kg The work will take 1400 hours to complete: 950 hours for manufacturing and 450 hours for finishing. Employees working in the factory are paid 6.50 per hour for manufacturing and 5.50 for finishing. Specialised equipment will be hired for 8 weeks at a cost of 750 per week. Factory overheads are charged at 20% of direct labour costs. Selling and distribution overheads are charged at 12.5% of prime cost. Administration overheads are charged at 15% of production cost. Required: Prepare a Job Cost Statement (Job Cost Card) for Job No. 124, providing a profit of 15% on total cost. HINTS Include the following in your statement 1. Detailed analysis and classification of costs 2. Order of costs listed logically 3. Accurate sub-totals for Prime Cost and Factory Production Cost 4. Overheads included on bases shown 5. Profit applied correctly 6. All figures rounded to the nearest

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Job Cost Statement Job Cost Card for Job No 124 John Limited Furniture Manufacturer Job No 124 Hotel ... View the full answer