TUTORIAL EXERCISES QUESTION 1 a) A costing method is a way of costing which is designed to suit the way goods are processed or manufactured or the way services are provided. Job order costing and process costing are among the methods that can be used. i. List TWO (2) characteristics of Job order costing. [2 marks] ii. State THREE (3) differences between job costing and process costing. [6 marks] b) Rawaria Boutique is a company located in Sentosa, Johor Bharu. One of their customer, Ms Glomoria is a popular singer in Malaysia. She requested Rawaria Boutique to make her 2 exclusive gowns for several awards events. Below is the information regarding the order (identified Gown A and Gown B). Rate Items Direct material Dress Gown A Gown B Indirect material Gown A Gown B Quality consumed 4 meter of crepe 4 meter of chiffon 2 meter of lace 30 gram of beads Direct labour Gown A 32 hours RM80 per meter RM75 per meter RM55 per meter RM5 per gram RM50 per hour Gown B 24 hours RM50 per hour Indirect labour Gown A 10 hours RM70 per hour Gown B 8 hours RM70 per hour Production overhead RM 10 per direct labour hour Additional information: 1. Due to her schedule, Ms Glomoria requested that the gown be delivered to her personally at her house in Kuala Lumpur. The delivery cost RM200 for each gown. 2. Rawaria Boutique consulted a fashion designer to assist in designing Ms Glomoria's gown. The consultation fee for Gown A is RM250 and Gown B RM300. 3. The net profit margin of the company is 200% of the cost. You are required to: i. Prepare a statement of job cost for Gown A and Gown B [18 marks] ii. Calculate the selling price and profit for both Gown A and Gown B[4 marks]