Following are the set of case studies of different manufacturing companies You are required to read and understand the information carefully and then attempt the Questions provided at the end.
Mark Philips Ltd Company that carried out jobbing work. One of the jobs carried out in February was Job # 13000, to which the following information relates.
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Items
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Particulars
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Direct material Y
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400 kilos issued from stores at a cost of Rs.5 per kilo
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Direct material Z
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800 kilos issued from stores at a cost of Rs.6 per kilo and 60 kilos returned to store, A further 20 kilos were damaged and treated as abnormal loss
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Department P
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300 hours of labor@ Rs.4 per hour
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Department Q
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200 hours of labor@ Rs.5 per hour
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Department P had to carry out Rectification works, which took 20 hours in normal time. These 20 hours are additional to the 300 hours above. This rectification work is normal for a job such as job # 13000, and since it was expected, is included in direct costs of the job.
Overhead is absorbed at the rate of Rs.3 per direct labor hour in both departments.
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Read the above case study carefully and write down the correct option number (e-g A, B, C, D) in the given Excel file.
1. What was the direct material cost of job # 13000?
A. Rs.6,320
B. Rs.6,440
C. Rs.6,680
D. Rs.6,800
2. What was the direct labor cost of job # 13000?
A. Rs.2,280
B. Rs.2,200
C. Rs.2,530
D. Rs.2,600
3. What was the production overhead cost of job # 13000?
A. Rs.1,560
B. Rs.900
C. Rs.600
D. Rs.1,500
4. What was the full production cost of job # 13000?
A. Rs.10,160
B. Rs.10,100
C. Rs.10,280
D. Rs.10,335