Answer :
Answer:
Kaya manufacturers provided following information regarding Job No. 450. Calculate the total
cost of Job No. 450
Particulars
Direct Materials
Direct Wages
Chargeable Expenses
Amount (Rs.)
5,000
2000
1000
Factory overheads are 55% on prime cost, and office overhead is 20% on works cost.
[Ans: Total cost is Rs. 14,880]
To calculate the total cost of Job No. 450, we need to follow the steps of job costing. Here's how:
1. **Direct Materials**: Rs. 5,000
2. **Direct Wages**: Rs. 2,000
3. **Chargeable Expenses**: Rs. 1,000
4. **Prime Cost**: Rs. 5,000 (direct materials) + Rs. 2,000 (direct wages) = Rs. 7,000
5. **Factory Overheads**: 55% of prime cost = 55% of Rs. 7,000 = Rs. 3,850
6. **Works Cost**: Rs. 7,000 (prime cost) + Rs. 3,850 (factory overheads) = Rs. 10,850
7. **Office Overheads**: 20% of works cost = 20% of Rs. 10,850 = Rs. 2,170
8. **Total Cost**: Rs. 10,850 (works cost) + Rs. 2,170 (office overheads) = Rs. 14,880
Therefore, the total cost of Job No. 450 is Rs. 14,880[2].