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12 marksJob and Batch Costing

CAPE Accounting Unit 2 · 2012 · Paper 2 · Question 2(b)(i)

Akupa Engineering Ltd supplies a replacement motor for Job Y152. Materials required: Iron 280 kg at 52.50/kg, Zinc 195 kg at 36.80/kg, Copper 209 kg at 28.95/kg. Direct labour: Machining 80 hrs at 450/hr, Assembly 336 hrs at 360/hr, Finishing 184 hrs at 280/hr. Production overhead charged: 245.00 per machine hour in machining department, 384.00 per labour hour in assembly department, $4.06 per labour hour in finishing department. Profit margin is 25%.

Prepare the job cost sheet for Akupa Engineering Ltd.

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Other parts of this question

  1. 2(a)(i)Prepare a marginal costing income statement for the company.[7 marks]
  2. 2(a)(ii)Prepare an absorption costing income statement for the company.[7 marks]
  3. 2(a)(iii)Reconcile the difference between the net operating income computed under marginal costing and that computed under absorption costing.[2 marks]
  4. 2(b)(ii)Calculate the quotation price for the job.[3 marks]
  5. 2(c)List FOUR benefits that Akupa Engineering Ltd. could gain from using the Activity-Based Costing approach instead of the Traditional Approach to costing.[4 marks]

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