ASSIGNMENT ON ACC 312-ADVANCED COSTING 1

                    


PATRIOT ODUNARO B.J. (08038454008)

1. Sogbae Press Limited was asked to quote for supplying 2,500 and 12,500 booklets. The company normally expects a profit of  5% on sales.

Costs were recognised as follows:

                                                                                        N

Paper and other materials (per 500 copies)                 15.00

Wages (per 500 copies)                                               10.00

 Layout cost                                                               250.00

 Fixed Overhead                                                         100.00

 Variable Overhead ( 6% of wages)

Draft a cost computation, showing minimum selling prices that might be quoted per 500 copies of the supplies.

2.   A product passes through two processes (X, Y) to completion. The following information

     were obtained from the company`s record.

                                                            Process X                    Process Y

                                                                N                                  N

     Material                                          125,000                       175,000

     Labour                                            100,000                        87,500

     Overhead                                       187,500                       125,000

     The input of material in Process A is 12,500kg while the outputs of the two processes are

     7,500kg and 5,000kg respectively. The scrap value of normal loss is N2 per unit. Normal

     loss is 10% of input.

     Prepared: Prepare

(i)                 Process X and Process Y Account

(ii)               Abnormal Loss/ Abnormal Gain Account

LECTURE NOTE ON FEATURES OF CONTRACT COSTING

The features of contract costing are as follows:

 i.          A formal contract is made between the customer and the supplier

 ii.          Work is undertaken to customer’s special requirements.

 iii.          The work is for relatively long duration  

 iv.          The work is frequently constructional in nature    

 v.          The job is frequently based on size

 FOR MORE, COME TO CLASS OR FOR LECTURE.