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
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.
