Other
Job costing practice
- Module
- Introduction to accounting
- Institution
- University Of Glasgow
This is practice assessments on job costing for businesses.
[Show more]
Seller
Follow
Content preview
The assessment example(s) below can be used by centres, or alternatively centrescan develop their own assessment.
You have recently started work with Wee Toon Manufacturing who design and make
various textiles, and currently produce a very popular design of rug. Due to repeated
requests from customers for a larger size, management are considering this but first
they would like to know the projected costs of production and the expected retail
price.
The following information is available:
Material WT1 (£12 per kg) 42 kg 12.5 kg
Material WT27 (£22.50 per kg) 7.5 kg 1.2 kg
Material WT44 (£3.50) per kg - 0.5 kg
Skilled labour hours (£14.25 per hour) 32 17
Unskilled labour hours (£9.75 per hour) 7 2
Machine hours 46 -
Production overheads are absorbed into the cost of the product on the basis of
machine hours in the weaving department, and total labour hours in the finishing
department. Departmental overheads are expected to be as follows:
Weaving £450,000 25,000 30,000
Finishing £270,000 60,000 2,000
Administration overheads are applied at 12% of the prime cost.
Selling and distribution overheads are calculated as 15% of total production cost.
To cope with the increased size of the product, an additional piece of equipment
will need to be hired. The minimum hire period for the machine is 6 months at a
cost of £900 however, it is anticipated the rug can be produced within one month.
The company requires a profit margin of 30% on all its products.
Wee Toon Manufacturing are registered for VAT.
The product reference is WTM4678RUG (L)
Scottish Qualifications Authority 6
Assessment Support Pack/J56F 34/ASP001 (Fourth edition)
Accounting for Business: An Introduction (SCQF level 7)
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller bethanykernaghan. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £10.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
64438 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now