Get premium membership and access questions with answers, video lessons as well as revision papers.

The following information is available for job No. 202, which is being produced at the request of a customer.

      

The following information is available for job No. 202, which is being produced at the request of a customer.
job216420191238.png

Required:
(i) (a) Calculate the total cost and selling price of job No.202
(ii) Assume that shortly after the job is completed the original customer goes bankrupt and the job is not delivered. The only other possible customer is prepared to pay Kshs. 9,000. Briefly indicate, with reasons whether you would accept the offer of Kshs. 9,000.

  

Answers


Wilfred
job2c16420191242.png
job2b16420191240.png
Wilfykil answered the question on April 16, 2019 at 09:43


Next: Differentiate the following types of computers.
Previous: Briefly describe terms “Analogue” and “Digital computers” as used in computer science.

View More Cost Accounting Questions and Answers | Return to Questions Index


Learn High School English on YouTube

Related Questions


  • The information given below has been taken from the cost records of a factory in respect of job no. 707.(Solved)

    The information given below has been taken from the cost records of a factory in respect of job no. 707.
    job116420191226.png

    Fixed expenses estimated at Kshs. 20,000 for 10,000 working hours. Calculate the cost of the job No. 707 and the price for the job to give a profit of 25% on the selling price.

    Date posted: April 16, 2019.  Answers (1)

  • Give the disadvantages of job order costing(Solved)

    Give the disadvantages of job order costing

    Date posted: April 16, 2019.  Answers (1)

  • Give the advantages of a job order costing system(Solved)

    Give the advantages of a job order costing system

    Date posted: April 16, 2019.  Answers (1)

  • What are the objectives of Job order costing?(Solved)

    What are the objectives of Job order costing?

    Date posted: April 16, 2019.  Answers (1)

  • Define the term Job costing(Solved)

    Define the term Job costing

    Date posted: April 16, 2019.  Answers (1)

  • What are the features of Job order costing?(Solved)

    What are the features of Job order costing?

    Date posted: April 16, 2019.  Answers (1)

  • The following figures are extracted from the Trial Balance of AB. Co. on 31st Sep, 2005.(Solved)

    The following figures are extracted from the Trial Balance of AB. Co. on 31st Sep, 2005.
    tb116420191130.png
    tb1b16420191130.png

    REQUIRED
    Prepare
    i) A statement of cost showing various elements of cost.
    ii) A statement of profit.

    Date posted: April 16, 2019.  Answers (1)

  • The following extract of costing information relates to commodity ‘A’ for the half year ending 31st Dec. 2005.(Solved)

    The following extract of costing information relates to commodity ‘A’ for the half year ending 31st Dec. 2005.
    comm116420191125.png

    Selling and distribution overheads are Sh. 1 per ton sold. 16000 tons of commodity were produced during the period:
    Required:
    You are to ascertain
    (i) Cost of raw materials used
    (ii) Cost of output for the period
    (iii) Cost of sales
    (iv) net profit for the period
    (v) Net profit per ton of the commodity.

    Date posted: April 16, 2019.  Answers (1)

  • Your company is exporting cotton to U.S.A. It has received an enquiry from AB Incorporation(Solved)

    Your company is exporting cotton to U.S.A. It has received an enquiry from AB Incorporation. The export manager seeks the advice of the cost Accounting Department (of which you are the Head) to send a suitable quotation. From the following figures, relating to the last 4 months, you are to suggest a suitable price after preparing a cost sheet: Total Production (in meters) 200,000

    cott116420191101.png

    Date posted: April 16, 2019.  Answers (1)

  • During the month of Dec 2008, 16000 units of standard product were manufactured, out of which 13500 units were sold at 8/- per unit. (Solved)

    During the month of Dec 2008, 16000 units of standard product were manufactured, out of which 13500 units were sold at 8/- per unit. The value of raw material consumed was Sh. 60,000 and the direct wages paid Sh. 16,480. The factory expenses were allocated to production at machine hour’s rate which for this month was Sh. 5 per hour and 1200 machine hours were worked during the month. The office expenses are charged @ 20% on works cost and the selling expenses @ 25cts per unit.

    Prepare a cost sheet showing
    a) Cost per unit and
    b) Profit for the month

    Date posted: April 16, 2019.  Answers (1)

  • A.B.C Manufacturing Company provides the following information for the month of October 19 – 8(Solved)

    A.B.C Manufacturing Company provides the following information for the month of October 19 – 8
    bc116420191049.png
    bc1b16420191049.png

    Required:
    i. Prepare a production cost statement
    ii. Prepare a profit statement

    Date posted: April 16, 2019.  Answers (1)

  • What are the differences between Cost Account and Cost Sheet?(Solved)

    What are the differences between Cost Account and Cost Sheet?

    Date posted: April 16, 2019.  Answers (1)

  • Define Cost sheets and and its advantages(Solved)

    Define Cost sheets and and its advantages

    Date posted: April 16, 2019.  Answers (1)

  • A company manufacturing table fans, supplies to you the following data and asks you to prepare a statement showing profit per table fan.(Solved)

    A company manufacturing table fans, supplies to you the following data and asks you to prepare a statement showing profit per table fan. Wages and materials are charged at cost, works overheads at 80% of wages, and office on cost at 20% of works costs. You are also required to prepare a statement reconciling the profit as shown by the cost accounts with the points shown by financial accounts for the year ended 31st March, 1980.
    Two types of table fans are manufactured namely model X and model Z. there is no fan in the stock. Number of fans sold were X 1,500; Z 1,050 The description is as under:
    mod116420191024.png

    Prepare the relevant statements, showing the actual profits for the year, if the works indirect expenses were Kshs. 82,000 and office on cost Kshs. 75,000

    Date posted: April 16, 2019.  Answers (1)

  • During a particular year, the auditors certified the financial accounts showing a profit of Kshs. 168,000 whereas the same as per costing books was coming...(Solved)

    During a particular year, the auditors certified the financial accounts showing a profit of Kshs. 168,000 whereas the same as per costing books was coming out to be Kshs. 240,000. Given the following information you are asked to prepare a reconciliation statement showing clearly the reasons for the gap
    Trading and Profit and Loss A/C
    gap116420191019.png

    The costing records show:
    a) Book value of closing stock Kshs. 780,000
    b) Factory overheads have been absorbed to the extent of Kshs. 189,000
    c) Sundry income is not considered.
    d) Administrative expenses are recovered at 3% of selling price.
    e) Total absorption of direct wages Kshs. 246,000
    f) Selling prices include 5% for selling expenses.

    Date posted: April 16, 2019.  Answers (1)

  • The following figures are supplied to you by contractor for the year ending 31st December, 1981(Solved)

    The following figures are supplied to you by contractor for the year ending 31st December, 1981

    dec116420191006.png
    Advances from contractee - 40,000

    Prepare contract ledger accounts and the total contractee’s account and show the work-in-progress as it would appear in the Balance Sheet

    Date posted: April 16, 2019.  Answers (1)

  • A building contractor took a contract to build a building on 1st Jan 1980. The contract price was agreed at Kshs. 800,000. The contractor has...(Solved)

    A building contractor took a contract to build a building on 1st Jan 1980. The contract price was agreed at Kshs. 800,000. The contractor has made the following expenditure during the year:

    Materials - 50,000
    Direct labor - 30,000
    Plant - 80,000
    Direct expenses - 20,000

    From the following extra information prepare a Contract Account for the year. Also show the amount in work in progress, which will be shown in the balance sheet of the contractor.

    Value plant 31/12/1980 - 60,000
    Stock of material 31/12/1980 - 10,000
    Material returned to store - 2,000
    Work certified - 150,000
    Cash received - 140,000
    Cost of work uncertified - 8,000

    Date posted: April 16, 2019.  Answers (1)

  • From the information given below relating to an unfinished contract ascertain: (Solved)

    From the information given below relating to an unfinished contract ascertain:
    a) Profit on work – certified
    b) Cost of work in progress at the end of year.
    rs11642019938.png

    The value of the plant at the end of I, II and III year was Rs. 11,200, Rs. 7,000 and Rs. 3,000 respectively. Prepare Contract account for these three years taking into account such profit as you think proper on incomplete contract

    Date posted: April 16, 2019.  Answers (1)

  • Crystal Construction Limited engaged in contract works has the following Trial Balance on 31st December 1975(Solved)

    Crystal Construction Limited engaged in contract works has the following Trial Balance on 31st December 1975
    crys11642019930.png
    crys1b1642019930.png

    Contract No. 707 having a contract price of Rs. 240,000 was begun on 1st January, 1975 and contractee pays 80% of the work completed and certified. The cost of work done since certification is estimated to be Rs. 1,600. After the above Trial Balance was extracted on 31st December 1975, plant costing Rs. 3,200 was returned to the stores and materials at site on that date were valued at Rs. 3,000. Provision is to be made for sub standard costs amounting to Rs. 600 incurred in contract No. 707 and for depreciation of all Plant and Tools @ 12½% on cost.

    Prepare Contract No. 707 Account showing the computation of profit, if any which credit may properly be taken in 1975 and prepare the Balance Sheet for the construction company on 31st December 1975.

    Date posted: April 16, 2019.  Answers (1)

  • A company of contractors begun to trade on 1st January, 2008.(Solved)

    A company of contractors begun to trade on 1st January, 2008. During 2008 the company was engaged on only one contract of which the contract the contract price was Kshs. 500,000. Of the plant and materials charged to contract: plant costing Kshs. 5,000 and material costing Kshs. 4,000 were lost in an accident. On 31st December, 2008, plant costing Kshs. 5,000 were returned to stores. Cost of work uncertified but finished Kshs. 2,000 and materials costing Kshs. 4,000 were in the hand at site. Charge 10% depreciation on plant and compile contract a/c and balance sheet from the following:-

    comp11642019926.png

    Date posted: April 16, 2019.  Answers (1)