MGT402 GDB Solution by ZB

ZB

To calculate the components required for the job cost sheet, let's break down each component step by step based on the provided information.

1. Prime Cost:

Prime cost is the sum of Direct Materials and Direct Labor. Direct Materials:

Nov. 25: Rs. 15,300 · Nov. 30: Rs. 25,800 · Dec. 8: Rs. 17,400 · Dec. 15: Rs. 13,600

Total Direct Materials = Rs. 15,300 + Rs. 25,800 + Rs. 17,400 + Rs. 13,600

Direct Labor: · Nov. 25: Rs. 1,900 · Nov. 30: Rs. 13,400 · Dec. 8: Rs. 21,100 · Dec. 15: Rs. 16,200 · ZB

Total Direct Labor = Rs. 1,900 + Rs. 13,400 + Rs. 21,100 + Rs. 16,200

Prime Cost = Total Direct Materials + Total Direct Labor

2. Applied Factory Overhead:

Factory overhead is applied at 15% of the prime cost.

Applied Factory Overhead = 15% × Prime Cost

3. Gross Profit:

Gross profit is the difference between the contract price and the total job cost (which includes prime cost and applied factory overhead).

Gross Profit = Contract Price - (Prime Cost + Applied Factory Overhead)

4. Net Profit:

Net profit is calculated by subtracting the selling expenses and administrative expenses from the gross profit.

ZB · Selling Expenses = 3% of the contract price · Administration Expenses = 2% of the contract price

Total Selling and Administration Expenses = Selling Expenses + Administration Expenses

Net Profit = Gross Profit - Total Selling and · Let's calculate these values: · Total Direct Materials: 15,300+25,800+17,400+13,600=72,100 · Total Direct Labor: 1,900+13,400+21,100+16,200=52,600 · PrimeCost=72,100+52,600=124,700 · 15%×124,700=18,705