COST ACCOUNTING

UNIT - V

PREPARED BY

Dr. M. VANISHREE

ASSISTANT PROFESSOR

DEPARTMENT OF COMMERCE (INTERNATIONAL BUSINESS)

GOVERNMENT ARTS COLLEGE (A), COIMBATORE

COST ACCOUNTING

UNIT 5

Job Costing & (ontaaed (osting Job tosing

hetollowing data ig availablo In aespecd of Job n0:76

Onect mateial Ps: 17 oo

wagey (bo hou af 50 Pe hou

Vaiaba ove haads inwed hon au johe Ps: 8o,o00 oY Booo

abo hou

ine oves hoody ae obseswed at Qo Pex how

Find the rafi Olosaom theJob T job is billeá

od 4o ,000

Job (ost skoet Ao3 Job No:876

Patiulass

Drec mateials

uages l6o x 5o))

&5ogo Pa ime Cost

ovelhaady

Viable Bo ooo xlbo

,6o 2000 3,200

Fimed bo x 2 34.6o

To tal Ces+ 40,00

Bilt Pao +1tB|f)

) Modon Pintes nderhrougt duing he jobs fooks 1S June aoT Ahe following do 4ails ae Qnailablo

Paxtitu las Job Ilo Jobl2

mateial Suplied 000

wages Paid

Diaect Ppente

matoial taansseued hom 9 12o to l0

Matoial xetuned As Stoves

Find the Cost o each job Psofit 0a loss any

as umng that Joo 1o A Comple tod and invotto to the

Cus tomer at s'. 3ogo

Job 1lo Alc

Paxti ulans Ps Pati ulo

mateial 4000 y Balante bld 5300

waaes

To Diuect enpen@s

To maeal tansfeed

fsom 12o 5.30

530P

Job 12o Alc

To matia 30 By matial Aaavrs fevedfo

To wages Job tlo

o0 B material 1aans feucd t o diz ec enpenos

TO Pni4 Fontdevd)

300

Alc hom the followin infoxma tibn pepane Toho accoun n he Job Cost Ladqen To N0 236s

DireCt matial Puchose Ps36ooo

Di8ec atorial seceuwed fooe stoaes 5.80 Diaec4 wao 4400

O fher duuect enpenws 1500

1he tuar k Ove heads ae to be taken ad 1h7 o a 75 Of

CACs and a d ministaction ove heads at a5%. o wosk s o he Co Contmc+ Prio o f Job No 36 which is

Completed is incd as 8, 5 0o

Pouti lay Ps P

D'inect mata ioau

Direct atoia emw ed 360

25,200

Direct waes ,50 Othe Drect pens

44.70o

Poie Cost

Ov e hca a

woTk Ovexhead l o 0o 7C/00 0,39

L5,60o ok Cast

3,&75 Ad mini stoat on ovehaads 55.5oo A1

3755

otal Cost 28,50o

Contoac4 Paie

13,15

JoCdan a kouna eng inacing shows pllosin eta eqwding n oods oo window gsik

mataia wwed Ds 2a wages bnkd 40 hous a 50 Pes houm vaAIable

bokod

vexhead ane not Labon hou xats 0 Rs Pe hown

ned nd ovea hcads ua Oppoution a :1boo for the ob

the tom is Chaged 30.000 0tha Ovdn Find

oud e oit and it Pexcentage on cost

Pautiulay

matial ed

way 9,000

A1able Ovekead 40 xlo

ed ov@ h0ad 4,00 0

30,00

Tob bill

6from the data ven below obtainad fsom fhe bodk

of mas. Ahi tha & Co o The ye end 31.19.90l0 Pe pan

Corsoli aa ad Compla ted dobs Actounts showing tho pntit

A

pis Con Solida ted wark in poogCG.

Complatd jobs wod In poses

Pa ae uppled from store 3

adilnsu

ChaigiabC Eencs odd

4000

mateial xvsfer 4o wou in p0ogsers matoiaetun ta Stoea

Factoo ovehoad g0 ot wages and ot4ito

OV eheads 570 Fat tory Cost The Vatuo of enciód Johs

duutng Dolo wa 41000.

Comple fed Jobs Alc oo fhe yean oto

Pautiuulas DsP Pautiula

To Raw mateaiau 4 0

Dy w tomo Ale

Suppli od t3om Sbbe) po0

ansfey to uos -in-

8,800

00 9,700 Retun from tored

0,00

Towa T (hageohu enpentes

8.000 To Hactory duehead

37,100

To ad minis aotive 6125

Oue end 27,Y00x 25/

0Podi ars +e\ 6315 PLL Alc 41,000

41 00

(onuolidn tad wst in pmopen AlC 1h0 yo O

Padiul Padi nloas

)3,SE

lo Raw matoialtried Balanta (l

po oes 3000

4) taofer toom Conplb tod 00

Job

oway 4000

o Chageaba Pnpen@s 40

o Aaros ovexhoads 3,20

l0, 9o0

1 dministoadive 700 ovehoad

13,500 3,500

Contact (ost ing

o geema l Co unden poe a Contsact psiceos lon stuuction

ota P vatePlato, Cons tuct Paiw was 40,00, 000. Tho

ollawing wee the doails.

6,0,000

ma leaial send to Contract sit

Labon Skilled : 6,00,o0o

un gkilled'4, D0, 00

Sub cord sact oplumbinq and elactsici 4,00,090,

Sndiy epen 00,o00 closi n Stoc malerial at

siqht Do.000 Paepae Contra ct Alc and dotes minetho

Pak Pt i or los

Pauki las Paudiuula

To atial 6,00.000 y closinq Stock ot kia lo,a

0 abou skilled b00,000 40,0 0 y tonda ctus Ale

unckilled 4,c0,00

To Sub Conteact Boa plamping Cund elaetuicity 4,00 p00

o Sundy npences

To Pel ale celf) o ,00,00a

4D,00,00 40,00 00

The follouwing were The enpentes d4 Balad cnd Companty 1

i'nses pect of lontaact which lommenses on 1.1.20l0

150.000 mateAial puchased

mataia on hand

15000 DieC+ wage

26000 Plant issued

DiaeCt epentus

The Con taact Prite was 7,5D,000 and he Same w

Cantacd was Compu tad Agut 2010

Cely etcwed when Tho Contrac4 was omplu tad Augut 201

h e in divect ®npenccs tb 7. 0+ wages Pvide 508

Aa Depseciation on pant and Pe paue the Contaa( Alc

and Con aac o Alc

onac Alc

Poudiua s Pauiulau

To mat A 10Puchas ed 15o oos By mattial on hand 2600

Diuecd nges 7h0 ey Contactass Alc T,5000

oOiaeCt enpene) 40,000

o ndirec1 enpencs ,250 nEPeCiaio d pan To hOOD X 15(100

Pof14 DIf) ,7,5So

5

1,5,500

Contaac tee Alc

75000 To Tontoaet Alc

Bank Plc

7, G0,0b6 50,000

w w up ontoaci No: 303 in the Contract ledaen o

Soo aran k tonpary Tm The ollowing de taiu

ONEC maleriau 200

lo,i00

Specia lant 980

STOes18sued

t,5o0

DOSE Sroo 3 420

Tvac e npentts 40,000

Lnhac Pe

ontoac a Compl ted in o weres. hu

Speio plan wou e tun Subjct 40 de paecia-ich 0

&0 n orgina Cost The vauut ot loose sdo Ls

nd SAores ncá wec 000 and 400 Espel1IVe

Cba value o he ace used tod Contoact uas

P: 10600 and de PEE cta1ion on Chauge t this Con 1aact /s

atR. Pe annum n the boo Vaue. Povide 77

administhative en penies on woak Cost

Saavanan & company éon nact ladgen

Paxi ula's Pautiular

To duat hatoniab 6,200 By Special Plant 6400

to,9o0 x l080oo

pecial Plant S,800 PB4 toose tools e un 1000

To Stoes

,50 By Stores e wn 4o

34 20 Cn tiaelae Ale o 0ac tt enpences

o Depeciation tacton

1 dminis daa n 555

To P2 Alc (B14)

47,800 47,80

.The lleun enpents we intued an unfinished

Contatt dutng he aCCounting a Dolo

matial

ote enpehes

00 00o uas e Cowed Bom Contaa ct bcing Bo.

wosP C ed wot done but not (ei4ed was P:bo

e Teiminu tho Po ject be Caeditod do Plt Alc o hau

he alle hative

CondaC1 Pvio 3,00,00

ConAvactPio 5,50,000 3. Conaac ai , 0, Sd

ConHacc4 Alc

Paudiula Pau Aituloa Ps

matenia 10 03 By woak in pooeXS 9.50 00

h,oo uok arlantiied To otheA enpen0

&o,00 o Nofiena Poi 2,55,000

2,5500

Poo1 o be (wditod

when ContaCt Pai 1S 3,00,00

50,9-83.3. mot thanbs wotk fied

3,0, 0o

n reC wed

The pofi Ltdied: Notional Pofit 73 x

The

42o67 8o,0 42 b657

PiKept tn 3Ewt

27,33

w en (on aCt Pi Ps 5,5099

iied 250,00o

5,,00X100

Cah FCued

(adc Podo e udittd Nofiunal Pp Y

8opm 3, * T10 0

1,233

Paoikept inde 80,00) - 1,339

6e bb7

3)he h Contiact Pai::19o0o

. 83 z

uwOYCertified 1,00,0oo

odi should dansfe.

Show fhe 13eafmant of Plant in Contxac t Alk 13om

bollowlng 9oto es: 900DO

a)Plan iss uod to (ontaaCt of (Jan, 2ot

b) Plant Costing P( p0 way

hansfe to anothe Contvac

b) on 30h Tune

&010

lon in vansit and

c)A Pant c) Pant Costing : od0 wa len in tansit andd

Qne TheA Costing i B. Booo by dustvou fixe befove

installad ion Thell uas ive lome Vulgaay tuan e

n f ul Vatue

Plant (as ting ps R00d Old was : 3og0

The Pland he end o 0ecom bei àt Cha ging e) he

e pu eciCHIOn on lo7 Pe\annum

elow h htmer 1aved in tha manu tacuue

o ePuoduc

P fodiulo 10 lan

.000 Pu Plan1 3anseved

af Cot

-)De paFCiaion

By pli Plant he Plant detooy by fire 5 p0o

B Plant Sold

By Plant sito

,Da, o00 -l boao t500o4 To

0,p0 t 2000)

BH Depeiation 167 17700150,c

Sendh Con tauttion (om pany nda tok a tontact fos Conatuc 1ing butding s Jan olo Contxact Pai ua 1,0

h in cuwed tupllow ing

matrial issed

matenia in hand

S9o

90 DInect enpenes 0,00

Plan Puchayed

The Cotaact way Completed ad Jne 30 lo The

Con toac Porowas due y veawed de paeciotion 9o P.a

s. PaEpa an pian and chaug enpentes oo7. oudaqes. Paepase

Coveoac+ ale in tte bos 6 to Com pany

adicu laxs Panuo

o mato ia i8sued P matoria in hand

Lwaes Contac toei )l

10 De C1 PnPences

1 De Peiadion on plan

T Noliónal Proif ,o1,9

1,0)00

Sak thi ons 1gucfioh (ompany ndu Aaok o ontgact

(onstauctin a6ly oveA ho a tt4al Vaue o 400,0o

1 wa Cdmated hat the Conira t would be orn pu fed D Cornpa ted by

31.T.ol0 .uu a Pepcne (6ndoa( 4 al Fo tho

lqunLd fo

Jea ending 312.8oo 9

usa ,60,OOD

matosa

matpiaat Siqht on 31 12.200 AD,0oo

1ngA 3pe Cial eant 2,00,00D

OUe hoads 20,0o

Wor nxi fied 16,00

Depr ecotipn af (D P.a plant, Cayh reawed is 9o7 of tk

C Cydfied 97. D A Valuo f mateta uued ostho Pa iov of

Cen tiCed ovehcads ale Chaord as +

yerhu h61 Kept

aitlan Pah ulau

ma levia 3.000 Py maeial aS4ht q8,00)

6,0D0 lan ,o0,O

oUCAheads 28,000l Depatt \a tipn 1,80,00 (-120,odO

1 rcial plant tuad Co\tified 60g oo

74.40, /6,74 40 6T4 4Od 0Oauncakiied

844o 18A4,40o

6T4400 P Notional poofit

f Plc 35680

400

214,720

6749o 74 oO

Ca lu (adion of unetified wodk

mallna gsued 3.0o,00 ox : 24,o 0s

wahes 6,00, 00 0 42,o0go

200 0o

oUeheads .400

42,000 20 (o0

74 40

n n tomlo1P Con Haact

M a%Un and vanun undotop a (om toc 07 2hoon0

o (onsauctinq a Colloge building Aho ollouwing i ntoumatior

Con tenin9 duu n tho a 9007.

Padjulas

Mateial Sen to (iqht 95,34

Labo e ngaged on Sight T37S

Plant inuhled ad S4ht at Cast 15po

Disect Pnperduw 3167

EHa blishmond ehages 4126

mateial en to gtores 540

wok Cohtified soobo

yauue 0f Plant as on 31.t2.o7

4,So0

Cost ofwoTP not yet CeAti ied 892

matoial atsiqht 31.17.07

2400

312 0T w agee py oved

birect enpendi

u OCtued 31.12.d7 240

180

240

Cak etewedsan antaacte 18o

and Show

Pepa ontaac+ alc, conteacto ale

ho Tue Lud 1n prgnes will appean h balan u sho t bala n 3hont

31 12 b

Paditulo0-3

Imalal

o laou Ta,315

(4 oul SManding 2.4o 767m5 wo in Poogers 50o

to Da fef PpeneA 316T

2 qo 3407 D plan t a SigT 922

planl at cot ,00o y Mateial at Sght

es tablish mont Chage a12

onotional paof 29,975

3,1a,93 P232

PR nle nofional prott 20275

17, 98 75 Y ?/

1,9000

O875

Go Kosewe R275

29 975

Con hac tas Ale

To balane bld B Bank

C3o000 80,000

2alan shae emtaac tad

1Gooo

4000

len De precia hion

matonial atsight 1993

644 243 Maloial instore

B wao 0u1Standi ng 24O0

empencs 24D

Coilics 1900 A 600

un (o- ed

10,07 ()Keseve

129,625

(1o009265 ()Cah xe selve

Dlo h11he liminab& npendi tueinthe manudactunon at 1

Fooeduct

om 1he iomation en bebw PXPpae Conac4 AlC

matoiial boughi on mauke T5ob

SS Uey fo sAonea

mateial etun to sores 40

uns

Direct Onpens 5 DIsect waHA

uoge Cos t

stdio Cost lo &t Patme Cast, Cn foalt paie i S 6,o0d

Palt(au RA Pan ula R

To maia GyCon ta cts Alc 6009

oued eom Staye 00d

Los Re un to gtore 2q0

I7b0

TDIec enpen (oj

Prime Cos + 44 4

0 5l04

44

5553

Prdi Taryfeu 447

6,00D

ndormatton Paepane