Case# 1 Mark Philips LtdCompany that carried out jobbing work. One of the jobs c
ID: 2444334 • Letter: C
Question
Case# 1
Mark Philips LtdCompany that carried out jobbing work. One of the jobs carried outin February
was Job # 13000, towhich the following information relates.
ItemsParticulars
Direct material Y 400kilos issued from stores at a cost of Rs.5 per kilo
Direct materialZ
800 kilos issued fromstores at a cost of Rs.6 per kilo and 60 kilos returned tostore,
A further 20 kiloswere damaged and treated as abnormal loss
Department P 300 hoursof labor@ Rs.4 per hour
Department Q 200 hoursof labor@ Rs.5 per hour
Department P had tocarry out Rectification works, which took 20 hours innormal
time. These 20 hoursare additional to the 300 hours above. This rectificationwork
is normal for a jobsuch as job # 13000, and since it was expected, is includedin
direct costs of thejob.
Overhead is absorbedat the rate of Rs.3 per direct labor hour in bothdepartments.
Read theabove case study carefully and write down the correctoption
number(e-g A, B, C, D) in the given Excel file.
1. What was the directmaterial cost of job # 13000?
A. Rs.6,320
B. Rs.6,440
C. Rs.6,680
D. Rs.6,800
2. What was the directlabor cost of job # 13000?
A. Rs.2,280
B. Rs.2,200
C. Rs.2,530
D. Rs.2,600
3. What was theproduction overhead cost of job # 13000?
A. Rs.1,560
B. Rs.900
C. Rs.600
D. Rs.1,500
4. What was the fullproduction cost of job # 13000?
A.Rs.10,160
B.Rs.10,100
C.Rs.10,280
D.Rs.10,335
5. What was therectification work cost of job # 13000?
A. Rs.80
B. Rs.100
C. Rs.90
D. Rs.70
Explanation / Answer
A A A A A