CMA Intermediate · Cost Accounting · Job Costing
Job 9 at Sundaram Works was charged materials of ₹50,000, of which materials worth ₹4,000 were returned to stores, and wages of ₹30,000. Materials worth ₹6,000 left over from another job were transferred to Job 9. Factory overhead is absorbed at 80% of direct wages. Scrap from Job 9 sold for ₹2,500 is credited to the job. What is the factory cost of Job 9?
The factory cost is ₹1,03,500. Net materials are ₹52,000 after the return and the transfer in, wages are ₹30,000 and overhead is ₹24,000, totalling ₹1,06,000. Crediting the scrap sale of ₹2,500 reduces it to ₹1,03,500.
- A₹1,03,500Correct
- B₹1,06,000
- C₹1,04,000
- D₹1,01,000
Explanation
Net materials = 50,000 − 4,000 + 6,000 = 52,000. Wages = 30,000. Factory overhead = 80% × 30,000 = 24,000. Total = 1,06,000; less scrap 2,500 = 1,03,500. The option ₹1,06,000 ignores the scrap credit.
Did you get it right without looking?
One question tells you little. A timed set on Job Costing shows your real accuracy, how long you take and where you lose marks.
More Job Costing questions
- Which industry is the LEAST suitable for the application of job costing?
- Job No. 41 of Kaveri Engineers used direct materials of ₹24,000 and direct wages of ₹16,000. Factory overhead is absorbed at 150% of direct …
- Which statement about job costing is correct?
- Job 41 of Kaveri Engineering incurred direct material Rs 40,000, direct labour Rs 25,000 and factory overheads absorbed Rs 15,000. During pr…
- In a job costing system, the document on which direct materials, direct labour and overheads for an individual order are accumulated is call…
- Sharma Fabricators quoted for Job J-17: direct material ₹48,000, direct labour 300 hours at ₹120 per hour, and factory overhead absorbed at …