Calculate cost per unit and total gross profit

Assignment Help Accounting Basics

Reference no: EM13256530

Mark Trucks Limited has some idle capacity in its plant, whichis restored by accepting order from other automobiles industries.The company has finished assembly of 150 trucks against specialorder N, 13A from Western Motors Limited. The pertinent data are asunder:

Started October 3, 2008.

Finished November 2, 2008.

Departments Material cost ($) Labor hours Rate per labor hours ($)

Assembly 150,000 4,500 18

Painting 75,000 1,200 15

Finishing 45,000 600 12

Factory pay roll for the year is expected to amount Rs.1,281,000.

Factory overhead for the year is estimated at $ 1776,000.Departmental break-up is provided below:

Departments Pay rolls ($) Factory over head ($)

Assembly 972,000 1296,000

Painting 225,000 375,000

Finishing 84,000 105,000

Factory overhead is based on direct labor hours. Thecomponent inventory has been supplied by Western Motors Limited.But the other material has been added by the company.

The agreed price to be charged is cost plus 20% mark-up,subject to a maximum charge of Rs.5, 000 Per truck

Required:

1. Prepare a Job Cost Sheet for Job No.13A,following properformat

2. Pass the necessary Journal entries and prepare T account ofWork-In-Process.

3. Calculate Cost per unit.

4. Calculate Total gross profit.

Reference no: EM13256530

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