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Calculate the total production cost for Job XXX1, including materials, labour, and overheads, and then the total cost of sales.

Accounting

ScanSolve AI Answer

Answer

R4 500\text{R}4\,500

Step-by-step solution

7 steps

Here is the completed job card for Job XXX1:

  1. Calculate the total direct material cost for Job XXX1.

    Total Material Cost=Opening Material+Current Month Material\text{Total Material Cost} = \text{Opening Material} + \text{Current Month Material} Total Material Cost=R25 000+R105 000=R130 000\text{Total Material Cost} = \text{R}25\,000 + \text{R}105\,000 = \text{R}130\,000
  2. Calculate the total direct labour cost for Job XXX1.

    Total Labour Cost=Opening Labour+Current Month Labour\text{Total Labour Cost} = \text{Opening Labour} + \text{Current Month Labour} Total Labour Cost=R18 000+R85 000=R103 000\text{Total Labour Cost} = \text{R}18\,000 + \text{R}85\,000 = \text{R}103\,000
  3. Calculate the total applied overheads for Job XXX1.

    The current month's applied overheads are R15.00 per unit for 6 000 units.

    Current Month Overheads=6 000 units×R15.00/unit=R90 000\text{Current Month Overheads} = 6\,000 \text{ units} \times \text{R}15.00/\text{unit} = \text{R}90\,000 Total Applied Overheads=Opening Applied Overheads+Current Month Overheads\text{Total Applied Overheads} = \text{Opening Applied Overheads} + \text{Current Month Overheads} Total Applied Overheads=R62 500+R90 000=R152 500\text{Total Applied Overheads} = \text{R}62\,500 + \text{R}90\,000 = \text{R}152\,500
  4. Calculate the total production cost for Job XXX1.

    Total Production Cost=Total Material Cost+Total Labour Cost+Total Applied Overheads\text{Total Production Cost} = \text{Total Material Cost} + \text{Total Labour Cost} + \text{Total Applied Overheads} Total Production Cost=R130 000+R103 000+R152 500=R385 500\text{Total Production Cost} = \text{R}130\,000 + \text{R}103\,000 + \text{R}152\,500 = \text{R}385\,500
  5. Calculate the total cost of sales for Job XXX1.

    The selling and marketing cost for Job XXX1 is R0.

    Total Cost of Sales=Total Production Cost+Selling and Marketing Cost\text{Total Cost of Sales} = \text{Total Production Cost} + \text{Selling and Marketing Cost} Total Cost of Sales=R385 500+R0=R385 500\text{Total Cost of Sales} = \text{R}385\,500 + \text{R}0 = \text{R}385\,500
  6. Calculate the sales revenue for Job XXX1.

    Job XXX1 produced 6 000 units and was invoiced at R65.00 per unit.

    Sales Revenue=Units Produced×Selling Price Per Unit\text{Sales Revenue} = \text{Units Produced} \times \text{Selling Price Per Unit} Sales Revenue=6 000 units×R65.00/unit=R390 000\text{Sales Revenue} = 6\,000 \text{ units} \times \text{R}65.00/\text{unit} = \text{R}390\,000
  7. Calculate the profit for Job XXX1.

    Profit=Sales Revenue−Total Cost of Sales\text{Profit} = \text{Sales Revenue} - \text{Total Cost of Sales} Profit=R390 000−R385 500=R4 500\text{Profit} = \text{R}390\,000 - \text{R}385\,500 = \text{R}4\,500

    The completed job card for Job XXX1 is:

    Job Card: Job XXX1Amount (R)Direct Material:Opening Balance25 000Current Month105 000Total Direct Material130 000Direct Labour:Opening Balance18 000Current Month85 000Total Direct Labour103 000Applied Overheads:Opening Balance62 500Current Month (6 000 units×R15.00)90 000Total Applied Overheads152 500Total Production Cost385 500Selling and Marketing Cost0Total Cost of Sales385 500Sales Revenue (6 000 units×R65.00)390 000Profit4 500\begin{array}{|l|r|} \hline \textbf{Job Card: Job XXX1} & \textbf{Amount (R)} \\ \hline \text{Direct Material:} & \\ \quad \text{Opening Balance} & 25\,000 \\ \quad \text{Current Month} & 105\,000 \\ \quad \textbf{Total Direct Material} & \mathbf{130\,000} \\ \text{Direct Labour:} & \\ \quad \text{Opening Balance} & 18\,000 \\ \quad \text{Current Month} & 85\,000 \\ \quad \textbf{Total Direct Labour} & \mathbf{103\,000} \\ \text{Applied Overheads:} & \\ \quad \text{Opening Balance} & 62\,500 \\ \quad \text{Current Month (6 000 units} \times \text{R}15.00) & 90\,000 \\ \quad \textbf{Total Applied Overheads} & \mathbf{152\,500} \\ \textbf{Total Production Cost} & \mathbf{385\,500} \\ \text{Selling and Marketing Cost} & 0 \\ \textbf{Total Cost of Sales} & \mathbf{385\,500} \\ \text{Sales Revenue (6 000 units} \times \text{R}65.00) & 390\,000 \\ \textbf{Profit} & \mathbf{4\,500} \\ \hline \end{array}

    The profit for Job XXX1 is R4 500\boxed{\text{R}4\,500}.

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