2b (i) Preparation of the job cost sheet of Akupa Engineering for job Y152:
Under the traditional job costing system Job Y152 total costs equals $382,777.59.
2b (ii) Calculation of quotation price for job Y152:
Akupa Engineering Ltd.’s profit margin is 25% therefore:
Cost price = 75%
Profit Margin = 25%
Selling Price = 100%
The quoted price of Job Y152 will therefore equal $385,777.59/75% x 100% = $514,370.12.
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The author holds a Bsc (Hons) Degree in Applied Accounting from Oxford Brookes University, England and enjoys a successful career as an Accounting Supervisor and a private tutor.