Accounting Companies
Glitzy Ball Gowns is a business located in Pakuranga that makes custom made ball, wedding and formal occasion attire as well as stocking beautiful selection of new and pre-loved ball gowns suitable for school balls and formal occasions. This industry is characterised by low volumes, individual customisation and high profit margins. A job cost system is done to submit the cost information for the customers where in this case towards Marty and Drina. It’s also useful for determining the accuracy of Glitzy Ball Gowns’ estimating system, which should be able to quote prices that allow for the high profit margins for Glitzy Ball Gowns. Glitzy Ball Gowns do not produce a large number of attires, so in order for them to succeed they have to ensure that they achieve a high profit margin on each attire. Their service is used extensively by students in the surrounding high schools to custom make that special outfit for their senior school ball.
The three cost that make up the total cost of an attire for Glitzy Ball Gown are direct materials, direct labour, and overhead costs.
Material requisition forms are used to record the direct material that is taken to make the attire. The form records details of the employee that used the material, the quantity used, and the type of material, along with who authorised it. Authorisation is important to ensure that the material is used for that specific job only. This information is then transferred to the specific job cost attire sheet.
Time sheets are used to record the direct labour hours used for the specific attire by each employee and then the total cost of the labour. Each employee should make sure that the times recorded are authorised by the supervisor so that each job is accurately allocated with the correct amount of direct labour. This information is also transferred to the job cost sheet.
The overheads allocated to each attire is based on predetermined overhead rate, which is important that this rate is recorded as
The three cost that make up the total cost of an attire for Glitzy Ball Gown are direct materials, direct labour, and overhead costs.
Material requisition forms are used to record the direct material that is taken to make the attire. The form records details of the employee that used the material, the quantity used, and the type of material, along with who authorised it. Authorisation is important to ensure that the material is used for that specific job only. This information is then transferred to the specific job cost attire sheet.
Time sheets are used to record the direct labour hours used for the specific attire by each employee and then the total cost of the labour. Each employee should make sure that the times recorded are authorised by the supervisor so that each job is accurately allocated with the correct amount of direct labour. This information is also transferred to the job cost sheet.
The overheads allocated to each attire is based on predetermined overhead rate, which is important that this rate is recorded as