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2. The Bahwan Engineering LLC uses a job-order costing system. The following data relate to October, the first month of the company's fiscal year.
2. The Bahwan Engineering LLC uses a job-order costing system. The following data relate to October, the first month of the company's fiscal year. a) Raw materials purchased on account, RO 210,000. b) Raw materials issued to production, RO 190,000 (RO 178,000 direct materials and RO 12,000 indirect materials). c) Direct labor cost incurred, RO 90,000; indirect labor cost incurred, RO 110,000. d) Depreciation recorded on factory equipment, RO 40,000. e) Other manufacturing overhead costs incurred during October, RO 70,000 (credit Accounts Payable). f) The company applies manufacturing overhead cost to production on the basis of RO 8 per machine-hour. A total of 30,000 machine-hours were recorded for October. g) Production orders costing RO 520,000 according to their job cost sheets were completed during October and transferred to Finished Goods. h) Finished stock inventory at the end of month was value at RO 65,000 i) RO 480,000 is complete according to their job cost sheets were shipped to customers during the month. Required: Prepare journal entries to record the information given above.
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