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Bigears Telco Ltd manufactures custom timber furniture. The company uses a job costing system. The following data refers to the company for the month of

Bigears Telco Ltd manufactures custom timber furniture. The company uses a job costing system. The following data refers to the company for the month of March 2014:

Overhead is applied to production using an annual predetermined overhead rate using direct labour hours.

The budgeted overhead for the current year is $1,024, 800.

Budgeted direct labour cost for the current year is $640,500. The direct labour rate is $15 per hour.

Costs incurred during March:

Direct labour costs $64,500

Indirect labour $8,000

Depreciation on factory building $35,000

Electricity $25,000

Factory rent $12,000

Other overhead costs $10,000

Sales revenue from the jobs was $180,000. The company prices jobs at manufacturing cost plus 25 per cent.

Required:

Complete the T- accounts providing the amounts of a) to p) to show the flow of costs through the companys manufacturing accounts.

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