1. Identify an industry where job costing system is applicable. Assume the data as given below related to the production for a month.

1. Purchase of material (specify cash or credit) OMR_1,000_.
2. Materials requisitions:

Job No:__120_ OMR_3,000__

Job No:_121__ OMR__4,000 _

Job No:__122_ OMR_1,000__

Job No:__123_ OMR_2,000__

Job No:_124__ OMR_1,000__

3. Direct labour

Job No:__120_ OMR__2,000_

Job No:_121__ OMR__3,000_

Job No:_122__ OMR__4,000_

Job No:_123__ OMR__2,000_

Job No:__124_ OMR_1,000__

4. Indirect material OMR _150_
5. Indirect labour OMR _200
6. Factory overhead costs incurred on account OMR _130_
7. Depreciation OMR _60_
8. Factory overhead applied as percentage of direct labour - _60
9. Completed jobs: write jobs completed (assume four jobs as completed)
10. Jobs sold: Write jobs sold (assume three jobs are sold and write the selling price each job sold) (assume the selling price 45% @ Jobs sold)

Required :( showing the working notes)

1. Compute the cost of the finished jobs (2 Mark)
2. Compute the cost of work in process (1 Mark)
3. Compute the cost of the job sold (1 Mark)
4. Compute the profit on the job sold (1 Mark)
5. Prepare journal (3.5 Marks)

2. What are the limitations of using predetermined overhead absorption for the determination of the cost of a job? Discuss. (1.5 Marks)