On March 01, 2009 HASFEngineering Works had two jobs in process as follows.

Job No. 18 Job No. 19

Direct Material 50,000 18,000

Direct Labor 36,000 12,000

Direct Labor Hours 10,000 8,000

Direct Machine Hours 3,000 2,500

Applied Factory Overhead Rupees 3 ( per direct Rupees. 5( per direct

(Machine Hour) (Labor Hour)

During March Job No. 20, 21, 22 and 23 were started. Direct materials of Rupees. 37,500 and direct labor of 1800 hours at an average rate of Rupees. 15 per hour used during the month. Pre determined FOH applied rate is Rupees 10 per direct labor hour on all jobs starting in March.

Job No. 23 was the only incomplete job at the end of March. Direct material of Rupees. 15,000 and direct labor of Rupees. 9,000 were charged to job. At the end of month job No. 22 was the only finished job on hand. It has accumulated total cost of Rupees. 27,250.

There was no beginning inventory in finished goods. Jobs completed were sold on account at a profit of 20% on cost.

Required:

Prepare journal entries to record

(a) Cost incurred on jobs started in the month of March

(b) Cost of goods manufactured

(c) Sales

(d) Cost of Sales.