Question
.OnMarch01,2009AzfarEngineeringWorkshadtwojobsinprocessasfollows. JobNo.18..JobNo.19 DirectMaterial..100,000.36,000 DirectLabour.72,000.24,000 DirectLabourHours.10,000..8,000 DirectMachineHours..3,000.2,500 AppliedFactoryOverhead..Rs.6perdirect.Rs.10perdirect (MachineHour)..(LabourHour) DuringMarchJobNo.20,21,22and23werestarted.DirectmaterialsofRs.75,000anddirect labourof1800hoursatanaveragerateofRs.30perhourusedduringthemonth.Pre- determinedFOHappliedrateisRs.20perdirectlabourhouronalljobsstartinginMarch. JobNo.23wastheonlyincompletejobattheendofMarch.DirectmaterialofRs.30,000and directlabourofRs.18,000werechargedtojob.AttheendofmonthjobNo.22wastheonly finishedjobonhand.IthasaccumulatedtotalcostofRs.54,500. Therewasnobeginninginventoryinfinishedgoods.Jobscompletedweresoldonaccountata profitof25%oncost. Reqired:(08Marks) i.PreparefollowingT-Account. (a)WorkinProcess (b)FinishedGoods (c)CostofGoodsSold ii.Preparejournalentriestorecord (a)CostincurredonjobsstartedinthemonthofMarch (b)Costofgoodsmanufactured (c)Sales
.OnMarch01,2009AzfarEngineeringWorkshadtwojobsinprocessasfollows. JobNo.18..JobNo.19 DirectMaterial..100,000.36,000 DirectLabour.72,000.24,000 DirectLabourHours.10,000..8,000 DirectMachineHours..3,000.2,500 AppliedFactoryOverhead..Rs.6perdirect.Rs.10perdirect (MachineHour)..(LabourHour) DuringMarchJobNo.20,21,22and23werestarted.DirectmaterialsofRs.75,000anddirect labourof1800hoursatanaveragerateofRs.30perhourusedduringthemonth.Pre- determinedFOHappliedrateisRs.20perdirectlabourhouronalljobsstartinginMarch. JobNo.23wastheonlyincompletejobattheendofMarch.DirectmaterialofRs.30,000and directlabourofRs.18,000werechargedtojob.AttheendofmonthjobNo.22wastheonly finishedjobonhand.IthasaccumulatedtotalcostofRs.54,500. Therewasnobeginninginventoryinfinishedgoods.Jobscompletedweresoldonaccountata profitof25%oncost. Reqired:(08Marks) i.PreparefollowingT-Account. (a)WorkinProcess (b)FinishedGoods (c)CostofGoodsSold ii.Preparejournalentriestorecord (a)CostincurredonjobsstartedinthemonthofMarch (b)Costofgoodsmanufactured (c)Sales (d)CostofSales.
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