Q-1 The following transactions relate to the Decent company for the month of June,2004.

1. Material purchased on account Rs.170,000
2. Material and labor used on jobs were as under.

Job No Direct material Direct labor

01 11,400 14,000

02 5000 7000

03 17,200 18,400

1. Indirect material issued to production Rs. 3800
2. Indirect Labor incurredRs.500
3. Other factory overhead cost incurred Rs. 6850
4. Depreciation on Machinery Rs.3000
5. Factory overhead is applied at 80% of Direct labor.
6. Jobs No.1 and 2 were completed
7. Customers were billed both jobs at Rs.50,000 and Rs. 26,000 respectively.

INSTRUCTION:

1. Prepare a cost sheet showing cost of three jobs
2. Prepare General Journal entries together with closing of under or over applied FOH