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Q-1 The following transactions relate to the Decent company for the month of June,2004. Material purchased on account Rs.170,000 Material and labor used on jobs
Q-1 The following transactions relate to the Decent company for the month of June,2004.
- Material purchased on account Rs.170,000
- 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
- Indirect material issued to production Rs. 3800
- Indirect Labor incurredRs.500
- Other factory overhead cost incurred Rs. 6850
- Depreciation on Machinery Rs.3000
- Factory overhead is applied at 80% of Direct labor.
- Jobs No.1 and 2 were completed
- Customers were billed both jobs at Rs.50,000 and Rs. 26,000 respectively.
INSTRUCTION:
- Prepare a cost sheet showing cost of three jobs
- Prepare General Journal entries together with closing of under or over applied FOH
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