Question No. 2 Karachi Ltd., had the following inventories balances: January 01, 2020 December 31, 2020 Rupees Raw Material 28,000 40,000 Work in process 41,250 52,250 Finished goods 31,000 33,750 During the year following transaction were made: 1. Material purchased on account of Rs. 297,500. 2. Material issued to production worth Rs. 285,500 of which Rs. 15,000 was indirect material. 3. Payroll for the year was Rs. 375,000 including Rs. 75,000 of indirect labour, 4. Factory overhead was charged to production @ 90% of direct labour cost. Required: (a) Prepare journal entries of: 1. Material purchased 2. Material issued 3. Labour charged to production 4. Factory overhead applied 5. Cost of goods completed 6. Cost of goods sold (b) Prepare T account of: 1. Material 2. Work in process 3. Finished goods (Marks 12