Question
RAZA CORPORATION reported the following inventories on 1 st November, 2010. Raw Material Rs. 40,000 Goods in Process Rs. 70,000 Finished Goods Rs. 50,000 The
RAZA CORPORATION reported the following inventories on 1st November, 2010.
Raw Material Rs. 40,000
Goods in Process Rs. 70,000
Finished Goods Rs. 50,000
The company uses the job order cost accounting system. The following transactions
took place during November:
- Material purchased o account Rs. 200,000
- Material requisision for production Rs. 90,000 and supplies Rs. 30,000.
- Materials returned to supplier Rs. 5,000
- Accrued payroll Rs. 105,000 including payroll for indirect labour Rs. 15,000
- Sundry manufacturing expenses incurred Rs. 120,000
- Paid to Accounts payable Rs. 100,000
- FOH applied at the rate of 110% of direct labour cost.
- Goods in process inventory November 30, Rs. 70,000
- Finished goods inventory November 30, Rs. 55,000
- Sales on accounts Rs. 450,000
Required
General journal entries for each of the above transactions also make an adjusting
entry of over or under applied FOH-Cost.
Q # 4
The Millat Company uses Job Order Costing. The following data were obtained from the companys records as of June 30, 2015.
JOB NO: | DIRECT MATRILS RS. | DIRECT LABOR HOURS |
1001 | 16,300 | 2,300 |
1002 | 23,600 | 4,700 |
1003 | 24,500 | 4,200 |
1004 | 15,400 | 2,500 |
1005 | 18,200 | 3,200 |
1006 | 13,700 | 1,980 |
Direct labor is charged to jobs at an average cost of Rs. 6 per direct labor hour. Factory Overhead is charred to jobs on the basis of Rs. 3 per direct labor hour. Actual overhead totaled Rs. 58,000. During June Job 1001, 1002, 1003, 1004 and 1005 were completed. Jobs 1001 and 1002 were shipped out, and the customers were billed for Rs. 48,000 and Rs. 82,000 respectively.
Required:
General Journal entries to summarize the transactions for June 2015 to close the Factory Overhead account.
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