Rimba Sdn Bhd uses a job order costing system in its production process. The company recorded the following

transaction during the past week:

1. Purchased 75 kg of raw materials at RM30 per kg.

2. The payroll showed 412 hours of factory labour at RM7 per hour. Analysis shows that 38 of 412 hours are

classified as indirect labour and the remainder are direct labour.

3. Requisition filled by raw materials store room consisted of RM1,875 of direct materials and RM224 for

indirect materials.

4. Depreciation on factory equipment totalled RM380.

5. The plant supervisors salary was RM1,775.

6. Other manufacturing overhead items incurred amounted of RM2,016.

7. Manufacturing overhead was applied at the rate of RM8 per direct labour hour.

8. Jobs having a total costs of RM6,023 were completed and transferred to finished good warehouse.

9. Total sales of RM12,701 (all on account).

10. Cost of goods sold for the sales amounted to RM8,090.

Required:

a) Prepare journal entries to record transaction of the week.

b) Calculate the overapplied or underapplied overhead for the week. Prepare the journal to close this balance

into Cost of Good Sold.

c) Identify two (2) industries that suitable to use job order costing.