Telco Ltd manufactures custom timber furniture. The company uses a job costing system. The following data refers to the company for the month of March 2014:

Overhead is applied to production using an annual predetermined overhead rate using direct labour hours.

The budgeted overhead for the current year is $1,024, 800.

Budgeted direct labour cost for the current year is $640,500. The direct labour rate is $15 per hour.

Costs incurred during March:

Direct labour costs $64,500

Indirect labour $8,000

Depreciation on factory building $35,000

Electricity $25,000

Factory rent $12,000

Other overhead costs $10,000

Sales revenue from the jobs was $180,000. The company prices jobs at manufacturing cost plus 25 per cent.

Required:

Complete the T- accounts providing the amounts of a) to p) to show the flow of costs through the companys manufacturing accounts.

Raw Materials Inventory Work in Process Inventory OB 11,600 b) OB 8,000 f) a) CB 15,600 c) d) CB 121,100 Finished Goods Inventory OB 28,000 h) Cost of Goods Sold FG 144,000 i) CB 18,000 Rectangular Manufacturing Overhead 1) p) k) 1) m) n) o)