The Cambridge Company uses job order costing. At the beginning of December two jobs were in process:

Job 369 Job 372

Material Rs 20,000 Rs. 7,000

Direct labour 10,000 3,000

Applied factory overhead 15,000 4,500

There was no inventory of finished goods on December 1. During the month, Jobs 373, 374, 375, 376, 378 and 379 were started.

Material requisitions for December totaled Rs. 130,000, direct labour cost, Rs.100,000 and actual factory overhead , Rs. 160,000. Factory overhead is applied at a rate of 150% of direct labour cost. The only job still in process at the end of December is No. 379, with cost of Rs. 14,000 for material and total Rs. 9,000 for direct labour and applied overhead. Job No. 376, the only finished job on hand at the end of December, has a total cost of Rs. 20,000.

Required: (1). T-accounts for Work in Process, Finished Goods, Cost of Goods sold, Factory overhead Control and Applied Factory Overhead.

(2). General journal entries to record: (a). Cost of goods manufactured (b). Cost of goods sold (c). Closing of over-or-under applied overhead to Cost of Goods Sold