The followingdata relates to M/SSuhailand companyfor the month of September, 2020(who maintains job order cost system).

You are askedto:

I. Pass necessary journal entries to record the information summarized below.

II.Prepare work in process account and finished goods account

III.Calculatethesale price at which job no102 and job no 104 to be billed to get a profit of 10% on cost

The following data is extracted from the company records:

a.Material purchased on account OMR 150,000

b.Material requisitioned and factorylabourusedas follows:

Job NO.

Material

FactoryLabour

101

15,000

21,000

102

11,000

18,300

103

28,000

15,000

104

19,500

21,000

105

13,000

8,000

106

9,000

4,000

General Factory use

4,800

6,400

c.Factory overheadcost incurred on account OMR 85,800

d. Depreciation of machinery OMR 12000

e. The factory overhead rate is 115% of directlabourcost

f. Job completedNo:101,102,104and 106

g. Job no. 102and 104 were shipped

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