The general ledger of Diamonds in the Rough Ltd, a manufacturing firm operating a job cost system, included the following balances at May 31:

	$
Raw Materials Control	35,000
Labour Control	3,375	(Cr.)
Factory Overhead Applied	420	(Cr.)
Work in Process	16,150
Finished Goods	17,075

Particulars of jobs in process and the job completed were:

	Job No.	Material	Labour	Overhead	Total
In process	323	$ 6,750	$ 3,000	$ 3,600	$ 13,350
	324	1,700	500	600	2,800
Completed	322	6,350	4,875	5,850	17,075

During the month of June, the following transactions occurred:

		$	$
Materials purchased on credit			24,700
Factory wages paid	- Gross	29,000
	- PAYG Tax	6,700	22,300
Factory rent paid			2,500
Invoices for sundry factory overhead items			2,000

Depreciation at 15% per annum is to be charged on factory plant valued at $160,000.

Material issued to the factory and labour charged for the month were:

Job No.	Material	Labour
323	$      nil	$  1,175
324	5,600	4,400
325	12,000	9,250
326	4,500	1,000
Indirect	3,000	9,800
	25,100	25,625

Factory overhead is applied using a rate of 120% of direct labour cost. Any over/under-applied overhead is transferred to cost of goods sold at June 30. At 30 June, Job No. 326 was incomplete. Job Nos 322, 323 and 324 had been completed and sold on credit, while Job No. 325 was still in the finished goods warehouse. The jobs sold had a total sales value of $81,744.

 

Task 1

 

Prepare and balance the following accounts (a single ledger is used):

• Raw Materials Control                        
• Labour Control       
• Factory Overhead Control 
• Factory Overhead Applied
• Work in Process                                     
• Finished Goods