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The January 2019 transactions of Ropati Production ltd, which uses job order costing systems, are shown below(ignore gst) Raw materials purchased $342,000 on credit Raw
The January 2019 transactions of Ropati Production ltd, which uses job order costing systems, are shown below(ignore gst)
- Raw materials purchased $342,000 on credit
- Raw materials issued to production,$320,000 direct and $42,000 indirect
- Facotry payroll included $498,000 of direct labor and $96,000 of indirect labor
- other overhead costs incurred were:
Rates $52,000
Insurance 48,000
5.Depreciation of manufacturing equipment $57,000
6.Factory overhead is applied at 100% of direct materials cost
7.Jobs completed and transferred to finished goods at cost $1,170,000
8.Jobs with a cost of $1,100,000 were sold on credit for $1,375,000
9.Begining inventories were:
Raw materials $43,500
Work in process 122,000
Finished goods 105,000
Required:
- Prepare the general journal entries to record the transactions.
- Calculate the ending balance in work in process, raw materials and finished goods
- was overhead over-applied or under-applied in January? by what amount?
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