The Matham Company is a motor repair company operates a Job Cost System and providesyou with the following details relating to January.

Balance Brought Forward
Work In Progress
Job No.40	$ 6,500
Job No.41	2,500		$ 9,000
Transactions for the month of January
Raw Material and stores purchased on credit (excluding 10% GST)			$ 32,000
Raw Material and stores issued
Job No.40	$ 1,500
Job No.41	500
Job No.42	21,000
Job No.43	6,300	29,300
Indirect		700	$ 30,000
Time sheet summary
Job No.40	$ 1,000
Job No.41	300
Job No.42	11,000
Job No.43	2,800	15,100
Indirect		1,900	$ 17,000
Factory Depreciation			$ 4,900
Factory Overhead Recovery Rate 50% of direct labour cost.
Jobs invoiced to customers
Job No.40 (excluding 10% GST)	9,900
Job No.41 (excluding 10% GST)	3,600		$ 13,500
Job No.42 was finished during January, but was not delivered by 31 January.
Job No.43 was in process at the end of January.

Required:

(a) Prepare a Job Card summary for January.

(b) Journal entries to record the transactions that took place during January.

(c) Calculate the Cost of Goods Sold during January and prepare ledger accountsfor Work In Progress and Finished Goods.

Your answers: Job Cost Summary Card (a) Total Job No. 40 41 42 43 Opening Balance $6,500 $2,500 000'6$ Input: Material Labour Factory O/h Applied Total $ (h) Journal entries Journal Entries Debit Credit Raw Material Control G.S.T. Paid Accounts Payable Raw material & stores purchased on credit (incl. GST) Work In Process Factory Overhead Control Raw Material Control Raw Materialand stores issued Work In Process Factory Overhead Control Labour Control Direct & indirect labour Labour Control Accrued Payroll Factory payrollaccrued Accrued Payroll Bank Factorypayrollpaid Factory Overhead Control Accumulated Depreciation Factory Plant Factory depreciation Factory Overhead Applied Factory Overhead Control Factory Overhead charged to production Work In Process Factory Overhead Applied Journal Entries Debit Credit Factory Overhead Recovery applied (50% of Direct Labour) Finished Goods Work In Process Finished goods moved from WIPto Finished Goods inventory Cost of Goods Sold Finished Goods Cost value of finished goods sold to customers Accounts Receivable Sales G.S.T. Collected Credit sales of finished goods to customers (incl. GST) Factory Overhead Applied Cost of Goods Sold Factory Overhead overapplied adjusted to COGSs wwwwwwwww www c) Work In Process $9,000 Finished Goods Opening Balance Raw Material Control Labour Control Closing Balance Factory Overhead Applied Finished Goods $0 Cost of Goods Sold Opening Balance Work in Process Closing Balance EA LA LA t t Your answers: Job Cost Summary Card (a) Total Job No. 40 41 42 43 Opening Balance $6,500 $2,500 000'6$ Input: Material Labour Factory O/h Applied Total $ (h) Journal entries Journal Entries Debit Credit Raw Material Control G.S.T. Paid Accounts Payable Raw material & stores purchased on credit (incl. GST) Work In Process Factory Overhead Control Raw Material Control Raw Materialand stores issued Work In Process Factory Overhead Control Labour Control Direct & indirect labour Labour Control Accrued Payroll Factory payrollaccrued Accrued Payroll Bank Factorypayrollpaid Factory Overhead Control Accumulated Depreciation Factory Plant Factory depreciation Factory Overhead Applied Factory Overhead Control Factory Overhead charged to production Work In Process Factory Overhead Applied Journal Entries Debit Credit Factory Overhead Recovery applied (50% of Direct Labour) Finished Goods Work In Process Finished goods moved from WIPto Finished Goods inventory Cost of Goods Sold Finished Goods Cost value of finished goods sold to customers Accounts Receivable Sales G.S.T. Collected Credit sales of finished goods to customers (incl. GST) Factory Overhead Applied Cost of Goods Sold Factory Overhead overapplied adjusted to COGSs wwwwwwwww www c) Work In Process $9,000 Finished Goods Opening Balance Raw Material Control Labour Control Closing Balance Factory Overhead Applied Finished Goods $0 Cost of Goods Sold Opening Balance Work in Process Closing Balance EA LA LA t t