Sankalp Industries absorbs factory overhead costs at Rs. 2.50 per direct labour hour. Both opening and closing

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Sankalp Industries absorbs factory overhead costs at Rs. 2.50 per direct labour hour. Both opening and closing balance of work-in progress and finished goods inventories are zero.

The following data are available for the year 2002:

(i). Calculate factory overheads incurred and factory overheads absorbed;

(ii). Pass a journal entry for disposing of overhead or under-absorbed factory overheads.

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Cost Accounting

ISBN: 9780070221628

4th Edition

Authors: Jawahar Lal, Seema Srivastava

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Question Posted: Sep 05, 2023 01:33 AM

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Sankalp Industries absorbs factory overhead costs at Rs. 2.50 per direct labour hour. Both opening and closing

Question:

Direct labour hours used Direct labour cost Indirect labour cost Indirect materials cost Depreciation of plant and equipment Miscellaneous factory overheads Assuming that all goods produced have been sold: 50,000 Rs 1,00,000 25,000 10,000 50,000 50,000

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Lets calculate the factory overheads incurred and the factory overheads absorbed based on the given ...View the full answer

Cost Accounting

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