RAZA CORPORATION reported the following inventories on 1^st November 2010.

Raw Material Rs. 40,000

Goods in Process Rs. 70,000

Finished Goods Rs. 50,000

The company uses the job order cost accounting system. The following transactions

took place during November:

1. Material purchased o account Rs. 200,000
2. Material requisision for production Rs. 90,000 and supplies Rs. 30,000.
3. Materials returned to supplier Rs. 5,000
4. Accrued payroll Rs. 105,000 including payroll for indirect labour Rs. 15,000
5. Sundry manufacturing expenses incurred Rs. 120,000
6. Paid to Accounts payable Rs. 100,000
7. FOH applied at the rate of 110% of direct labour cost.
8. Goods in process inventory November 30, Rs. 70,000
9. Finished goods inventory November 30, Rs. 55,000
10. Sales on accounts Rs. 450,000

Required

General journal entries for each of the above transactions also make an adjusting

entry of over or under applied FOH-Cost.

Q # 4

The Millat Company uses Job Order Costing. The following data were obtained from the company’s records as of June 30, 2015.

JOB NO:	DIRECT MATRILS RS.	DIRECT LABOR HOURS
1001	16,300	2,300
1002	23,600	4,700
1003	24,500	4,200
1004	15,400	2,500
1005	18,200	3,200
1006	13,700	1,980

Direct labor is charged to jobs at an average cost of Rs. 6 per direct labor hour. Factory Overhead is charred to jobs on the basis of Rs. 3 per direct labor hour. Actual overhead totaled Rs. 58,000. During June Job 1001, 1002, 1003, 1004 and 1005 were completed. Jobs 1001 and 1002 were shipped out, and the customers were billed for Rs. 48,000 and Rs. 82,000 respectively.

Required:

General Journal entries to summarize the transactions for June 2015 to close the Factory Overhead account.

Answer rating: 100% (QA)

General ledger accounts of Otjiwarongo Manufacturer Ltd for the year ended on 31st December 2019 are ... View the full answer