During December, following transactions took place in Mohib Corporation, a company that uses job order costing:...

 

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During December, following transactions took place in Mohib Corporation, a company that uses job order costing: (8 Marks) For December, the following transactions occurred: a) Materials purchased on account Rs.33,000 b) Direct materials of Rs.22, 000 were requisitioned, along with indirect materials of Rs.6, 500 and Rs.2,500 of supplies. e) Total payroll was Rs.30, 000. The home office prepared the payroll and the checks and deducted 6.5% for FICA tax and 10% for federal income tax. The payroll consisted of: Direct labour Rs.15, 000 Indirect labour Rs.4, 000 Rs.8, 000 Rs.3, 000 Sales salaries Office salaries d) The liability for employer payroll taxes is kept on the home office books. The state unemployment insurance tax rate is 2.1%, the federal unemployment insurance tax rate is 0.7% FICA tax is 6.5% e) Factory overhead is applied at a rate of 90% of direct material cost. Direct materials returned to the storeroom Rs.800. g) Payments made to vendors on account (before 5% discount) Rs.31, 500. h) Goods completed totaled Rs.48, 300. Goods costing Rs.45, 000 were sold for Rs.65, 000. ) One of the credit customers returned goods costing Rs.10, 000 for which he was billed at Rs.20, 000. k) Close out the over- or under applied factory overheads to cost of goods sold. Required: for the month of December in General Journal form. Prepare all the journal entries for the above transactions During December, following transactions took place in Mohib Corporation, a company that uses job order costing: (8 Marks) For December, the following transactions occurred: a) Materials purchased on account Rs.33,000 b) Direct materials of Rs.22, 000 were requisitioned, along with indirect materials of Rs.6, 500 and Rs.2,500 of supplies. e) Total payroll was Rs.30, 000. The home office prepared the payroll and the checks and deducted 6.5% for FICA tax and 10% for federal income tax. The payroll consisted of: Direct labour Rs.15, 000 Indirect labour Rs.4, 000 Rs.8, 000 Rs.3, 000 Sales salaries Office salaries d) The liability for employer payroll taxes is kept on the home office books. The state unemployment insurance tax rate is 2.1%, the federal unemployment insurance tax rate is 0.7% FICA tax is 6.5% e) Factory overhead is applied at a rate of 90% of direct material cost. Direct materials returned to the storeroom Rs.800. g) Payments made to vendors on account (before 5% discount) Rs.31, 500. h) Goods completed totaled Rs.48, 300. Goods costing Rs.45, 000 were sold for Rs.65, 000. ) One of the credit customers returned goods costing Rs.10, 000 for which he was billed at Rs.20, 000. k) Close out the over- or under applied factory overheads to cost of goods sold. Required: for the month of December in General Journal form. Prepare all the journal entries for the above transactions

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Journal Entries Purchases Ac Dr 33000 To Creditor Ac 33000 Purchases Ac Dr31000 22000... View the full answer