Assignment $2100$ MarksDue: $14$ April $2025$

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Question $2$

The following transactions occurred during the month of April for Nelson Company:

a$.$ Purchased materials costing R$46100$ on account.

b$.$ Requisitioned materials totalling R$48000$ for use in production, R$31700$ for Job $518$ and the remainder for Job $519.$

c$.$ Recorded $65$ hours of direct labour on Job $518$ and $90$ hours on Job $519$ for the month. Direct labourers are paid at rate of R$140$ per hour.

d$.$ Applied overhead using a plantwide rate of R$62$ per direct labour hour.

e$.$ Incurred and paid in cash actual overhead for the month of R$9730$

f$.$ Completed and transferred Job $518$ to Finished goods.

g$.$ Sold on account Job $517,$ which had been completed and transferred to Finished goods in March, for cost $($R$27700)$ plus $25\%.$

Required:

$2\mathrm{.}1$ Prepare journal entries for transactions a$.$ through e$.$

$2\mathrm{.}2$ Prepare job$-$order cost sheets for Jobs $518$ and $519.$

$2\mathrm{.}3$ Prepare journal entries for transactions $f$ and $g.$

$2\mathrm{.}4$ Prepare a schedule of cost of goods manufactured for April. Assume that the beginning balance in the raw materials account was R$10250$ and that the beginning balance in the Work$-$in$-$process account was zero.