Question: Question # 3 (do my work in word file) Iqra inc. provided the following data for January, 19B: Materials and supplies: Inventory, January 1, 19B

Question # 3 (do my work in word file)

Iqra inc. provided the following data for January, 19B:

Materials and supplies:

Inventory, January 1, 19B

Rs.10,000

Purchases on account

30,000

Labour:

Accrued, January 1, 19B

3,000

Paid during January (ignore payroll taxes)

25,000

Factory overhead costs:

Supplies (issued from materials)

1,500

Indirect labour

3,500

Depreciation

1,000

Other factory overhead costs (all from outside suppliers on account)

14,500

Work in process:

Job1

Job2

Job3

Total

Work in process January 1, 19B

Rs. 1,000

--

--

Rs. 1,000

Job costs during January, 19B:

Direct materials

4,000

Rs.6,000

Rs.5,000

15,000

Direct labour

5,000

8,000

7,000

20,000

Applied factory overhead

5,000

8,000

7,000

20,000

Job 1 started in December, 19A, finished during January, and sold to a customer for

Rs.21,000 cash

Job 2 started in January, not yet finished.

Job 3 started in January, finished during January, and now in the finished goods

inventory awaiting customer's disposition

Finished goods inventory January 1, 19B.

Required:

Journal entries, with detail for the respective job orders and factory overhead subsidiary records, to to record the following transactions for the January:

  1. Purchase of materials on account.
  2. Labour paid.
  3. Labour cost distribution.
  4. Materials issued.
  5. Depreciation for the month.
  6. Acquisition of other overhead costs on credit.
  7. Overhead applied to production.
  8. Jobs completed and transferred to finished goods.
  9. Sales revenue.
  10. Cost of goods sold.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!