Required:

1. (a) Prepare ledger accounts for material control, labour control, factory overhead control, work in process and finished goods.

2. (b) Prepare a trading statement showing the gross margin on each job sold and the total gross profit for June.

8.7 Ledger accounts, over/under-applied, trading statement As the cost accountant for Purdy Products you are provided with the following information covering the manufacturing operations for June. (Note: GST is ignored in this question.) Ledger balances-1 June Finished goods Job 70 Job 73 Work in process Job 75 Material control 40 000 75 000 115 000 20 000 7 000 Labour control (credit) Factory overhead control (over-applied to date) 1 800 400 Material requisition summary Job 75 Job 76 4 500 14 250 6 830 12 420 500 Job 77 Job 78 Cleaning material Materials received in store 38 500 34 500 Time sheet summary Job 75 Job 76 Job 77 Hours 350 900 500 Job 78 Non-production 750 200 Additional information Plant operators are paid $30 per hour whereas non-production staff receive $20 per hour. The factory super visor receives a salary of $6 000 per month. The payroll summaries for the month indicate that gross factory wages paid were $82 000 Factory overhead is applied at $15 per direct labour hour During June $28 000 worth of overhead costs were paid in addition to those already given. A production summary at the end of June indicates thefollowing Jobs completed -jobs 75, 76 and 78 Jobs sold (selling price)-job 70 ($50 000), job 73 (S90 000), job 75 ($45 000) he end of the financial year