Sunshine Company uses a job order cost accounting system. The following information was provided for the...

 

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Sunshine Company uses a job order cost accounting system. The following information was provided for the month of March. 1. 11. III. IV. V. VI. VII. VIII. Purchases of direct material during the month amounted to Rs. 59,700 on account. Material requisitions issued by the production department during the month total of Rs. 56,200. Time cards of direct workers show 2000 hours worked on various jobs during the month, for total direct labor cost of Rs. 30,000. Direct workers were paid Rs. 26,300 in March. Actual overhead cost for the month amounted to Rs. 34,900. Overhead is applied to jobs at a rate of Rs. 18 per direct labor hour. Jobs with total accumulated cost of Rs. 116,000 were completed during the month. On March 31, finished goods inventory was valued at Rs. 22,000. IX. During March, finished goods were sold for Rs. 128,000 on account. Required: Prepare general journal entries for each of the above transactions including cost of goods sold and closing of factory overhead account. Sunshine Company uses a job order cost accounting system. The following information was provided for the month of March. 1. 11. III. IV. V. VI. VII. VIII. Purchases of direct material during the month amounted to Rs. 59,700 on account. Material requisitions issued by the production department during the month total of Rs. 56,200. Time cards of direct workers show 2000 hours worked on various jobs during the month, for total direct labor cost of Rs. 30,000. Direct workers were paid Rs. 26,300 in March. Actual overhead cost for the month amounted to Rs. 34,900. Overhead is applied to jobs at a rate of Rs. 18 per direct labor hour. Jobs with total accumulated cost of Rs. 116,000 were completed during the month. On March 31, finished goods inventory was valued at Rs. 22,000. IX. During March, finished goods were sold for Rs. 128,000 on account. Required: Prepare general journal entries for each of the above transactions including cost of goods sold and closing of factory overhead account.

Answer rating: 100% (QA)

SOLUTION To prepare the general journal entries for the transactions and events mentioned including the cost of goods sold and closing of the factory ... View the full answer