Question # 30:

1993 Regular (Advanced & Cost Accounting) UOK

1993 regular
(ADVANCED & Cost Accounting) UOK
Margoob Company uses job order cost accounting system. The following
information appears in the goods in process controlling account for the month of
June 1993 and company uses FIFO method:
Goods in Process
Debits to Accounts (Rupees)
Credits to Accounts (Rupees)
Balance 1 June 1993
8,000 Transfer to finished goods
Direct materials
20,000 Inventory account
?
Direct labour
12,000 Balance 30 June, 1993
8,500
Manufacturing overhead
14,000
incurred on account
54,000
54,000
Over-applied factory overhead Rs.400 and used factory overhead rate based on
direct labour cost. 90% completed units sold on account for Rs.50,000.
REQUIRED
a) Assuming that the direct labour charged to the job still in process at June
30, 1993 amounts to Rs.2,100. Compute the amount of manufacturing
overhead applied and the amount of direct material which have been
charged to these jobs as of June 30.
b) Pass the journal entries relating:
i) Manufacturing costs.
ii) Completed goods transferred to finished goods inventory.
iii) Cost of goods sold.
iv) Credit sales.
v) Factory overhead incurred.
vi) Close over-applied factory overhead to cost of goods sold.
c) Prepare revised goods in process account.
Question # 16: