do number 6-9
6. Electricity bill for Rp 5200 paid by company
Entry:
Factory Overhead a/c ...Dr. Rp5200
To Factory Electricity expenses Rp5200
(To record overhead expenses)
7. Entry for completion of Job 14A1
Finished Goods inventory A/c ...Dr. 13700
To Work in Process inventory a/c 13700
( To recognise completion of Job 14A1)
Working-
1. Job Cost sheet for Job 14A1
| Direct Material | Rp.1800 |
| Direct Labour | Rp.7000 |
| Factory overheads (7000*70%) | Rp.4900 |
| Total cost | Rp.13700 |
2. Another term for indirect material is an auxiliary material. Indirect material is a resource used in the manufacturing, production, testing or inspection of another good (asset, product) but is not integrated to that good. Also, goods used while operating equipment during the production process or in the maintenance works are indirect materials.
There, amount of auxiliary material will be taken as overhead.
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