Freaday Incorporation provides the following financial data for the month of July 2020: Beginning Inventories 'Rs.' Direct Material WIP Finished Goods 12,000 1. Purchased material on accounts for Rs. 200,000 2. Defective material retumed to supplier worth Rs. 5,000 3. Material and labor issued to job during the month Job # 101 Job # 102 Job # 103 Job # 104 Direct material Direct Labor 40,000 50,000 30,000 25,000 5,000 65,000 80,000 50,000 40,000 15,000 Indirect 4. FOH rate is 120% of direct labor cost 5. Actual FOH cost incurred on account Rs. 250,000 Required a) Prepare joumal entries to record the preceding transactions.
Freaday Incorporation provides the following financial data for the month of July 2020: Beginning Inventories 'Rs.' Direct Material WIP Finished Goods 12,000 1. Purchased material on accounts for Rs. 200,000 2. Defective material retumed to supplier worth Rs. 5,000 3. Material and labor issued to job during the month Job # 101 Job # 102 Job # 103 Job # 104 Direct material Direct Labor 40,000 50,000 30,000 25,000 5,000 65,000 80,000 50,000 40,000 15,000 Indirect 4. FOH rate is 120% of direct labor cost 5. Actual FOH cost incurred on account Rs. 250,000 Required a) Prepare joumal entries to record the preceding transactions.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Freaday Incorporation provides the following financial data for the month of July 2020:
Beginning Inventories 'Rs.'
Direct Material
12,000
WIP
Finished Goods
1. Purchased material on accounts for Rs. 200,000
2. Defective material retumed to supplier worth Rs. 5,000
3. Material and labor issued to job during the month
Direct material | Direct Labor
65,000
80,000
50,000
Job # 101
40,000
Job # 102
50,000
30,000
25,000
5,000
Job # 103
Job # 104
Indirect
40,000
15,000
4. FOH rate is 120% of direct labor cost
5. Actual FOH cost incurred on account Rs. 250,000
Required
a) Prepare joumal entries to record the preceding transactions.
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