J Crockery received an order for 50 units of a product. In anticipation of spoilage production of 52 units was started. The following costs were incurred: Direct materials Rs. 80 per unit Direct labour Rs. 50 per unit Factory overhead 100% of direct labour During the inspection, 10 units were found defective and required the following additional costs. Direct materials Rs. 100 Direct labour Rs. 200 Factory overhead 100% of direct labour On final inspection, 2 units were classified as spoiled and sold for Rs. 90. The good units were dispatched to the customer at a price of Rs.240 per unit. Instructions: Pass journal entries to record the completion of order and sale of good and spoiled units under both of the assumption as to charge of the additional cost.
J Crockery received an order for 50 units of a product. In anticipation of spoilage production of 52 units was started. The following costs were incurred:
Direct materials Rs. 80 per unit
Direct labour Rs. 50 per unit
Factory
During the inspection, 10 units were found defective and required the following additional costs.
Direct materials Rs. 100
Direct labour Rs. 200
Factory overhead 100% of direct labour
On final inspection, 2 units were classified as spoiled and sold for Rs. 90. The good units were dispatched to the customer at a price of Rs.240 per unit.
Instructions: Pass
Step by step
Solved in 3 steps with 2 images
