Question-1 Ahsan Corporation produces special products to customers specifications and uses job order cost system. The following data relates to its operations for the month of December, 1996 a) b) i) ii) iii) iv) v) Purchased raw material on account Rs. 42,000 Material issued to factory Rs. 33,000 of which Rs. 3,000 was used Indirectly Labour used: Direct Rs. 50,000 Indirect Rs. 5,000 Factory Overhead Cost incurred Rs. 40,000 Factory Overhead is applied at 100% of Direct Labour Cost Job were completed to the extent of 90% vi) vii) Goods sold on accoun: Rs. 170,000 viii) Finished Goods Inventory valued at Rs. 10,000 ii) iii) iv) Required: Record the above transactions in general journal and closed the factory overhead account The information below is taken from the financial statements of Usama Company at the end of year 1996 Goods in process inventory December 31, 1996 i) Rs. 30,000 Cost of raw material used 156,000 372,000 90,000 Cost of goods manufactured Factory overhead (75% of Direct Labour Cost) Required: Job O Compute the cost of goods in process inventory at January 1, 1996 تھا

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Question-1
Ahsan Corporation produces special products to customers specifications and uses job order cost system. The
following data reiates to its operations for the month of December, 1996
Purchased raw material on account Rs. 42,000
Job O
Material issued to factory Rs. 33,000 of which Rs. 3,000 was used Indirectly
Labour used: Direct Rs. 50,000 Indirect Rs. 5,000
a)
b)
i)
ii)
iii)
iv)
Factory Overhead Cost incurred Rs. 40,000
Factory Overhead is applied at 100% of Direct Labour Cost
Job were completed to the extent of 90%
v)
vi)
vii) Goods sold on account Rs. 170,000
viii) Finished Goods Inventory valued at Rs. 10,000
Required: Record the above transactions in general journal and closed the factory overhead account
The information below is taken from the financial statements of Usama Company at the end of year 1996
Goods in process inventory December 31, 1996
Rs. 30,000
Cost of raw material used
156,000
Cost of goods manufactured
372,000
Factory overhead (75% of Direct Labour Cost)
90,000
i)
ii)
iii)
iv)
Required:
Compute the cost of goods in process inventory at January 1, 1996.
Transcribed Image Text:Question-1 Ahsan Corporation produces special products to customers specifications and uses job order cost system. The following data reiates to its operations for the month of December, 1996 Purchased raw material on account Rs. 42,000 Job O Material issued to factory Rs. 33,000 of which Rs. 3,000 was used Indirectly Labour used: Direct Rs. 50,000 Indirect Rs. 5,000 a) b) i) ii) iii) iv) Factory Overhead Cost incurred Rs. 40,000 Factory Overhead is applied at 100% of Direct Labour Cost Job were completed to the extent of 90% v) vi) vii) Goods sold on account Rs. 170,000 viii) Finished Goods Inventory valued at Rs. 10,000 Required: Record the above transactions in general journal and closed the factory overhead account The information below is taken from the financial statements of Usama Company at the end of year 1996 Goods in process inventory December 31, 1996 Rs. 30,000 Cost of raw material used 156,000 Cost of goods manufactured 372,000 Factory overhead (75% of Direct Labour Cost) 90,000 i) ii) iii) iv) Required: Compute the cost of goods in process inventory at January 1, 1996.
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