Question 3 Teratoor Space provides interior design services in Bandar Teemor. It uses a job order costing system to accept orders from the customers. The manufacturing overhead cost is absorbed based on direct labour hour. The budgeted manufacturing overhead cost for the month of January is RM96,500. Management expects a total of 19,300 direct labour hours will be used. Prepare journal entries for the month of January: Jan Particular 13 19 22 Purchase 200 boxes of direct material from Bharatt on credit for RM4,200. 55 boxes of direct material was requested from the store for production. It was bought for RM11.50 per box. The decoration section has purchased 240 boxes indirect material which cost RM26.10 per box from Otara by cash. Direct labour cost paid for the month of January amounted to RM5,900. 26 The depreciation cost of delivery van for the month of January is RM770. 30 For the month of January, a total of 6,300 direct labour hours have been utilised.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Question 3
Teratoor Space provides interior design services in Bandar Teemor. It uses a job order costing system to
accept orders from the customers. The manufacturing overhead cost is absorbed based on direct labour
hour. The budgeted manufacturing overhead cost for the month of January is RM96,500. Management
expects a total of 19,300 direct labour hours will be used.
Prepare journal entries for the month of January:
Jan
Particular
13
19
22
26
30
Purchase 200 boxes of direct material
from Bharatt on credit for RM4,200.
55 boxes of direct material was requested
from the store for production. It was
bought for RM11.50 per box.
The decoration section has purchased
240 boxes indirect material which cost
RM26.10 per box from Otara by cash.
Direct labour cost paid for the month of
January amounted to RM5,900.
The depreciation cost of delivery van for
the month of January is RM770.
For the month of January, a total of 6,300
direct labour hours have been utilised.
Transcribed Image Text:Question 3 Teratoor Space provides interior design services in Bandar Teemor. It uses a job order costing system to accept orders from the customers. The manufacturing overhead cost is absorbed based on direct labour hour. The budgeted manufacturing overhead cost for the month of January is RM96,500. Management expects a total of 19,300 direct labour hours will be used. Prepare journal entries for the month of January: Jan Particular 13 19 22 26 30 Purchase 200 boxes of direct material from Bharatt on credit for RM4,200. 55 boxes of direct material was requested from the store for production. It was bought for RM11.50 per box. The decoration section has purchased 240 boxes indirect material which cost RM26.10 per box from Otara by cash. Direct labour cost paid for the month of January amounted to RM5,900. The depreciation cost of delivery van for the month of January is RM770. For the month of January, a total of 6,300 direct labour hours have been utilised.
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