The Cambridge company uses job order costing. At the beginning.of May, twdjohs were in process:Q.1.Job #369Job # 372MaterialsRs.700Ra.2,0001,0001,500Direct laborApplied lactory overheadThere was no inventory of Finished Goods on May 1. During the month. jobs # 373,374, 375, 37o, 378 and 379 were started.Materials requisitions for May totaled Rs.13,000, and direct labor cost Rs. 10.000 andactual fo.h, Rs. 16.000, Factory overhead is applied at a rate of 150% of direct labur300450cost.The only job still in Process(W.I,P) at the end of May is Job # 379, with costs ofRs.1,400 for materials aud Rs.900 Tor direct labor.Job # 376, the ouly finished job on hand at the end of May. has a total cost ofRs.2,000.REQUIRED:A- Prepare all necessary general journal entriesB- Show all computations.

(A) All Necessary journal entries: No PARTICULARS Debit Credit…

Answered: The Cambridge compan johs were in…

Business

Accounting

The Cambridge compan johs were in process: ls abor lactory overhead e was no inventory of F

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.

Question

The Cambridge company uses job order costing. At the beginning.of May, twd
johs were in process:
Q.1.
Job #369
Job # 372
Materials
Rs.700
Ra.2,000
1,000
1,500
Direct labor
Applied lactory overhead
There was no inventory of Finished Goods on May 1. During the month. jobs # 373,
374, 375, 37o, 378 and 379 were started.
Materials requisitions for May totaled Rs.13,000, and direct labor cost Rs. 10.000 and
actual fo.h, Rs. 16.000, Factory overhead is applied at a rate of 150% of direct labur
300
450
cost.
The only job still in Process(W.I,P) at the end of May is Job # 379, with costs of
Rs.1,400 for materials aud Rs.900 Tor direct labor.
Job # 376, the ouly finished job on hand at the end of May. has a total cost of
Rs.2,000.
REQUIRED:
A- Prepare all necessary general journal entries
B- Show all computations.

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