The following accounting information have been obtained from XYZ Corporation at June 30th, 2018 Material was purchased on credit from supplier for Rs. 100,000. Defective material returned to supplier worth Rs. 5,000 Material and Labour used on jobs were as under: Direct Materials Direct Labour Job No. 1 Rs. 12,000 Rs. 17,000 Job No. 2 7,000 8,000 Job No. 3 Rs. 10,000 Rs. 9,000 Job No. 4 5,000 4,000 Job No. 5 11,000 14,000 Indirect Material/Labour 2,000 3,000 Other FOH cost incurred Rs. 5,000 FOH is applied at 90% of Direct Labour. Depreciation on Machinery Rs. 4000 Jobs no. 1, 3 and 4 were completed and Job no. 3 and 4 were sold to customer at Rs. 70,000 and Rs. 90,000 respectively. Required Prepare the necessary entries to record the above transactions.
The following accounting information have been obtained from XYZ Corporation at June 30th, 2018 Material was purchased on credit from supplier for Rs. 100,000. Defective material returned to supplier worth Rs. 5,000 Material and Labour used on jobs were as under: Direct Materials Direct Labour Job No. 1 Rs. 12,000 Rs. 17,000 Job No. 2 7,000 8,000 Job No. 3 Rs. 10,000 Rs. 9,000 Job No. 4 5,000 4,000 Job No. 5 11,000 14,000 Indirect Material/Labour 2,000 3,000 Other FOH cost incurred Rs. 5,000 FOH is applied at 90% of Direct Labour. Depreciation on Machinery Rs. 4000 Jobs no. 1, 3 and 4 were completed and Job no. 3 and 4 were sold to customer at Rs. 70,000 and Rs. 90,000 respectively. Required Prepare the necessary entries to record the above transactions.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Q # 8
The following accounting information have been obtained from XYZ Corporation at June 30th, 2018
- Material was purchased on credit from supplier for Rs. 100,000.
- Defective material returned to supplier worth Rs. 5,000
- Material and Labour used on jobs were as under:
|
Direct Materials |
Direct Labour |
|
|
Job No. 1 |
Rs. 12,000 |
Rs. 17,000 |
|
Job No. 2 |
7,000 |
8,000 |
|
Job No. 3 |
Rs. 10,000 |
Rs. 9,000 |
|
Job No. 4 |
5,000 |
4,000 |
|
Job No. 5 |
11,000 |
14,000 |
|
Indirect Material/Labour |
2,000 |
3,000 |
- Other FOH cost incurred Rs. 5,000
- FOH is applied at 90% of Direct Labour.
Depreciation on Machinery Rs. 4000- Jobs no. 1, 3 and 4 were completed and Job no. 3 and 4 were sold to customer at Rs. 70,000 and Rs. 90,000 respectively.
Required
Prepare the necessary entries to record the above transactions.
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