The general ledger of Daedalus Ltd, a manufacturing firm operating a job cost system, included the following balances at May 31:   $   Raw Materials Control 35,000   Labour Control  3,375  (Cr.) Factory Overhead Applied 420  (Cr.) Work In Process 16,150   Finished Goods 17,075     Particulars of jobs in process and the job completed were:   Job No. Material Labour Overhead Total In process 323 $ 6,750 $ 3,000 $ 3,600 $ 13,350   324 1,700 500 600 2,800 Completed 322 6,350 4,875 5,850 17,075   During the month of June the following transactions occurred:   $ $ Materials purchased on credit   24,700 Factory wages paid  - Gross 29,000     - PAYG Tax 6,700 22,300 Factory rent paid   2,500  Invoices for sundry factory overhead items   2,000     Depreciation at 15% per annum is to be charged on factory plant valued at $160,000. Material issued to the factory and labour charged for the month were:   Job No. Material Labour 323 $      nil $  1,175 324 5,600 4,400 325 12,000 9,250 326 4,500 1,000 Indirect 3,000 9,800   25,100 25,625     Factory overhead is applied using a rate of 120% of direct labour cost. Any over/under-applied overhead is transferred to cost of goods sold at June 30. At 30 June, Job No. 326 was incomplete. Job Nos 322, 323 and 324 had been completed and sold on credit, while Job No. 325 was still in the finished goods warehouse. The jobs sold had a total sales value of $81,744. REQUIRED: ( a ) Prepare a Job Card Cost Summary for June . ( b ) Prepare and balance the following accounts (a single ledger is used):  ( i )Raw Materials Control( ii )Labour Control ( iii ) Factory Overhead Control ( iv ) Factory Overhead Applied ( v ) Work in Process ( v ) Finished Goods

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The general ledger of Daedalus Ltd, a manufacturing firm operating a job cost system, included the following balances at May 31:

 

$

 

Raw Materials Control

35,000

 

Labour Control 

3,375 

(Cr.)

Factory Overhead Applied

420 

(Cr.)

Work In Process

16,150

 

Finished Goods

17,075

 

 

Particulars of jobs in process and the job completed were:

 

Job No.

Material

Labour

Overhead

Total

In process

323

$ 6,750

$ 3,000

$ 3,600

$ 13,350

 

324

1,700

500

600

2,800

Completed

322

6,350

4,875

5,850

17,075

 

During the month of June the following transactions occurred:

 

$

$

Materials purchased on credit

 

24,700

Factory wages paid 

- Gross

29,000

 

 

- PAYG Tax

6,700

22,300

Factory rent paid

 

2,500 

Invoices for sundry factory overhead items

 

2,000

 

 

Depreciation at 15% per annum is to be charged on factory plant valued at $160,000.

Material issued to the factory and labour charged for the month were:

 

Job No.

Material

Labour

323

$      nil

1,175

324

5,600

4,400

325

12,000

9,250

326

4,500

1,000

Indirect

3,000

9,800

 

25,100

25,625

 

 

Factory overhead is applied using a rate of 120% of direct labour cost. Any over/under-applied overhead is transferred to cost of goods sold at June 30. At 30 June, Job No. 326 was incomplete. Job Nos 322, 323 and 324 had been completed and sold on credit, while Job No. 325 was still in the finished goods warehouse. The jobs sold had a total sales value of $81,744.

REQUIRED:

( a ) Prepare a Job Card Cost Summary for June .

( b ) Prepare and balance the following accounts (a single ledger is used): 

( i )Raw Materials Control( ii )Labour Control

( iii ) Factory Overhead Control ( iv ) Factory Overhead Applied

( v ) Work in Process ( v ) Finished Goods

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