A job shop commenced its operations on January 1 of the current year. During the first quarter, the following transactions took place: (i) Materials costing `4,00,000 were purchased on account. (ii)...


A job shop commenced its operations on January 1 of the current year. During the first quarter, the following transactions took place:


(i) Materials costing `4,00,000 were purchased on account.


(ii) Materials purchased were placed in process.


(iii) A total of 2,000 direct labour-hours were charged to individual jobs at the rate of `50 per hour.


(iv) The fixed manufacturing overhead totalled `1,60,000.


(v) The variable manufacturing overhead totalled `40,000.


(vi) Only job 10, with material charges of 40,000, direct labour charges of `20,000, and applied overhead rate, was in process at the end of the period.



May 02, 2022
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