Reference no: EM132651377
Question - The January 2019 transactions of Ropati Production ltd, which uses job order costing systems, are shown below (ignore gst)
1. Raw materials purchased $342,000 on credit
2. Raw materials issued to production,$320,000 direct and $42,000 indirect
3. Facotry payroll included $498,000 of direct labor and $96,000 of indirect labor
4. Other overhead costs incurred were:
Rates $52,000
Insurance 48,000
5. Depreciation of manufacturing equipment $57,000.
6. Factory overhead is applied at 100% of direct materials cost.
7. Jobs completed and transferred to finished goods at cost $1,170,000.
8. Jobs with a cost of $1,100,000 were sold on credit for $1,375,000.
9. Begining inventories were:
Raw materials $43,500
Work in process 122,000
Finished goods 105,000
Required -
1. Prepare the general journal entries to record the transactions.
2. Calculate the ending balance in work in process, raw materials and finished goods.
3. Was overhead over-applied or under-applied in January? By what amount?