Reference no: EM132611436

The following information relates to Sakina Industries for the month of Dec. 2009.

1. Purchased Materials on account Rs. 90,000.

2. Issued Materials of Rs. 80,000 which included indirect materials of Rs. 10,000.

3. Labour Costs accrued: Direct Rs. 45,000 and Indirect Rs. 15,000.

4. Indirect Manufacturing costs other then indirect Material and indirect labour incurred on accounts Rs. 19,000.

5. Factory Overhead Costs applied @ 90% of direct labour cost.

6. Goods Costing Rs. 1,20,000 were completed (Finished).

7. 80% of the completed goods were sold at 20% above cost.

Required:

Problem 1: Make journal entries for the above information including all adjusting and closing entries.