Reference no: EM132549088

The following transactions were completed by Eagle Enterprises for the month ended January 31, 2019.

1. Indirect material purchased on account from James for Rs. 100,000/-
2. Direct Material purchased on account for Rs. 20,000/- Terms 2/10, n/30.
3. Material issued for production to Job # 15 totaling Rs.20,000/-
4. Furniture purchased for Marketing block Rs.200,000/-
5. Machinery purchased for Factory Rs. 150,000/-
6. Work in Process on January 1st was Rs.10,000/-
7. Factory Payroll of Rs.40,000/- (Rs.30,000/- direct labor, Rs.10,000/- indirect labor) for the month was made at the office. FICA Tax @20% and income tax @ of 10% was deducted.
8. Factory Overhead applied @ of 100% of direct labor cost.
9. Depreciation for the year is to be charged @ 25% of Furniture whereas for Machinery it is to be charged @ 10%.
10. Cost of production completed for the month Rs.50,000/-
11. Goods costing Rs.80,000/- were sold for Rs.150,000/-
12. Finished goods January 1st were Rs.30,000/-
13. Paid rent of car used in factory Rs. 5,000/-

Required:-

Question 1: Prepare T accounts of work in process, finished goods, cost of goods sold, Factory overhead actual and applied and close FOH over/under applied.