Question

From the following figures ascertained from Costing Records and Financial books of a Factory, you are required to pass necessary entries in the Cost Journal (Assume that a system maintaining Control Accounts prevails in the Organisation).

(a)	Purchases	Rs.	3,90,000
(b)	Carriage Inward	Rs.	5,850
(c)	Stores Issued	Rs.	3,58,800
(d)	Productive Wages	Rs.	13,46,320
(e)	Unproductive Labour	Rs.	1,21,680
(f)	Works on Cost	Rs.	3,48,400
(g)	Materials used in repairs	Rs.	3,120
(h)	Cost of Completed Jobs	Rs.	12,80,630

 

Answer 1

COST JOURNAL

Date		Particulars	L.F.	Debit Rs.	Credit Rs.
	(a)	Stores Ledger Control A/c. Dr.		3,90,000
		To General Ledger Adjustment A/c			3,90,000
		(Being the amount of purchases made).
	(b)	Stores Ledger, Control A/C. Dr OR Factory Overhead Control A/C. Dr.		5,850
		To General Ledger Adjustment A/c			5,850
		(Being the amount of carriage inwards incurred.)
	(c)	Work-in-progress Ledger Control A/c.Dr.		3,58,800
		To Stores Ledger Control A/c.			3,58,800
		(Being the Stores issued to production)
	(d,e)	Wages Control A/c. Dr.  (Rs. 3,46,320 + Rs. 1,21,680)		4,68,000
		To General Ledger Adjustment A/c.			4,68,000
		(Being the amount of wages paid to employees)
	(f)	Work-in-Progress Ledger Control A/c. Dr.  Factory Overhead Control A/c. Dr.		3,46,320 1,21,680
		To Wages Control No.			4,68,000
		(Being the amount of production wages. allocated to Jobs and unproductive labour apportioned to factory overhead)
	(g)	Factory Overhead Control A/c. Dr.		3,120
		To General Ledger Adjustment A/c.			3,120
		(Being the cost of indirect materials issued and used for repair)
	(h)	Finished Goods Ledger Control No. Dr.		12,86,630
		To Work-in-progress Ledger Control A/c.			12,86,630
		(Being the cost of completed jobs transferred from Work-in-progress No.)