The following incomplete information is provided in relation to Oldfield Ltd for the month
(i) Opening balances:
Raw materials $25,000
Work in process $32,500
(ii) Closing balances
(iii) The actual labour rate is $6 per hour, and overhead is applied on the basis of $7.50
per direct labour hour.
(iv) The only unfinished job at the end of January has incurred $16,500 of raw materials
and $8400 of direct labour.
(v) Jobs sold during the month were sold for $450,000 (credit sales). The cost of the
goods sold during the month was $385,000.
(vi) Office supplies inventory worth $4,500 were issued to production during January.
(vii) A total of 10,000 labour hours were worked. Total overhead premiums incurred
during the month are $2925.
(viii) Sundry manufacturing overhead costs incurred during January were $66,000.
Complete the relevant T- accounts (provide
d on the next page) to show the flow
of costs through the company's manufacturing accounts and answer the
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