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The following incomplete information is provided in relation to Oldfield Ltd for the month of January. (i) Opening balances:

The following incomplete information is provided in relation to Oldfield Ltd for the month

of January.

(i) Opening balances:

Raw materials $25,000

Work in process $32,500

Finished goods

$72,000

(ii) Closing balances

Raw material

$24,000

Finished goods

$45,000


(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.


Required:


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

questions provided.

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