X Co., engaged in job work, has completed all jobs in hand on 30 December, and showed direct materials and direct labour cost of Rs. 80,000 and Rs. 60,000 respectively as having been incurred on Job No. 501.
The costs incurred by the business on 31 December 2009, the last day of the accounting year, were as under:
|
Direct materials (Job 501) |
Rs. 4,000 |
|
Direct wages (Job 501) |
Rs. 16,000 |
|
Indirect labour |
Rs. 4,000 |
|
Miscellaneous factory overheads |
Rs. 3,000 |
It is the practice of the business to make the jobs absorb factory overheads based on 120% of direct labour cost. Calculate the value of work-in-progress of Job No. 501 on 31 December 2009.