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FabIndia is the "to go" shop for authentic Indian weaves

Accounting

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1. FabIndia is the "to go" shop for authentic Indian weaves. FabIndia employs many skilled craftspeople on the payroll and uses a job-costing system. FabIndia has received an order from one of the leading fashion houses and for reference, FabIndia has named the order as Job no. 3269. Job 3269 was the only job being process on February 1, and had accumulated costs of Rs.22,500 till that date. The breakup of the costs incurred during February were

 

Job No Direct Materials Direct Labour

1899 Rs. 2000 Rs. 6000

2503 9000 10000

0565 14000 8000

 

 

Job no. 0565 was the only job in production as of February 28.

 

Required:

1. Assuming that FabIndia decided to use direct labor as its cost driver. What will be the predetermined overhead rate, if the budgeted amounts of direct labor and manufacturing overhead are estimated to be Rs.200,000 and Rs.300,000, respectively?
2. What will be the cost of work-in-process inventory as of February 28?
3. Compute the cost of jobs completed during the month of February.
4. What would be the sales revenue of FabIndia if it sold all of its completed jobs, with an 40% markup to cost.