1. The comparative inventory data for JPE Manufacturing Corporation for the yearended December 31, 2018 is summarized below:January 1P 495,000138,000127,000184,000December 31Materials controlWork in process- materialWork in process- laborWork in process- overheadP 513,000132,000136,000161,000Finished goods control525,000487,000During the year 2018, the corporation completed, among others, the followingtransactions:a) Purchases, all on account, direct materials, P2,100,000; indirectmaterials,P400,000.b) The total materials requisitioned for use during the year includedP360,000 for indirect materials, P42,000 for shipping of finishedgoods deliveries, and P35,000for general office repairs.c) The payroll for the year was broken down as follows: direct labor,P1,650,000, indirect labor, P550,000; sales salaries, P840,000,and office salaries, P460,000.d) The payroll was vouchered and analysis disclosed the followingdetails.WIH TaxP80,000 P40,000 P12,000 P38,000 P6,00040,00060,00050,000sssMedicare HDMFECCDirect laborIndirect laborSales salariesOffice salariesGrossP1,650,000550,000840,000460,00012,50020,00011,000e) The corporation's share of the payroll taxes, SsS contribution,3,0008,0005,00012,000 1,50022,000 4,00014,000 2,500 Office salaries460,000e) The corporation's share of the payroll taxes, SSS contribution,Medicare premium, HDMF premiums and employer compensationcontribution was appropriately recorded. (Assume the sameamount of SSS, Medicare and HDMF premiums was contributedby the employer.)f) Other manufacturing expenses vouchered amounted to P920,000and depreciation charges were P250,000 on plant assets,P120,000 on delivery trucks and P80,000 on office equipment.g) Manufacturing expenses were applied to production atpredetermined rate equal to 130 % of direct labor cost.h) Completed goods were transferred to the finished goodswarehouse.50,00011,0005,00014,000 2,500) All sales are made on terms 2/10,n/30; billing price at 150% of cost.Required:1. Prepare entries in general journal form, to record the above transaction of JPEManufacturing Corporation for the year 2018.2. Prepare the statement of cost of goods manufactured and sold for the yearended Dec 31, 2018.3. Determine the following amounts:a. Prime costb. Conversion costc. Product costd. Period cost

SOLUTION: (a). Schedule of cost of goods manufactured: Beginning raw material 10000 Raw…

1. The comparative inventory data for JPE Manufacturing Corporation for the year ended December 31, 2018 is summarized below: January 1 P 495,000 138,000 127,000 184,000 December 31 P 513,000 132,000 136,000 161,000 Materials control Work in process- material Work in process- labor Work in process- overhead

1. The comparative inventory data for JPE Manufacturing Corporation for the year ended December 31, 2018 is summarized below: January 1 P 495,000 138,000 127,000 184,000 December 31 P 513,000 132,000 136,000 161,000 Materials control Work in process- material Work in process- labor Work in process- overhead

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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