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Exercise 2 - 6. JOURNAL ENTRIES – NORMAL COST SYSTEM The following are the transactions of JA Manufacturing Co. for its first year of operations: a. Materials purchase account, P30,000. b. Purchase returns, P3,500. c. Materials issued: direct materials- P22,500 and indirect materials-P5,500. d. Payment of payroll: Amount earned P46,200 Deductions: SSS Philhealth BAGUI P 1,800 600 550 Pag-IBIG Income taxes withheld 900 3,850

Exercise 2 - 6. JOURNAL ENTRIES – NORMAL COST SYSTEM The following are the transactions of JA Manufacturing Co. for its first year of operations: a. Materials purchase account, P30,000. b. Purchase returns, P3,500. c. Materials issued: direct materials- P22,500 and indirect materials-P5,500. d. Payment of payroll: Amount earned P46,200 Deductions: SSS Philhealth BAGUI P 1,800 600 550 Pag-IBIG Income taxes withheld 900 3,850

FINANCIAL ACCOUNTING
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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Provide the journal enteies with subsidairy record

Exercise 2 - 6. JOURNAL ENTRIES – NORMAL COST SYSTEM The following are the transactions of JA Manufacturing Co. for its first year of operations: a. Materials purchase account, P30,000. b. Purchase returns, P3,500. c. Materials issued: direct materials- P22,500 and indirect materials-P5,500. d. Payment of payroll: 191 BAGUIC Amount earned P46,200 Deductions: SSS Philhealth P1,800 600 Pag-IBIG Income taxes withheld 550 900 3.850 P42,350 Net amount e. Breakdown of payroll: Direct labor P18,000 7,000 9,500 Indirect labor Sales salaries and wages Office salaries and wages 11,700 f. The corresponding employer's contributions for SSs, Philhealth and Pag-IBIG and the premiums for workmen's compensation are taken up as follows: Total P 2,050 600 Factory P 1,050 300 270 Sales P 700 200 Office P 300 100 110 SS Philhealth Pag-ibig EC 170 550 250 150 100 500 g. The contributions for SSS, Medicare, EC and Pag-ibig are remitted. h. Payments to suppliers of materials, P22,300. i. Factory overhead charged to production: 110% of direct labor cost.
Transcribed Image Text:Exercise 2 - 6. JOURNAL ENTRIES – NORMAL COST SYSTEM The following are the transactions of JA Manufacturing Co. for its first year of operations: a. Materials purchase account, P30,000. b. Purchase returns, P3,500. c. Materials issued: direct materials- P22,500 and indirect materials-P5,500. d. Payment of payroll: 191 BAGUIC Amount earned P46,200 Deductions: SSS Philhealth P1,800 600 Pag-IBIG Income taxes withheld 550 900 3.850 P42,350 Net amount e. Breakdown of payroll: Direct labor P18,000 7,000 9,500 Indirect labor Sales salaries and wages Office salaries and wages 11,700 f. The corresponding employer's contributions for SSs, Philhealth and Pag-IBIG and the premiums for workmen's compensation are taken up as follows: Total P 2,050 600 Factory P 1,050 300 270 Sales P 700 200 Office P 300 100 110 SS Philhealth Pag-ibig EC 170 550 250 150 100 500 g. The contributions for SSS, Medicare, EC and Pag-ibig are remitted. h. Payments to suppliers of materials, P22,300. i. Factory overhead charged to production: 110% of direct labor cost.
j. Insurance premiums paid, P2,200 charged as follows:factory-50%; store-30%; office-20%. k. Factory repairs paid,P3,300. I. Cost of goods manufactured, P46,000. m. Sales on account, P75,00; cost of goods sold, P40,000 n. Sales returns, P10,500; cost of goods returned, P6,800. o. Collections from customers, P55,000. p. Provisions from depreciation: factory machinery and equipment-P900; store furniture-P400; and office furniture-P550. q. The factory overhead variance is set up and closed to cost of goods sold. REQUIRED: Journal entries showing the corresponding entries for the subsidiary records.
Transcribed Image Text:j. Insurance premiums paid, P2,200 charged as follows:factory-50%; store-30%; office-20%. k. Factory repairs paid,P3,300. I. Cost of goods manufactured, P46,000. m. Sales on account, P75,00; cost of goods sold, P40,000 n. Sales returns, P10,500; cost of goods returned, P6,800. o. Collections from customers, P55,000. p. Provisions from depreciation: factory machinery and equipment-P900; store furniture-P400; and office furniture-P550. q. The factory overhead variance is set up and closed to cost of goods sold. REQUIRED: Journal entries showing the corresponding entries for the subsidiary records.
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