Journalize the transactions
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Journalize the transactions
![CPA Processing Co. had the following inventories on August of the current year:
Finished Goods Inventory
Work in Process Inventory
Materials Inventory
P410,000
35,000
P 82,000
Details of the above mentioned three inventories are:
Finished Goods Inventory:
Job 101
Job 102
Work in Process Inventory:
Job 103
Job 104
P 140,000
135,000
P 275,000
Р 9,000
17,000
14,000
P 40,000
Total
Job 105
Total
The following information pertains to August operations:
1. Materials Purchased P100,000, on account P55,000 and balance in cash.
2. Materials returned to vendors due to defects and was not replaced, P7,000 from cash and P3,000 on account.
3. Materials issued for production, P50,000. Of this amount, P10,000 was for indirect materials; the difference
was distributed as follows:
Job 103, P11,000 Job 104, P9,000
Job 105, P7,000
Job 106, P13,000
4. Materials returned to warehouse from the factory, P10,000, of which P3,000 was for indirect materials, the
balance from Job 405 ,60% and Job 404, 40%.
5. The total payroll was P170,000. It was distributed as follows: 6,500 for store attendant, 10,000 for
administrative staff and the balance represents indirect labor and direct labor allocated as follows:
Job 103 – 12,000 direct labor hours at P3.00
Job 104 – 14,000 direct labor hours at P4.00
Job 105 – 7,000 direct labor hours at P2.00
Job 106 – 9,000 direct labor hours at P5.00
Indirect Labor 2
Payroll Deductions are as follows:
Withholding Taxes
SSS Premiums
P 8,000
5,500
5,000
4,500
Phil Health Contribution
Pag-ibig Funds
6. Employer payroll expense is as follows:
Factory
3,400
2,500
3,000
Selling
2,400
2,000
1,000
General
SSS Premiums
Phil Health Contributions
1,600
1,800
900
Pag-ibig Funds
7. Factory overhead, other than any previously mentioned, amounted to P25,000. Included in this figure were
P12,000 for depreciation of factory building and P15,000 for factory equipment, and P1,000 for expired
insurance on the factory. The remaining overhead was unpaid at the end of August.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcbcd138c-5416-48d6-ac24-1fa5d60c6a8a%2Fa4edba75-a092-4679-b276-ddea8993f615%2Fxfy2ze_processed.png&w=3840&q=75)
Transcribed Image Text:CPA Processing Co. had the following inventories on August of the current year:
Finished Goods Inventory
Work in Process Inventory
Materials Inventory
P410,000
35,000
P 82,000
Details of the above mentioned three inventories are:
Finished Goods Inventory:
Job 101
Job 102
Work in Process Inventory:
Job 103
Job 104
P 140,000
135,000
P 275,000
Р 9,000
17,000
14,000
P 40,000
Total
Job 105
Total
The following information pertains to August operations:
1. Materials Purchased P100,000, on account P55,000 and balance in cash.
2. Materials returned to vendors due to defects and was not replaced, P7,000 from cash and P3,000 on account.
3. Materials issued for production, P50,000. Of this amount, P10,000 was for indirect materials; the difference
was distributed as follows:
Job 103, P11,000 Job 104, P9,000
Job 105, P7,000
Job 106, P13,000
4. Materials returned to warehouse from the factory, P10,000, of which P3,000 was for indirect materials, the
balance from Job 405 ,60% and Job 404, 40%.
5. The total payroll was P170,000. It was distributed as follows: 6,500 for store attendant, 10,000 for
administrative staff and the balance represents indirect labor and direct labor allocated as follows:
Job 103 – 12,000 direct labor hours at P3.00
Job 104 – 14,000 direct labor hours at P4.00
Job 105 – 7,000 direct labor hours at P2.00
Job 106 – 9,000 direct labor hours at P5.00
Indirect Labor 2
Payroll Deductions are as follows:
Withholding Taxes
SSS Premiums
P 8,000
5,500
5,000
4,500
Phil Health Contribution
Pag-ibig Funds
6. Employer payroll expense is as follows:
Factory
3,400
2,500
3,000
Selling
2,400
2,000
1,000
General
SSS Premiums
Phil Health Contributions
1,600
1,800
900
Pag-ibig Funds
7. Factory overhead, other than any previously mentioned, amounted to P25,000. Included in this figure were
P12,000 for depreciation of factory building and P15,000 for factory equipment, and P1,000 for expired
insurance on the factory. The remaining overhead was unpaid at the end of August.
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