Ledger Company is a manufacturer. The entity had the following balances of their inventories as at May 31, 2021: Raw materials inventory, P60,000 Work-in-process inventory, P88,000 Finished goods inventory, P124,000 The following transactions were dealt with by the firm for June 2021: Purchased 2,000 units of material X at P34 per unit. 800 units were charged to production. A total of 1,000 hours were utilized by all laborers to finish 10,000 units. Actual direct labor rate per hour was P22. Labor was charged to the job. The firm paid P4,000 for factory rent and P6,000 for office rent. Depreciation of factory equipment was P8,000 and depreciation of office equipment was P2,500. Actual overhead was charged to production. All current production was completed. Half of it and all beginning balance of finished goods were sold at a mark-up of 30% 38. How much will be debited to the work-in-process inventory account to charge all related product costs to production? 39. How much is the balance of the work-in-process inventory account as at June 30, 2021? 40. How much is the balance of the finished goods inventory account as at June 30, 2021?

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Ledger Company is a manufacturer. The entity had the following balances of their inventories as at May
31, 2021:
Raw materials inventory, P60,000
Work-in-process inventory, P88,000
Finished goods inventory, P124,000
The following transactions were dealt with by the firm for June 2021:
Purchased 2,000 units of material X at P34 per unit. 800 units were charged to production.
A total of 1,000 hours were utilized by all laborers to finish 10,000 units. Actual direct labor rate
per hour was P22. Labor was charged to the job.
The firm paid P4,000 for factory rent and P6,000 for office rent. Depreciation of factory equipment
was P8,000 and depreciation of office equipment was P2,500. Actual overhead was charged to
production.
All current production was completed. Half of it and all beginning balance of finished goods were
sold at a mark-up of 30%
38. How much will be debited to the work-in-process inventory account to charge all related product
costs to production?
39. How much is the balance of the work-in-process inventory account as at June 30, 2021?
40. How much is the balance of the finished goods inventory account as at June 30, 2021?
11
Transcribed Image Text:Ledger Company is a manufacturer. The entity had the following balances of their inventories as at May 31, 2021: Raw materials inventory, P60,000 Work-in-process inventory, P88,000 Finished goods inventory, P124,000 The following transactions were dealt with by the firm for June 2021: Purchased 2,000 units of material X at P34 per unit. 800 units were charged to production. A total of 1,000 hours were utilized by all laborers to finish 10,000 units. Actual direct labor rate per hour was P22. Labor was charged to the job. The firm paid P4,000 for factory rent and P6,000 for office rent. Depreciation of factory equipment was P8,000 and depreciation of office equipment was P2,500. Actual overhead was charged to production. All current production was completed. Half of it and all beginning balance of finished goods were sold at a mark-up of 30% 38. How much will be debited to the work-in-process inventory account to charge all related product costs to production? 39. How much is the balance of the work-in-process inventory account as at June 30, 2021? 40. How much is the balance of the finished goods inventory account as at June 30, 2021? 11
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