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On December 31, 2014, after closing, the ledgers of Golden Shower Company contained these accounts and balances: 94,000 100,000 65,000 15,000 44,000 70,600 118,750 200,000 69,850 Cash Accounts Receivable Finished Goods Work in Process Materials Machinery Accounts Payable Common Stock Retained Earnings Details of the three inventories are: Finished goods inventory: Item A - 2,000 units at P 12.50 Item B - 4,000 units at P 10.00 Total P 25,000 40,000 P 65,000 Job 102 Work in process inventory: Job 101 Direct materials: 1,000 units at P 5.00 400 units at P 3.00 P 5,000 P 1,200 Direct labor: 1,000 hours at P 4.00 400 hours at P 5.00 Factory overhead: Applied at P 2.00/hour2,000 4,000 2,000 800 P 4,000 Total PI1,000 Materials inventory: Material X - 4,000 units at P 5.00 Material Y - 8,000 units at P 3.00 Total P 20,000 24,000 P 44,000 Scanned with CamScanner

On December 31, 2014, after closing, the ledgers of Golden Shower Company contained these accounts and balances: 94,000 100,000 65,000 15,000 44,000 70,600 118,750 200,000 69,850 Cash Accounts Receivable Finished Goods Work in Process Materials Machinery Accounts Payable Common Stock Retained Earnings Details of the three inventories are: Finished goods inventory: Item A - 2,000 units at P 12.50 Item B - 4,000 units at P 10.00 Total P 25,000 40,000 P 65,000 Job 102 Work in process inventory: Job 101 Direct materials: 1,000 units at P 5.00 400 units at P 3.00 P 5,000 P 1,200 Direct labor: 1,000 hours at P 4.00 400 hours at P 5.00 Factory overhead: Applied at P 2.00/hour2,000 4,000 2,000 800 P 4,000 Total PI1,000 Materials inventory: Material X - 4,000 units at P 5.00 Material Y - 8,000 units at P 3.00 Total P 20,000 24,000 P 44,000 Scanned with CamScanner

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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What are the journal entries, posting to t-accounts and statement of cost of goods sold fo this prblm?

Gl El 26.2K/s 3:58 PM 53% ... Scanned with CamScanner Cost Accounting 122 During January, 2015, these transactions were completed: a) Purchases on account: Material X - 20,000 units at P5.20; Material Y - 24,000 units at P 3.75; indirect materials - P35,040. b) Payroll totaling P220,000 was paid. Of the total payroll, P40,000 was for marketing and administrative salaries. Payroll deductions consisted of P31,000 for withholding taxes, P7,000 for SSS premiums, P 440 for Medicare contributions, P 6,600 for Pag-ibig Funds. c) Payroll is to be distributed as follows: Job 101 - 10,000 direct labor hours at P 4.00, Job 102 - 16,000 direct labor hours at P5.00: Job 103 - 12,000 direct labor hours at P3.00; indirect labor - P24,000: marketing and administrative salaries - P40,000. Employer's payroll taxes are: SSS Premiums - 5%; Medicare contributions - 0.2%; and Pag-ibig Funds - 2%. d) Materials were issued on a fifo basis as follows: Material X - 20,000 units (charged to Job 101); Material Y - 24,000 units (charged to Job 102); Material X - 2,000 units and Materials Y - 5,000 units (charged to Job 103): (Note: Transactions are to be taken in consecutive order). Indirect materials amounted to P15,040. e) Factory overhead was applied to Jobs 101, 102, and 103 based on a rate of P2.25 per direct labor hour. f) Jobs 101 and 102 were completed and sold on account for P240,000 and P270,000, respectively. g) After allowing a 5% cash discount, a net amount of P494,000 was collected on accounts receivable. h) Marketing and administrative expenses (other than salaries) paid during the month amounted to P30,000. Miscellaneous factory overhead of P21,600 was paid. Depreciation on machinery was P4,000. i) Payments on account, other than payroll paid, amounted to P170,000. j) The over or underapplied factory overhead is to be closed. Scanned with CamScanner
Transcribed Image Text:Gl El 26.2K/s 3:58 PM 53% ... Scanned with CamScanner Cost Accounting 122 During January, 2015, these transactions were completed: a) Purchases on account: Material X - 20,000 units at P5.20; Material Y - 24,000 units at P 3.75; indirect materials - P35,040. b) Payroll totaling P220,000 was paid. Of the total payroll, P40,000 was for marketing and administrative salaries. Payroll deductions consisted of P31,000 for withholding taxes, P7,000 for SSS premiums, P 440 for Medicare contributions, P 6,600 for Pag-ibig Funds. c) Payroll is to be distributed as follows: Job 101 - 10,000 direct labor hours at P 4.00, Job 102 - 16,000 direct labor hours at P5.00: Job 103 - 12,000 direct labor hours at P3.00; indirect labor - P24,000: marketing and administrative salaries - P40,000. Employer's payroll taxes are: SSS Premiums - 5%; Medicare contributions - 0.2%; and Pag-ibig Funds - 2%. d) Materials were issued on a fifo basis as follows: Material X - 20,000 units (charged to Job 101); Material Y - 24,000 units (charged to Job 102); Material X - 2,000 units and Materials Y - 5,000 units (charged to Job 103): (Note: Transactions are to be taken in consecutive order). Indirect materials amounted to P15,040. e) Factory overhead was applied to Jobs 101, 102, and 103 based on a rate of P2.25 per direct labor hour. f) Jobs 101 and 102 were completed and sold on account for P240,000 and P270,000, respectively. g) After allowing a 5% cash discount, a net amount of P494,000 was collected on accounts receivable. h) Marketing and administrative expenses (other than salaries) paid during the month amounted to P30,000. Miscellaneous factory overhead of P21,600 was paid. Depreciation on machinery was P4,000. i) Payments on account, other than payroll paid, amounted to P170,000. j) The over or underapplied factory overhead is to be closed. Scanned with CamScanner
Gll El 8.9K/s i 3:58 PM A O a 53% On December 31, 2014, after closing, the ledgers of Golden Shower Company contained these accounts and balances: Cash P 94,000 100,000 65,000 15,000 44,000 70,600 118,750 200,000 69,850 Accounts Receivable Finished Goods Work in Process Materials Machinery Accounts Payable Common Stock Retained Earnings Details of the three inventories are: Finished goods inventory: Item A - 2,000 units at P 12.50 Item B - 4,000 units at P 10.00 Total Work in process inventory: Direct materials: 1,000 units at P 5.00 P 25,000 40,000 P 65,000 Job 102 Job 101 P 5,000 400 units at P 3.00 P 1,200 Direct labor: 1,000 hours at P 4.00 400 hours at P 5.00 4,000 2,000 Factory overhead: Applied at P 2.00/hour Total 2,000 P11,000 800 P 4,000 Materials inventory: Material X - 4,00Q units at P 5.00 Material Y - 8,000 units at P 3.00 Total P 20,000 24,000 P 44,000 Scanned with CamScanner
Transcribed Image Text:Gll El 8.9K/s i 3:58 PM A O a 53% On December 31, 2014, after closing, the ledgers of Golden Shower Company contained these accounts and balances: Cash P 94,000 100,000 65,000 15,000 44,000 70,600 118,750 200,000 69,850 Accounts Receivable Finished Goods Work in Process Materials Machinery Accounts Payable Common Stock Retained Earnings Details of the three inventories are: Finished goods inventory: Item A - 2,000 units at P 12.50 Item B - 4,000 units at P 10.00 Total Work in process inventory: Direct materials: 1,000 units at P 5.00 P 25,000 40,000 P 65,000 Job 102 Job 101 P 5,000 400 units at P 3.00 P 1,200 Direct labor: 1,000 hours at P 4.00 400 hours at P 5.00 4,000 2,000 Factory overhead: Applied at P 2.00/hour Total 2,000 P11,000 800 P 4,000 Materials inventory: Material X - 4,00Q units at P 5.00 Material Y - 8,000 units at P 3.00 Total P 20,000 24,000 P 44,000 Scanned with CamScanner
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