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Problem 1 The following pertain to manufacturing operations: a) Materials were issued as follows: Direct materials, P24,500; indirect materials P4,500. b) Payroll of P44,000 paid was recorded. Withheld are the following: Income tax P7,000, SSS contribution P3,000, Phil health contribution P2,000 and Pagibig contribution P1,000. c) The payroll consisted of P30,000 direct labor, P6,000 indirect labor, P5,000 marketing and P3,000 administrative. d) Accrued miscellaneous factory expenses P7,500. e) Factory overhead applied to production P22,932. f) Cost of production completed during the month P60,000. g) Materials purchased totaled P50,000. h) Goods costing P20,000 were sold on account to customers at a sales price of P30,000. Required: Prepare the necessary journal entries.

Problem 1 The following pertain to manufacturing operations: a) Materials were issued as follows: Direct materials, P24,500; indirect materials P4,500. b) Payroll of P44,000 paid was recorded. Withheld are the following: Income tax P7,000, SSS contribution P3,000, Phil health contribution P2,000 and Pagibig contribution P1,000. c) The payroll consisted of P30,000 direct labor, P6,000 indirect labor, P5,000 marketing and P3,000 administrative. d) Accrued miscellaneous factory expenses P7,500. e) Factory overhead applied to production P22,932. f) Cost of production completed during the month P60,000. g) Materials purchased totaled P50,000. h) Goods costing P20,000 were sold on account to customers at a sales price of P30,000. Required: Prepare the necessary journal entries.

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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Problem 1 The following pertain to manufacturing operations: a) Materials were issued as follows: Direct materials, P24,5003; indirect materials P4,500. b) Payroll of P44,000 paid was recorded. Withheld are the following:Income tax P7,000, SSS contribution P3,000, Phil health contribution P2,000 and Pagibig contribution P1,000. c) The payroll consisted of P30,000 direct labor, P6,000 indirect labor, P5,000 marketing and P3,000 administrative. d) Accrued miscellaneous factory expenses P7,500. e) Factory overhead applied to production P22,932. f) Cost of production completed during the month P60,000. g) Materials purchased totaled P50,000. h) Goods costing P20,000 were sold on account to customers at a sales price of P30,000. Required: Prepare the necessary journal entries. 9/22 Problem 2 Mina Manufacturing Company purchases of materials during March totaled P110,000 and cost of goods sold for March was P345,000. Factory overhead was 50% of direct labor cost. Other information pertaining to Mat's inventories and production for March is as follows: Inventories: March 1 March 31 Finished Goods P102,000 P105,000 Work in process 40,000 36,000 Materials 20,000 26,000 Required: Prepare the cost of goods manufactured and sold statement.
Transcribed Image Text:Problem 1 The following pertain to manufacturing operations: a) Materials were issued as follows: Direct materials, P24,5003; indirect materials P4,500. b) Payroll of P44,000 paid was recorded. Withheld are the following:Income tax P7,000, SSS contribution P3,000, Phil health contribution P2,000 and Pagibig contribution P1,000. c) The payroll consisted of P30,000 direct labor, P6,000 indirect labor, P5,000 marketing and P3,000 administrative. d) Accrued miscellaneous factory expenses P7,500. e) Factory overhead applied to production P22,932. f) Cost of production completed during the month P60,000. g) Materials purchased totaled P50,000. h) Goods costing P20,000 were sold on account to customers at a sales price of P30,000. Required: Prepare the necessary journal entries. 9/22 Problem 2 Mina Manufacturing Company purchases of materials during March totaled P110,000 and cost of goods sold for March was P345,000. Factory overhead was 50% of direct labor cost. Other information pertaining to Mat's inventories and production for March is as follows: Inventories: March 1 March 31 Finished Goods P102,000 P105,000 Work in process 40,000 36,000 Materials 20,000 26,000 Required: Prepare the cost of goods manufactured and sold statement.
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