Problem 2 On December 31, 2019, after closing, the ledgers of Golden Shower Company contained these accounts and balances: contained these accounts and balances: Cash Accounts Receivable Finished Goods P 94,000 100,000 65,000 Work in Process Materials Machinery Accounts Payable Common Stock Retained Earnings 15,000 44,000 70,600 118,750 200,000 69,850 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 65000 Job 102 Work in process inventory: Direct materials: Job 101 1,000 units at P 5.00 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 2.000 Total Materials inventory: 800 Pl1,000 P 4,000 P. 24,000 44,000 20,000 Material X- 4,000 units at P 5.00 Material Y -8,000 units at P 3.00 Total P.
Problem 2 On December 31, 2019, after closing, the ledgers of Golden Shower Company contained these accounts and balances: contained these accounts and balances: Cash Accounts Receivable Finished Goods P 94,000 100,000 65,000 Work in Process Materials Machinery Accounts Payable Common Stock Retained Earnings 15,000 44,000 70,600 118,750 200,000 69,850 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 65000 Job 102 Work in process inventory: Direct materials: Job 101 1,000 units at P 5.00 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 2.000 Total Materials inventory: 800 Pl1,000 P 4,000 P. 24,000 44,000 20,000 Material X- 4,000 units at P 5.00 Material Y -8,000 units at P 3.00 Total P.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Topic Video
Question
Requirement:
1.Post January ng transactions to the general ledger, and subsidiary ledgers for materials and work in process.
Transcribed Image Text:a) Purchases on account: Material X- 20,000 units at P5.20; Material Y -24,000
marketing and administrative salaries. Payroll deductions consisted of P31,000
c) Payroll is to be distributed as follows: Job 101 - 10,000 direct labor hours at P
b) Payroll totaling P220,000 was paid. Of the total payroll, P40,000 was for
for withholding taxes, P7,000 for SSS premiums, P 440 for Medicare
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
d) Materials were issued on a FIFO basis as follows: Material X- 20,000 units
salaries - P40,000. Employer's payroll taxes are: SSS Premiums 5%;
146
During January, 2019, these transactions were completed:
units at P 3.75; indirect materials - P35,040.
contributions, P 6,600 for Pag-ibig Funds.
labor hours at P3.00; indirect labor - P24,000; marketing and administ
salaries - P40,000. Employer's payroll taxes are:
Medicare contributions - 0.2%; and Pag-ibig Funds - 3%.
(charged to Job 101); Material Y- 24,000 units (charged to Job 102): Materi
X- 2,000 units and Materials Y-5,000 units (charged to Job 103): (Note
Transactions are to be taken in consecutive order).
amounted to P15,040.
Indirect materials
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.
Transcribed Image Text:On December 31, 2019, after closing, the ledgers of Golden Shower Company
contained these accounts and balances:
Problem 2
December 31, 2019, after closing, the ledgers of Golden Shower Company
contained these accounts and balances:
Cash
Accounts Receivable
Finished Goods
Work in Process
P 94,000
100,000
65,000
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
15,000
44,000
70,600
118,750
200,000
69,850
P 25,000
40,000
P.
Total
Work in process inventory:
65,000
Job 102
Job 101
Direct materials:
1,000 units at P 5.00 P 5,000
400 units at P 3.00
P 1,200
Direct labor:
4,000
1,000 hours at P 4.00
400 hours at P 5.00
2,000
Factory overhead:
Applied at P 2.00/hour 2.000
Total
Materials inventory:
800
PL1,000
P 4,000
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
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