Problem 5 Darvin Company contained the following account balances: Cash Accounts Receivable Finished Goods Work in Process Materials Accounts Payable Accrued Payroll P 100,000 60,000 35,000 18,000 50,000 10,000 8,000. 200,000 45,000 Common Stock Retained Earnings During January, 2019, the following transactions were completed. a) Materials purchased on account, P 200,000. b) Factory overhead incurred on account, P 35,000 c) Payroll for the period consists of: direct labor P140,000; indirect labo P30,000; sales salaries Deductions from payroll were as follows: Withholding taxes SSS Premiums Phil Health Contributions P25,000; and administrative salaries P15,0 18,520 8,400 1,125 6,300 P Pag-ibig Funds d) P175,000 was paid for payroll e) Computation of employer's payroll tax is as follows: Selling P 1,250 Factory P 8,500 600 Administrative P 750 SSS Premiums Phil Health 375 150 Pag-ibig Fund 5,100 750 450 f) Materials issued: direct materials - P185,000; indirect - P35,000. g) Factory overhead was charged to production at 80% of direct labor cost. h) Work finished and placed in stock - P410,000 i) Cost of goods sold - P385,000. The markup was 40% of cost. i) Cash collected from customers, P405,000. k) Payments for liabilities amounted to P 220,000, other than payroll.
Problem 5 Darvin Company contained the following account balances: Cash Accounts Receivable Finished Goods Work in Process Materials Accounts Payable Accrued Payroll P 100,000 60,000 35,000 18,000 50,000 10,000 8,000. 200,000 45,000 Common Stock Retained Earnings During January, 2019, the following transactions were completed. a) Materials purchased on account, P 200,000. b) Factory overhead incurred on account, P 35,000 c) Payroll for the period consists of: direct labor P140,000; indirect labo P30,000; sales salaries Deductions from payroll were as follows: Withholding taxes SSS Premiums Phil Health Contributions P25,000; and administrative salaries P15,0 18,520 8,400 1,125 6,300 P Pag-ibig Funds d) P175,000 was paid for payroll e) Computation of employer's payroll tax is as follows: Selling P 1,250 Factory P 8,500 600 Administrative P 750 SSS Premiums Phil Health 375 150 Pag-ibig Fund 5,100 750 450 f) Materials issued: direct materials - P185,000; indirect - P35,000. g) Factory overhead was charged to production at 80% of direct labor cost. h) Work finished and placed in stock - P410,000 i) Cost of goods sold - P385,000. The markup was 40% of cost. i) Cash collected from customers, P405,000. k) Payments for liabilities amounted to P 220,000, other than payroll.
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter16: Financial Statements And Closing Entries For A Corporation
Section: Chapter Questions
Problem 5AP
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Transcribed Image Text:Problem 5
Darvin Company contained the following account balances:
P 100,000
60,000
35,000
18,000
50,000
10,000
8,000.
200,000
45,000
Cash
Accounts Receivable
Finished Goods
Work in Process
Materials
Accounts Payable
Accrued Payroll
Common Stock
Retained Earnings
During January, 2019, the following transactions were completed.
a) Materials purchased on account, P 200,000.
b) Factory overhead incurred on account, P 35,000
c) Payroll for the period consists of: direct labor P140,000; indirect labor -
P30,000; sales salaries -
Deductions from payroll were as follows:
Withholding taxes
SSS Premiums
Phil Health Contributions
P25,000; and administrative salaries
P15,000.
18,520
8,400
1,125
6,300
Pag-ibig Funds
d) P175,000 was paid for payroll
e) Computation of employer's payroll tax is as follows:
Selling
P 1,250
375
750
Factory
P 8,500
600
Administrative
P 750
SSS Premiums
Phil Health
150
Pag-ibig Fund
5,100
450
f) Materials issued: direct materials - P185,000; indirect - P35,000.
g) Factory overhead was charged to production at 80% of direct labor cost.
h) Work finished and placed in stock - P410,000
i) Cost of goods sold - P385,000. The markup was 40% of cost.
i) Cash collected from customers, P405,000.
k) Payments for liabilities amounted to P 220,000, other than payroll.
Transcribed Image Text:Requirements for Problem 5
1. Journal entries to record the above transactions.
2. Cost of Goods Sold Statement for January, 2019.
3. Statement of Comprehensive Income for January, 2019
4. Statement of Financial Position as of January 31, 2019.
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