Related data of Dindi Company: Beginning balances Raw Materials Inventory P96,000 Work in process inventory 240,000 Finished goods inventory 269,000 (700 units) The entity uses the perpetual inventory system. The weighted average method is used to determine the cost of goods sold. Transactions during the year: 1. The entity purchased on cash the following items: Direct materials P 750,000 Indirect materials 95,000 Freight-in (delivery fee) 25,000 2. The entity issued raw materials to production. Direct materials P687,500 Indirect materials 85,000 3. The entity paid the total payroll: Factory workers P500,000 Factory supervisors and manager 215,000 Administrative and finance employees 390,000 SSS, Pag-ibig, and Phil-health employer's share 45,000 SSS, Pag-ibig, and Phil-health employee's share 50,000 Withholding taxes - Compensation 68,000 4. Incurred expenses as follows: Description Production Selling & Admin Rent Expense P120,000 P80,000 Depreciation Expense 50,000 40,000 Utilities Expense 370,000 120,000 Other Expenses 45,000 23,000 Total P585,000 P263,000 5. The related factory overhead applied: Estimated fixed overhead cost P300,000 Estimated variable overhead cost 700,000 Estimated overhead activity (Machine hours) 25,000 Actual Machine hours 22,500 6. The entity completed 5,000 units. The total cost is P2,125,000 7. The entity sold 4,800 units at 50% based on cost. Required: Journal Entries
Related data of Dindi Company:
Beginning balances
Raw Materials Inventory P96,000
Work in process inventory 240,000
Finished goods inventory 269,000 (700 units)
The entity uses the perpetual inventory system.
The weighted average method is used to determine the cost of goods sold.
Transactions during the year:
1. The entity purchased on cash the following items:
Direct materials P 750,000
Indirect materials 95,000
Freight-in (delivery fee) 25,000
2. The entity issued raw materials to production.
Direct materials P687,500
Indirect materials 85,000
3. The entity paid the total payroll:
Factory workers P500,000
Factory supervisors and manager 215,000
Administrative and finance employees 390,000
SSS, Pag-ibig, and Phil-health employer's share 45,000
SSS, Pag-ibig, and Phil-health employee's share 50,000
Withholding taxes - Compensation 68,000
4. Incurred expenses as follows:
Description Production Selling & Admin
Rent Expense P120,000 P80,000
Utilities Expense 370,000 120,000
Other Expenses 45,000 23,000
Total P585,000 P263,000
5. The related factory
Estimated fixed overhead cost P300,000
Estimated variable overhead cost 700,000
Estimated overhead activity (Machine hours) 25,000
Actual Machine hours 22,500
6. The entity completed 5,000 units. The total cost is P2,125,000
7. The entity sold 4,800 units at 50% based on cost.
Required:
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