Homework Help is Here – Start Your Trial Now!
Business
Accounting
Required: 1. Open T-accounts and record balances from the January 1 trial balance. 2. Journalize the January transactions. 3. Post January transactions to the general ledger, and subsidiary ledgers for materials and work in process. 4. Prepare a statement of cost of goods sold.

Required: 1. Open T-accounts and record balances from the January 1 trial balance. 2. Journalize the January transactions. 3. Post January transactions to the general ledger, and subsidiary ledgers for materials and work in process. 4. Prepare a statement of cost of goods sold.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Problem 2

Cost Accounting 146 During January, 2019, 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. 0) Payroll totaling P220,000 was paid, Of the total payroll, P40,000 was for marketing and administrative salaries, Pavroll 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 Jabor 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%; salaries Medicare contributions 0.2%; and Pag-ibig Funds - 3%. a) 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). 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. 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 payrol paid, amounted to P170,000. j) The over or underapplied factory overhead is to be closed. Required: 1. Open T-accounts and record balances from the January 1 trial balance. 2. Journalize the January transactions. 3. Post January transactions to the general ledger, and subsidiary ledgers for materials and work in process. 4. Prepare a statement of cost of goods sold.
Transcribed Image Text:Cost Accounting 146 During January, 2019, 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. 0) Payroll totaling P220,000 was paid, Of the total payroll, P40,000 was for marketing and administrative salaries, Pavroll 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 Jabor 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%; salaries Medicare contributions 0.2%; and Pag-ibig Funds - 3%. a) 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). 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. 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 payrol paid, amounted to P170,000. j) The over or underapplied factory overhead is to be closed. Required: 1. Open T-accounts and record balances from the January 1 trial balance. 2. Journalize the January transactions. 3. Post January transactions to the general ledger, and subsidiary ledgers for materials and work in process. 4. Prepare a statement of cost of goods sold.
Problem 2 On December 31, 2019, after closing, the ledgers of Golden Shower Company contained these accounts and balances: Cash P 94,000 100,000 Accounts Receivable Finished Goods Work in Process 65,000 15,000 44,000 70,600 118,750 200,000 69.850 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 Job 101 Work in process inventory: Direct materials: 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 800 P 4.000 Materials inventory: Material X-4,000 units at P 5.00 Material Y - 8,000 units at P 3.00 000100 P 20,000 24,000 P 44,000 Total
Transcribed Image Text:Problem 2 On December 31, 2019, after closing, the ledgers of Golden Shower Company contained these accounts and balances: Cash P 94,000 100,000 Accounts Receivable Finished Goods Work in Process 65,000 15,000 44,000 70,600 118,750 200,000 69.850 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 Job 101 Work in process inventory: Direct materials: 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 800 P 4.000 Materials inventory: Material X-4,000 units at P 5.00 Material Y - 8,000 units at P 3.00 000100 P 20,000 24,000 P 44,000 Total
Expert Solution
steps

Step by step

Solved in 6 steps with 6 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Financial Reporting in Hyperinflationary Economies
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS