On December 31, 2019, after closing, the ledgers of Golden Shower Companycontained these accounts and balances:Problem 2December 31, 2019, after closing, the ledgers of Golden Shower Companycontained these accounts and balances:CashAccounts ReceivableFinished GoodsWork in ProcessP 94,000100,00065,000MaterialsMachineryAccounts PayableCommon StockRetained EarningsDetails of the three inventories are:Finished goods inventory:Item A - 2,000 units at P 12.50Item B - 4,000 units at P 10.0015,00044,00070,600118,750200,00069,850P 25,00040,000P.TotalWork in process inventory:65,000Job 102Job 101Direct materials:1,000 units at P 5.00 P 5,000400 units at P 3.00P 1,200Direct labor:4,0001,000 hours at P 4.00400 hours at P 5.002,000Factory overhead:Applied at P 2.00/hour 2.000TotalMaterials inventory:800PL1,000P 4,000Material X - 4,000 units at P 5.00Material Y - 8,000 units at P 3.00TotalP 20,00024,000P 44,000 a) Purchases on account: Material X- 20,000 units at P5.20; Material Y-24,000b) Payroll totaling P220,000 was paid. Of the total payroll, P40,000 was formarketing and administrative salaries. Payroll deductions consisted of P31,000for withholding taxes, P7,000 for SSS premiums, P 440 for Medicarec) Payroll is to be distributed as follows: Job 101 - 10,000 direct labor hours at P4.00, Job 102 - 16,000 direct labor hours at P5.00; Job 103 - 12,000 directlabor hours at P3.00; indirect labor - P24,000; marketing and administrativesalaries - P40,000. Employer's payroll taxes are: SSS Premiums 5%d) Materials were issued on a FIFO basis as follows: Material X- 20,000 units146During 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 administsalaries - 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); MaterialX - 2,000 units and Materials Y-5,000 units (charged to Job 103): (NoteTransactions are to be taken in consecutive order).amounted to Pl15,040.Indirect materialse) Factory overhead was applied to Jobs 101, 102, and 103 based on a rate ofP2.25 per direct labor hour.f) Jobs 101 and 102 were completed and sold on account for P240,000 andP270,000, respectively.g) After allowing a 5% cash discount, a net amount of P494,000 was collected onaccounts receivable.h) Marketing and administrative expenses (other than salaries) paid during themonth amounted to P30,000. Miscellaneous factory overhead of P21,600 waspaid. 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.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 tomaterials and work in process.4. Prepare a statement of cost of goods sold.

Accounting-Accounting is all about the process that helps to record, summarize, analyze, and report…

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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Multiple choice
Multiple choice
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A. Prepare journal entries to record the transactions. B. Prepare T-accounts to show the flow of costs during the period from Material Inventory throughly Cost of Goods sold.
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