URGENT!! The following are transactions of Corporation R for the month of February 2020. Provide the corresponding journal entries for each transaction: Purchase of materials (direct and indirect), on credit, P1,000,000Usage of raw materials, P750,000 (20% are indirect materials)Manufacturing payroll for the month: Gross amount of 390,000 Direct labor, P90,000 of which for SSS and other government payable, and gross amount of indirect labor, P170,000, P45,000 of which for SSS and government payable. Net salary paid in cash.Other manufacturing overhead costs incurred during the month, P175,000, consisting of janitorial salaries, P80,000 paid in cash for plant utilities, repairs, and supervisory salaries, P130,000 and plant depreciation, P40,000Allocation of manufacturing overhead to jobs using predetermined OH rate of P12/machine hour. Actual machine hour for the month is 50,000 hours.Completion and transfer of individual jobs to finished goods, P1, 555,000Cost of goods sold, P880,000Marketing costs for February, P45,000 and customer service costs for February P15,000, paid in cashSales, all on credit, P2,270,000 The following are also provided:Tax rate – 30%Interest expenses – P20,000Administrative expenses – P540,000Beginning Inventories: Raw materials, P610,000; Work in process, P1,065,000, Finished Goods, P2,100,000.Units manufactured for the period – 100,000 units1. Compute for the Net Income after Tax2. Compute for the Operating Income3. Compute the cost of goods manufactured4. How much is the COGS unadjusted?

Net income appears on both the income statement and the statement of owner's equity. x`

Answered: t expenses – P20,000 Administrative…

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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URGENT!! The following are transactions of Corporation R for the month of February 2020. Provide the corresponding journal entries for each transaction:

Purchase of materials (direct and indirect), on credit, P1,000,000
Usage of raw materials, P750,000 (20% are indirect materials)
Manufacturing payroll for the month: Gross amount of 390,000 Direct labor, P90,000 of which for SSS and other government payable, and gross amount of indirect labor, P170,000, P45,000 of which for SSS and government payable. Net salary paid in cash.
Other manufacturing overhead costs incurred during the month, P175,000, consisting of janitorial salaries, P80,000 paid in cash for plant utilities, repairs, and supervisory salaries, P130,000 and plant depreciation, P40,000
Allocation of manufacturing overhead to jobs using predetermined OH rate of P12/machine hour. Actual machine hour for the month is 50,000 hours.
Completion and transfer of individual jobs to finished goods, P1, 555,000
Cost of goods sold, P880,000
Marketing costs for February, P45,000 and customer service costs for February P15,000, paid in cash
Sales, all on credit, P2,270,000

The following are also provided:

Tax rate – 30%

Interest expenses – P20,000

Administrative expenses – P540,000

Beginning Inventories: Raw materials, P610,000; Work in process, P1,065,000, Finished Goods, P2,100,000.

Units manufactured for the period – 100,000 units

1. Compute for the Net Income after Tax

2. Compute for the Operating Income

3. Compute the cost of goods manufactured

4. How much is the COGS unadjusted?

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