Vico Inc. produces customized vans in a job order shop. On August 1, the following balances appear in the inventory records: Finished goods Php 159,000 Work in process 236,000 Materials 73,000 The amount in Finished Goods represents Php91,000 recorded for Van 10 and Php68,000 recorded for Van 11. The Work in Process account represents the three vans in process, as follows: Van 12 Van 13 Van 14 Factory overhead Php65,000 Php40,000 Php 15,000 Direct labor 50,000 30,000 10,000 Direct materials 16,000 6,000 4,000 The following transactions occurred during August: (a) Purchased materials on account, Php70,000. (b) Requisitioned Php50,000 of materials from inventory: Php14,000 applied to Van 13, Php15,000 to Van 14, and Php15,000 to Van 15, a new order; the balance was for indirect materials. (c) Recorded the liability for the payroll and the labor cost distribution in a single entry: total payroll, Php198,750. Of the payroll cost, 10% applied to Van 12, 20% to Van 13, 35% to Van 14, 30% to Van 15, and the remainder to indirect labor. (d) Paid the payroll. (e) Applied factory overhead at the rate of 150% of direct labor cost. (f) Completed Vans 12 and 13. (g) Sold Vans 10, 11, and 13 at 50% over manufacturing costs. Required: Prepare general journal entries to record these transactions. Prepare T accounts for Materials, Work in process and Finished goods
Vico Inc. produces customized vans in a job order shop. On August 1, the following balances appear in the inventory records:
Finished goods Php 159,000
Work in process 236,000
Materials 73,000
The amount in Finished Goods represents Php91,000 recorded for Van 10 and Php68,000 recorded for Van 11. The Work in Process account represents the three vans in process, as follows:
Van 12 Van 13 Van 14
Factory overhead Php65,000 Php40,000 Php 15,000
Direct labor 50,000 30,000 10,000
Direct materials 16,000 6,000 4,000
The following transactions occurred during August:
(a) Purchased materials on account, Php70,000.
(b) Requisitioned Php50,000 of materials from inventory: Php14,000 applied to Van 13, Php15,000 to Van 14, and Php15,000 to Van 15, a new order; the balance was for indirect materials.
(c) Recorded the liability for the payroll and the labor cost distribution in a single entry: total payroll, Php198,750. Of the payroll cost, 10% applied to Van 12, 20% to Van 13, 35% to Van 14, 30% to Van 15, and the remainder to indirect labor.
(d) Paid the payroll.
(e) Applied factory overhead at the rate of 150% of direct labor cost.
(f) Completed Vans 12 and 13.
(g) Sold Vans 10, 11, and 13 at 50% over
Required:
Prepare general
Prepare T accounts for Materials, Work in process and Finished goods
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