Direct labor 400,000 Indirect labor 180,000 Sales commissions 104,000 Administrative salaries 250,000 f. Prepaid insurance expired during the year, P30,000 (80% relates to factory operatiom 10% to selling, and 10% to administrative activities). g. Accrued miscellaneous selling and administrative expenses, P10,000 and P8,000 respectively. h. Manufacturing overhead was applied to production. The company applies overhead the basis of 150% of direct labor cost. i. Goods costing P1,400,000 to manufacture were transferred to the finished goods

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Hi, I'm from the Philippines. Our topic is Accounting for Manufacturing Business. Can you help me with the accounting entries to be used under the nomal cost system?

e. Costs of salaries and wages incurred and unpaid are as follows:
400,000
180,000
Direct labor
Indirect labor
Sales commissions
104,000
Administrative salaries
250,000
f. Prepaid insurance expired during the year, P30,000 (80% relates to factory operations,
10% to selling, and 10% to administrative activities).
g. Accrued miscellaneous selling and administrative expenses, P10,000 and P8,000
respectively.
h. Manufacturing overhead was applied to production. The company applies overhead on
the basis of 150% of direct labor cost.
i. Goods costing P1,400,000 to manufacture were transferred to the finished goods
warehouse.
Transcribed Image Text:e. Costs of salaries and wages incurred and unpaid are as follows: 400,000 180,000 Direct labor Indirect labor Sales commissions 104,000 Administrative salaries 250,000 f. Prepaid insurance expired during the year, P30,000 (80% relates to factory operations, 10% to selling, and 10% to administrative activities). g. Accrued miscellaneous selling and administrative expenses, P10,000 and P8,000 respectively. h. Manufacturing overhead was applied to production. The company applies overhead on the basis of 150% of direct labor cost. i. Goods costing P1,400,000 to manufacture were transferred to the finished goods warehouse.
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