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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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?
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