eter Senen Corporation provided the following account balances as of September 30, 2020: Cash P112,000 Accumulated depreciation P 36,000 Accounts Receivable 64,000 Accounts payable 40,000 Finished Goods 48,000 Income tax payable 9,000 Work in process 36,000 Share Capital 500,000 Raw materials 52,000 Retained Earnings 207,000 Property and Equipment 480,000 The following transactions occurred during October: 1. Materials purchased on account, P150,000 2. Materials issued to production: direct materials- P90,000, Indirect materials- P10,000. 3. Payroll for the month of October 2020 consisted of the following (also paid during the month): Direct labor P62,000 Administrative salaries P16,000 Indirect Labor 20,000 Sales salaries 30,000 Payroll deductions were as follows: Withholding taxes P19,800 Phil health contributions P2,000 SSS contributions 7,100 HDMF contributions 2,000 4. Employer contributions for the month were accrued: Factory Selling Administrative SSS contributions P5,700 P2,000 P1,100 Philhealth Contributions 1,200 500 300 EC Contributions 400 300 200 HDMF contributions 1,600 700 400 5. Other costs incurred on account: Indirect factory overhead- P42,000 Selling - 30,000 Administrative - 10,000 6. Depreciation for the month: Factory overhead- P2,000 Selling 1,000 Administrative 1,000 7. Factory overhead control account was transferred to work in process, P82,900. 8. Work finished and placed in stock, P178,000 9. Cost of goods sold, P200,000. The markup was 60% of cost. 10. Cash collected from customers, P260,000 11. Materials returned to supplies, P15,000. 12. Payment of accounts payable, P190,000. 13. Provision for income tax, P6,000. Required: a. Journals entries to record the above transactions b. Statement of cost of goods manufactured c. Income statement d. Balance sheet as of October 31, 2020

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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Peter Senen Corporation provided the following account balances as of September 30, 2020:

Cash                                      P112,000      Accumulated depreciation          P 36,000

Accounts Receivable                         64,000      Accounts payable                  40,000

Finished Goods                                   48,000      Income tax payable                            9,000

Work in process                                    36,000   Share Capital                                      500,000   

Raw materials                                       52,000   Retained Earnings              207,000

Property and Equipment               480,000

The following transactions occurred during October:

1. Materials purchased on account,     P150,000

2. Materials issued to production: direct materials- P90,000, Indirect materials- P10,000.

3. Payroll for the month of October 2020 consisted of the following (also paid during the month):

            Direct labor P62,000                    Administrative salaries     P16,000

            Indirect Labor            20,000

            Sales salaries              30,000

Payroll deductions were as follows:

            Withholding taxes P19,800        Phil health contributions P2,000

            SSS contributions        7,100        HDMF contributions                      2,000

4. Employer contributions for the month were accrued:

                                                Factory                      Selling                        Administrative

SSS contributions                           P5,700                      P2,000                      P1,100

Philhealth Contributions                1,200                            500                            300

EC Contributions                                  400                                300                        200

HDMF contributions                         1,600                         700                         400

5. Other costs incurred on account:

            Indirect factory overhead- P42,000

            Selling                                       -   30,000

            Administrative                       -   10,000

6. Depreciation for the month:

            Factory overhead-      P2,000

            Selling                                            1,000

            Administrative                            1,000

7. Factory overhead control account was transferred to work in process, P82,900.

8. Work finished and placed in stock, P178,000

9. Cost of goods sold, P200,000. The markup was 60% of cost.

10. Cash collected from customers, P260,000

11. Materials returned to supplies, P15,000.

12. Payment of accounts payable, P190,000.

13. Provision for income tax, P6,000.

Required: a. Journals entries to record the above transactions

                   b. Statement of cost of goods manufactured

                   c. Income statement

                   d. Balance sheet as of October 31, 2020

 

Question: Direct Material Used is: 

Problem B
Peter Senen Corporation provided the following account balances as of September 30, 2020:
Cash
P112,000 Accumulated depreciation
P 36,000
Accounts Receivable
64,000 Accounts payable
40,000
Finished Goods
48,000 Income tax payable
9,000
Work in process
36,000 Share Capital
500,000
Raw materials
52,000 Retained Earnings
207,000
Property and Equipment
480,000
The following transactions occurred during October:
1. Materials purchased on account, P150,000
2. Materials issued to production: direct materials- P90,000, Indirect materials- P10,000.
3. Payroll for the month of October 2020 consisted of the following (also paid during the month):
Direct labor P62,000
Administrative salaries P16,000
Indirect Labor
20,000
Sales salaries
30,000
Payroll deductions were as follows:
Withholding taxes P19,800
Phil health contributions P2,000
SSS contributions
7,100
HDMF contributions
2,000
4. Employer contributions for the month were accrued:
Factory
Selling
Administrative
SSS contributions
P5,700
P2,000
P1,100
Philhealth Contributions
1,200
500
300
EC Contributions
400
300
200
HDMF contributions
1,600
700
400
5. Other costs incurred on account:
Indirect factory overhead- P42,000
- 30,000
- 10,000
Selling
Administrative
6. Depreciation for the month:
Factory overhead- P2,000
Selling
1,000
Administrative
1,000
7. Factory overhead control account was transferred to work in process, P82,900.
8. Work finished and placed in stock, P178,000
9. Cost of goods sold, P200,000. The markup was 60% of cost.
10. Cash collected from customers, P260,000
11. Materials returned to supplies, P15,000.
12. Payment of accounts payable, P190,000.
13. Provision for income tax, P6,000.
Required: a. Journals entries to record the above transactions
b. Statement of cost of goods manufactured
c. Income statement
d. Balance sheet as of October 31, 2020
Transcribed Image Text:Problem B Peter Senen Corporation provided the following account balances as of September 30, 2020: Cash P112,000 Accumulated depreciation P 36,000 Accounts Receivable 64,000 Accounts payable 40,000 Finished Goods 48,000 Income tax payable 9,000 Work in process 36,000 Share Capital 500,000 Raw materials 52,000 Retained Earnings 207,000 Property and Equipment 480,000 The following transactions occurred during October: 1. Materials purchased on account, P150,000 2. Materials issued to production: direct materials- P90,000, Indirect materials- P10,000. 3. Payroll for the month of October 2020 consisted of the following (also paid during the month): Direct labor P62,000 Administrative salaries P16,000 Indirect Labor 20,000 Sales salaries 30,000 Payroll deductions were as follows: Withholding taxes P19,800 Phil health contributions P2,000 SSS contributions 7,100 HDMF contributions 2,000 4. Employer contributions for the month were accrued: Factory Selling Administrative SSS contributions P5,700 P2,000 P1,100 Philhealth Contributions 1,200 500 300 EC Contributions 400 300 200 HDMF contributions 1,600 700 400 5. Other costs incurred on account: Indirect factory overhead- P42,000 - 30,000 - 10,000 Selling Administrative 6. Depreciation for the month: Factory overhead- P2,000 Selling 1,000 Administrative 1,000 7. Factory overhead control account was transferred to work in process, P82,900. 8. Work finished and placed in stock, P178,000 9. Cost of goods sold, P200,000. The markup was 60% of cost. 10. Cash collected from customers, P260,000 11. Materials returned to supplies, P15,000. 12. Payment of accounts payable, P190,000. 13. Provision for income tax, P6,000. Required: a. Journals entries to record the above transactions b. Statement of cost of goods manufactured c. Income statement d. Balance sheet as of October 31, 2020
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