Prepare journal entries to record the above transaction , showing all necessary computations.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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JOURNAL ENTRY

 

The following transaction were completed during February ,2012:
1. Direct materials purchased P 280,000.
2. The factory payroll showed P 160,000 for direct labor and P 36,000 for indirect
labor. Office payroll for sales salaries were P 60,000 and for administrative salaries,
P 42,000. Emplioyee's deductions for income tax are 2%, Pag -ibig ,1.5%,
P1,000 and SSS ,P2,000.
3. Indirect materiais and supplies amounted to P 60,000 were purchased.
4. Employer's contributions were SSS 3% ; Philealth 1.5%; Pag-ibig 2%
5. Analysis of materials requisition:
Philhealth
Production order
P 120,000
Standing orders
30,000
9,000
Selling supplies
Office supplies
2,000
6. Defective selling supplies returned to vendor, P 1,200.
7. Vouchers totaling P220,000, including payroll voucher were paid.
8. Depreciation at a rate of 1% of the original machinery cost of P 100,000 was
recorded.
9. Various factories overhead of P 15,000 were vouched.
10. Factory overhead was applied to production at rate of 70% of direct labor cost.
11. Goods completed with materials cost of P 110,000; labor cost of P 98,000 and factory
overhead cost of P 68,600 were transferred to finish the goods.
12. Sales for the month were P 400,000, costing P250,000.
13. At the end of February, the factory overhead accounts are closed, the over/ under
applied balance closed to Cost of sales account.
EQUIRED Prepare journal entries to record the above transaction , showing all
necessary computations.
Transcribed Image Text:The following transaction were completed during February ,2012: 1. Direct materials purchased P 280,000. 2. The factory payroll showed P 160,000 for direct labor and P 36,000 for indirect labor. Office payroll for sales salaries were P 60,000 and for administrative salaries, P 42,000. Emplioyee's deductions for income tax are 2%, Pag -ibig ,1.5%, P1,000 and SSS ,P2,000. 3. Indirect materiais and supplies amounted to P 60,000 were purchased. 4. Employer's contributions were SSS 3% ; Philealth 1.5%; Pag-ibig 2% 5. Analysis of materials requisition: Philhealth Production order P 120,000 Standing orders 30,000 9,000 Selling supplies Office supplies 2,000 6. Defective selling supplies returned to vendor, P 1,200. 7. Vouchers totaling P220,000, including payroll voucher were paid. 8. Depreciation at a rate of 1% of the original machinery cost of P 100,000 was recorded. 9. Various factories overhead of P 15,000 were vouched. 10. Factory overhead was applied to production at rate of 70% of direct labor cost. 11. Goods completed with materials cost of P 110,000; labor cost of P 98,000 and factory overhead cost of P 68,600 were transferred to finish the goods. 12. Sales for the month were P 400,000, costing P250,000. 13. At the end of February, the factory overhead accounts are closed, the over/ under applied balance closed to Cost of sales account. EQUIRED Prepare journal entries to record the above transaction , showing all necessary computations.
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