Prepare journal entries.
Prepare
ABC Glass Manufacturing Company castings and other glass parts to various customers as per order. The Company uses
The company had no work in process at the beginning of the year. The entire month of January was spent on Job Order 777, which was an order for 4,000 window glass parts. Cost data for January as follows:
a. Raw materials purchased on account, P300,000
b. Raw materials requisitioned for production, P270,000 (90% direct and 10% indirect).
c. Labor cost incurred in the factory, P190,000, of which P100,000 was direct and the balance indirect cost.
d.
e. Other manufacturing overhead costs incurred, P55,000, 50% of which paid and the balance on account.
f. Manufacturing overhead cost was applied to production on a basis of 34,000 machine-hours worked during January.
g. The completed job was moved into the finished goods warehouse on January 31 to await delivery for the customers. (Assuming that all work in process has been completed)
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