Problems Problem 1 ( Flow of an accounting for the manufacturing company ) The following events took place at the Barton Manufacturing Corporation for a . the current year : 1. Purchased P80,000 in direct materials . 2. Incurred labor costs as follows : Direct labor , P42,000 . b . Supervisory labor , P11,500 ( part of manufacturing overhead ) . 3. Purchased manufacturing equipment for P67,200 . 4. Other manufacturing overhead was P80,500 , excluding supervisory labor . 5. Transferred 70 percent of the materials purchased to work in process . 6. Completed work on 60 percent of the goods in process . Costs are equally across all work in process . 7. Sold 90 percent of the completed goods . assigned There were no beginning balances in the inventory accounts . All costs incurred were debited to the appropriate account and credited to accounts payable . Required : 1. Prepare journal entries to reflect these events . 2. Prepare T - accounts to show these events . 3. Prepare a cost of goods sold statement from the data .
. Problems Problem 1 ( Flow of an accounting for the manufacturing company ) The following events took place at the Barton Manufacturing Corporation for a . the current year : 1. Purchased P80,000 in direct materials . 2. Incurred labor costs as follows : Direct labor , P42,000 . b . Supervisory labor , P11,500 ( part of manufacturing
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