The following are transactions of Corporation R for the month of February 2020. Provide the corresponding journal entries for each transaction: Purchase of materials (direct and indirect), on credit, P1,000,000 Usage of raw materials, P750,000 (20% are indirect materials) Manufacturing payroll for the month: Gross amount of 390,000 Direct labor, P90,000 of which for SSS and other government payable, and gross amount of indirect labor, P170,000, P45,000 of which for SSS and government payable. Net salary paid in cash. Other manufacturing overhead costs incurred during the month, P175,000, consisting of janitorial salaries, P80,000 paid in cash for plant utilities, repairs, and supervisory salaries, P130,000 and plant depreciation, P40,000 Allocation of manufacturing overhead to jobs using the predetermined OH rate of P12/machine hour. Actual machine hour for the month is 50,000 hours. Completion and transfer of individual jobs to finished goods, P1, 555,000 Cost of goods sold, P880,000 Marketing costs for February, P45,000 and customer service costs for February P15,000, paid in cash Sales, all on credit, P2,270,000 The following are also provided: Tax rate – 30% Interest expenses – P20,000 Administrative expenses – P540,000 Beginning Inventories: Raw materials, P610,000; Work in process, P1,065,000, Finished Goods, P2,100,000. Units manufactured for the period – 100,000 units Calculate Net Income after Tax, cost per unit under normal costing and cost per unit under actual costing,total Manufacturing cost, Operating Income,Cost of goods manufactured and COGS unadjusted

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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The following are transactions of Corporation R for the month of February 2020. Provide the corresponding journal entries for each transaction:

Purchase of materials (direct and indirect), on credit, P1,000,000
Usage of raw materials, P750,000 (20% are indirect materials)
Manufacturing payroll for the month: Gross amount of 390,000 Direct labor, P90,000 of which for SSS and other government payable, and gross amount of indirect labor, P170,000, P45,000 of which for SSS and government payable. Net salary paid in cash.
Other manufacturing overhead costs incurred during the month, P175,000, consisting of janitorial salaries, P80,000 paid in cash for plant utilities, repairs, and supervisory salaries, P130,000 and plant depreciation, P40,000
Allocation of manufacturing overhead to jobs using the predetermined OH rate of P12/machine hour. Actual machine hour for the month is 50,000 hours.
Completion and transfer of individual jobs to finished goods, P1, 555,000
Cost of goods sold, P880,000
Marketing costs for February, P45,000 and customer service costs for February P15,000, paid in cash
Sales, all on credit, P2,270,000

The following are also provided:

Tax rate – 30%

Interest expenses – P20,000

Administrative expenses – P540,000

Beginning Inventories: Raw materials, P610,000; Work in process, P1,065,000, Finished Goods, P2,100,000.

Units manufactured for the period – 100,000 units

Calculate

Net Income after Tax, cost per unit under normal costing and cost per unit under actual costing,total Manufacturing cost, Operating Income,Cost of goods manufactured and COGS unadjusted

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