78 Problem 5 Darvin Company contained the following account balances: Cash Accounts Receivable Finished Goods Work in Process Materials Accounts Payable Accrued Payroll Common Stock Retained Earnings Cost Accounting P 100,000 60,000 35,000 18,000 50,000 10,000 8,000 200,000 45,000 During January, 2019, the following transactions were completed. a) Materials purchased on account, P 200,000. b) Factory overhead incurred on account, P 35,000 c) Payroll for the period consists of: direct labor - P140,000; indirect labor- P30,000; sales salaries P25,000; and administrative salaries P15,000. Deductions from payroll were as follows: P 18,520 8,400 1.125 6,300 Withholding taxes SSS Premiums Phil Health Contributions Pag-ibig Funds d) P175,000 was paid for payroll e) Computation of employer's payroll tax is as follows: SSS Premiums Phil Health Pag-ibig Fund 375 Administrative P 750 150 450 Factory P 8,500 Selling P 1,250 600 5,100 750 f) Materials issued: direct materials - P185,000; indirect - P35,000. g) Factory overhead was charged to production at 80% of direct labor cost. h) Work finished and placed in stock - P410,000 Cost of goods sold - P385,000. The markup was 40% of cost. j) Cash collected from customers, P405,000. k) Payments for liabilities amounted to P 220,000, other than payroll.