Actual Cost System

The following transactions pertain to the manufacturing operations of TESLA CORPORATION a. Materials purchased totaled P 400,000 b. Materials were issued as follows: Direct Materials Indirect Materials P 196,000 36,000 c. Total payroll was P 240,000 direct labor; P 48,000 indirect labor; P 24,000 P 40,000 office salaries. Income tax withheld was 10% sales salaries and of wages earned; SSS contribution at the rate of 5%; Phil. Health contributions, 1.5% and Pag-Ibig Contributions, 1% were deducted. The payroll due to the employees was paid. d. Employer's share for SSS, 5%; Philhealth, 1.5% and Pag-Ibig, 1% e. Miscellaneous factory expenses totaled P 60,000 of which P 36,000 was for depreciation of machinery and equipment; P 6,000 for expired insurance and P 18,000 for various overhead incurred. . Actual factory overhead incurred was applied to work in process. g. Cost of production completed during the period was P 480,000. h. Goods costing P 160,000 were billed to customers at markup of 40% of cost. i. Collected 80% of receivables from customers. Required: Prepare all necessary journal entries to record the foregoing transactions