. JOURNAL ENTRIES - ACTUAL COST SYSTEM The following transactions of Lakay Manufacturers were incurred during the month of May. a. Materials purchases on account, P 7 SO,OOO. b. Purchase retums and allowances, PSO,OOO_ c. Payment of payroll: Total Eamings pess,ooo Less: SSS premiums P17,soo Philheaith premiums Pag IBIG premiums 8,000 Withholding taxes 12,000 Advan ces to employees 65,000 Union dues Net amount 30 ooo PS20 OOO 135 ooo e. k. m. o. p. Breakdmvn of the payroll: factory, 60% (Direct labor 50%, Superintendence 40%; Indirect labor 10%); sales, 25%; and, offce, 15%. Disbursements are made for the follmving: Insurance premiums factor/ building and contents P2,soo Lubricants, rags, brooms and msecticide Electricity bill 4, 100 Water bill sales on account, Sales returns and allmvances, P60,OOO. The following are paid: Bond paper, pencils and other offce supplies P 1,500 TV and radio advemsements 6,000 Plastic bags, masking tapes and other store supplies 2,000 The employer's contributions for SSSI Philhealth and Pag-ISIG premiums are as follmvs: SSS- P20,ooo; Philhealth-P8,ooo, Pag-181G-P2,oso) and EC premiums of P2,soo_ The total of these is distributed as follows: factory, 70%: sales, 15%; and office, IS%. Amounts due to SSS, Philhealth and Pag-IBIG premiums are remitted together with the employers counterpart, including payable to SIR and Union. Collections from customers, P 195,000. Depreciation is provided on: factory building, PIS,OOO; factory machinery and equipment, P7:OOO; office furniture and equipment, PS,OOO; delivery Van, P8,OOO, and, store furniture, p 4,200_ Accrual of salaries and wages: factory-P8,OOO (direct sales-P3,OOO; and, office- P2,500_ The following ending inventories are taken up: Raw materials - P20,OOO; Work in process - Pls,ooo; Finished goods - P19,ooo The following beginning inventories are closed: Raw matenals - P18,OOO; Work in process P16,ooo; Finished goods - PIO,ooo The remaining manufacturing accounts are closed. The remaining nominal accounts are closed. The net income or net boss is transferred to accumulated profits. REQUIRED: Prepare Journal entries for these transactions (With no explanations)