Problem 1

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

1. Purchase of materials (direct and indirect), on credit, P1,000,000
2. Usage of raw materials, P750,000 (20% are indirect materials)
3. 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.
4. 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
5. Allocation of manufacturing overhead to jobs using predetermined OH rate of P12/machine hour. Actual machine hour for the month is 50,000 hours.
6. Completion and transfer of individual jobs to finished goods, P1, 555,000
7. Cost of goods sold, P880,000
8. Marketing costs for February, P45,000 and customer service costs for February P15,000, paid in cash
9. Sales, all on credit, P2,270,000

QUESTIONS:

1. The journal entry for item number 2 involves

Choose in the following:

a. debit to work in process of 600,000

b.debit to materials inventory of 600,000

c. credit to factory overhead control of 150,000

d. credit to materials inventory of 600,000

2. The journal entry for item number 6 involves

a. debit to finished goods of 1,555,000

b. credit to finished goods of 1,555,000

c. debit to work in process of 1,555,000

d. debit to cost of goods sold of 880,000

3. The journal entry for item number 3 involves

a. credit to cash of 425,000

b. debit to factory overhead control of 390,000

c. debit to work in process of 170,000

d. debit to cash of 390,000