Problem 6: Manufacturing Company Journal entries

Charger Corp. has the following data for its December operations:

a.Materials purchased on account, P924,000.

b. Materials requisitioned, P808 ,500, of which P102,900 were indirect

materials.

c. Factory labor incurred, P954,100, of which P133,700 was indirect labor.

d. Other cost incurred on account for factory overhead, P215,950; selling

expenses P342,125; and for administrative expenses, P213,150.

e. Prepaid expenses expired for factory overhead were P42,630; for selling

expenses, P36,050; and for administrative expenses, P26,075.

f. Depreciation of office building was P123,375; of office equipment

P63,210; and of factory equipment P42,630.

g. Factory overhead costs applied to production P540,720

h. Products completed P1,470,000

i. Cost of Goods Sold, P1,295,000.

Required:

1. Prepare the journal entries.
2. Prepare the cost of goods sold statement using normal costing.
3. Compute the amount of over or under applied factory overhead.