Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sunnry Day Manufacturing Company has just started operation on September 1, 2020. The following are the transactions for the month of September 1. Purchase of

image text in transcribedimage text in transcribed

image text in transcribed

Sunnry Day Manufacturing Company has just started operation on September 1, 2020. The following are the transactions for the month of September 1. Purchase of Raw Materials: On account, PHP 350,000. 2. Accepted three job orders from different customers and assigned Job. No. 700-A, 700-B and 700-C. 3. Materials in the amount of PHP 200,000 requisitioned and issued. 30% for Job 700-A, 25% for 700-B and 35% for 700-C. The balance represent indirect materials. 4. Payroll for the month totaled PHP 357,200. Analysis of the payroll shows: Job Job 700-A Job 700-B Job 700-C Indirect Labor Hours Cost 8,840 88,400.00 11,650 116,500.00 11,980 119,800.00 32,500.00 5. The following overhead were incurred during the month in addition to indirect materials and indirect labor: Maintenance of factory equipment Utilities (power, light and water) Depreciation of factory plant and equipment Insurance expired Miscellaneous factory expenses 10,000.00 25,000.00 15,000.00 8,000.00 5,000.00 6. The Company's policy is to apply overhead to each job at the rate of PHP 3.5 per direct labor hour. Any overhead variance is closed to cost of goods sold. 7. Jobs 700-A and 700-B are completed and billed the customers at cost plus 40% mark-up. 2. Prepare summary of accounts. 3. Prepare the cost of each job. Requirements: 1. Journal entries to record the tranctions for the month. Ref. No. Account Job Cost Balance Job 700-A Job 700-B Job 700-C Accounts Raw materials Finished goods Accounts Raw materials Labor Overhead Work in progress Work in progress Manufacturing overhead Total Cost of Jobs Prepaid insurance Accrued Payroll Accounts payable Sales Cost of sales

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting And Auditing Research Tools And Strategies

Authors: Thomas R. Weirich, Thomas C. Pearson, Natalie Tatiana Churyk

7th Edition

9780470506974

More Books

Students also viewed these Accounting questions