Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following are transactions of ABC Corporation for the month of February 2020. Provide the corresponding journal entries for each transaction: 1.Purchase of materials (direct

The following are transactions of ABC 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, 555,0007.Cost of goods sold, P880,0008.Marketing costs for February, P45,000 and customer service costs for February P15,000, paid in cash9.Sales, all on credit, P2,270,000

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 The following are also provided:

Tax rate 30%Interest expenses P20,000

Administrative expenses P540,000

Beginning Inventories: Raw materials, P610,000; Work in process, P1,065,000, Finished Goods, P2,100,000.

Units manufactured for the period 100,000 units

Compute/provide for the following:

1)Provide journal entries per transaction (please use compound entries)

2)Cost of Goods Sold

3)Total Manufacturing Cost

4)Cost per unit under normal costing

5)Cost per unit under actual costing

6)Cost of Goods Manufactured

7)Operating income

8)Ending Finished Goods Inventory

9)Ending Raw Materials Inventory

10) Net Income

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

Contemporary Auditing

Authors: Michael C. Knapp

11th edition

1305970810, 9781337514811, 1337514810, 978-1305970816

More Books

Students also viewed these Accounting questions

Question

How should Ford compete?

Answered: 1 week ago

Question

21. What are the two kinds of stroke, and what causes each kindpg78

Answered: 1 week ago

Question

What dietary factors might relate closely to dementia?

Answered: 1 week ago

Question

Describe strategic succession planning in todays environment.

Answered: 1 week ago

Question

Explain the various elements of a diverse workforce.

Answered: 1 week ago

Question

Describe the strategic planning process.

Answered: 1 week ago