The Greco Globe Garments uses the job order costing system for inventory valuation and product pricing. The beginning inventory schedule as of December 31, 1991 is as follows:
Direct Materials	100,000.00
Supplies	125,000.00
The Finished Goods inventory consisted of two jobs: IR 22 and IR 23 with job cost sheets shown below:
Job No.	Direct Material	Direct Labor	Factory Overhead
IR 22	40,000.00	15,000.00	15,000.00
IR 23	14,750.00	3,000.00	2,250.00
The Work-In-Process inventory consisted of three jobs with current job cost sheets shown below:
Job No.	Direct Material	Direct Labor	Factory Overhead
IR 24	40,250.00	25,000.00	18,750.00
IR 25	20,250.00	3,500.00	3,750.00
IR 26	39,437.00	55,750.00	41,813.00
Jobs IR 27 and IR 28 were started during 1992. The breakdown of direct materials requisitioned by and direct labor used in the production department is as follows:
Job No.	Direct Labor	Direct Materials
IR 24	20,000.00	5,000.00
IR 25	155,000.00	105,000.00
IR 26	120,000.00	25,000.00
IR 27	125,000.00	100,000.00
IR 28	175,000.00	165,000.00
Total	595,000.00	400,000.00
The following transactions pertain to 1992 (in P000):
(a) Direct materials purchased on account, : 500
(b) Supplies purchased in cash: 75
(c) Direct materials requisitioned by the production department: 400
(d) Supplies used in various production departments: 100
(e) Labor directly used in production (25% still unpaid as of the end of 1992): 595
(f) Indirect labor incurred by production: 200
(g) Indirect labor incurred by office: 100
(h) Depreciation, factory and equipment: 50
(i) Miscellaneous factory overhead (utilities, repairs, etc.): 150
(j) Factory overhead applied is based on a rate of P0.75 per direct labor cost
(k) Goods manufactured and transferred to finished goods inventory: IR 24, 25, 27
(l) Goods sold: IR 22, 25, 27 at a 30% gross profit margin.
Required:
(a) Journal entries for the transactions, posted on respective T-accounts.
(b) Ending balances of inventories, DM, WIP, and FG.
(c) Prorated amount on CGS, WIP, and FG inventories based on the weighted percentage of ending balances of accounts.
(d) Income statement for 1992.
Questions:
1. Transaction (j) is journalizes FOH Applied. Should FOH Applied be debited or credited? If debited, answer "DEBIT". If credited, answer "CREDIT".
2. Transaction (k) includes FG entry for IR24. What is this amount?
3. What is the BEG, WIP for the year 1992?
4. FOH must be adjusted by how much?
5. Adjusting entries contains CGS. How much is the adjustment needed for CGS?
6. What is the Net Income of Greco Globe for Year Ending 1992?