Scribd
Upload
37 views2 pages

Journal Entries (COST)

The document summarizes transactions for Gatchalian Manufacturers involving raw materials purchases and manufacturing overhead. It records the purchase of raw materials for P180,000, payroll of P80,000 including deductions, use of P130,000 of raw materials for production including P10,000 to overhead, return of P2,000 of defective materials, payment of P178,000 for raw materials, additional overhead expenses of P9,000, overhead applied at 120% of direct labor of P72,000, transfer of finished goods of P175,000 cost to inventory, sale of P140,000 of finished goods for P210,000, and treatment of P33,000 overapplied overhead as an immaterial

Uploaded by

Carl
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
37 views2 pages

Journal Entries (COST)

The document summarizes transactions for Gatchalian Manufacturers involving raw materials purchases and manufacturing overhead. It records the purchase of raw materials for P180,000, payroll of P80,000 including deductions, use of P130,000 of raw materials for production including P10,000 to overhead, return of P2,000 of defective materials, payment of P178,000 for raw materials, additional overhead expenses of P9,000, overhead applied at 120% of direct labor of P72,000, transfer of finished goods of P175,000 cost to inventory, sale of P140,000 of finished goods for P210,000, and treatment of P33,000 overapplied overhead as an immaterial

Uploaded by

Carl
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

The following transactions refer to Gatchalian Manufacturers.

The entity is using two separate


account for actuals and applied manufacturing overhead:
a. Purchased on account raw materials amounting P180,000.
Raw Materials Inventory 180,000
Accounts Payable 180,000
b. The factory payroll was recorded. Direct Labor amounted to P60,000 while indirect labor
amounted to P20,000. Employee payroll deductions were recorded as follows:
Withholding Taxes P11,200
SSS Premiums P2,400
PhilHealth Contribution P375
Pag-Ibig Fund Contribution P1620

Factory Payroll 80,000


Payable to BIR (Witholding Taxes Payable) 11,200
Payable to SSS (SSS Premiums Payable) 2,400
Payable to PhilHealth 375
Payable to Pag-Ibig 1,620
Payable to employees 64,405

Work in Process 60,000


Factory Overhead Control 20,000
Factory Payroll 80,000

Payable to employees 64,405


Cash 64,405

Payable to BIR 11,200


Payable to SSS 2,400
Payable to PhilHealth 375
Payable to Pag-Ibig 1,620
Cash 15,595
c. Issued and use raw materials worth P130,000. Out of this amount, P120,000 refer to
direct material.
Work in Process Inventory 120,000
Factory Overhead Control 10,000
Raw Materials Inventory 130,000
d. Defective raw materials amounting P2,000 were returned to supplier.
Accounts Payable 2,000
Raw Material Inventory 2,000
e. Settled the accounts payable related to the purchase of raw materials
Accounts Payable 178,000
Raw Material Inventory 178,000
f. Incurred factory expenses amounting P9,000
Factory Overhead Control 9,000
Accounts Payable 9,000
g. Factory overhead was charged to production at 120% of direct labor cost.
Work in Process Inventory 72,000
Factory Overhead Applied 72,000
h. Goods completed with a total cost of P175,000 were transferred to finished goods.
Finished Goods Inventory 175,000
Work in Process Inventory 175,000
i. Sold the finished goods inventory costing P140,000 for P210,000.
Accounts Receivable 210,000
Sales 210,000

Cost of Goods Sold 140,000


Finished Goods Inventory 140,000
j. Any over or underapplied overhead will be treated as immaterial account.
Factory Overhead Applied 72,000
Factory Overhead Control 39,000
Overapplied Factory Overhead 33,000

Overapplied Factory Overhead 33,000


Cost of Goods Sold 33,000

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy