Direction: Show the journal entries in the transactions given below. If the problem is silent about the overtime premium use the minimum 25%. Half human, half zombie for president manufacturing corp. A newly established business had the following transaction for the 1st month of its operation:A. Purchase of raw materials on account amounting to P650,000B. Details for computation of payroll for the month are as follows: DIRECT LABORINDIRECTLABOR SELLING AND ADMINPERSONNELNUMBER OF EMPLOYEES 30612RATE PER DAYP600P800P500TOTAL NUMBER OF REGULAR HOURSWORKED5,2801,0562,112TOTAL NUMBER OF OVERTIME 125100TAX WITHHELD P0.00P0.00P0.00MANDATORY CONTRIBUTIONS - EMPLOYEEP23,600P5,320P9,600MANDATORY CONTRIBUTIONS -EMPLOYER P43,820P9,880P17,820C. 60% of overtime work is because of rush jobs d. Factory overhead is applied at 80% of direct labor e. Only 90% of raw materials available for use was issued to production (25% indirect materials) f. 20% of total manufacturing cost was still in the work in process inventoryg. 95% of finished goods was sold with a gross profit rate of 40% h. Other factory overhead incurred amounts to 96,500

Journal Entry The purpose of providing the journal entry to enter the required transaction into both…

Answered: Direction: Show the journal entries in…

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter3: Accounting For Labor

Section: Chapter Questions

Problem 10P

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Direction: Show the journal entries in the transactions given below. If the problem is silent about the overtime premium use the minimum 25%.

Half human, half zombie for president manufacturing corp. A newly established business had the following transaction for the 1st month of its operation:

A. Purchase of raw materials on account amounting to P650,000

B. Details for computation of payroll for the month are as follows:

	DIRECT LABOR	INDIRECT LABOR	SELLING AND ADMIN PERSONNEL
NUMBER OF EMPLOYEES	30	6	12
RATE PER DAY	P600	P800	P500
TOTAL NUMBER OF REGULAR HOURS WORKED	5,280	1,056	2,112
TOTAL NUMBER OF OVERTIME	125	10	0
TAX WITHHELD	P0.00	P0.00	P0.00
MANDATORY CONTRIBUTIONS - EMPLOYEE	P23,600	P5,320	P9,600
MANDATORY CONTRIBUTIONS - EMPLOYER	P43,820	P9,880	P17,820

C. 60% of overtime work is because of rush jobs

d. Factory overhead is applied at 80% of direct labor

e. Only 90% of raw materials available for use was issued to production (25% indirect materials)

f. 20% of total manufacturing cost was still in the work in process inventory

g. 95% of finished goods was sold with a gross profit rate of 40%

h. Other factory overhead incurred amounts to 96,500

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