Problem 1: ABC Company uses a job order cost system for its manufacturing activities. The following transaction data were accumulated for the month of June 2021: A Jobs in process, June 1: Jab 40 P20,000 60,000 Job 41 b. Raw materials purchased, P720,000 C. Raw materials and supplies requisitioned from the stockroom Job 40 Job 41 Job 42 General factory usage P100,000 220,000 240,000 40,000 P600.000 d. Total factory payroll accrued and paid 200,000 200,000 220,000 P620.000 Job 40 Job 41 Job 42 Direct labor Indirect labor 80,000 Payroll deductions 5% P7,500 2,400 2,000 Income tax withheld SSS contributions Phil. Health contributions Pag-ibig contributions e. Employer's share in SSS contributions Phil. Health contributions Pag-ibig contributions P10,200 2,400 2,000 f. Depreciation of factory equipment and machinery for June, P80.000. g. Other overhead costs incurred, P340,000. h. Factory overhead is applied to jobs at the rate of 100 percent of direct labor cost. i During the month, Job 40 and Job 41 wer Job 40 was delivered and billed to the customer for P900,000. completed. Required. 1. Prepare general journal entries for the transactions. 2. Compute the balance of Work in Process on June 30, 2021.
Problem 1: ABC Company uses a job order cost system for its manufacturing activities. The following transaction data were accumulated for the month of June 2021: A Jobs in process, June 1: Jab 40 P20,000 60,000 Job 41 b. Raw materials purchased, P720,000 C. Raw materials and supplies requisitioned from the stockroom Job 40 Job 41 Job 42 General factory usage P100,000 220,000 240,000 40,000 P600.000 d. Total factory payroll accrued and paid 200,000 200,000 220,000 P620.000 Job 40 Job 41 Job 42 Direct labor Indirect labor 80,000 Payroll deductions 5% P7,500 2,400 2,000 Income tax withheld SSS contributions Phil. Health contributions Pag-ibig contributions e. Employer's share in SSS contributions Phil. Health contributions Pag-ibig contributions P10,200 2,400 2,000 f. Depreciation of factory equipment and machinery for June, P80.000. g. Other overhead costs incurred, P340,000. h. Factory overhead is applied to jobs at the rate of 100 percent of direct labor cost. i During the month, Job 40 and Job 41 wer Job 40 was delivered and billed to the customer for P900,000. completed. Required. 1. Prepare general journal entries for the transactions. 2. Compute the balance of Work in Process on June 30, 2021.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter2: Job Order Costing
Section: Chapter Questions
Problem 1PB: Entries for costs in a job order cost system Royal Technology Company uses a job order cost system....
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