Problem 5 Darvin Company contained the following account balances: Cash Accounts Receivable Finished Goods Work in Process Materials Accounts Payable Accrued Payroll P 100,000 60,000 35,000 18,000 50,000 10,000 8,000. 200,000 45,000 Common Stock Retained Earnings During January, 2019, the following transactions were completed. a) Materials purchased on account, P 200,000. b) Factory overhead incurred on account, P 35,000 c) Payroll for the period consists of: direct labor P140,000; indirect labo P30,000; sales salaries Deductions from payroll were as follows: Withholding taxes SSS Premiums Phil Health Contributions P25,000; and administrative salaries P15,0 18,520 8,400 1,125 6,300 P Pag-ibig Funds d) P175,000 was paid for payroll e) Computation of employer's payroll tax is as follows: Selling P 1,250 Factory P 8,500 600 Administrative P 750 SSS Premiums Phil Health 375 150 Pag-ibig Fund 5,100 750 450 f) Materials issued: direct materials - P185,000; indirect - P35,000. g) Factory overhead was charged to production at 80% of direct labor cost. h) Work finished and placed in stock - P410,000 i) Cost of goods sold - P385,000. The markup was 40% of cost. i) Cash collected from customers, P405,000. k) Payments for liabilities amounted to P 220,000, other than payroll.
Problem 5 Darvin Company contained the following account balances: Cash Accounts Receivable Finished Goods Work in Process Materials Accounts Payable Accrued Payroll P 100,000 60,000 35,000 18,000 50,000 10,000 8,000. 200,000 45,000 Common Stock Retained Earnings During January, 2019, the following transactions were completed. a) Materials purchased on account, P 200,000. b) Factory overhead incurred on account, P 35,000 c) Payroll for the period consists of: direct labor P140,000; indirect labo P30,000; sales salaries Deductions from payroll were as follows: Withholding taxes SSS Premiums Phil Health Contributions P25,000; and administrative salaries P15,0 18,520 8,400 1,125 6,300 P Pag-ibig Funds d) P175,000 was paid for payroll e) Computation of employer's payroll tax is as follows: Selling P 1,250 Factory P 8,500 600 Administrative P 750 SSS Premiums Phil Health 375 150 Pag-ibig Fund 5,100 750 450 f) Materials issued: direct materials - P185,000; indirect - P35,000. g) Factory overhead was charged to production at 80% of direct labor cost. h) Work finished and placed in stock - P410,000 i) Cost of goods sold - P385,000. The markup was 40% of cost. i) Cash collected from customers, P405,000. k) Payments for liabilities amounted to P 220,000, other than payroll.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter21: The Statement Of Cash Flows
Section: Chapter Questions
Problem 21E: (Appendix 21.1) Visual Inspection The following changes in account balances were taken from Walson...
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