The following transactions were taken from the books of Masayun La Eni Corporation during the month of June 2020: a. Purchased raw materials on account, P200,000 and factory supplies, P70,000. b. Issued raw materials to production, P400,000. c. Paid direct factory labor, P950,000. d. Paid indirect factory labor, P160,000. e. Consumed factory supplies in production, P80,000. f. Paid production supervisor’s salary, P60,000. g. Received factory utility bills for the month, P122,460. h. Depreciation of production assets for the month, P64,000. i. Units finished were 10,000 units in the amount of P1,600,000. j. Sales for the month, P3,600,000. Goods related to sales cost P1,800,000. Required: 1. Establish T-accounts for the following manufacturing accounts and post corresponding beginning balances. Manufacturing Accounts Beginning Balances Raw Materials Inventory P205,000 Work-in-Process Inventory P630,000 Finished Goods Inventory P360,000 Indirect Materials Inventory P100,000 Factory Overhead - 2. Prepare journal entries for the transactions above. 3. Post entries to T-accounts.
The following transactions were taken from the books of
Masayun La Eni Corporation during the month of June 2020:
a. Purchased raw materials on account, P200,000 and factory
supplies, P70,000.
b. Issued raw materials to production, P400,000.
c. Paid direct factory labor, P950,000.
d. Paid indirect factory labor, P160,000.
e. Consumed factory supplies in production, P80,000.
f. Paid production supervisor’s salary, P60,000.
g. Received factory utility bills for the month, P122,460.
h.
P64,000.
i. Units finished were 10,000 units in the amount of
P1,600,000.
j. Sales for the month, P3,600,000. Goods related to sales
cost P1,800,000.
Required:
1. Establish T-accounts for the following manufacturing
accounts and post corresponding beginning balances.
Manufacturing Accounts Beginning Balances
Raw Materials Inventory P205,000
Work-in-Process Inventory P630,000
Finished Goods Inventory P360,000
Indirect Materials Inventory P100,000
Factory Overhead -
2. Prepare
3.
4. Prepare statement of Cost of Goods Manufactured in good
form.
5. What is the cost per unit of product?
Step by step
Solved in 4 steps with 13 images
