Problem 1 The following pertain to manufacturing operations: a) Materials were issued as follows: Direct materials, P24,500; indirect materials P4,500. b) Payroll of P44,000 paid was recorded. Withheld are the following: Income tax P7,000, SSS contribution P3,000, Phil health contribution P2,000 and Pagibig contribution P1,000. c) The payroll consisted of P30,000 direct labor, P6,000 indirect labor, P5,000 marketing and P3,000 administrative. d) Accrued miscellaneous factory expenses P7,500. e) Factory overhead applied to production P22,932. f) Cost of production completed during the month P60,000. g) Materials purchased totaled P50,000. h) Goods costing P20,000 were sold on account to customers at a sales price of P30,000. Required: Prepare the necessary journal entries.

Problem 1 The following pertain to manufacturing operations: a) Materials were issued as follows: Direct materials, P24,500; indirect materials P4,500. b) Payroll of P44,000 paid was recorded. Withheld are the following: Income tax P7,000, SSS contribution P3,000, Phil health contribution P2,000 and Pagibig contribution P1,000. c) The payroll consisted of P30,000 direct labor, P6,000 indirect labor, P5,000 marketing and P3,000 administrative. d) Accrued miscellaneous factory expenses P7,500. e) Factory overhead applied to production P22,932. f) Cost of production completed during the month P60,000. g) Materials purchased totaled P50,000. h) Goods costing P20,000 were sold on account to customers at a sales price of P30,000. Required: Prepare the necessary journal entries.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter1: Introduction To Managerial Accounting

Section: Chapter Questions

Problem 9E: Financial statements of a manufacturing firm The following events took place for Sorensen...

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Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
Financial statements of a manufacturing firm The following events took place for Sorensen Manufacturing Company during January, the first month of its operations as a producer of digital video monitors: a. Purchased 250,000 of materials. b. Used 180,000 of direct materials in production. c. Incurred 450,000 of direct labor wages. d. Incurred 180,000 of factory overhead. e. Transferred 760,000 of work in process to finished goods. f. Sold goods for 1,200,000. g. Sold goods with a cost of 675,000 h. Incurred 215,000 of selling expense i. Incurred 125,000 of administrative expense Using the information given, complete the following: a. Prepare the January income statement for Sorensen Manufacturing Company. b. Determine the inventory balances at the end of the first month of operations.
Subject: Cost management & accounting QUESTION – 13.The payroll records of the Weber Company show payments for labor of Rs. 400,000, of which Rs. 80,000 is indirect labor. Materials requisitions show Rs. 300,000 for materials used, of which Rs. 280,000 represents direct materials. Other manufacturing expenses total Rs. 124,000. Finished goods on hand at the end of the period are stated at cost, Rs. 176,000, of which Rs. 40,000 is direct materials cost. Factory overhead is allocated on the basis of direct labor cost.REQUIRED:The amount of direct labor and the amount of factory overhead in Finished Goods
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RM1. During the most recent accounting period Lucid paid $5,500 for raw materials, $8,500 for labor, and $10,000 for overhead costs that were incurred to make candy. Lucid started and completed 22,000 units of products of which 13,000 were sold. Based on this information Lucid would recognize which of the following amounts of expense on its income statement?
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