Cost Accounting
Problem A
JYD Company reported the following inventory balances as of October 31, 2019:
Raw Materials P 80,000
Work in Process 110,000
Finished Goods 190,000
The following transactions occurred during the month of November 2016:
1. Purchased P25,000 of raw materials on account.
2. Issued P18,000 of raw materials to production of which P15,000 were direct to the product.
3. Factory payroll of P34,000 was accrued and distributed as follows: P30,000 for direct labor and P4,000 for
supervisors (ignore payroll taxes and deductions).
4. Factory utility costs of P8,000 were accrued.
5. Prepaid insurance of P1,000 on factory equipment expired in November.
6. Straight-line depreciation on factory equipment for the month was P10,000
7. Selling and administrative expenses were P40,000 (P30,000 was paid in cash and P10,000 was accrued.
8. Factory Overhead was transferred to work in process inventory.
9. Goods manufactured were transferred to to finished goods inventory. Ending inventories were: work in process,
P60,000 and finished goods, P175,000.
10. Sales of P217,000 was made on account.
Required:
a. Journal entries to record the above transactions.
[Link] of cost of goods manufactured.
c. Income Statement
Problem B
Peter Senen Corporation provided the following account balances as of September 30, 2019:
Cash P112,000 Accumulated depreciation P 36,000
Accounts Receivable 64,000 Accounts payable 40,000
Finished Goods 48,000 Income tax payable 9,000
Work in process 36,000 Share Capital 500,000
Raw materials 52,000 Retained Earnings 207,000
Property and Equipment 480,000
The following transactions occurred during October:
1. Materials purchased on account, P150,000
2. Materials issued to production: direct materials- P90,000, Indirect materials- P10,000.
3. Payroll for the month of October 2019 consisted of the following (also paid during the month):
Direct labor P62,000 Administrative salaries P16,000
Indirect Labor 20,000
Sales salaries 30,000
Payroll deductions were as follows:
Withholding taxes P19,800 Phil health contributions P2,000
SSS contributions 7,100 HDMF contributions 2,000
4. Employer contributions for the month were accrued:
Factory Selling Administrative
SSS contributions P5,700 P2,000 P1,100
Philhealth Contributions 1,200 500 300
EC Contributions 400 300 200
HDMF contributions 1,600 700 400
5. Other costs incurred on account:
Indirect factory overhead- P42,000
Selling - 30,000
Administrative - 10,000
6. Depreciation for the month:
Factory overhead- P2,000
Selling 1,000
Administrative 1,000
7. Factory overhead control account was transferred to work in process, P82,900.
8. Work finished and placed in stock, P178,000
9. Cost of goods sold, P200,000. The markup was 60% of cost.
10. Cash collected from customers, P260,000
11. Materials returned to supplies, P15,000.
12. Payment of accounts payable, P190,000.
13. Provision for income tax, P6,000.
Required: a. Journals entries to record the above transactions
b. Statement of cost of goods manufactured
c. Income statement
d. Balance sheet as of October 31, 2019