Problem 1: Marie Corp., a toy manufacturing company has provided the following information for transactions that...

 

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Problem 1: Marie Corp., a toy manufacturing company has provided the following information for transactions that occurred during the month of January 2020, The production plant uses JIT costing system. There are no beginning inventories of raw materials, work-in-process and finished goods. The standard cost per unit of output is P7 (P5 for materials and P2 for conversion costs, including labor cost per unit of P0.50) 1. Raw materials costing P500,000 were purchased. 2. All materials purchased were requisitioned for production. 3. Conversion cost incurred P250,000, including labor cost of P50,000. 4. All 100,000 units are completed and immediately sold. Required: Prepare the necessary entry if: a. Using three trigger points. b. Using two trigger points (purchase of raw materials and sale of goods. Problem 2: Jam manufactures product ZP30 android. The company uses just-in-time costing system to record its inventory. The transactions for the month of May 2020 were as follows: 1. Raw materials costing P8,470,000 were purchased. 2. Conversion cost incurred P6,748,000, including labor cost of P2,695,000. 3. Finished goods completed during the month 420,000 units 4. Unit sold for the month 413,000 units There were no beginning inventories of raw materials, work-in-process or finished goods at May 1, 2020. The standard and actual cost per units of output is P36 which is composed of P20 for materials and P16 for conversion cost, of which P6.4 for labor. Required: Prepare journal entries if: a. Using three trigger points. b. Using two trigger points (purchase of raw materials and sale of goods. Problem 1: Marie Corp., a toy manufacturing company has provided the following information for transactions that occurred during the month of January 2020, The production plant uses JIT costing system. There are no beginning inventories of raw materials, work-in-process and finished goods. The standard cost per unit of output is P7 (P5 for materials and P2 for conversion costs, including labor cost per unit of P0.50) 1. Raw materials costing P500,000 were purchased. 2. All materials purchased were requisitioned for production. 3. Conversion cost incurred P250,000, including labor cost of P50,000. 4. All 100,000 units are completed and immediately sold. Required: Prepare the necessary entry if: a. Using three trigger points. b. Using two trigger points (purchase of raw materials and sale of goods. Problem 2: Jam manufactures product ZP30 android. The company uses just-in-time costing system to record its inventory. The transactions for the month of May 2020 were as follows: 1. Raw materials costing P8,470,000 were purchased. 2. Conversion cost incurred P6,748,000, including labor cost of P2,695,000. 3. Finished goods completed during the month 420,000 units 4. Unit sold for the month 413,000 units There were no beginning inventories of raw materials, work-in-process or finished goods at May 1, 2020. The standard and actual cost per units of output is P36 which is composed of P20 for materials and P16 for conversion cost, of which P6.4 for labor. Required: Prepare journal entries if: a. Using three trigger points. b. Using two trigger points (purchase of raw materials and sale of goods.

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Problem 1 a Using Three Trigger Points Date Transaction Description Raw Materials Conversion Costs W... View the full answer