The Anda Company had the following inventories on August 1 of the current year.

Finished goods	Php 25000
Work in process	Php 18500
Materials	Php 22000

The work in process account controls two jobs

	Job 401	Job 402
Materials	Php 3000	Php 5600
Labor	Php 2500	Php 3000
Factory overhead	Php 2000	Php 2400
	Php 7500	Php 11000

The following information pertains to December operations:

1. Materials Purchased on account, P28,000
2. Materials issued for production, P25,000. Of this amount, P3,000 was for indirect materials; the difference was distributed; P5,500 to Job 401; P7,000 to 402; and P9,500 to 403.
3. Materials returned to the warehouse from the factory, P800, of which P300 was for indirect materials, the balance from Job 403.
4. Materials returned to vendors P1,000
5. Payroll after deducting P3,025 for withholding taxes, P1,600 for SSS Premiums, P375 for Medicare and P1,200 for Pag-ibig, was P32,800. The payroll due the employees was paid during the month.
6. The payroll was distributed as follows: P10,400 to Job 401; P12,500 to Job 402, P10,500 to Job 403 and the balance represents indirect labor.
7. The share of the employer payroll was recorded – P2,000 for SSS Premiums, P375 for Medicare and P1,200 for Pag-ibig
8. Factory overhead, other than previously mentioned, amounted to P15,000. Included in this figure were P3,000 for depreciation of factory building and equipment, and P950 for expired insurance on the factory. The remaining overhead was unpaid at the end of August.
9. Factory overhead was applied to production at the rate of 80% of direct labor cost
10. Jobs 401 & 402 were completed & transferred to the finished goods warehouse.
11. Job 401 was shipped and billed at a gross of 40% of the cost
12. Cash collections from Accounts Receivable during August were P70,000

Requirements:

Prepare Journal Entries to record the above transactions.

Answer rating: 100% (QA)

WIP Inventory Details All Amount Php Job No Job 401 Job 402 Job 403 Total Opening balance Materials 300000 560000 860000 Labor 250000 300000 550000 Fa... View the full answer