ABC Company uses a job order cost system for its

ABC Company uses a job order cost system for its manufacturing activities. The following transaction data were accumulated for the month of June 2021:

  1. Jobs in process, June 1:

Job 40                                     P20,000

Job 41                                        60,000

 

  1. Raw materials purchased, P720,000

 

  1. Raw materials and supplies requisitioned from the stockroom

Job 40                                    P100,000

Job 41                                       220,000

Job 42                                       240,000

General factory usage            40,000

 P600,000

 

  1. Total factory payroll accrued and paid

Job 40                                       200,000

Job 41                                       200,000

Job 42                                       220,000

Direct labor                             P620,000

 

Indirect labor                              60,000

 

Payroll deductions

Income tax withheld                        5%

SSS contributions                    P7,500

Phil. Health contributions           2,400

Pag-ibig contributions                 2,000

 

  1. Employer's share in

SSS contributions                   P10,200

Phil. Health contributions            2,400

Pag-ibig contributions                 2,000

 Depreciation of factory equipment and machinery for June, P60,000.

  1. Other overhead costs incurred, P340,000.
  2. Factory overhead is applied to jobs at the rate of 100 percent of direct labor cost.
  3. During the month, Job 40 and Job 41 were completed.
  4. Job 40 was delivered and billed to the customer for P900,000.

 

Required:

  1. Prepare general journal entries for the transactions.
  2. Compute the balance of Work in Process on June 30, 2021.