ABC Company uses a job order cost system for its manufacturing activities. The following transaction data were
Question:
ABC Company uses a job order cost system for its manufacturing activities. The following transaction data were accumulated for the month of June 2021:
- Jobs in process, June 1:
Job 40 P20,000
Job 41 60,000
- Raw materials purchased, P720,000
- 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
- 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
- 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.
- Other overhead costs incurred, P340,000.
- Factory overhead is applied to jobs at the rate of 100 percent of direct labor cost.
- During the month, Job 40 and Job 41 were completed.
- Job 40 was delivered and billed to the customer for P900,000.
Required:
- Prepare general journal entries for the transactions.
- Compute the balance of Work in Process on June 30, 2021.
Managerial Accounting Tools for business decision making
ISBN: 978-1118096895
6th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso