Cebu Service Center had the following inventories on April 1, 2020: Finished Goods - P37,500; Work...

 

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Cebu Service Center had the following inventories on April 1, 2020: Finished Goods - P37,500; Work in Process - P47,675; Materials P35,000. The breakdown of Work in Process account is as follows: Job # 1234 Job #1235 Applied Factory Overhead P 4,200 5,400 COST ACCOUNTING & CONTROL - 2019 Materials P 7,000 8,500 Job #1236 4,000 Total P19,500 Labor P5,250 6,750 Chapter 2 JOB ORDER COSTING 3,375 3,200 P 12,800 P15,375 Total P16,450 20,650 10,575 P47,675 The following information pertains April operations: a. Materials acquired from the supplier amounted to P 55,000. Term: n/30 58 b. Materials requisitioned for production cost P52,500. Of this amount, P6,000 was for indirect materials and the balance distributed as follows: P13,250 to Job#1234; P18,500 to Job#1235; P14,750 to Job # 1236. c. Materials returned to the stockroom from the factory totaled P1,500, of which P500 was for indirect materials, the balance from Job #1235. d. Materials returned to vendors totaled P2,000. e. Payroll of P95,000 was accrued in April. f. Of the payroll, direct labor represented 55%; indirect labor -20%; sales salaries 15% and administrative salaries 10%. The direct labor cost was distributed as follows: P16,050 for Job# 1234, P20,400 to Job# 1235, P15,800 for Job 1236. g. Factory overhead, other than any previously mentioned, amounted to P23,511.25. Included in this amount were P5,000 for building and equipment depreciation and P625 for the expired factory insurance premiums. The remaining overhead, P17,886.25, was unpaid at the end of November. h. Factory overhead was applied to production at a rate of 80% of the direct labor cost to be charged to the three jobs, based on the labor cost for November. i. Jobs #1234 and #1235 were completed and transferred to the finished goods warehouse. j. Both Job # 1234 and #1235 were shipped and billed at a gross profit rate of 30% of cost of goods sold. k. Collection of customers' accounts amounted to P173,125. Required: 1. Journalize the April transactions given above. 2. Prepare the T-accounts for Materials, Payroll, Factory Overhead Control, Work In Process and Finished Goods. 3. Determine the cost of goods manufactured, cost of goods sold and net profit for the month. Cebu Service Center had the following inventories on April 1, 2020: Finished Goods - P37,500; Work in Process - P47,675; Materials P35,000. The breakdown of Work in Process account is as follows: Job # 1234 Job #1235 Applied Factory Overhead P 4,200 5,400 COST ACCOUNTING & CONTROL - 2019 Materials P 7,000 8,500 Job #1236 4,000 Total P19,500 Labor P5,250 6,750 Chapter 2 JOB ORDER COSTING 3,375 3,200 P 12,800 P15,375 Total P16,450 20,650 10,575 P47,675 The following information pertains April operations: a. Materials acquired from the supplier amounted to P 55,000. Term: n/30 58 b. Materials requisitioned for production cost P52,500. Of this amount, P6,000 was for indirect materials and the balance distributed as follows: P13,250 to Job#1234; P18,500 to Job#1235; P14,750 to Job # 1236. c. Materials returned to the stockroom from the factory totaled P1,500, of which P500 was for indirect materials, the balance from Job #1235. d. Materials returned to vendors totaled P2,000. e. Payroll of P95,000 was accrued in April. f. Of the payroll, direct labor represented 55%; indirect labor -20%; sales salaries 15% and administrative salaries 10%. The direct labor cost was distributed as follows: P16,050 for Job# 1234, P20,400 to Job# 1235, P15,800 for Job 1236. g. Factory overhead, other than any previously mentioned, amounted to P23,511.25. Included in this amount were P5,000 for building and equipment depreciation and P625 for the expired factory insurance premiums. The remaining overhead, P17,886.25, was unpaid at the end of November. h. Factory overhead was applied to production at a rate of 80% of the direct labor cost to be charged to the three jobs, based on the labor cost for November. i. Jobs #1234 and #1235 were completed and transferred to the finished goods warehouse. j. Both Job # 1234 and #1235 were shipped and billed at a gross profit rate of 30% of cost of goods sold. k. Collection of customers' accounts amounted to P173,125. Required: 1. Journalize the April transactions given above. 2. Prepare the T-accounts for Materials, Payroll, Factory Overhead Control, Work In Process and Finished Goods. 3. Determine the cost of goods manufactured, cost of goods sold and net profit for the month.

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Ans1 Tr Ref Account Details a InventoryMaterials b C d e f f f f f f g1 g2 g3 g4 h Accounts Payable ... View the full answer