Darvin Company contained the following account balances: Cash Accounts Receivable Finished Goods Work in Process Materials...

 

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Darvin Company contained the following account balances: Cash Accounts Receivable Finished Goods Work in Process Materials Accounts Payable Accrued Payroll Common Stock 200,000 Retained Earnings 45,000 During January, 2011, the following transactions were completed a) Materials purchased on account, P 200,000 b) Factory Overhead incurred on account, P 35,000 c) Payroll for the period consist of: Direct Labor - P 140,000; Indirect Labor - P 30,000; Sales Salaries-P25,000; and Administrative Expense - P 15,000. Deductions were as follows: Withholding Taxes SSS Premiums PhilHealth Contribution Pagibig Funds 6,300 d) P 175,000 was paid for payroll. e) Computation of employer's payroll tax is as follows: SSS Premiums Phil Health Pag-ibig Fund Factory P8,500 Requirements 600 5,100 P100,000 60,000 35,000 18,000 50,000 10,000 8,000 P 18,520 8,400 1,125 Selling P1,250 375 750 Administrative f) Materials issued: Direct Materials - P 185,000; Indirect - P35,000 g) Factory Overhead was charged to production at 80% of direct labor cost. h) Work finished and placed in stock-P 410,000 i) Cost of goods sold - P 385,000. The markup was 40% of cost. j) Cash collected form customers, P 405,000 k) Payments for liabilities amounted to P 220,000, other than payroll. 1. Journal entries to record the above transactions 2. Cost of Goods Sold Statement 3. Income Statement for January, 2011 4. Balance Sheet as of January 31, 2011 P750 150 450 Darvin Company contained the following account balances: Cash Accounts Receivable Finished Goods Work in Process Materials Accounts Payable Accrued Payroll Common Stock 200,000 Retained Earnings 45,000 During January, 2011, the following transactions were completed a) Materials purchased on account, P 200,000 b) Factory Overhead incurred on account, P 35,000 c) Payroll for the period consist of: Direct Labor - P 140,000; Indirect Labor - P 30,000; Sales Salaries-P25,000; and Administrative Expense - P 15,000. Deductions were as follows: Withholding Taxes SSS Premiums PhilHealth Contribution Pagibig Funds 6,300 d) P 175,000 was paid for payroll. e) Computation of employer's payroll tax is as follows: SSS Premiums Phil Health Pag-ibig Fund Factory P8,500 Requirements 600 5,100 P100,000 60,000 35,000 18,000 50,000 10,000 8,000 P 18,520 8,400 1,125 Selling P1,250 375 750 Administrative f) Materials issued: Direct Materials - P 185,000; Indirect - P35,000 g) Factory Overhead was charged to production at 80% of direct labor cost. h) Work finished and placed in stock-P 410,000 i) Cost of goods sold - P 385,000. The markup was 40% of cost. j) Cash collected form customers, P 405,000 k) Payments for liabilities amounted to P 220,000, other than payroll. 1. Journal entries to record the above transactions 2. Cost of Goods Sold Statement 3. Income Statement for January, 2011 4. Balance Sheet as of January 31, 2011 P750 150 450

Answer rating: 100% (QA)

Requirement 1 Journal Entries Jan 1 2011 Purchase of Materials Dr Accounts Payable 200000 Cr Materials 200000 Jan 1 2011 Factory Overhead Incurred Dr ... View the full answer