INSTRUCTIONS:

Using the Microsoft Excel, kindly prepare the required financial information in each of the following independent problems:

Furthermore, for uniformity purposes, kindly use the following Account Title:

Direct Raw Materials Inventory

Work-in Process Inventory

Finished Goods Inventory

Overhead Control

Overhead Applied

Also, use the following format:

Font Name: Times New Roman

Font Size: 12

Italicize the description of journal entry

PROBLEM 1

On20xx, Ballpoint Maker Inc. purchased direct raw material amounting to P417,000, of which P412,500 worth of materials was issued to production. Total direct labor costs incurred was P180,000. Overhead is being applied for 110% of direct labor cost. Actual overhead costs amounted to P378,000. Over or underapplied overhead, if any is considered immaterial to the company. (NOTE: All transactions are already paid)

Shown below are the balances of the companys inventories:

January 1 Inventory Balances End of Year Inventory Balances

Raw Material P45,000 P49,500

Work in Process P58,500 P64,350

Finished Goods P63,000 P69,300

REQUIRED:

1. Journalize the transaction
2. Prepare the cost of goods manufactured statement
3. Prepare the cost of goods sold statement