Ivonne Corp. has the following transaction for the month of February and uses job order costing...

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Ivonne Corp. has the following transaction for the month of February and uses job order costing system. 1. Material purchased for cash P40,000. 2. Materials and labor used: Job no. 301 302 303 304 Materials Labor 4,200 2,600 3,600 1,900 2,200 1,200 1,800 5,360 2,800 4,200 General factory use 3. Factory overhead cost incurred, P9,500. 4. Depreciation of factory machine, P4,000. 5. The factory overhead applied is 120% based on direct labor cost. 6. Jobs completed are: Job 302 and 304. 7. Job 304 is sold at 150% mark-up on cost. Required: 1. Prepare the journal entries to record the transactions. 2. Prepare the Cost of Goods Sold Statement. Ivonne Corp. has the following transaction for the month of February and uses job order costing system. 1. Material purchased for cash P40,000. 2. Materials and labor used: Job no. 301 302 303 304 Materials Labor 4,200 2,600 3,600 1,900 2,200 1,200 1,800 5,360 2,800 4,200 General factory use 3. Factory overhead cost incurred, P9,500. 4. Depreciation of factory machine, P4,000. 5. The factory overhead applied is 120% based on direct labor cost. 6. Jobs completed are: Job 302 and 304. 7. Job 304 is sold at 150% mark-up on cost. Required: 1. Prepare the journal entries to record the transactions. 2. Prepare the Cost of Goods Sold Statement.

Answer rating: 100% (QA)

1 Journal Entries a Material purchased for cash Debit Materials Inventory Job 301 or Direct Material... View the full answer