Mary Corp. has the following balances of the ending inventories for September: September 1 September 30...

 

Transcribed Image Text:

Mary Corp. has the following balances of the ending inventories for September: September 1 September 30 P134,000 P124,000 290,000 342,000 170,000 156.000 Direct Materials Work in Process Finished Goods Production data for September follows: Direct labor Actual Factory Overhead Direct materials purchased Freight In Purchases returns and allowances P400,000 264,000 326,000 8,000 4,000 Mary Corp. uses predetermined factory factory overhead at 70% of direct labor costs to apply in the production. Required: Compute for (1) prime costs, (2) conversion costs, (3) total manufacturing cost, (4) cost of goods manufactured, (5) cost of goods sold, and (6) over-/ under-applied factory overhead. Ram Company completed the following transactions for October 2020 a) Purchased on account direct materials P150,000 b) The factory payroll was recorded. Direct labor P56,000; indirect laborP19,000. Employee payroll deductions were recorded as follows Withholding taxes P11.200 SSS Premiums a) b) Philhealth contributions Pag big Fund Contributions Indirect materials P20,000 were purchased Employer payroll tax expense is recorded as follows: SSS Premiums Philhealth contributions Pag-big Fund Contributions 2,400 375 1,620 3,600 375 1,620 e) Materials issued: direct materials P120,000; indirect materials P10,000. f) Defective materials P2,000 were returned to vendors. g) Accounts Payable totaling P148,300, excluding accrued payroll, were paid. h) Sundry factory expenses P24,900 were recorded as liabilities. i) Factory overhead was charged to production at 120% of direct labor costs. j) Cost completed with a total cost of P175,000 were transferred to finished goods. k) Sales were P220,000 and cost P140,000 to produce. Required: (1) Journalize the above transactions. (2) Prepare a statement of comprehensive income Mary Corp. has the following balances of the ending inventories for September: September 1 September 30 P134,000 P124,000 290,000 342,000 170,000 156.000 Direct Materials Work in Process Finished Goods Production data for September follows: Direct labor Actual Factory Overhead Direct materials purchased Freight In Purchases returns and allowances P400,000 264,000 326,000 8,000 4,000 Mary Corp. uses predetermined factory factory overhead at 70% of direct labor costs to apply in the production. Required: Compute for (1) prime costs, (2) conversion costs, (3) total manufacturing cost, (4) cost of goods manufactured, (5) cost of goods sold, and (6) over-/ under-applied factory overhead. Ram Company completed the following transactions for October 2020 a) Purchased on account direct materials P150,000 b) The factory payroll was recorded. Direct labor P56,000; indirect laborP19,000. Employee payroll deductions were recorded as follows Withholding taxes P11.200 SSS Premiums a) b) Philhealth contributions Pag big Fund Contributions Indirect materials P20,000 were purchased Employer payroll tax expense is recorded as follows: SSS Premiums Philhealth contributions Pag-big Fund Contributions 2,400 375 1,620 3,600 375 1,620 e) Materials issued: direct materials P120,000; indirect materials P10,000. f) Defective materials P2,000 were returned to vendors. g) Accounts Payable totaling P148,300, excluding accrued payroll, were paid. h) Sundry factory expenses P24,900 were recorded as liabilities. i) Factory overhead was charged to production at 120% of direct labor costs. j) Cost completed with a total cost of P175,000 were transferred to finished goods. k) Sales were P220,000 and cost P140,000 to produce. Required: (1) Journalize the above transactions. (2) Prepare a statement of comprehensive income

Answer rating: 100% (QA)

1 Journal Entries a Purchased direct materials on account Direct Materials Inventory Dr P150000 Acco... View the full answer