On August 1, 2020, Kimchi Company had the following account balances: Raw Materials Inventory, ₱72,000 Work in Process Inventory, ₱108,000 Finished Goods Inventory, ₱140,000 During August, the following transactions took place. Raw materials were purchased on account, ₱224,000. Direct materials (₱121,200) and indirect materials (₱15,000) were issued to production. Factory payroll paid consisted of ₱180,000 for direct labor employees and ₱42,000 for indirect labor employees. Selling and Administrative salaries paid totaled ₱144,600. Deductions from payroll were as follows: Income Tax 10%, SSS 4%, Philhealth 1.5%, Pag-ibig 2%. All percentages were based on gross payroll.. Employer payroll tax expense based on gross payroll were recorded as follows: SSS 8%, Philhealth 1.5%, Pag-ibig 2%. Returned defective materials to supplier, ₱19,000. Utilities of ₱40,200 were accrued; 70 percent of the utilities cost is for the factory. Depreciation of ₱60,000 was recorded on plant assets; 80 percent of the depreciation is related to factory machinery and equipment. Rent of ₱66,000 was paid on the building. The factory occupies 60 percent of the building. Excess indirect materials returned to the stockroom from the production area amounted ₱1,100. Manufacturing overhead is applied at the predetermined rate of 110% of direct labor cost. Advertising costs incurred and paid during the month totaled ₱59,000. Cost of goods manufactured during the month, ₱450,200. All the finished goods on August 1 and 70 percent of those completed during the month were sold on account at cost plus 50% mark-up. Closed over or under applied factory overhead. Journal Entry Cost of Goods Sold Statement Income Statement