Problem 1-6: Journal Entries and Statement of Cost of Goods Sold. On January 1, the general...

 

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Problem 1-6: Journal Entries and Statement of Cost of Goods Sold. On January 1, the general ledger of Jocelyn Company contained the fol- lowing accounts and balances: Cash Accounts Receivable P94,000 100,000 Finished Goods 65,000 Work in Process 15,000 Materials 44,000 Machinery 90,600 Accumulated Depreciation - Machinery 20,000 Accounts Payable 118,750 Common Stock 200,000 Retained Earnings 69,850 Problem 1-6 Continued Details of inventories are: Finished goods inventory: P65,000 Job 101 Job 102 Work in process inventory: Direct materials: 1000 units of A @ P5 400 units of B @ P3 5,000 P1,200 Direct labor: 1000 hours @ P4 4,000 400 hours @ P5 2,000 Factory overhead applied at the rate of P2 per direct labor hour 2,000 800 Total P11,000 P4,000 Materials inventory: P44,000 During January, the following transactions were completed: (a) Materials were purchased on account for P229,040. (b) Payroll totaling P220,000 was accrued. (c) Payroll was distributed as follows: Jobs 101, 5000 direct labor hours @P8; Job 102, 8000 hrs. @ P10; Job 103, 6000 hrs. @ P6. Indirect labor, P24,000 and selling and adm. expense P40,000. (d) Materials were issued as follows: P103,200 to Job 101; P84,000 to Job 102; P29,150 to Job 103. Indirect materials costing P15,040 were is- sued. (e) Factory overhead was applied to Job 101, 102 and 103 at a rate of P4.50 per direct labor hour. (f) Jobs 101 and 102 were completed and immediately sold on account for P250,000 and P270,000 respectively. (g) After allowing a 5% cash discount, a net amount of P494,000 was collected on accounts receivable. (h) Marketing and administrative expenses (other than salaries) paid during the month amounted to P30,000. Other factory overhead paid, P49,720. (i) Payments on account, other than payrolls paid, amounted to P170,000. () Applied Factory Overhead is closed to Factory Overhead Control. The over- or under applied overhead is then closed to Cost of Goods Sold. Required: (1) Journalize the January transactions. (2) Prepare a cost of goods sold statement for January. Problem 1-16: Statement of Cost of Goods Sold Jenna Company has provided the following data concerning its opera- tions for the year ended December 31, 2018: Raw materials on hand, December 31 Work in process, December 31 Finished goods, December 31 Factory supplies on hand, December 31 Sales Factory maintenance Administrative salaries Discounts on raw materials purchases Delivery expenses Interest income P 24,000 30,000 40,000 14,000 1,100,000 38,400 108,000 4,200 16,000 1,000 Factory supplies used 22,400 Common stock (P10 par value) 2,000,000 Retained earnings 525,000 Trade accounts payable 273,500 Accumulated depreciation-factory building and equipment 47,500 Building and equipment 500,000 Trade accounts receivable 450,000 Cash 170,000 Finished goods, January 1, 2018 37,500 Direct labor 180,000 Bad debt expense 2,500 Factory power and heat 19,400 Advertising 8,400 Insurance expired-factory building and equipment 4,800 Work in process, January 1, 2018 84,000 Depreciation-factory building and equipment 17,500 Factory superintendence 100,000 Interest expense 1,500 Raw materials purchased 400,000 Sales returns Indirect factory labor Sales discounts' Required: Prepare the cost of goods sold statement. 20,000 2,200 1,300 Problem 1-17: Statement of Cost of Goods Manufactured Jenny Incorporated, a maker of steel cable for use in bridges, closes its books and prepares financial statements at the end of each month. The pre-closing trial balance as of May 31, 2018 is as follows: Cash and Marketable Securities Accounts and Notes Receivables Finished Goods (4/30/2008) Credit Work in Process (4/30/2008) Direct Materials (4/30/2008) Property, Plant, and Equipment (net) Accounts, Notes and Taxes Payable Paid-in Capital Retained Earnings Sales Purchases of Direct Materials Direct labor Indirect Factory Labor Office Salaries Sales Salaries Rent Property Tax Insurance Depreciation Debit P54,000 210,000 247,000 150,000 28,000 1,140,000 P670,000 100,000 930,000 1,470,000 543,000 260,000 90,000 122,000 177,000 9,000 60,000 20,000 60,000 P3,170,000 P3,170,000 Additional information is as follows: (a) 80% of the utilities cost is related to manufacturing cable; the re- maining 20% is related to the sales and administrative functions in the office building. (b) All of the rent was for the office building. (c) The property taxes were assessed on the manufacturing plant. (d) 60% of the insurance cost is related to manufacturing cable; the re- maining 40% is related to the sales and administrative functions. (e) Depreciation for the month was: Manufacturing plant Manufacturing equipment Office equipment (f) May 31, 2017 inventory balances were: Finished goods P 20,000 30,000 P 54,000 P175,000 Work in Process Direct Materials 130,000 23,000 Required: Prepare a cost of goods manufactured and sold statement for Jenny Incorporated for May, 2018. Problem 1-6: Journal Entries and Statement of Cost of Goods Sold. On January 1, the general ledger of Jocelyn Company contained the fol- lowing accounts and balances: Cash Accounts Receivable P94,000 100,000 Finished Goods 65,000 Work in Process 15,000 Materials 44,000 Machinery 90,600 Accumulated Depreciation - Machinery 20,000 Accounts Payable 118,750 Common Stock 200,000 Retained Earnings 69,850 Problem 1-6 Continued Details of inventories are: Finished goods inventory: P65,000 Job 101 Job 102 Work in process inventory: Direct materials: 1000 units of A @ P5 400 units of B @ P3 5,000 P1,200 Direct labor: 1000 hours @ P4 4,000 400 hours @ P5 2,000 Factory overhead applied at the rate of P2 per direct labor hour 2,000 800 Total P11,000 P4,000 Materials inventory: P44,000 During January, the following transactions were completed: (a) Materials were purchased on account for P229,040. (b) Payroll totaling P220,000 was accrued. (c) Payroll was distributed as follows: Jobs 101, 5000 direct labor hours @P8; Job 102, 8000 hrs. @ P10; Job 103, 6000 hrs. @ P6. Indirect labor, P24,000 and selling and adm. expense P40,000. (d) Materials were issued as follows: P103,200 to Job 101; P84,000 to Job 102; P29,150 to Job 103. Indirect materials costing P15,040 were is- sued. (e) Factory overhead was applied to Job 101, 102 and 103 at a rate of P4.50 per direct labor hour. (f) Jobs 101 and 102 were completed and immediately sold on account for P250,000 and P270,000 respectively. (g) After allowing a 5% cash discount, a net amount of P494,000 was collected on accounts receivable. (h) Marketing and administrative expenses (other than salaries) paid during the month amounted to P30,000. Other factory overhead paid, P49,720. (i) Payments on account, other than payrolls paid, amounted to P170,000. () Applied Factory Overhead is closed to Factory Overhead Control. The over- or under applied overhead is then closed to Cost of Goods Sold. Required: (1) Journalize the January transactions. (2) Prepare a cost of goods sold statement for January. Problem 1-16: Statement of Cost of Goods Sold Jenna Company has provided the following data concerning its opera- tions for the year ended December 31, 2018: Raw materials on hand, December 31 Work in process, December 31 Finished goods, December 31 Factory supplies on hand, December 31 Sales Factory maintenance Administrative salaries Discounts on raw materials purchases Delivery expenses Interest income P 24,000 30,000 40,000 14,000 1,100,000 38,400 108,000 4,200 16,000 1,000 Factory supplies used 22,400 Common stock (P10 par value) 2,000,000 Retained earnings 525,000 Trade accounts payable 273,500 Accumulated depreciation-factory building and equipment 47,500 Building and equipment 500,000 Trade accounts receivable 450,000 Cash 170,000 Finished goods, January 1, 2018 37,500 Direct labor 180,000 Bad debt expense 2,500 Factory power and heat 19,400 Advertising 8,400 Insurance expired-factory building and equipment 4,800 Work in process, January 1, 2018 84,000 Depreciation-factory building and equipment 17,500 Factory superintendence 100,000 Interest expense 1,500 Raw materials purchased 400,000 Sales returns Indirect factory labor Sales discounts' Required: Prepare the cost of goods sold statement. 20,000 2,200 1,300 Problem 1-17: Statement of Cost of Goods Manufactured Jenny Incorporated, a maker of steel cable for use in bridges, closes its books and prepares financial statements at the end of each month. The pre-closing trial balance as of May 31, 2018 is as follows: Cash and Marketable Securities Accounts and Notes Receivables Finished Goods (4/30/2008) Credit Work in Process (4/30/2008) Direct Materials (4/30/2008) Property, Plant, and Equipment (net) Accounts, Notes and Taxes Payable Paid-in Capital Retained Earnings Sales Purchases of Direct Materials Direct labor Indirect Factory Labor Office Salaries Sales Salaries Rent Property Tax Insurance Depreciation Debit P54,000 210,000 247,000 150,000 28,000 1,140,000 P670,000 100,000 930,000 1,470,000 543,000 260,000 90,000 122,000 177,000 9,000 60,000 20,000 60,000 P3,170,000 P3,170,000 Additional information is as follows: (a) 80% of the utilities cost is related to manufacturing cable; the re- maining 20% is related to the sales and administrative functions in the office building. (b) All of the rent was for the office building. (c) The property taxes were assessed on the manufacturing plant. (d) 60% of the insurance cost is related to manufacturing cable; the re- maining 40% is related to the sales and administrative functions. (e) Depreciation for the month was: Manufacturing plant Manufacturing equipment Office equipment (f) May 31, 2017 inventory balances were: Finished goods P 20,000 30,000 P 54,000 P175,000 Work in Process Direct Materials 130,000 23,000 Required: Prepare a cost of goods manufactured and sold statement for Jenny Incorporated for May, 2018.

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1 Journal Entries for January Transactions a Materials Inventory 229040 Accounts Payable 229040 ... View the full answer