The following are transactions of ABC Corporation for the month of February 2020. Provide the corresponding journal entries for each transaction:

1. Purchase of materials (direct and indirect), on credit, P1,000,000

2. Usage of raw materials, P750,000 (20% are indirect materials)

3. Manufacturing payroll for the month: Gross amount of 390,000 Direct labor, P90,000 of which for SSS and other government payable, and gross amount of indirect labor, P170,000, P45,000 of which for SSS and government payable. Net salary paid in cash.

4. Other manufacturing overhead costs incurred during the month, P175,000, consisting of janitorial salaries, P80,000 paid in cash for plant utilities, repairs, and supervisory salaries, P130,000 and plant depreciation, P40,000

5. Allocation of manufacturing overhead to jobs using predetermined OH rate of P12/machine hour. Actual machine hour for the month is 50,000 hours.

6. Completion and transfer of individual jobs to finished goods, P1, 555,0007.Cost of goods sold, P880,0008.Marketing costs for February, P45,000 and customer service costs for February P15,000, paid in cash9.Sales, all on credit, P2,270,000

7. Cost of goods sold, P880,000

8. Marketing costs for February, P45,000 and customer service costs for February P15,000, paid in cash

9. Sales, all on credit, P2,270,000

The following are also provided:

Tax rate – 30%Interest expenses – P20,000

Administrative expenses – P540,000

Beginning Inventories: Raw materials, P610,000; Work in process, P1,065,000, Finished Goods, P2,100,000.

Units manufactured for the period – 100,000 units

Compute/provide for the following:

1) Provide journal entries per transaction (please use compound entries)

2) Cost of Goods Sold

3) Total Manufacturing Cost

4) Cost per unit under normal costing

5) Cost per unit under actual costing

6) Cost of Goods Manufactured

7) Operating income

8) Ending Finished Goods Inventory

9) Ending Raw Materials Inventory

10) Net Income

Answer rating: 100% (QA)

JOURNAL ENTRIES No Account Debit Credit 1 Purchase Ac Dr 1000000 To Supplier Ac 1000000 Being Purchase of materials direct and indirect on credit 3 Wa... View the full answer