The XYZ Co. incurred the following cost for the month of June 2019. XYZ accrues payroll monthly
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Question:
The XYZ Co. incurred the following cost for the month of June 2019. XYZ accrues payroll monthly and pays payroll on the fifth of the following month.
Direct manufacturing labor cost P80,000
Indirect manufacturing labor cost 10,000
Other indirect manufacturing cost paid during the month 40,000
In addition, the following employer payroll taxes are also accrued:
SSS premiums 2,000
Philhealth premiums 1,500
Pag-ibig contributions 1,500
Month-end data for adjustment:
Depreciation of factory equipment 6,000
Factory property taxes 1,000
Factory insurance expired 2,500
Factory supplies used 1,200
Required:
- Journal entries (for labor and overhead) including adjustments
- Compute the conversion cost.
- If overhead is applied at a rate of 120 percent of direct labor cost, prepare journal entry to record application of overhead to production and to close over/under-applied factory overhead for the month to cost of goods sold account.
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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