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Activity No. 1

The post-closing trial balance of ABC Manufacturing Company at September 30, 2020 is reproduced as follows:

ABC Manufacturing Company

Post-Closing Trial Balance

September 30, 2020

Cash

15,000

Accounts Receivable

18,000

Finished Goods

25,000

Work in Process

4,000

Materials

8,000

Building

156,000

Accumulated Depreciation - Building

23,400

Factory Equipment

108,000

Accumulated Depreciation - Factory Equipment

54,000

Office Equipment

12,000

Accumulated Depreciation - Office Equipment

2,000

Accounts Payable

30,000

Capital Stock

175,000

Retained Earnings

61,600

346,000

346,000

During the month of October, the following transactions took place:

1. Raw materials at a cost of Php 50,000 and general factory supplies costing Php 8,000 were purchased on account. (Materials and supplies are recorded in the materials account.)
2. Raw materials to be used in production costing Php 41,000 and miscellaneous factory supplies costing Php 5,500 were issued.
3. Wages and salaries incurred and paid for the month were as follows: factory wages (including Php 2,500 indirect labor), Php 34,000, and selling and administrative salaries, Php 5,000. (Ignore payroll withholdings and deductions.)
4. Distributed the payroll in c.
5. Depreciation was recorded for the month at an annual rate of 5% on the building and 20% on the factory equipment and office equipment. The sales and administrative staff uses approximately one-fifth of the building for its offices.
6. During the month, various other expenses totaling Php 5,200 were incurred on account. The company has determined that one-fourth of this amount is allocable to the office function.
7. Total factory overhead costs were transferred to Work in Process.
8. During the month, goods with a total cost of Php 79,000 were completed and transferred to the finished goods storeroom.
9. Sales for the month totaled Php 128,000 for goods costing Php 87,000 to manufacture. (Assume that all sales were made on account.)
10. Accounts receivable in the amount of Php 105,000 were collected.
11. Accounts payable totaling Php 55,000 were paid.

Required:

1. Prepare journal entries to record the transactions.
2. Set up T-accounts for all accounts listed in the September 30 post-closing trial balance and for Cost of Goods Sold, Factory Overhead, Selling and Administrative Expenses, Sales, and Wages Payable. Calculate the balances in the accounts on October 31.
3. Prepare a statement of cost of goods manufactured, income statement and balance sheet.

*EXCEL FORMAT*

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