Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. cheshe company completed the following transaction

CHESHE Company completed the following transactions for May 2018. a. Purchased on account direct...

50.1K

Verified Solution

Question

Accounting

CHESHE Company completed the following transactions for May 2018.

a. Purchased on account direct materials of P150,000

b. The factory payroll was recorded. Direct Labor P56,000; indirect labor P19,999. Employee payroll deductions were recorded as follows:

Withholding taxes P11,200

SSS Premiums 2,400

Phil Health Contributions 375

Pag-ibig Funds Contribution 1,620

c. Indirect materials of P20,000 were purchased.

d. Employer payroll tax expense is recorded as follows:

SSS Premiums P3,600

Phil Health Contributions 375

Pag-ibig Funds Contributions 1,620

e. Materials issued: direct materials -P85,000; indirect materials - P11,000

f. Defective Materials P 4,000 were returned to vendors

g. Accounts Payable totaling P148,300, including accrued payroll were paid.

h. Sundry factory expenses of P24,900 were recorded as liabilities

i. Factory Overhead was charged to production at 120% of direct labor costs.

j. Goods completed with a cost of P165,000 were transferred to finished goods

k. Sales were P190,000 and cost P120,000 to produce.

Requirements:

1. Entries to record the transactions given above.

2. Statement of Cost of Goods Sold.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students