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CoursHeroTranscribedText: EX5 - Cost Accounting Cycle PROBLEM 1 Ram Company completed the following transactions for...

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CoursHeroTranscribedText: EX5 - Cost Accounting Cycle PROBLEM 1 Ram Company completed the following transactions for October 2019. a. Purchased on account direct materials of P180,000. b. The factory payroll was recorded. Direct labor P60,000; Indirect labor P20,000; Employee payroll deduction were recorded as follows: Withholding taxes P11,200 SSS Premium 2,400 PhilHealth Contribution 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 PhilHealth Contributions 375 Pag-ibig Funds Contributions 1,620 e. Materials issued: Direct materials - P120,000; indirect materials - P10,000 f. Defective materials P5,000 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. Facotry overhead was charged to production at 120% of direct labor costs. j. Goods completed with a total cost of P180,000 were transferred to finished goods. k. Sales were P210,000 and cost P140,000 to produce. Requirements: 1. Entries to record the transactions given above. 2. Statement of cost of goods sold

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