During January, 2020, these transactions were completed: Purchases on account: Material X 25,000...
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Accounting
During January, 2020, these transactions were completed:
- Purchases on account: Material X 25,000 units at P5.20; Material Y - 30,000units at P3.75; indirect materials P35,040.
- Payroll totaling P220,000 was paid. Of the total payroll, P40,000 was for marketing and administrative salaries. Payroll deductions consisted of P31,000 for withholding taxes, P7,000 for SSS premiums, P440 for Medicare contributions, P6,600 for Pag-ibig Funds.
- Payroll is to be distributed as follows: Job 101- 10,000 direct labor hours at P4.00, Job 102 16,000 direct labor hours at P5.00; Job 103 12,000 direct labor hours at P3.00; indirect labor P24,000; marketing and administrative salaries P40,000. Employers payroll taxes are: SSS Premiums 5%; Medicare contributions 0.2%; and Pag-ibig Funds 2%.
- Materials were issued on a fifo basis as follows: Material X 20,000 units (charged to Job 101); Material Y 24,000 units (charged to Job 102); Material X 2,000 units and Material Y 5,000 units (charged to Job 103): (Note: Transactions are to be taken in consecutive order). Indirect materials amounted to P15,040.
- Factory overhead was applied to Job 101, 102 and 103 based on a rate of P 2.25 per direct labor hour.
- Jobs 101 and 102 were completed and sold on account for P240,000 and P270,000, respectively.
- After allowing a 5% cash discount, a net amount of P494,000 was collected on accounts receivable.
- Marketing and administrative expenses (other than salaries) paid during the month amounted to P30,000. Miscellaneous factory overhead of P21,600 was paid. Depreciation on machinery was P4,000.
- Payments on account, other than payroll paid, amounted to P170,000.
- The over or under applied factory overhead is to be closed.
Note: there is no beginning inventory. Use Job Order Costing
Required:
Journalize the transactions.
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