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Required: JOURNAL ENTRIES Sunnry Day Manufacturing Company has just started operation on September...

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Accounting

Required: JOURNAL ENTRIES

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Sunnry Day Manufacturing Company has just started operation on September 1, 2020. The following are the transactions for the month of September 1. Purchase of Raw Materials: On account, PHP 350,000. 2. Accepted three job orders from different customers and assigned Job. No. 700-A, 700-B and 700-C. 3. Materials in the amount of PHP 200,000 requisitioned and issued. 30% for Job 700-A, 25% for 700-B and 35% for 700-C. The balance represent indirect materials. 4. Payroll for the month totaled PHP 357,200. Analysis of the payroll shows: Job Job 700-A Job 700-B Job 700-C Indirect Labor Hours Cost 8,840 88,400.00 11,650 116,500.00 11,980 119,800.00 32,500.00 5. The following overhead were incurred during the month in addition to indirect materials and indirect labor: Maintenance of factory equipment Utilities (power, light and water) Depreciation of factory plant and equipment Insurance expired Miscellaneous factory expenses 10,000.00 25,000.00 15,000.00 8,000.00 5,000.00 6. The Company's policy is to apply overhead to each job at the rate of PHP 3.5 per direct labor hour. Any overhead variance is closed to cost of goods sold. 7. Jobs 700-A and 700-B are completed and billed the customers at cost plus 40% mark-up

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