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Problem 2 On December 31, 2019, after closing, the ledgers of Golden Shower Company contained these accounts and balances: contained these accounts and balances: Cash Accounts Receivable Finished Goods P 94,000 100,000 65,000 Work in Process Materials Machinery Accounts Payable Common Stock Retained Earnings 15,000 44,000 70,600 118,750 200,000 69,850 Details of the three inventories are: Finished goods inventory: Item A - 2,000 units at P 12.50 Item B - 4,000 units at P 10.00 Total P 25,000 40.000 P 65000 Job 102 Work in process inventory: Direct materials: Job 101 1,000 units at P 5.00 P 5,000 400 units at P 3.00 P 1,200 Direct labor: 1,000 hours at P 4.00 400 hours at P 5.00 4,000 2,000 Factory overhead: Applied at P 2.00/hour 2.000 Total Materials inventory: 800 Pl1,000 P 4,000 P. 24,000 44,000 20,000 Material X- 4,000 units at P 5.00 Material Y -8,000 units at P 3.00 Total P.

Problem 2 On December 31, 2019, after closing, the ledgers of Golden Shower Company contained these accounts and balances: contained these accounts and balances: Cash Accounts Receivable Finished Goods P 94,000 100,000 65,000 Work in Process Materials Machinery Accounts Payable Common Stock Retained Earnings 15,000 44,000 70,600 118,750 200,000 69,850 Details of the three inventories are: Finished goods inventory: Item A - 2,000 units at P 12.50 Item B - 4,000 units at P 10.00 Total P 25,000 40.000 P 65000 Job 102 Work in process inventory: Direct materials: Job 101 1,000 units at P 5.00 P 5,000 400 units at P 3.00 P 1,200 Direct labor: 1,000 hours at P 4.00 400 hours at P 5.00 4,000 2,000 Factory overhead: Applied at P 2.00/hour 2.000 Total Materials inventory: 800 Pl1,000 P 4,000 P. 24,000 44,000 20,000 Material X- 4,000 units at P 5.00 Material Y -8,000 units at P 3.00 Total P.

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 10MC
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Requirement:

1.Post January ng transactions to the general ledger, and subsidiary ledgers for materials and work in process.

a) Purchases on account: Material X- 20,000 units at P5.20; Material Y -24,000 marketing and administrative salaries. Payroll deductions consisted of P31,000 c) Payroll is to be distributed as follows: Job 101 - 10,000 direct labor hours at P b) Payroll totaling P220,000 was paid. Of the total payroll, P40,000 was for for withholding taxes, P7,000 for SSS premiums, P 440 for Medicare 4.00, 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 d) Materials were issued on a FIFO basis as follows: Material X- 20,000 units salaries - P40,000. Employer's payroll taxes are: SSS Premiums 5%; 146 During January, 2019, these transactions were completed: units at P 3.75; indirect materials - P35,040. contributions, P 6,600 for Pag-ibig Funds. labor hours at P3.00; indirect labor - P24,000; marketing and administ salaries - P40,000. Employer's payroll taxes are: Medicare contributions - 0.2%; and Pag-ibig Funds - 3%. (charged to Job 101); Material Y- 24,000 units (charged to Job 102): Materi X- 2,000 units and Materials Y-5,000 units (charged to Job 103): (Note Transactions are to be taken in consecutive order). amounted to P15,040. Indirect materials e) Factory overhead was applied to Jobs 101, 102, and 103 based on a rate of P2.25 per direct labor hour. f) Jobs 101 and 102 were completed and sold on account for P240,000 and P270,000, respectively. g) After allowing a 5% cash discount, a net amount of P494,000 was collected on accounts receivable. h) 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. i) Payments on account, other than payroll paid, amounted to P170,000. j) The over or underapplied factory overhead is to be closed.
Transcribed Image Text:a) Purchases on account: Material X- 20,000 units at P5.20; Material Y -24,000 marketing and administrative salaries. Payroll deductions consisted of P31,000 c) Payroll is to be distributed as follows: Job 101 - 10,000 direct labor hours at P b) Payroll totaling P220,000 was paid. Of the total payroll, P40,000 was for for withholding taxes, P7,000 for SSS premiums, P 440 for Medicare 4.00, 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 d) Materials were issued on a FIFO basis as follows: Material X- 20,000 units salaries - P40,000. Employer's payroll taxes are: SSS Premiums 5%; 146 During January, 2019, these transactions were completed: units at P 3.75; indirect materials - P35,040. contributions, P 6,600 for Pag-ibig Funds. labor hours at P3.00; indirect labor - P24,000; marketing and administ salaries - P40,000. Employer's payroll taxes are: Medicare contributions - 0.2%; and Pag-ibig Funds - 3%. (charged to Job 101); Material Y- 24,000 units (charged to Job 102): Materi X- 2,000 units and Materials Y-5,000 units (charged to Job 103): (Note Transactions are to be taken in consecutive order). amounted to P15,040. Indirect materials e) Factory overhead was applied to Jobs 101, 102, and 103 based on a rate of P2.25 per direct labor hour. f) Jobs 101 and 102 were completed and sold on account for P240,000 and P270,000, respectively. g) After allowing a 5% cash discount, a net amount of P494,000 was collected on accounts receivable. h) 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. i) Payments on account, other than payroll paid, amounted to P170,000. j) The over or underapplied factory overhead is to be closed.
On December 31, 2019, after closing, the ledgers of Golden Shower Company contained these accounts and balances: Problem 2 December 31, 2019, after closing, the ledgers of Golden Shower Company contained these accounts and balances: Cash Accounts Receivable Finished Goods Work in Process P 94,000 100,000 65,000 Materials Machinery Accounts Payable Common Stock Retained Earnings Details of the three inventories are: Finished goods inventory: Item A - 2,000 units at P 12.50 Item B - 4,000 units at P 10.00 15,000 44,000 70,600 118,750 200,000 69,850 P 25,000 40,000 P. Total Work in process inventory: 65,000 Job 102 Job 101 Direct materials: 1,000 units at P 5.00 P 5,000 400 units at P 3.00 P 1,200 Direct labor: 4,000 1,000 hours at P 4.00 400 hours at P 5.00 2,000 Factory overhead: Applied at P 2.00/hour 2.000 Total Materials inventory: 800 PL1,000 P 4,000 Material X - 4,000 units at P 5.00 Material Y - 8,000 units at P 3.00 Total P 20,000 24,000 P 44,000
Transcribed Image Text:On December 31, 2019, after closing, the ledgers of Golden Shower Company contained these accounts and balances: Problem 2 December 31, 2019, after closing, the ledgers of Golden Shower Company contained these accounts and balances: Cash Accounts Receivable Finished Goods Work in Process P 94,000 100,000 65,000 Materials Machinery Accounts Payable Common Stock Retained Earnings Details of the three inventories are: Finished goods inventory: Item A - 2,000 units at P 12.50 Item B - 4,000 units at P 10.00 15,000 44,000 70,600 118,750 200,000 69,850 P 25,000 40,000 P. Total Work in process inventory: 65,000 Job 102 Job 101 Direct materials: 1,000 units at P 5.00 P 5,000 400 units at P 3.00 P 1,200 Direct labor: 4,000 1,000 hours at P 4.00 400 hours at P 5.00 2,000 Factory overhead: Applied at P 2.00/hour 2.000 Total Materials inventory: 800 PL1,000 P 4,000 Material X - 4,000 units at P 5.00 Material Y - 8,000 units at P 3.00 Total P 20,000 24,000 P 44,000
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