Briones, Jomel S.

BSMA – 1A
Cost Accounting – ACCT03

The A Company
Journal Entries
February 29, 2020

1) Materials ₱ 28, 000

Accounts Payable ₱ 28, 000
Materials purchased on account.

2) Work In Process ₱ 22, 000

Factory Overhead Control ₱ 3, 000
Materials ₱ 25, 000
Materials issue for production.
Job 401 – ₱ 5, 500
Job 402 – ₱ 7, 000
Job 403 – ₱ 9, 500

3) Materials ₱ 800
Work In Process ₱ 500
Factory Overhead Control ₱ 300
Material returns from factory to warehouse.
Job 403 – 500

4) Accounts Payable ₱ 1, 000

Materials ₱ 1, 000
Materials return to vendors.

5) Payroll ₱ 39, 000

Withholding Taxes ₱ 3, 025
SSS Premiums ₱ 1, 600
Medicare ₱ 375
Pag-IBIG ₱ 1, 200
Accrued Payroll ₱ 32, 800
Payroll for the month.

Accrued Payroll ₱ 32, 800

Cash ₱ 32, 800
Payment for accrued payroll.

6) Work In Process ₱ 33, 400

Factory Overhead Control ₱ 5, 600
Payroll ₱ 39, 000
Classification of payroll.
Job 401 – ₱ 10, 400
Job 402 – ₱ 12, 500
Job 403 – ₱ 10, 500
Briones, Jomel S.
BSMA – 1A
Cost Accounting – ACCT03

7) Factory Overhead Control ₱ 3, 575

SSS Premiums ₱ 2, 000
Medicare ₱ 375
Pag-IBIG ₱ 1, 200
Share of the employer for payroll.

8) Factory Overhead Control ₱ 15, 000

Accum. Dep. Building & Equipment ₱ 3, 000
Prepaid Insurance ₱ 950
Accounts Payable ₱ 11, 050
Factory overhead distribution.

9) Work In Process ₱ 26, 720

Factory Overhead Applied ₱ 26, 720
Factory overhead applied to production.

10) Finished Goods ₱ 72, 220

Work In Process ₱ 72, 220
Cost of jobs completed computed as follows:
Materials Labor Overhead Total
Job 401 – ₱ 8, 500 ₱ 12, 900 ₱ 10, 320 ₱ 31, 720
Job 402 – ₱ 12, 600 ₱ 15, 500 ₱ 12, 400 ₱ 40, 500

11) Accounts Receivable ₱ 12, 688

Sales ₱ 12, 688
Sales are computed as follows:
Job 401 – ₱ 31, 720 x 40% = ₱ 12, 688

Cost of Goods Sold ₱ 31, 720

Finished Goods ₱ 31, 720
Cost of the goods sold for the month.

12) Cash ₱ 35, 000

Accounts Receivable ₱ 35, 000
Cash collections from account.

Factory Overhead Applied ₱ 26, 720

Underapplied Factory Overhead ₱ 155
Factory Overhead Control ₱ 26, 875

Cost of Goods Sold ₱ 155

Underapplied Factory Overhead ₱ 155
Briones, Jomel S.
BSMA – 1A
Cost Accounting – ACCT03

COST SHEETS
Job 401
Materials Labor Overhead
02/1 ₱ 3, 000 02/1 ₱ 2, 500 02/1 ₱ 2, 000
2) ₱ 5, 500 6) ₱ 10, 400 9) ₱ 8, 320
₱ 8, 500 ₱ 12, 900 ₱ 10, 320

Job 402
Materials Labor Overhead
02/1 ₱ 5, 600 02/1 ₱ 3, 000 02/1 ₱ 2, 400
2) ₱ 7, 000 6) ₱ 12, 500 9) ₱ 10, 000
₱ 12, 600 ₱ 15, 500 ₱ 12, 400

Job 403
Materials Labor Overhead
2) ₱ 9, 500 6) ₱ 10, 500 9) ₱ 8, 400
3) ₱ 9, 500
₱ 10, 000 ₱ 10, 500 ₱ 8, 400