Problem 4 - Ram Company

1, Entries
a. Materials 150,000.00
Accounts payable 150,000.00

b. Payroll 75,000.00
Withholding taxes payable 11,200.00
SSS Premiums payable 2,400.00
Phil Health contribu 375.00
Pag-ibig fund contributions payable 1,620.00
Accrued payroll 59,405.00

Work in process 56,000.00

Factory overhead control 19,000.00
Payroll 75,000.00

c. Materials 20,000.00
Accounts payable 20,000.00

d. Factory overhead control 5,595.00

SSS premiums payable 3,600.00
Phil Health contributions payable 375.00
Pag-ibig fund contributions payable 1,620.00

e. Work in process 85,000.00

Factory overhead control 11,000.00
Materials 96,000.00

f. Accounts payable 4,000.00

Materials 4,000.00

g. Accounts payable 148,300.00

Accrued payroll 59,405.00
Cash 207,705.00

h. Factory overhead control 24,900.00

Miscellaneous accounts 24,900.00

i. Work in process 67,200.00

Factory OH Applied (56,000 x 120%) 67,200.00

j. Finished goods 165,000.00

Work in process 165,000.00

k. Accounts receivable 190,000.00

 Sales 190,000.00
Cost of goods sold 120,000.00
Finished goods 120,000.00
2. Statement of cost of goods sold
. Direct materials used
Purchases 170,000
Less: Purchase returns 4,000
Total available for use 166,000
Less: Ind. Mat. used 11,000
Mat.- October 31 70,000 81,00075,000
Direct labor
Factory overhead
Total manufacturing costs
Less: Work in process, October 31
Cost of goods manufactured
Less: Finished goods – March 31
Cost of goods sold, normal
Less: OA-FO
Cost of goods sold, actual

Actual factory overhead (FO Control ) 60,495.00

Less: Applied factory overhead 67,200.00
Over applied factory overhead 6,705.00
 85,000
56,000
67,200
208,200
43,200
165,000
45,000
120,000
6,705
113,295
Problem 4 - Ram Company
1, Entries
a. Materials 180,000.00
Accounts payable 180,000.00

b. Payroll 80,000.00
Withholding taxes payable 11,200.00
SSS Premiums payable 2,400.00
Phil Health contribu 375.00
Pag-ibig fund contributions payable 1,620.00
Accrued payroll 64,405.00

Work in process 60,000.00

Factory overhead control 20,000.00
Payroll 80,000.00

c. Materials 20,000.00
Accounts payable 20,000.00

d. Factory overhead control 5,595.00

SSS premiums payable 3,600.00
Phil Health contributions payable 375.00
Pag-ibig fund contributions payable 1,620.00

e. Work in process 120,000.00

Factory overhead control 10,000.00
Materials 130,000.00

f. Accounts payable 5,000.00

Materials 5,000.00

g. Accounts payable 148,300.00

Accrued payroll 64,405.00
Cash 212,705.00

h. Factory overhead control 24,900.00

Miscellaneous accounts 24,900.00

i. Work in process 72,000.00

Factory OH Applied (60,000 x 120%) 72,000.00

j. Finished goods 180,000.00

Work in process 180,000.00

k. Accounts receivable 210,000.00

 Sales 210,000.00
Cost of goods sold 140,000.00
Finished goods 140,000.00
2. Statement of cost of goods sold
. Direct materials used
Purchases 200,000
Less: Purchase returns 5,000
Total available for use 195,000
Less: Ind. Mat. used 10,000
Mat.- October 31 65,000 75,00075,000
Direct labor
Factory overhead
Total manufacturing costs
Less: Work in process, October 31
Cost of goods manufactured
Less: Finished goods – March 31
Cost of goods sold, normal
Less: OA-FO
Cost of goods sold, actual

Actual factory overhead (FO Control ) 60,495.00

Less: Applied factory overhead 72,000.00
Over applied factory overhead 11,505.00
120,000
60,000
72,000
252,000
72,000
180,000
40,000
140,000
11,505
128,495