RONA JOHN RAY G.

BSA-2D

ASSIGNMENT/ACTIVITY 2 -SEPTEMBER 16, 2021

Solve the problems and submit output in pdf format.

1. Given the following information for Great Corporation, prepare the necessary journal entries,
assuming that the Raw Material Inventory account contains both direct and indirect material.

A. Purchased raw material on account P28,500

B. Put material into production: P15,000 of direct material and P3,000 of indirect material.

C. Accrued payroll of P90,000, of which 70 percent was direct and the remainder was indirect.

D. Incurred and paid other overhead items of P36,000

E. Transferred items costing P86,500 to finished goods.

F. Sold goods costing P71,300 on account for P124,700.

2. Prepare a Schedule of Cost of Goods Manufactured (in good form) for the Cheerful Company from the
following information for June 20X8:

Inventories Beginning Ending

Raw Material P 6,700 P 8,900

Work in Process 17,700 22,650

Finished Goods 29,730 19,990

Additional information: purchases of raw material were P46,700; 19,700 direct labor hours were worked
at P11.30 per hour; overhead costs were P33,300.

a. Raw Materials P28,500

Accounts Payable P28,500
Purchase Raw Materials on Account

b. Work in Process Inventory P 18,000

Raw Materials (direct) P15,000
Manufacturing Overhead P3,000
Put materials into production as 70% direct and 30% indirect
c. Work in Process Inventory P63,000
Manufacturing Overhead P27,000
Salaries/Wages Payable P90,000
To record indirect and direct labor in WIP

d. Manufacturing Overhead P36,000

Cash 36,000
Paid overhead items

e. Finished Goods Inventory P 86,500

Work in Process Inventory P 86,500
To recognized items to finished goods

f. Cost of Goods Sold P71,300

Finished Goods Inventory P71,300
To recognize Cost of Sales

Accounts Receivable P124,700

Sales P124,700
To recognize Sales
 Cheerful Company
Schedule of Cost of Goods Manufactured
For the Month Ended June 2018

Beginning balance of Work in Process Inventory P17,000

Manufacturing costs for the period:

Raw Materials

Beginning balance P6,700

Purchase materials 46,700

Raw materials available for 53,400

Ending Balance 8,900

Raw Materials Used P44,500

Direct Labor 222,610

Manufacturing Overhead 33,300

Total Current Period Manufacturing Costs 300,410

Total Costs to Account for 318,110

Ending Balance of Work in Process Inventory 22,650

Cost of Goods Manufactured P295,460

Direct Labor=P19,700xP11.30=P222,610