Tomawis, Hafida B.

ACT120 A3
BS Accountancy - 1 February 25, 2021

I. Entries for the transaction of Ram Company

Account Title Debit Credit

A. Material Inventory Php 180,000.00

Accounts Payable Php 180,000.00

B. Payroll Php 80,000.00

Withholding taxes Php 11,200.00
SSS Premium Php 2,400.00
Philhealth Contribution Php 375.00
Pag-ibig Funds Contribution Php 64,405.00

Work In Process Inventory Php 60,000.00

Factory Overhead Control Php 20,000.00
Payroll Php 80,000.00

C. Material Inventory Php 20,000.00

Cash Php 20,000.00

D. Payroll Tax Expense Php 5,595.00

SSS Premium Php 3,600.00
PhilHealth Contributions Php 375.00
Pag Ibig Funds Contributions Php 1,620.00

E. Work in Process Inventory Php 120,000.00

Factory Overhead Control Php 10,000.00
Material Inventory Php 130,000.00

F. Accounts Payable Php 5,000.00

Material Inventory Php 5,000.00
G. Accounts Payable Php 83,895.00
Accrued Payroll Php 64,405.00
Cash Php 148,300.00

H. Factory Overhead Control Php 24,900.00

Accounts Payable Php 24,900.00

I. Work In Process Inventory Php 72,000.00

Factory Overhead Applied Php 72,000.00

J. Finished Goods Inventory Php 180,000.00

Work In Process Inventory Php 180,000.00

K. Accounts Receivable Php 210,000.00

Sales Php 210,000.00

Cost of Good Sold Php 140,000.00

Finished Goods Inventory Php 140,000.00

L. Factory Overhead Applied Php 72,000.00

Cost of Goods Sold Php 17,100.00
Factory Overhead Control Php 54,900.00
II. Statement of Cost of Good Sold

Ram Company
Statement of Cost of Good Sold
For the month ended October 31, 2019

Direct Materials

Purchases Php 200,000.00

Less: Purchase Returns Php 5,000.00

Total Available Php 195,000.00

Less: Indirect Materials Used Php 10,000.00

Php 185,000.00

Less: Material Inventory Php 65,000.00 Php 120,000.00

Ending

Direct Labor Php 60,000.00

Factory Overhead Php 72,000.00

Total Manufacturing Cost Php 252,000.00

Add: Work in Process, Beg. Php 0.00

Cost of Goods put into Php 252,000.00

Process

Less: Work in Process, End Php 72,000.00

Cost of Goods Php 180,000.00

Manufactured

Add: Finished Goods, Beg Php 0.00

Total Goods Available for Php 180,000.00

Sale

Less: Finished Goods, End Php 40,000.00

Cost of Good Sold - Normal Php 140,000.00

Less: Over-Applied Factory Php 17,100.00

Overhead

Cost of Good Sold - Actual Php 122,900.00