SOLUTION: Actual Cost System

1. General Journal: 2. General Ledger

CASH Page 1
Page 1 Balance
Date Particulars PR Debit Credit Date Particulars PR Debit Credit Debit Credit
20xx Materials GL3 ₱400,000.00 Jan. 1, 20xx Beg. balance ₱80,000.00
Account payable GL9 ₱400,000.00 20xx Collections of account GJ1 ₱2,170,000.00 2,250,000.00
To record purchase of materials 20xx Payments of account and
# Salaries & wages & account payable GJ1 1,600,000.00 ₱650,000.00
20xx Work in Process GL4 400,000.00
Materials GL3 400,000.00 ACCOUNT RECEIVABLE Page 2
To record issuance of materials Balance
# Date Particulars PR Debit Credit Debit Credit
20xx Work in Process GL4 102,000.00 Jan. 1, 20xx Beg. balance ₱130,000.00
Account payable GL9 102,000.00 20xx Credit sales GJ1 ₱2,500,000.00 2,630,000.00
To record factory utility costs 20xx Collection of account GJ1 2,170,000.00 ₱460,000.00 S
#
20xx Work in Process GL4 224,000.00 MATERIALS Page 3.
Expense - Administrative GL16 42,000.00 Balance
Expense - Selling GL17 14,000.00 Date Particulars PR Debit Credit Debit Credit
Accumulated depreciation - P& E GL8 280,000.00 Jan.1, 20xx Beg. balance ₱70,000.00
To record depreciation of P&E 20xx Purchase of materials GJ1 ₱400,000.00 470,000.00
# 20xx Issuance of materials GJ1 ₱400,000.00 ₱70,000.00
20xx Work in process GL4 580,000.00
Expense - Administrative GL16 250,000.00 WORK IN PROCESS Page 4
Expense - Selling GL17 104,000.00 Balance
Salaries and Wages payable GL12 934,000.00 Date Particulars PR Debit Credit Debit Credit
To record salaries and wages Jan. 1, 20xx Beg. balance ₱180,000.00
# 20xx Issuance of materials GJ1 ₱400,000.00 580,000.00
20xx Work in Process GL4 24,000.00 20xx Factory utility costs GJ1 102,000.00 682,000.00
Expense - Admi istrative GL16 3,000.00 20xx Depreciation -P&E GJ1 224,000.00 906,000.00
Expense - Selling GL17 3,000.00 20xx Salaries and wages payable GJ1 580,000.00 1,486,000.00
Prepaid insurance 30,000.00 20xx Insurance expense GJ1 24,000.00 1,510,00.00
To record insurance expense 20xx Finished goods GJ1 ₱1,400,000.00 ₱110,000.00
#
20xx Expense - Administrative GL16 8,000.00 FINISHED GOODS Page 5
Expense - Selling GL17 10,000.00 Balance
Accrued expense GL13 18,000.00 Date Particulars PR Debit Credit Debit Credit
To record accrued miscellaneous Jan. 1, 20xx Beg. balance ₱200,000.00
selling and administrative expense 20xx Completed goods GJ1 ₱1,400,000.00 1,600,000.00
# 20xx Cost of sales GJ1 ₱1,500,000.00 ₱100,000.00
20xx Finshed Goods GL5 1,400,000.00
Work in Process GL4 1,400,000.00 PREPAID INSURANCE Page 6
To record completed goods Balance
# Date Particulars PR Debit Credit Debit Credit
20xx Account receivable GL2 2,500,000.00 Jan. 1, 20xx Beg. balance ₱40,000.00
Sales GL14 2,500,000.00 20xx Adjustments GJ1 ₱30,000.00 ₱10,000.00
To record sales on account
 # PLANT AND EQUIPMENT Page 7
Cost of Sales GL15 1,500,000.00 Balance
Finished Goods GL5 1,500,000.00 Date Particulars PR Debit Credit Debit Credit
To record cost of sales Jan. 1, 20xx Beg. balance ₱2,300,000.00
#
20xx Cash GL1 2,170,000.00 ACCUMULATED DEPRECIATION - P & E Page 8
Account receivable GL2 2,170,000.00 Balance
To record collection of account Date Particulars PR Debit Credit Debit Credit
# Jan. 1, 20xx Beg. balance ₱420,000.00
20xx Account payable GL9 700,000.00 20xx Depreciation expense GJ1 ₱280,000.00 ₱700,000.00
Salaries and Wages payable GL12 900,000.00
Cash GL1 1,600,000.00 ACCOUNT PAYABLE Page 9
To record payment of account Balance
and salaries and wages payable Date Particulars PR Debit Credit Debit Credit
# Jan. 1, 20xx Beg. balance ₱300,000.00
20xx Purchase of materials GJ1 ₱400,000.00 700,000.00
CLOSING JOURNAL ENTRIES 20xx Factory ultility costs GJ1 102,000.00 802,000.00
20xx Payment of account GJ1 ₱700,000.00 ₱102,000.00
Date Particulars PR Debit Credit
Dec. 31, 20xx Sales GL14 ₱2,500,000.00 CAPITAL STOCK Page 10
Income summary GL18 ₱2,500,000.00 Balance
To close sales Date Particulars PR Debit Credit Debit Credit
# Jan. 1, 20xx Beg. Balance ₱1,500,000.00
Dec. 31, 20xx Income summary GL18 1,500.000.00
Cost of Sales GL15 1,500,000.00 RETAINED EARNINGS Page 11
To close cost of sales Balance
# Date Particulars PR Debit Credit Debit Credit
Dec. 31, 20xx Income summary GL18 434,000.00 Jan. 1, 20xx Beg. balance ₱780,000.00
Expense - Administrative GL16 303,000.00 20xx Closing entry - net income GJ1 ₱566,000.00 ₱1,346,000.00
Expense - Selling GL17 131,000.00
To closes expenses SALARIES AND WAGES PAYABLE Page 12
# Balance
Dec. 31,20xx Income summary GL18 566,000.00 Date Particulars Debit Credit Debit Credit
Retained earnings Gl11 566,000.00 20xx Salaries and Wages GJ1 ₱934,000.00 ₱934,000.00
To close income summary 20xx Payment GJ1 ₱900,000.00 ₱34,000.00
#
ACCRUED EXPENSE Page 13
Balance
Date Particulars PR Debit Credit Debit Credit
20xx Miscellaneous expenses GJ1 ₱18,000.00 ₱18,000.00

SALES Page 14
Balance
Date Particulars PR Debit Credit Debit Credit
20xx Credit sales GJ1 ₱2,500,000.00 ₱2,500,000.00
20xx Closing entry GJ1 ₱2,500,000.00 -0-

COST OF SALES Page 15

Balance
 Date Particulars PR Debit Credit Debit Credit
20xx Cost of goods sold GJ1 ₱1,500,000.00 ₱1,500,000.00
20xx Closing entry GJ1 ₱1,500,000.00 -0-

EXPENSE - ADMINISTRATIVE Page 16

Balance
Date Particulars PR Debit Credit Debit Credit
20xx Depreciation expense GJ1 ₱42,000.00 ₱42,000.00
20xx Salaries and wages GJ1 250,000.00 292,000.00
20xx Insurance expense GJ1 3,000.00 295,000.00
20xx miscellaneous expenses GJ1 8,000.00 303,000.00
20xx Closing entry GJ1 ₱303,000.00 -0-

EXPENSE - SELLING Page 17

Balance
Date Particulars PR Debit Credit Debit Credit
20xx Depreciation expense GJ1 ₱14,000.00 ₱14,000.00
20xx Salaries and wages GJ1 104,000.00 118,000.00
20xx Insurance expense GJ1 3,000.00 121,000.00
20xx Miscellaneous expenses GJ1 10,000.00 131,000.00
20xx Closing entry GJ1 ₱131,000.00 -0-

INCOME SUMMARY Page 18

Balance
Date Particulars PR Debit Credit Debit Credit
Dec. 31, 20xx Closing entry GJ! ₱2,500,000.00 ₱2,500,000.00
Dec. 31,20xx Closing entry GJ1 ₱1,500,000.00 1,000,000.00
Dec. 31,20xx Closing entry GJ1 434,000.00 566,000.00
Dec. 31,20xx Closing entry GJ1 566,000.00 -0-