Exercise 3 p.

392 – 393
Date PARTICULARS Dr Cr
January

2 Raw Material X Purchases 20,000

Accounts Payable 20,000
Purchase of Material X on account

8 Raw Material Y Purchases 55,000

Accounts Payable 55,000
Purchase of Material Y on account

12 Factory Supplies 10,000

Cash 10,000
Purchase of factory materials

15 Direct Labor 9,000

Indirect Labor 3,000
Sales Salaries 2,000
Office salaries 2,000
Withholding Taxes Payable 1,700
Cash 14,300
Paid first half of payroll and collected employee taxes share

17 Factory Real Estate Taxes Expense 15,000

Factory Repairs Expense 30,000
Cash 445,000
Paid Factory expenses
20 Utilities Expense - Factory 6,750
Utilities Expense - Distribution 3,375
Utilities Expense - Administrative 3,375
Utilities Payable - Factory 6,750
Utilities Payable - Distribution 3,375
Utilities Payable - Administrative 3,375
Record utilities expense

26 Prepaid Factory insurance 48,000

Cash 48,000
Record prepaid insurance for 1 year

28 Cash 375,000
Sales 375,000
Record sales for the month

30 Direct Labor 9,000

Indirect Labor 3,000
Sales Salaries 2,000
Office Salaries 2,000
Withholding Taxes Payable 1,700
SSS Premiums Payable 1,350
PHILHEALTH Premiums Payable 750
HDMF Premiums Payable 600
Cash 11,600
Paid second half of salaries and collection of employee's taxes
share
 ADJUSTMENTS
A PhilHealth Contributions Expense - Factory 562.50
PhilHealth Contributions Expense - Distribution 187.50
PhilHealth Contributions Expense - Administrative 187.50
PHILHEALTH Premiums Payable - Factory 562.50
PhilHealth Premiums Payable - Distribution 187.50
PhilHealth Premiums Payable - Administrative 187.50
Payment of PhilHealth contributions expense

EC Contributions Expense - Factory 900

EC Contributions Expense - Distribution 150
EC Contributions Expense - Administrative 150
EC Premiums Payable - Factory 900
EC Premiums Payable - Distribution 150
EC Premiums Payable - Administrative 150
Payment of EC contributions expense

SSS Contributions Expense - Factory 1,312.50

SSS Contributions Expense - Distribution 218.75
SSS Contributions Expense - Administrative 218.75
SSS Premiums Payable - Factory 1,312.50
SSS Premiums Payable - Distribution 218.75
SSS Premiums Payable - Administrative 218.75
Payment of SSS contributions expense

HDMF Contributions Expense - Factory 450

HDMF Contributions Expense – Distribution 75
HDMF Contributions Expense - Administrative 75
 HDMF Premiums Payable - Factory 450
HDMF Premiums Payable - Distribution 75
HDMF Premiums Payable - Administrative 75
Payment of HDMF Contributions Expense

B Depreciation Expense - Building - Factory 9,000

Depreciation Expense - Building - Distribution 1,500
Depreciation Expense - Building - administrative 1,500
Accumulated Depreciation - Building - Factory 9,000
Accumulated Depreciation - Building - Distribution 1,500
Accumulated Depreciation - Building - Administrative 1,500
Record depreciation of building

Depreciation Expense - Machineries - Factory 5,000

Accumulated Depreciation - Machineries - Factory 5,000
Record depreciation of machineries

C Factory insurance Expense 4,000

Prepaid Factory insurance 4,000
Expired insurance for one month

D Factory supplies expense 4,000

Factory Supplies 4,000
Record factory supplies used

E Raw Materials Inventory (X), end 1,000

Manufacturing Summary 1,000
 Finished Goods, end (250 units x 43.74375) 10,935.93
Income and Expense Summary 10,935.93

Finished Goods Inventory

Work in Process Inventory

MALAKAS Manufacturing Corp.

STATEMENT OF COST OF GOODS MANUFACTURED
For the month ended, January 31, 2012

Direct Materials Used

Raw Materials,
beginning -
Add: Purchases
Raw Material X
Purchases 20,000
Raw Material Y
Purchases 55,000
Total
Purchases 75,000
Cost of Goods
Available for Sale 75,000
Less: Raw Materials,
end 1,000
Direct Materials Used 74,000
Direct Labor 18,000
Factory Overhead
Indirect
Labor 6,000
Factory supplies
expense 4,000
Factory insurance
Expense 4,000
Factory Real Estate
Taxes Expense 15,000
Factory Repairs
Expense 30,000
Utilities Expense -
Factory 6,750
PhilHealth Contributions Expense - Factory 562.50
EC Contributions
Expense - Factory 900
 SSS Contributions Expense - Factory 1,312.50
HDMF Contributions Expense - Factory 450
Depreciation Expense - Building - Factory 9,000
Depreciation Expense - Machineries - Factory 5,000

Factory Overhead 82,975

Total Manufacturing Cost 174,975

Add: Work in Process, beg -

Cost of Goods put into
process 174,970
Less: Work in Process,
end 0
Cost of Goods
Manufactured 174,975
 MALAKAS Manufacturing Corp.
STATEMENT OF COMPREHENSIVE INCOME
For the month ended, January 31, 2012

SALES 375,000.00
Less: Cost of Goods Sold
COST OF GOODS MANUFACTURED 174,975.00
Add: Finished Goods, beg -
COST OF GOODS AVAILABLE FOR SALE 174,975.00
Less: Finished Goods , end 10,935.93
COST OF GOODS SOLD 164,039.07
GROSS MARGIN 210,960.93 210,960.93
MARKETING and ADMINISTRATIVE EXPENSES 200,000.00
Sales Salaries 4,000.00 10,960.93
Office salaries 4,000.00
Utilities Expense - Distribution 3,375.00
Utilities Expense - Administrative 3,375.00
PhilHealth Contributions Expense - Distribution 93.75
PhilHealth Contributions Expense - Administrative 93.75
EC Contributions Expense - Distribution 150.00
EC Contributions Expense - Administrative 150.00
SSS Contributions Expense - Distribution 218.75
SSS Contributions Expense - Administrative 218.75
HDMF Contributions Expense - Distribution 75.00
HDMF Contributions Expense - Administrative 75.00
Depreciation Expense - Building - Distribution 1,500.00
Depreciation Expense - Building - administrative 1,500.00
TOTAL MARKETING and ADMINISTRATIVE EXPENSES 18,825.00
NET INCOME 192,135.93