WTV COMPANY HAS THE FOLLOWING BALANCES AS OF JANUARY 1, 2021.

MATERIALS P4,900
WORK IN PROCESS 4,600
FINISHED GOODS 6,000
ACCRUED FACTORY PAYROLL 200

DETAILS OF THE THREE INVOENTORIES ARE

1) FINISHED GOODS
COMMODITY X – 2,000 UNITS AT P3.00 P6,000,00
2) WORK IN PROCESS – JOB NO. 101
MATERIALS:
A – 200 UNITS AT P5.00 P1,000.00
B – 175 UNITS AT P4.00 700.00 1,700.00
DIRECT LABOR
290 HOURS AT P5.00 1,450.00
FACTORY OH – APPLIED AT 100% OF DIRECT LABOR 1,450.00 4,600.00

MATERIALS
A – 600 UNITS AT 5.00 3,000
B – 350 UNITS AT 4.00 1,400
INDIRECT MATERIALS 500
4,900
THE TRANSACTIONS FOR TH EMONTH OF JANUARY, 2021 ARE AS FOLLOWS:
1) PURCHASES FOR THE MONTH OF JANUARY – MATERIAL A – 600 UNITS AT 5.5O; MATERIAL B –
800 UNITS AT P5.00; INDIRECT MATERIALS – P700
2) MATERIALS REQUISITIONED AND ISSUED ON A FIFO BASIS AMOUNTED TO P7,000. MATERIAL A,
200 UNITS (CHARGED TO JOB 101); MATERIAL A, 600 UNITS AND MATERIAL B, 225 UNITS
(CHARGED TO JOB 102); MATERIAL B, 425 UNITS (CHARGED TO JOB 103). INDIRECT MATERIALS
AMOUNTED TO P1,000
3) MATERIAL B RETURNED TO VENDORS, 70 UNITS AT P5.00.
4) PAYROLL DURING JANUARY AMOUNTED TO P10,300, OF WHICH P12,000 IS FOR JOB 101; P4,000
IS FOR JOB 102; P2,000 FOR JOB 103, AND P2,300 IS INDIRECT LABOR.
DEDUCTIONS ARE AS FOLLOWS:
SSS PREMIUMS P412
PHILHEALTH 225
WITHHOLDING TAX 1,050
5) FACTORY OVERHEAD IS APPLIED ON THE BASIS OF 100% OF DIRECT LABOR COST.
6) JOBS COMPLETED DURING THE MONTH – JOB 101 FOR 3,000 UNITS OF COMMODITY X AT P6.00
PER UNIT AND 4,000 UNITS OF COMMODITY Y AT P4.00 PER UNIT
7) SALES DURING JANUARY ON FIFO BASIS – 4,000 UNITS OF COMMODITY X AT P6.00 PER UNIT
AND 4,000 UNITS OF COMMODITY Y AT P4.00 PER UNIT
8) CASH COLLECTION FROM CUSTOMERS P35,000.
9) RECORDED THE FOLLOWING LIABILITIES; FOH, P4,800; SELLING EXPENSES, P2,100; GENERAL
EXPENSES, P1,500
10) PAID ACCOUNTS -P9,500 PAYROLL - P8,500

REQUIREMENTS:
1. JOURNAL ENTRIES TO RECORD THE ABOVE TRANSACTIONS.
2. COST OF GOODS SOLD STATEMENT FOR THE MONTH OF JANUARY.