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  • Problem 4 - Example

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    Ginalyn Bisonga
    1 views3 pages
    This document contains journal entries recording various transactions including purchases of materials, work in process, finished goods, sales, payroll expenses, and cost of goods sold. It applies overhead to work in process at 120% of direct labor costs and reconciles the overhead applied and incurred, showing an overapplication of $11,505.

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    Problem 4_example

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    This document contains journal entries recording various transactions including purchases of materials, work in process, finished goods, sales, payroll expenses, and cost of goods sold. It applies overhead to work in process at 120% of direct labor costs and reconciles the overhead applied and incurred, showing an overapplication of $11,505.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    1 views3 pages

    Problem 4 - Example

    Uploaded by

    Ginalyn Bisonga
    This document contains journal entries recording various transactions including purchases of materials, work in process, finished goods, sales, payroll expenses, and cost of goods sold. It applies overhead to work in process at 120% of direct labor costs and reconciles the overhead applied and incurred, showing an overapplication of $11,505.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 3

    a.

    Materials 180,000
    Accounts Payable 180,000

    b. WIP 60,000
    FOH control 20,000
    WHT Payable 11,200
    SSS Premium Payable 2,400
    PHIC Payable 375
    Pagibig Cont. Payable 1,620
    Accrued Payroll 64,405

    c. Materials 20,000
    Accounts Payable 20,000

    d. FOH control 5,595


    SSS Premium Payable 3,600
    PHIC Payable 375
    Pagibig Fund Payable 1,620

    e. WIP 120,000
    FOH control 10,000
    Materials 130,000

    f. Accounts Payable 5,000


    Materials 5,000

    g. Accrued Payroll 64,405


    Accounts Payable 83,895
    Cash 148,300

    h. FOH control 24,900


    Accounts Payable 24,900

    i. WIP 72,000
    FOH applied 72,000
    (60,000 x 120%)

    j. Finished Goods 180,000


    WIP 180,000
    k. Accounts Receivable 210,000
    Sales 210,000

    Cost of Goods Sold 140,000


    Finished Goods 140,000

    COGS statement:

    DM 120,000
    DL 60,000
    FOH-applied 72,000
    TMC 252,000
    + WIP, beg 0
    - WIP, end 72,000
    CGM 180,000
    +FG, beg
    -FG, end 40,000
    COGS-normal 140,000
    - Overapplied FOH 11,505
    COGS-actual 128,495

    FOH control (debit) 60,495


    FOH applied (credit) 72,000
    Over applied 11,505

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