Problem:

Solutions:
Journal Entries: Gross profit schedule:
• Work in Process P50,000 Job 110 Job 220 Job 330 Total
Materials P50,000
Selling P118,750 P170,000 P126,000 P414,750
• Work in Process 150,000 Price
Payroll 150,000 Direct 15,000 10,000 25,000 50,000
Materials
• Work in Process 90,000
Factory Overhead Applied 90,000 Direct 50,000 50,000 50,000 150,000
Labor
• Finished goods 290,000
Factory 30,000 30,000 30,000 90,000
Work in Process 290,000 Overhead

• Accounts Receivable 414,750

Total 95,000 90,000 105,000 290,000
Sales 414,750 cost
Cost of Goods Sold 290,000 Gross 23,750 80,000 21,000 124,750
Profit
Finished goods 290,000
Cost sheets:

Job 110 Job 330

Materials Labor Overhead Materials Labor Overhead

5000 at 5000 at 5000 at 10,000 at 10,000 at 10,000 at

P3.00 P10.00 P6.00 P2.50 P5.00 P3.00
P15,000 P50,000 P30,000 P25,000 P50,000 30,000

Job 220
Materials Labor Overhead

4000 at 4000 at 4000 at

P2.50 P12.50 P7.50
P10,000 P50,000 P30,000