problem #3 manufacturing activities for 2018. The accounts have been adjusted, but have not yet Allocating Costs to Work in Process and Preparation of the Statement of Cost of Goods Madelon Lee...

Extracted text: problem #3 manufacturing activities for 2018. The accounts have been adjusted, but have not yet Allocating Costs to Work in Process and Preparation of the Statement of Cost of Goods Madelon Lee Company's general ledger included the following items related to its Manufactured been closed: Raw Materials Inventory Work in Process Inventory Purchases-Raw Materials P 84,600 99,360 311,400 450,000 Direct Labor Indirect Labor 194,220 Factory Utilities Repairs and Maintenance-Factory Equipment Rent Expense-Factory Building Property Taxes-Factory Site Factory Insurance Expense Factory Supplies Expense Depreciation Expense-Factory Equipment 109,440 30,060 84,600 19,260 16,020 34,920 82,800 Amortization of Patents 13,680 In addition, the ending inventory of raw materials is known to be P91,080. The ending inventory of Work in Process is not known, but it is known that the company makes a single product and 4,500 units of goods were in process on Dec. 31, 2018. Each unit contained an estimated P18 of direct materials and had P7.50 of direct labor cost assigned to it. Required: 1. Calculate the overhead rate based on the relationship between total manufacturing overhead cost and total direct labor cost. Then, determine the cost of the ending Work in Process inventory. 2. Prepare the statement of cost goods manufactured for 2018. 3. Prepare the journal entries to close the manufacturing accounts to manufacturing summary and to close the manufacturing summary account.