The following transactions pertain to the manufacturing operations of TESLA CORPORATION a. Materials purchased totaled P 400,000 b. Materials were issued as follows: Direct Materials P 196,000...


The following transactions pertain to the manufacturing operations of TESLA<br>CORPORATION<br>a. Materials purchased totaled P 400,000<br>b. Materials were issued as follows:<br>Direct Materials<br>P 196,000<br>Indirect Materials<br>36,000<br>c. Total payroll was P 240,000 direct labor; P 48,000 indirect labor; P 24,000<br>P 40,000 office salaries. Income tax withheld was 10%<br>of wages earned; SSS contribution at the rate of 5%; Phil. Health<br>sales salaries and<br>contributions, 1.5% and Pag-Ibig Contributions, 1% were deducted. The<br>payroll due to the employees was paid.<br>d. Employer's share for SSS, 5%; Philhealth, 1.5% and Pag-lbig, 1%<br>e. Miscellaneous factory expenses totaled P 60,000 of which P 36,000 was for<br>depreciation of machinery and equipment; P 6,000 for expired insurance<br>and P 18,000 for various overhead incurred.<br>f. Actual factory overhead incurred was applied to work in process.<br>g. Cost of production completed during the period was P 480,000.<br>h. Goods costing P 160,000 were billed to customers at markup of 40% of cost.<br>i Collected 80% of receivables from customers.<br>Required: Prepare all necessary journal entries to record the foregoing<br>transactions<br>

Extracted text: The following transactions pertain to the manufacturing operations of TESLA CORPORATION a. Materials purchased totaled P 400,000 b. Materials were issued as follows: Direct Materials P 196,000 Indirect Materials 36,000 c. Total payroll was P 240,000 direct labor; P 48,000 indirect labor; P 24,000 P 40,000 office salaries. Income tax withheld was 10% of wages earned; SSS contribution at the rate of 5%; Phil. Health sales salaries and contributions, 1.5% and Pag-Ibig Contributions, 1% were deducted. The payroll due to the employees was paid. d. Employer's share for SSS, 5%; Philhealth, 1.5% and Pag-lbig, 1% e. Miscellaneous factory expenses totaled P 60,000 of which P 36,000 was for depreciation of machinery and equipment; P 6,000 for expired insurance and P 18,000 for various overhead incurred. f. Actual factory overhead incurred was applied to work in process. g. Cost of production completed during the period was P 480,000. h. Goods costing P 160,000 were billed to customers at markup of 40% of cost. i Collected 80% of receivables from customers. Required: Prepare all necessary journal entries to record the foregoing transactions

Jun 06, 2022
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