Reference no: EM132761599
Problem - Actual Costing Method - During the month Of July, the following transactions were completed and reported by Old Navy Manufacturing Company.
a. Raw materials purchased on account, P240,000.
b. Materials requisitioned for the month was P180,000, P12,000 of which were factory supplies.
c. Factory payroll for the month was P150,000 of which P30,000 was for indirect laborers.
d. Depreciation on factory plant and equipment for the month is P12,000.
e. Factory taxes amounted to P1,500.
f. Factory insurance expired amounted to P4,320.
g. Factory utilities for the month amounted to P5,000.
Additional information:
a. Actual overhead is charged to production.
b. 75% of the jobs put into process are completed.
c. All beginning inventories plus 75% of the goods completed during the period were delivered to customers at 50% mark-up on cost. The company's terms on all sales are 30 days.
Inventories reported by the company at the beginning of the month are:
Raw Materials P80,000
Work in Process 100,000
Finished Goods 60,000
Required -
(a) Journal Entries to record the above and post the entries to T-Accounts.
(b) Prepare a Statement of Cost of Goods Manufactured and Sold, at good form.
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