Reference no: EM132644727

GCQ MANUFACTURING CO. started its operation on January 5, 2020 and at the end of the first quarter, the following selected balances were remain in its ledger:

Raw materials inventory, March 31                     P2,500
Work-in-Process, March 31                                0
Finished goods inventory, March 31                  36,000
Accounts Receivable, April 1                             15,300

For the second quarter of 2020, the following information were provided for you as the cost accountant to prepare the necessary journal entries, assuming that the Raw Material Inventory account contains both direct and indirect material. Normal production for the quarter were 20,000 units.

a. Purchased raw material on account P28,500.
b. Put material into production: P15,000 of direct material and P3,000 of indirect material.
c. Accrued payroll of P90,000, of which 70 percent was direct and the remainder was indirect.
d. Incurred and paid other factory overhead items of P36,000.
e. Transferred all goods manufactured to finished goods and no work in process at the of Junen30.
f. Sold goods on account for P231,000. (22,000 units)
g. Collected accounts receivable due for the second quarter.
h. Paid operating expenses P64,000

Additional information:

1. Accounts receivable, June 30 P25,500 Of the other factory overhead paid, P20,000 worth were identified as fixed costs.
2. Of the total operating expenses, 25% were identified as variable costs. 
3. Cost of finished goods per unit on March 31, was the same in the second quarter's production costs.

REQUIRED;

Question 1: Give the journal entries for the quarter.

Question 2: Prepare income statement with schedule of cost of goods manufactured.

Question 3: Prepare break-even-point in units and in peso for the quarter.

Question 4: What is the margin of safety for the second quarter?