Reference no: EM132621817

Question - Journal Entries for the Cost Accounting Cycle. On January 1, the ledger of the CORONA Manufacturing Company contained, among other accounts, the following: Finished Goods, P25,000; Work in Process, P30,000; Materials, P15,000. During January, the following transactions were completed:(a)Materials were purchased at a cost of P28,000.(b)Direct materials in the amount of P21,000 were issued from the storeroom.(c)Storeroom requisitions for indirect materials and supplies amounted to P3,200.(d)The total payroll for January amounted to P31,000, including marketing salaries of P7,500 and administrative salaries of P5,500. Labor time tickets show that P15,500 of the labor cost was direct labor.(e)Various factory overhead costs were incurred for P12,000 on account.(f)Total factory overhead is charged to the work in process account.(g)Cost of production completed in January totaled P58,000, and finished goods in the shipping room on January 31 totaled P18,000.(h)Customers to whom shipments were made during the month were billed for P88,000. (Also record entry for cost of goods sold.)

Required -

1) Prepare journal entries for the transactions, including the recording, payment, and distribution of the payroll.

2) Prepare a schedule for cost of goods manufactured.

3) Prepare a manufacturing statement up to gross profit only.