Reference no: EM132939114

Question - Madelon Lee Company's general ledger included the following items related to its manufacturing activities for 2019. The accounts have been adjusted, but have not yet been closed:

Raw Materials Inventory 84,600

Work in Process Inventory 99,360

Purchases-Raw Materials 311,400

Direct Labor 450,000

Indirect Labor 194,220

Factory Utilities 109,440

Repairs and Maintenance-Factory Equipment 30,060

Rent Expense-Factory Building 84,600

Property Taxes-Factory Site 19,260

Factory Insurance Expense 16,020

Factory Supplies Expense 34,920

Depreciation Expense-Factory Equipment 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, 2019. 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 2019.

3. Prepare the journal entries to close the manufacturing accounts to manufacturing Summary and to close the manufacturing summary account.