Reference no: EM132849949

Question - ABC Technology Corporation manufactures modern gas stove and uses JIT production system.

The following transactions occurred during the month of February 2021

a. ABC purchased P 2,500,000 of materials on account

b. All materials purchased were delivered straight to production areas

c. ABC incurred direct labor costs of P 900,000

d. ABC applied conversion costs total of P 2,000,000 (including direct labor of P900,000)

e. Actual Factory Overhead costs incurred amounted to P 1,250,000

ABC uses a backflush costing system with three (3) major or trigger points

1. Purchase of direct materials

2. Completion of products

3. Sale of finished good

What are the journal entries for the month of February? Assuming that no direct materials variances.