Reference no: EM132633553
Classwork-Cost Accounting Cycle Aniture Company is a small, newly organized company that manufactures dining tables and chairs. The company's products are sold to jobbers or wholesalers distributors, who in turn sell them to retailers. The beginning Statement of financial position for the company on January 1, 2020 is presented below. 4niture Company Statement of Financial Position January 1, 2020
Assets:
Cash P 80,000
Building 750,000
Machinery and equipment 150,000
Total Assets 980,000
Liabilities and Stockholder's equity Liabilities 0
Capital stock 980,000
Total Liabilities and Stockholder's equity 980,000
The company makes only one style of table and no chairs for the month of January.
The following transactions occurred during the month:
1.Materials (lumber, paint, screws, lubricants and solvents) are purchased on account at a cost of P 50,000.
2. During the month, direct materials, (lumber and paint) costing P 40,000 and indirect materials (screws, lubricants for machines and solvents for cleaning) costing P 1,900 are issued to the factory.
3. Total payroll for the month amounted to P 36,000, consisting of P 20,000 earned by laborers working on the product; P 7,000 for factory supervision; P 9,000 for sales and administrative employees. The company subsequently paid the said payroll amount of 36,000.
4. Depreciation expense for the building is 6% per year. The office occupies 1/10 of the total building, and the factory operation is in the other 9/10.
5. Depreciation expense for the machinery and equipment is 20% per year. All the machinery and equipment is used in the factory for production purposes.
6. The cost of heat, light and power for the month was P 3,000.
7. Miscellaneous expenses for the telephone, office supplies, travel and rental of office furniture and equipment totalled. P 1,500.
8. Factory overhead applied (charged to production) at 85% of the direct labor cost.
9. All goods started in process have been finished representing 1000 units.
10. Cost of materials, utilities, and selling and administrative expenses paid amounted to P 34,000.
11. 800 tables are sold to jobbers at net price of P 86,240.
12. Cash totalling 55,000 is collected on accounts receivable.
Required:
Question 1: Journalize all the transactions above.
Question 2: Prepare a statement of cost of goods manufactured and cost of goods sold statement for 4niture Company.
Question 3: What was required is the journal entry per number and the cost of goods sold.