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CHESHE Company completed the following transactions for May 2018.
a. Purchased on account direct materials of P150,000
b. The factory payroll was recorded. Direct Labor P56,000; indirect labor P19,999. Employee payroll deductions were recorded as follows:
Withholding taxes P11,200
SSS Premiums 2,400
Phil Health Contributions 375
Pag-ibig Funds Contribution 1,620
c. Indirect materials of P20,000 were purchased.
d. Employer payroll tax expense is recorded as follows:
SSS Premiums P3,600
Phil Health Contributions 375
Pag-ibig Funds Contributions 1,620
e. Materials issued: direct materials -P85,000; indirect materials - P11,000
f. Defective Materials P 4,000 were returned to vendors
g. Accounts Payable totaling P148,300, including accrued payroll were paid.
h. Sundry factory expenses of P24,900 were recorded as liabilities
i. Factory Overhead was charged to production at 120% of direct labor costs.
j. Goods completed with a cost of P165,000 were transferred to finished goods
k. Sales were P190,000 and cost P120,000 to produce.
Requirements:
1. Entries to record the transactions given above.
2. Statement of Cost of Goods Sold.
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