Question

The following information regarding the operations for March of the Goodfield Products Company are available: (all monetary values are in Php)

The book show these account balances as of March 1:

Raw materials and supplies	P 65,000
Work in process*	292,621
Finished goods	78,830

The work in process* account is supported by these job order cost sheets:

Job. No.	Item	Direct Materials	Direct Labor	Factory Overhead
204	80,000 balloons	P 15,230	P 21,430	P 13,800
205	5,000 life rafts	40,450	55,240	22,370
206	10,000 life belts	60,875	43,860	19,366
Total		P116,555	P120,530	P 55,536

During March, these transactions occurred:

(a) Purchase of raw materials and supplies, P42,300.

(b) Purchase of special materials for newJob No. 207, P5,800.

(c) Job No. 207 calls for 4,000 life jackets.

(d) Payroll data for March:

Job No.	Amount	Hours
204	P 13,422	6,711
205	14,630	6,500
206	14,075	7,230
207	12,948	5,820

• Indirect labor cost, P9,480.

• Factory superintendence, P1,500.

(e) Raw materials issued:

Job No.
204	P 9,480
205	11,320
206	10,490
207	16,640

• Excluding special mat’l purchases of P5,800 of which P4,100 was consumed

(f) Indirect materials (supplies) used, P1,910.

(g) Ending inventory of indirect materials/supplies, March 31, P2,000.

(h) Other factory overhead incurred:

Insurance on factory	P 830
Depreciation---machinery	4,780
Depreciation---factory building	2,840
Light	1,260
Power	3,390
Repairs & maintenance	2,240
Others	1,910

(i) Factory overhead is applied at the rate of P1.15 per direct labor hour for March.

(j) Shipped and billed Job. No. 204 at a contract price of P97,500.

(k) Job. No. 206 unfinished as of March 31, others are completed.

Prepare and analyze the following to answer the succeeding questions.

(a) Journal entries to record transactions during March.

(b) Job Order Cost Sheet for the completed jobs.

(c) Detailed summary of the schedule of inventories.

(d) The amount of over- or underapplied overhead for March.

Note: All infos are given

Answer 1

(a)	Ref.	Account titles					Debit	Credit
	a.	Raw materials and supplies					42300
		Cash						42300
		(Purchase of raw materials and supplies)
	b.	Raw materials-Special					5800
		Cash						5800
		(Purchase of special materials)
	c.	No entry
	d.	Work in process		(13422+14630+14075+12948)			55075
		Factory overhead		(9480+1500)			10980
		Cash						66055
		(Payroll paid)
	e.	Work in process		(9480+11320+10490+16640)			47930
		Raw materials and supplies						47930
		(Raw materials issued)
		Work in process					4100
		Raw materials-Special						4100
		(Special raw materials used)
	f.	Factory overhead					1910
		Raw materials and supplies						1910
		(Indirect materials used)
	g.	No entry
	h.	Factory overhead					17250
		Prepaid insurance						830
		Accumulated depreciation-Machinery						4780
		Accumulated depreciation-Factory building						2840
		Cash	(1260+3390+2240+1910)					8800
		(Other factory overhead incurred)
	i.	Work in process		(6711+6500+7230+5820)*1.15			30200
		Factory overhead						30200
		(Factory overhead is applied)
	j.	Accounts receivable					97500
		Sales						97500
		(Shipped and billed Job. No. 204)
		Cost of goods sold					81080
		Finished goods						81080
		(Cost of Job. No. 204)
	k.	Finished goods				(Note:1)	272946
		Work in process						272946
		(Cost of jobs completed)
	Note:1
	Cost of jobs completed= Cost job 204,205 and 207=81080+151485+40381=P 272946
	(Ref. job cost sheets)