Question

Sunnry Day Manufacturing Company has just started operation on September 1, 2020. The following are the transactions for the month of September. 1. Purchase of Raw Materials: On account, PHP 350,000. 2. Accepted three job orders from different customers and assigned Job. No. 700-A, 700-B and 700-C. 3. Materials in the amount of PHP 200,000 requisitioned and issued. 30% for Job 700-A, 25% for 700-B and 35% for 700-C. The balance represent indirect materials. 4. Payroll for the month totaled PHP 357,200. Analysis of the payroll shows: Job Hours Cost Job 700-A              8,840      88,400.00 Job 700-B            11,650    116,500.00 Job 700-C            11,980    119,800.00 Indirect Labor      32,500.00 5. The following overhead were incurred during the month in addition to indirect materials and indirect labor: Maintenance of factory equipment      10,000.00 Utilities (power, light and water)      25,000.00 Depreciation of factory plant and equipment      15,000.00 Insurance expired        8,000.00 Miscellaneous factory expenses        5,000.00 6. The Company's policy is to apply overhead to each job at the rate of PHP 3.5 per direct labor hour. Any overhead variance is closed to cost of goods sold. 7. Jobs 700-A and 700-B are completed and billed the customers at cost plus 40% mark-up. Requirements: 1. Journal entries to record the tranctions for the month, using the acounts on the right side.

2. Prepare summary of accounts.

3. Prepare the cost of each job.

Answer 1