Scribd
Upload
38 views2 pages

Manufacturing Cost Transactions

HM Company manufactures customized office tables and uses an actual cost system without perpetual inventory records. The document details inventory balances for April, various transactions including purchases, returns, and payroll expenses, along with corresponding journal entries. Key figures include raw materials, work in process, finished goods, and labor costs for the month.

Uploaded by

Ma. Alexandra Teddy Buen
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
38 views2 pages

Manufacturing Cost Transactions

HM Company manufactures customized office tables and uses an actual cost system without perpetual inventory records. The document details inventory balances for April, various transactions including purchases, returns, and payroll expenses, along with corresponding journal entries. Key figures include raw materials, work in process, finished goods, and labor costs for the month.

Uploaded by

Ma. Alexandra Teddy Buen
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

To illustrate, assume that HM Company manufactures customized office tables and

uses an actual  cost system. No perpetual inventory records are maintained.


Inventory balances for the month  showed: 
April 1 April 30 
Raw Materials P 68,700 P 67,100  
Work in Process 32,450 95,213  
Finished Goods 52,610 49,880 
Factory Supplies 3,200 5,600 
During the month of April, selected transactions took place as follows:
TRANSACTIONS  JOURNAL ENTRIES – ACTUAL COST
SYSTEM

a. Raw materials costing P56,250  Purchases  56,250  62,950


and factory supplies worth   Factory Supplies 6,700
P6,700 were purchased on   Expense 
account.   Vouchers
Payable

b. Unsatisfactory materials Vouchers 2,500 2,500


costing  P2,500 were returned Payable 
to    Purchase
suppliers. Returns & Allow

c. Materials and supplies were  No journal entry


issued to production as follows: 
Direct materials – P55,350;  
Supplies – P4,300

d. Factory payroll revealed: Direct Labor  50,500  4,640 


Direct  labor – P50,500; Indirect Indirect Labor  16,8002  1,856 
labor – P16,800; Superintendence  5,500 928 
Superintendence –  Withholding tax 464 
P25,500. Deductions (based on  payable  84,912
gross payroll) are: SSS – 2%;   SSS Payable 
Philhealth – 1%; Pag-IBIG – Philhealth
0.5%;  Withholding tax – 5% Payable 
Pag-IBIG Payable 
Vouchers Payable
e. Monthly paid employees  Sales Salaries  20,400  1,820 
received salaries as follows:  Office Salaries  16,000 728 
Sales Salaries – P20,400; Office  Withholding tax 364 
Salaries – P16,000. Deductions  payable  182 
(based on gross payroll) are: SSS  SSS Payable  33,306
– 2%; Philhealth – 1%; Pag-IBIG – Philhealth
0.5%; Withholding tax – 5% Payable 
Pag-IBIG Payable 
Vouchers Payable

You might also like