Jing Inc
Subject:AccountingPrice: Bought3
Jing Inc. had cost of goods manufactured for the month of July equal to 100,000; direct materials used P29,000; cost of goods sold, P120,000; direct labor, P28,000; purchases of materials, P45,000; cost of goods available for sale, P125,000; and total factory labor, P58,000. Work in process was P35,000 on May 1 and P15,000 on July 31. The company uses a sole account for direct and indirect materials.
Required: Prepare the following:
1.) statement cost of good sold
2.) b. Journal entries to record:
-the purchase of materials on account
-the use of materials which includes direct materials of P2,000
-the accrual of payroll in the production department which includes indirect labor of P11,500
-the distribution of factory labor cost
-the transfer of completed work to finished goods
-the sales on account, at a markup equal to 150% of production cost
