Problem B Peter Senen Corporation provided the following account balances as of September 30, 2020: CashP112,000 Accumulated depreciationP 36,000 Accounts Receivable 64,000
Problem B
Peter Senen Corporation provided the following account balances as of September 30, 2020: CashP112,000
Accumulated depreciationP 36,000
64,000
Accounts payable 40,000
Finished Goods48,000
Income tax payable9,000
Work in process 36,000
Share Capital500,000
Raw materials 52,000
Retained Earnings207,000
Property and Equipment480,000
The following transactions occurred during October:1. Materials purchased on account, P150,000
2. Materials issued to production: direct materials- P90,000, Indirect materials- P10,000.
3. Payroll for the month of October 2020 consisted of the following (also paid during the month):Direct labor P62,000Administrative salariesP16,000Indirect Labor 20,000Sales salaries 30,000Payroll deductions were as follows:Withholding taxes P19,800Phil health contributions P2,000SSS contributions 7,100HDMF contributions 2,000
4. Employer contributions for the month were accrued:FactorySellingAdministrativeSSS contributionsP5,700P2,000P1,100Philhealth Contributions 1,200 500 300EC Contributions 400 300 200
HDMF contributions 1,600 700 400
5. Other costs incurred on account:Indirect factory
Selling - 30,000Administrative - 10,000
6.
7. Factory overhead control account was transferred to work in process, P82,900.
8. Work finished and placed in stock, P178,000
9. Cost of goods sold, P200,000. The markup was 60% of cost.
10. Cash collected from customers, P260,00011. Materials returned to supplies, P15,000.
12. Payment of accounts payable, P190,000.
13. Provision for income tax, P6,000.
Required: a.
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