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    BBD Company - Answer Key

    Uploaded by

    Muriel Mahanlud

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    BBD Company - Answer Key

    Uploaded by

    Muriel Mahanlud
    21 views5 pages

    Original Title

    BBD Company_Answer Key

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

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    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    21 views5 pages

    BBD Company - Answer Key

    Uploaded by

    Muriel Mahanlud

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 5

    a.

    Journal entries
    Account Description Debit Credit
    1 Raw materials inventory P25,000
    vf Accounts payable P25,000

    2 Work in process inventory 15,000


    Factory overhead control 3,000
    Raw materials inventory 18,000

    3 Payroll 34,000
    Accrued salaries 34,000

    Work in process inventory 30,000


    Factory overhead control 4,000
    Payroll 34,000

    4 Factory overhead control 8,000


    Accrued expenses 8,000

    5 Factory overhead control 1,000


    Prepaid insurance 1,000

    6 Factory overhead control 10,000


    Accumulated depreciation 10,000

    7 Selling and administrative expenses 40,000


    Cash 30,000
    Accrued expenses 10,000

    8 Work in process inventory 26,000


    Factory overhead control 26,000

    9 Finished goods inventory 121,000


    Work in process inventory 121,000

    10 Accounts receivable 217,600


    Sales 217,600

    Cost of goods sold 136,000


    Finished goods inventory 136,000
    b. Statement of cost of goods sold

    BBD Company
    Statement of Cost of Goods Sold
    For the month ended December 31, 2020

    Direct materials used


    Raw materials inventory, beginning P80,000
    Add: Net purchases 25,000
    Total materials available for use 105,000
    90,000
    Less: Raw materials inventory, ending
    Direct materials used P15,000
    Direct labor 30,000
    Factory overhead
    Indirect materials 3,000
    Indirect labor 4,000
    Utilities 8,000
    Insurance 1,000
    Depreciation 10,000 26,000
    Total manufacturing costs 71,000
    Add: Work in process inventory, beginning 110,000
    Total goods placed into process 181,000
    Less: Work in process inventory, ending 60,000
    Total cost of goods manufactured P121,000
    Add: Finished goods inventory, beginning 190,000
    Total goods available for sale 311,000
    Less: Finished goods inventory, ending 175,000
    Total Cost of Goods Sold P136,000
    c. Income statement (or statement of comprehensive income)

    BBD Company
    Income Statement
    For the month ended December 31, 2020

    Sales P217,600
    Cost of goods sold 136,000
    Gross margin 81,600
    Selling and administrative expenses 40,000
    Net income P41,600
    The T- Accounts for the transactions are presented below:

    Cash Prepaid Insurance Sales


    beg 1 1,000 217,600
    30,000 7

    Cost of Goods
    Sold
    end 136,000

    Accumulated
    Accounts Receivable
    Depreciation
    beg 10,000 6 Payroll
    10 217,600 3 34,000
    end

    Finished Goods
    Accrued Expenses
    Inventory
    190,000 34,000 3 Selling and Admin Exp
    121,000 136,000 10 10,000 7 7 40,000
    311,000 136,000
    end 175,000
    Accounts Payable
    Work in Process
    25,000 1 Factory Overhead Control
    Inventory
    beg 110,000 2 3,000
    2 15,000 3 4,000
    3 30,000 25,000 4 8,000
    8 26,000 121,000 5 1,000
    181,000 121,000 6 10,000 26,000
    end 60,000 26,000
    0
    Raw Materials
    Inventory
    beg 80,000 15,000 2
    1 25,000 Factory Overhead Applied
    105,000 15,000
    end 90,000

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