Problem6-1
The following information were obtained from the books and records of Bridgepoint Corporation
Beginning inventories
Raw materials P 8,000
Work in Process 3,200
Finished goods 6,000
Ending inventories
Raw materials ?
Work in Process 7,200
Finished goods 2,100
Sales P 107,500
Purchases of materials 15,800
Cost of direct materials used excluding rework 14,000
Cost of indirect materials used 3,800
Direct labor
Direct labor cost incurred excluding rework (350 hours) 24,600
Indirect labor cost incurred 4,600
Sales salaries and other expenses 12,000
Administrative salaries and expense 4,000
Net factory payroll after withholding 24,000
Factory overhead rate per direct labor hour 78
Other factory overhead incurred excluding spoilage and rework 20,150
Spoilage
Normal spoilage common to all jobs P 4,000
Disposal value of normal spoilage 400
Abnormal spoilage 1,000
Disposal value of abnormal spoilage 20
Cost of rework common to all jobs (not included in the cost of
direct materials and direct labor above
Direct material P1,000
Direct Labor (10 hours) 800
Sales of normal scrap common to all jobs
(cost reduction method is used and scrap is not inventoried) 1,200
Based on the above data, prepare the following journal entries
1. to record the purchase of materials
2. to record the materials usage excluding rework
3. to record the factory payroll
4. To record the payment of payroll to the employees
5. to record the distribution of payroll costs excluding rework
6. to record other factory overhead costs excluding spoilage and rework
7. to record the applied factory overhead excluding rework
8. to record the spoilage
9. to record the rework
10. to record the sale of scrap
11. to record the cost of goods manufactured
12. to record the cost of goods sold
13. to record the sale.
