SHOE’syal FACTORY

Below is the summary of transactions for the month of September:

a. Purchase of raw materials on account, P 300, 000b. The Shoe’syal Factory manager transferred P250, 000 of direct materials of which 20%

indirect materials.c. September’s wages for hourly employees in the factory totaled P675, 000 of which P450,

000 was direct labor and P225, 000 for indirect labor.d. Depreciation for the month: Factory plant is P8, 000 and factory equipment is P10, 000.e. Property taxes accrued for the month: P5, 500. 60% is for factory expense.f. Recorded the expiration of P 2, 600 of prepaid insurance of the factory.g. Utilities paid for the month is P 20, 000, of which P 15, 000 is for factory building.h. Actual overhead is charged to production.i. During the month of P940, 900 of goods were completed and transferred to Finished

Goods Inventory.j. Total September sales were P2, 500, 00 and these were all on account.k. Goods that were sold had a total cost of P940, 900.

Date Accounts and Description F Debit Credita. Raw Materials 300, 000

Accounts Payable 300, 000

b. Work-in-Process 200, 000Manufacturing Overhead 50, 000

Raw Materials 250, 000

c. Work-in-Process 450, 000Manufacturing Overhead 225, 000

Salaries and Wages Payable 675, 000

d. Manufacturing Overhead 10, 000Accumulated Depreciation – Factory Plant 8, 000Accumulated Depreciation – Factory Equipment 2, 000

e. Manufacturing Overhead 3, 300Property Taxes Payable 3, 300

f. Manufacturing Overhead 2, 600Prepaid Insurance 2, 600

g. Manufacturing Overhead 15, 000Cash 15, 000

h. Work-in-Process 290, 900Manufacturing Overhead 290, 900

i. Finished Goods 940, 900Work-in-Process 940, 900

j. Accounts Receivable 2, 500, 000Sales 2, 500, 000

k. Cost of Goods Sold 940, 900Finished Goods 940, 900

Administrative Transactions for the Month (In summary)

A. Invested P1, 000, 000B. Purchased the following in preparation for the conduct of the business:

Factory Equipment P500, 000Office Equipment P100, 000Delivery Truck P200, 000Insurance (1 year) P75, 400

C. Administrative and sales payroll for the moth are P100, 000 and P20, 000 respectively.D. Depreciation of office equipment and delivery truck is P4, 500 and P6, 200 respectively.E. Property Taxes accrued for the mot=nth, P5, 500. 40% for administrative expenses.F. Insurance expired, P2, 600. 40% for administrative expenses.G. Utilities paid for the month is P 20, 000, of which P 5, 000 is for administrative expenses.H. Other administrative expenses paid is P5, 000.

Date Accounts and Description F Debit CreditA. Cash 1, 000, 000

Shoe’syal Factory, Capital 1, 000, 000

B. Factory Equipment 500, 000Office Equipment 100, 000Delivery Truck 200, 000Insurance 75, 400Cash 875, 400

C. Salaries Expense 120, 000Salaries and Wages Payable 120, 000

D. Depreciation Expense- Office Equipment 4, 500Depreciation Expense- Delivery Truck 6, 200

Accumulated Depreciation- Office Equipment 4, 500Accumulated Depreciation- Delivery Truck 6, 200

E. Property Tax Expense 2, 200Property Tax Payable 2, 200

F. Insurance Expense 1, 040Prepaid Insurance 1, 040

G. Utilities Expense 5, 000Cash 5, 000

H. Other Administrative Expense 5, 000Cash 5, 000

TRIAL BALANCE AND FINANCIAL REPORTS

SHOE’syal FACTORYTrial Balance

31-Sept.-15

Accounts Debit CreditCash 99, 600

Accounts Receivable 2, 500, 000

Prepaid Insurance 71, 760

Raw Materials 50, 000Work-in-Process 0

Finished Goods 0

Accumulated Depreciation – Factory Plant 8, 000

Factory Equipment 500, 000Accumulated Depreciation – Factory Equipment 2, 000

Office Equipment 100, 000

Accumulated Depreciation – Office Equipment 4, 500

Delivery Truck 200, 000

Accumulated Depreciation – Delivery Truck 6, 200

Accounts Payable 300, 000

Salaries & Wages Payable 795, 000Property Tax Payable 5, 500

Shoe’syal Factory, Capital 1, 000, 000

Sales 2, 500, 000

Cost of Sales 940, 900Manufacturing Overhead 0

Salaries Expense 120, 000

Property Tax Expense 2, 200Insurance Expense 1, 040

Utilities Expense 5, 000

Depreciation Expense – Office Equipment 4, 500

Depreciation Expense –Delivery Truck 6, 200

Other Administrative Expense 5, 000Total 4,602,200 4,602,200