1.

Purchase of raw materials on account, ₱ 115,000

2. Materials used:
Directly to production ₱ 42,000
Indirect factory overhead 5,000

3. Accrual of payroll for the month

Gross Payroll ₱ 360,000
Less: Employee deduction
Withholding taxes 90,000
SSS contributions 20,000
PhilHealth contributions 7,000
HDMF contributions 14,000

4. Distribution of payroll to various division

Direct labor 60%
Indirect labor 12%
Selling 20%
Administrative 8%

5. Payment of payroll for the month

6. Employers payroll contribution

SSS contributions ₱ 25,000
PhilHealth contributions 7,000
EC contribution 4,000
HDMF contributions 14,000

To be allocated to:
Factory 72%
Selling 20%
Administrative 8%

7. Month-end adjustments
Depreciation ₱ 7,000
Amortization 3,000
 To be allocated to:
Factory 70%
Selling 20%
Administrative 10%

8. Other expenses incurred (only 1/3 is paid)

Factory ₱ 14,000
Selling 12,000
Administrative 4,000

9. Collection from customers 180,000

10. Payment of the following liabilities

Accounts payable ₱ 90,000
Income tax 30,000

11. Transfer of actual factory overhead

to work in process inventory. ₱ 105,200

12. Transfer of the units completed

to finished goods inventory. ₱ 340,000

13. Sales for the month

For cash ₱ 150,000
On account 280,000
Cost of sales is 60% of sales

14. Estimated provision for income tax ₱ 11,500