On January 1, 20x4, XX Company and YY Company signed an agreement to form a joint operation to manufacture a product called plasma. This product is used in the manufacturing of television. The following are transactions transpired in relation to joint operations for 20x4: a. To commence the operation, both operators contributed P252,000 in cash. b. Contributions of cash by the operations. c. Use of cash and loan to buy machinery & equipment costing P134,400 (cash paid, P84,000 and the balance on the loan account) and raw materials purchase on account costing P109,200. d. Labor incurrence amounting to P120,960 with P117,600 paid in cash. e. Loans from the bank, P100,800. f. Repayment of loan – machinery and equipment P16,800, raw materials amounting to P70,560, and other factory expenses, P218,400. g. Depreciation of machinery and equipment, P13,440. h. Transfer of materials, labor, and overhead to Work-in-Process; payroll, P120,960; Materials P80,640; Factory overhead – heat, light and power, P218,400 and depreciation of P13,440. i. Transfer of Work-in-Process to Finished Goods Inventory, P302,400. j. Transfer of Finished Goods Inventory, P268,800 to Joint Operations throughout the year. The December 31, 20x4 XX’s investment amounted to: a. P117,600 b. 235,200 c. P252,000 Provide complete solution
On January 1, 20x4, XX Company and YY Company signed an agreement to form a joint operation to manufacture a product called plasma. This product is used in the manufacturing of television. The following are transactions transpired in relation to joint operations for 20x4:
a. To commence the operation, both operators contributed P252,000 in cash.
b. Contributions of cash by the operations.
c. Use of cash and loan to buy machinery & equipment costing P134,400 (cash paid, P84,000 and the balance on the loan account) and raw materials purchase on account costing P109,200.
d. Labor incurrence amounting to P120,960 with P117,600 paid in cash.
e. Loans from the bank, P100,800.
f. Repayment of loan – machinery and equipment P16,800, raw materials amounting to P70,560, and other factory expenses, P218,400.
g. Depreciation of machinery and equipment, P13,440.
h. Transfer of materials, labor, and
i. Transfer of Work-in-Process to Finished Goods Inventory, P302,400.
j. Transfer of Finished Goods Inventory, P268,800 to Joint Operations throughout the year.
The December 31, 20x4 XX’s investment amounted to:
a. P117,600
b. 235,200
c. P252,000
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