GENED201 - Reading in Philippine History

4/1/24

The First Voyage Around the World by Magellan

(Antonio Pigafetta)
- taken from the chronicles of
- published after Pigafetta returned to Italy contemporary voyagers and
- he wrote his firsthand observation and general impression of navigators (16th century)
the Far East including their experiences in the Visayas.
Antonio Pigafetta
● Their fleet reached what he called the Ladrones Islands or the - accompanied Ferdinand Magellan
"Islands of the Thieves." in his fateful circumnavigation of
the world.
The Ladrones Islands ~ noble man; part of expedition
- presently known as the Marianas Islands.
- located south-southeast of Japan, west-southwest of Hawaii, north Pigafetta's travelogue
of New Guinea, and east of Philippines. - diary; one of the most important
primary sources in the study of the
● Ten days after they reached Ladrones Islands, they reached pre colonial Philippines
what Pigafetta called the isle of Zamal, now Samar but
Magellan decided to land in another uninhabited island for They left the Spain 1519; arrived in
greater security where they could rest for a few days. the Philippines (March/April 1521)
● After two days, March 18, nine men came to them and showed
joy and eagerness in seeing them. Magellan realized that the Their navigation: mini compass and
men were reasonable and welcomed them with food, drinks, blow of the wind
and gifts.

Cocho
- palm tree which bore fruits
- as large as the head, or thereabouts: its first husk is green, and two fingers in thickness, in it they find
certain threads, with which they make the cords for fastening their boats…

Humunu Island (Homonhon)

- Pigafetta referred to as the "Watering Place of Good Signs."
- place where he wrote that they found the first signs of gold
● They named the island with the nearby islands as the archipelago of St. Lazarus.

● On March 25th, they saw two ballanghai (balangay)

⬇
a long boat full of people in Mazzava/ Mazaua.
● The leader, king of the ballanghai (balangay), sent his men to the ship of Magellan.
○ The Europeans entertained these men and gave them gifts.
○ The king of the balangay offered to give Magellan a bar of gold and a chest of ginger,
Magellan declined.
○ Magellan sent the interpreter to the king and asked for money for the needs of his ships
and expressed that he came into the islands as a friend and not as an enemy. The king
 responded by giving Magellan the needed provisions of food in chinaware. Magellan
exchanged gifts of robes in Turkish fashion, red cap, and gave the people knives and
mirrors.
○ The two then expressed their desire to become brothers.
○ Magellan also shared with the king his charts and maps and shared how they found the
islands.
● After a few days, Magellan was introduced to the king's brother (a king of another island)
○ They saw mines of gold. The gold was abundant that parts of the ship and of the house
of the second king were made of gold.
○ This king was named Raia Calambu, king of Zuluan and Calagan (Butuan and Caragua),
and the first king was Raia Siagu.

● On March 31st (Easter Sunday)

● The first Mass in the Philippines
○ Magellan ordered the chaplain to preside a Mass by the shore. The king heard of this plan and
sent two dead pigs and attended the Mass with the other king.
○ Both kings participated in the mass.
● Magellan's Cross
○ After the Mass, Magellan ordered that the cross be brought with nails and crown in place.
Magellan explained that the cross would be beneficial for their people because once other
Spaniards saw this cross, then they would know that they had been in this land and would not
cause them troubles, and any person who might be held captives by them would be released.

● After seven days, Magellan and his men decided to move and look for islands where they could acquire
more supplies and provisions.
● They learned of the islands of Ceylon (Leyte), Bohol, and Zzubu (Cebu) and intended to go there. Raia
Calambu offered to pilot them in going to Cebu, the largest and the richest of the islands.

● By April 7th of the same year, Magellan and his men reached the port of Cebu.
○ The king of Cebu, through Magellan's interpreter, demanded that they pay tribute as it was
customary, but Magellan refused.
○ The king of Cebu consulted his council.
● By the next day, Magellan's men and the king of Cebu, together with other principal men of Cebu, met
in an open space. There, the king offered a bit of his blood and demanded that Magellan do the same.
● The following day, Magellan spoke before the people of Cebu about peace and God. Pigafetta
reported that the people took pleasure in Magellan's speech.
○ igafetta wrote that their men were overjoyed seeing that the people wished to become
Christians through their free will and not because they were forced or intimidated.

● On the 14th of April, the people gathered with the king and other principal men of the islands. Magellan
spoke to the king and encouraged him to be a good Christian by burning all of the idols and worship
the cross instead. The king of Cebu was then baptized as a Christian.

● After eight days, Pigafetta counted that all of the island's inhabitant were already baptized.
○ He admitted that they burned a village down for obeying neither the king nor Magellan.
○ The Mass was conducted by the shore every day. When the queen came to the Mass one day,
Magellan gave her an image of the Infant Jesus made by Pigafetta himself.
 ○ The king of Cebu swore that he would always be faithful to Magellan.
○ Magellan reiterated that all of the newly baptized Christians need to burn their idols and insisted
that they should instead put their faith in Jesus Christ. They went to the sick man and baptized
him. After the baptismal, Pigafetta recorded that the man was able to speak again. He called
this a miracle.

● On the 26th of April, Zula, a principal man from the island of Matan (Mactan) went to see Magellan
and asked him for a boat full of men so that he would be able to fight the chief named Silapulapu
(Lapulapu), who refused to obey the king and was also preventing him from doing so.
○ Magellan offered three boats instead and expressed his desire to go to Mactan himself to fight
the said chief.
○ They arrived in Mactan in daylight.
(numbered 49 in total; the islanders of Mactan - approx. 1,500)
○ The battle began.
○ Magellan died in that battle.
○ One native with a great sword delivered a blow in Magellan's left leg, brought him face down
and the natives ceaselessly attacked Magellan. Pigafetta recounted the last moments of
Magellan:
"Whilst the Indians were thus overpowering him, several times he turned round towards
us to see if we were all in safety, as though his obstinate fight had no other object than
to give an opportunity for the retreat of his men."
○ The king offered the people of Mactan gifts of any value and amount in exchange of Magellan's
body but the chief refused. They wanted to keep Magellan's body as a memento of their victory.
○ Magellan's men elected Duarte Barbosa as the new captain.
○ Pigafetta also told how Magellan's slave and interpreter named Henry betrayed them and told
the king of Cebu that they intended to leave as quickly as possible.
○ The two conspired and betrayed what was left of Magellan's men. The king invited these men to
a gathering where he said he would present the jewels that he would send for the King of Spain.
○ It was only a short time when they heard cries and lamentations. The natives had slain all of the
men except the interpreter and Juan Serrano who was already wounded. Serrano was
presented and shouted at the men in the ship asking them to pay ransom so he would be
spared. However, they refused and would not allow anyone to go to the shore. The fleet
departed and abandoned Serrano. They left Cebu and continued their journey around the world.

KKK at Kartilya ng Katipunan

Kataastaasan, Kagalanggalangang Katipunan ng mga Anak ng Bayan

La Liga Filipina - organization prior to KKK

● Isang lihim na samahan na itinatag sa Pilipinas ni Andres Bonifacio na may layuning palayain ang
bansa sa ilalim nang mga mananakop na Espanyol.
● The most important organization formed in the Philippine history
● Naitatag ang Katipunan noong Hulyo 7, 1892
● While anti-colonial movements, efforts and organizations had already been established centuries prior
to the foundation of Katipunan, it was only organization envisioned :
A united Filipino nation that would revolt against the Spaniards for total independence of the country
from Spain.
DECALOGUE
➔ Written by Andres Bonifacio to serve as a guide for members of Katipunan (Katipunero).
➔ Mainly focused on one’s duty to God, country, neighbor, family, the Katipunan and himself.
➔ It tells us all about honor, charity and self-sacrifice for the beloved land and also spoke and warned
about traitor and disobedient.

In conduct of their struggle, Katipunan created a complex structure and a defined value system that would
guide the organization as a collective aspiring single goal. One of the most important Katipunan documents
was the “Kartilya ng Katipunan”.

Bonifacio recognized the value and intellect of Jacinto, upon seeing Jacinto’s Kartilya was much better than
the Decalogue he wrote, he willingly favored that the Kartilya be distributed to their fellow Katipuneros.

“Manga Aral nang Katipunan ng mga Anak ng Bayan” (original name/title of Kartilya)
“The Lesson of the Organization of the Son of the Country”

KARTILYA NG KATIPUNAN
➢ Written on 1892 by Emilio Jacinto.
➢ Can be treated as the Katipunan code of conduct; guiding principle of KKK
➢ It contains 14 rules that instruct the way Katipunero should behave and which specific values should
he uphold
➢ Kartilya is classified into 2 groups:
○ First group contains the rules that will make the member an upright individual
○ Second group are rules that guide the way he treats his fellow man.
➢

1 The life that is not consecrated to a lofty and Ang buhay na hindi ginugugol sa isang malaki at
reasonable purpose is a tree without a shade, if banal na kadahilanan ay kahoy na walang lilim,
not a poisonous weed. kundi damong makamandag.
~ value of life as it exist

2 To do good for personal gain and not for own sake Ang gawaing magaling na nagbubuhat sa
is not virtue. pagpipita sa sarili at hindi talagang nasa
gumawa ng kagalingan ay di kabaitan.

3 It is rational to be charitable and love one’s fellow Ang tunay na kabanalan ay ang
creature, and to adjust one’s conduct, acts and pagkakawang-gawa, ang pag-ibig sa kapwa at
words to what is in itself reasonable. sa isukat ang bawat kilos, gawa’t pangungusap
~ act of kindness sa talagang katuwiran.

4 Whether our skin be black or white, we are all born Maitim man at maputi ang kulay ng balat, lahat
equal: superiority in knowledge, wealth and ng tao’y magkakapantay;mangyayaring ang isa’y
beauty are to be understood, but not superiority higitan sa dunong, sa yaman, sa ganda…,ngunit di
by nature. mahihigitan sa pagkatao.
~ equality

5 The honorable man prefers honor to personal Ang may mataas na kalooban inuuna ang puri sa
gain; the scoundrel gain to honor. pagpipita sa sarili; ang may hamak na kalooban,
 inuuna ang pagpipita sa sarili sa puri.

6 To the honorable man, his word are sacred. Sa taong may hiya, salita’y panunumpa.
~ word of honor

7 Do not waste thy time: wealth can be recovered Huwag mong sayangin ang panahon: ang
but not time lost. yamang nawawala’y mangyayaring magbabalik;
ngunit panahong nagdaan na’y di na muli pang
magdadaan.

8 Defend the oppressed and fight the oppressor Ipagtanggol mo ang inaapi; kabakain ang
before the law or in the field umaapi.
~ kabakain - not tolerate

9 The prudent man is sparing in words and faithful Ang taong matalino’y may pag-iingat sa bawat
in keeping secrets. sasabihin, at matutong ipaglihim ang dapat
~ secrecy ipaglihim.

10 On the thorny path of life, man is the guide of Sa daang matinik ng kabuhayan, lalaki ay siyang
woman and the children,and if the guide leads to patugot ng asawa’t mga anak; kung ang uaakay
the precipice, those whom he guides will also go ay tungo sa sama; ang patutunguhan ng inaakay
there. ay kasamaan din.
~ Role of the father in the family - Patriarchal
system

11 Thou must not look upon woman as a mere Ang isang babae ay huwag mong tingnang isang
plaything, but as a faithful companion who will bagay na libangan lamang, kundi isang katuwang
share with thee penalties of life; her ( physical) at Karamay sa kahirapan nitong kabuhayan;
weakness will increase thy interest in her and she gamitan mo ng buong pagpipitagan ang
will remind thee of the mother who bore thee and kanyang kahinaan at alalahanin ang inang
reared thee. pinagbuhatan at nagluwal sa iyong kasanggulan.
~ value of women

12 What thou dost not desire done unto thy wife, Ang hindi mo ibig na gawin sa asawa mo, anak at
children, brothers and sisters , that do not unto the kapatid, ay huwag mong gagawin sa asawa,
wife, children, brothers and sister of thy neighbor. anak at kapatid ng iba.
~ Golden Rule: Don’t do to others what you don’t
want to do unto you.

13 Man is not worth more because he is a King, Ang kamahalan ng tao’y wala sa pagkahari, wala
because his nose is acquiline, and his color white, sa tangos ng ilong at puti ng mukha, wala sa
not because he is a priest, a servant of God, nor pagkaharing kahalili ng Diyos , wala sa mataas
because of a high prerogative that he enjoys upon na kalagayan sa balat ng lupa; wagas at tunay na
the earth, but he is woth the most who is a man of mahal na tao, kahit laking gubat at walang
proven and real value, who does good, keep his nababatid kundi ang sariling wika, yaon may
words, is worthy and honest; he who does not Magandang asal, may isang pangungusap, may
oppress nor consent to being oppressed, he who dangal at puri, yaon di nagpapaapi’t di nakikiapi,
loves and cherishes his fatherland ,though he be yaong marunong magdamdam at marunong
born in the wilderness and know no tongue but his lumingap sa bayang tinubuan.
own.

14 When these rules of conduct shall be known to all, Paglaganap ng mga aral na ito at magningning
the longed-for sun of Liberty shall rise brilliant na sumikat ang araw ng mahal na Kalayaan
over this most unhappy portion of the globe and ditosa kaabaabang sangkapuluan, at sabugan ng
 its rays shall diffuse overlasting joy among the matamis niyang Liwanag ang nagkakaisang
confederated brethren of the same rays, the lives magkakalahi’t magkakapatid na ligayang walang
of those who have gone before, the fatiques and katapusan, ang mga ginigol na buhay, pagod, at
the well-paid suffering will remain . If he who mga tiniis na kahirapa’y labus nang natumbasan.
desires to enter has informed himself of all this
and believes he will be able to perform what will
be his duties, he may fill out the application for
admission.

PROCLAMATION OF THE PHILIPPINE INDEPENDENCE

● Independence Day (Filipino: Araw ng Kasarinlan; also known as Araw ng Kalayaan, "Day of Freedom")
is a national holiday in the Philippines observed annually on June 12, commemorating the declaration
of Philippine independence from Spain in 1898.
● Every year, the country commemorates the anniversary of the Philippine Independence proclaimed on
12 June 1898, in the province of Cavite. Indeed, such event is a significant turning point in the history
of the country because it signaled the end of the 333 years of Spanish colonization.

This document is very significant study in the Philippine History, Why is it significant?
➢ Because this document reveals the reasons behind the Philippine
Revolution against the spain, how the spaniards fitted the early Filipinos
➢ This documents reveals the war of independence.
➢ It reveals something about what kind of government did Aquinaldo established during the time that
we clean our independence during the hand of Spaniards, and last.
➢ This documents reveals the explanation of the colors of our Philippine Flag

What are the reasons:

• ABUSES OF THE CIVIL GUARDS (especially the treatment on prisoners)
• ABUSES OF THE FRIARS (using the church)

The document also mentions Rizal's execution, calling it unjust. The execution, as written in the document, was
done to "please the greedy body of friars in their insatiable desire to seek revenge upon and exterminate all
those who are opposed to their Machiavellian purposes, which tramples upon the penal code prescribed for
these islands. " The document also narrates the Cavite Mutiny of January 1872 that caused the infamous
execution of the martyred native priests Jose Burgos, Mariano Gomez, and Jacinto Zamora, "whose innocent
blood was shed through the intrigues of those so-called religious orders" that incited the three secular priests
in the said mutiny.

The proclamation of independence also invokes that the established republic would be led under the
dictatorship of Emilio Aguinaldo.

What kind of Government that Emilio Aguinaldo Established?

- Emilio Aguinaldo is the first president of the Philippines under dictatorship.
- He declared the dictatorship style of government when they proclaimed the Philippine Independence.

"In the town of Cavite Viejo (now Cavite City), in this province of Cavite, on the twelfth day of June eighteen
hundred and ninety-eight, before me, Don Ambrosio Rianzares Bautista, Auditor of War and Special
Commissioner appointed to proclaim and solemnize this act by the Dictatorial Government of these Philippine
Islands, for the purposes and by virtue of the circular addressed by the Eminent Dictator of the same Don
Emilio Aguinaldo y Famy.”

Another detail in the proclamation that is worth looking at is its explanation on the Philippine flag that was
first waved on the same day.

• White Triangle
• Three Stars (Luzon, Visayas, and Panay)
• The Sun
• Eight (8) Rays (Manila, Cavite, Bulacan, Pampanga, Tarlac, Batangas, Laguna and Nueva Ecija)
• The colors BLUE, RED & WHITE (commemorate the American flag; with the belief that Americans helped
filipinos to gain freedom)
Fact: Philippines was sold to Americans worth 20 million dollars

Political Caricature of the American Era (1900-1941)

A Glance at Selected Philippine Political Caricature in Alfred McCoy's Philippine Cartoons: Political
Caricature of the American Era (1900-1941)

Political cartoons and caricature are a rather recent art form, which veered away from the classical art by
exaggerating human features and poking fun at its subjects. Such art genre and technique became a part of
the print media as a form of social and political commentary, which usually targets persons of power and
authority. Cartoons became an effective tool of publicizing opinions through heavy use of symbolism, which is
different from a verbose written editorial and opinion pieces. The unique way that a caricature represents
opinion and captures the audience's imagination is reason enough for historians to examine these political
cartoons. Commentaries in mass media inevitably shape public opinion and such kind of opinion is worthy of
historical examination.

In his book Philippine Cartoons: Political Caricature of the American Era (1900-1941), Alfred McCoy, together
with Alfredo Roces, compiled political cartoons published in newspaper dailies and periodicals in the
aforementioned time period. For this part, we are going to look at selected cartoons and explain the context
of each one.

The first example shown above was published in The Independent on May 20, 1916. The cartoon shows a
politician from Tondo, named Dr. Santos, passing his crown to his brother-in-law, Dr. Barcelona. A Filipino guy
(as depicted wearing salakot and barong tagalog) was trying to stop Santos, telling the latter to stop giving
Barcelona the crown because it is not his to begin with.
The Independent - newspaper

The second cartoon was also published by The Independent on 16 June 1917. This was drawn by
Fernando Amorsolo and was aimed as a commentary to the workings of Manila Police at that period. Here,
we see a Filipino child who stole a skinny chicken because he had nothing to eat. The police officer was
relentlessly pursuing the said child. a man wearing a salakot, labeled Juan de la Cruz was grabbing the officer,
telling him to leave the small-time pickpockets and thieves and to turn at the great thieves instead. He was
pointing to huge warehouses containing bulks of rice, milk, and grocery products.

The third cartoon was a commentary on the unprecedented cases of colorum automobiles in the city streets.
The Philippine Free Press published this commentary when fatal accidents involving colorum vehicles and
taxis occurred too often already.

This fourth cartoon depicts a cinema. A blown-up police officer was at the screen saying that couples are not
allowed to neck and make love in the theater. Two youngsters looked horrified while an older couple seemed
amused.
The next cartoon was published by The Independent on 27 November 1915. Here, we see the caricature of
Uncle Sam riding a chariot pulled by Filipinos wearing school uniforms. The Filipino boys were carrying
American objects like baseball bats, whiskey, and boxing gloves. McCoy, in his caption to the said cartoon,
says that this cartoon was based on an event in 1907 when William Howard Taft was brought to the Manila
pier riding a chariot pulled by students of Liceo de Manila. Such was condemned by the nationalists at that
time.

The last cartoon was published by Lipang Kalabaw on 24 August 1907. In the picture, we can see Uncle Sam
rationing porridge to the politicians and members of the Progresista Party (sometimes known as the
Federalista Party) while members of the Nationalista Party look on and wait for their turn. This cartoon
depicts the patronage of the United States being coveted by politicians from either of the party.
—--------------------
● The Filipino people have had the misfortune of being “liberated” four times during their entire history.
● First came the Spaniards who “liberated” them from the “enslavement of the devil,” next came the
Americans who “liberated” them from Spanish oppression, then the Japanese who “liberated” them
from American imperialism, then the Americans again who “liberated” them from the Japanese
fascists. After every “liberation” they found their country occupied by foreign “benefactors.”
● The people resisted each ruler. Although each struggle sought to change certain objective conditions, it
had its most profound effect on the people themselves.

● It is pointless to speculate on the particular characteristics of the Asian societies that might have
emerged in the archipelago if the laws of development operating within the social units then existing
had not been drastically modified by colonialism. It is however essential that as we tried to analyze the
nature of Spanish society at-the time of conquest, we should likewise examine the nature of the
indigenous societies and their level of economic development at the moment of confrontation with
Spanish colonialism.

● Spanish conquest eventually wrought fundamental changes in the lives of the native population. The
Spaniards introduced new customs and a new religion. They brought over new practices and
institutions from their earlier colonial experiences

● The most fundamental aspect of Philippine history is the history of the struggles of its people for
freedom and a better life. It was in the course of the anti-colonial struggles against Spain that the
native inhabitants of the archipelago gradually became conscious of their identity as one nation.

● the Spanish Catholic friars held various executive and administrative powers outside of Manila, the
most notable of which included their monopolistic power over education in the region which severely
restrained intellectual and cultural life in the Philippines

● The friars were the largest owners of land in the Philippines outside of Manila, garnering them a
massive profit through land taxes; and were granted leeway by the Spanish state as there was an
insufficient amount of Spaniards living outside of the capital to properly assert Spanish dominance
without them.
 ● the works of friars and any other publication that focused on sorrow and the racial inferiority of the
Filipinos passing the censure.[6] This heavily reflected the friars’ general attitude towards educating
the Filipinos, who viewed it as a means to treachery and rebellion.
● One Spanish friar notes that “it is not good for the Indio (Native Filipino) to separate from his carabao
in order to waste his time studying in Manila because, when he returns to his place of origin, he
becomes treacherous, meaning an enemy of the state, of the church, and those in power.

—------------------------
Analysis of the Political Caricatures during the American Period

The transition from the Spanish Colonial period to the American Occupation period demonstrated different
strands of changes and shifts in culture, society, and politics. The Americans drastically introduced
democracy to the nascent nation and the consequences were far from ideal. Aside from this, it was also
during the American period that Filipinos were introduced to different manifestations of modernity like
healthcare, modern transportation, and media. This ushered in a more open and freer press. The
post-independence and the post-Filipino-American period in the Philippines were experienced differently by
Filipinos coming from different classes. The upper principalia class experienced economic prosperity with the
opening up of the Philippine economy to the United States but the majority of the poor Filipino remained
poor, desperate, and victims of state repression.

The selected cartoons illustrate not only the opinion of certain media outfits about the Philippine society
during the American period but also paint a broad image of society and politics under the United States. In
the arena of
AE1311 - Financial Accounting and Reporting
4/2/24
CASH AND CASH EQUIVALENTS

Remember: Cash is different from Cash Equivalents

To be followed:
1. Basic concept regarding the topic
2. Scope of the related standard
3. Recognition principle
4. Measurement:
● Initial
● Subsequent
5. Composition (if applicable)

CASH
Definition and recognition of cash

**Cash definition of Accounting and the law are different

Accounting Law

Cash includes money and other negotiable ~ follows specific requirement/rule for cash to become
instrument that is payable in money and legal tender
acceptable by the bank for deposit and immediate e.g. checks/check payment - not cash in the law POV
credit
~ Accepted by the bank as equivalent of cash
e.g. checks are accepted as mode of payment

Recognition
There is no specific recognition principle for cash
~ No specific standard governing cash
Standard applicable:
Under PAS I paragraph 66, for an item to be part
of cash, it should be unrestricted in use
PAS I - standard in preparation and presentation of
Financial Statement

CASH
Measurement
- Generally measured at FACE VALUE Part I: CASH
● Definition and recognition of cash
- If the cash item is in foreign currency, it is still measured ● Measurement
at face value but translated to Philippine Peso using ● Cash Composition
● Fraudulent Activities Involving Cash
closing rate at year-end
● Mountain for Cash Shortage and Overage
~ Still have to be presented based on presentation
currency which is Php Part II: CASH EQUIVALENTS
● Definition of Cash Equivalents
- If the cash item is in closed bank or banks undergoing ● Recognition
bankruptcy, it is measured at its estimated realizable ● Composition
value for recoverable value
 ~ Recoverable value (Net Realizable value) - not all amount of depositor’s account will be returned but
there is a certain amount - Insured amount
Insured deposit refers to the amount due to any depositor for deposits in an insured bank net of
any obligation of the depositor to the insured bank as of the date of closure, but not to exceed the
Maximum Deposit Insurance Coverage. Effective June 1, 2009, the Maximum Deposit Insurance
Coverage is P500,000.00 per depositor per bank. (PDIC - PHILIPPINE DEPOSIT INSURANCE
CORPORATION)

e.g. If 1 million is recorded on the book, we will record it as 500,000 and the difference will be considered
as Impairment Loss
- the amount by which the carrying amount of an asset or cash-generating unit exceeds its
recoverable amount
- pagbaba ng value ng asset

Item Measurement
Cash in local currency At face value
Cash in foreign currency At face value but translated to Philippine Peso
Using closing rate at year-end
Cash in closed bank or banks in bankruptcy Estimated realizable value

CASH
Composition
Divided into 3 groups:
● Cash on hand
● Cash in Bank
● Cash Fund

Cash on hand - amount of cash a business or individual has immediately available;

considered a liquid asset, meaning it can be easily converted into cash.
- Still within the business premises
- drawn by the entity - good as cash
e.g.
A. Coins and currencies
B. Checks
a. Normal customer checks
b. Abnormal checks (cash): Cashier’s checks, managers checks, traveler’s
checks
c. Undelivered checks
d. Post-dated checks
e. Stale checks
C. Other instruments
a. Money order – Similar to bank drafts but are drawn from post office or
other financial institutions.
for payment of a specified sum of money usually at any branch of the
issuing organization
b. Bank drafts – Guarantees by bank to advance funds on the demand by
the party to whom the draft was directed.
a payment that is guaranteed by the issuing bank. Bank drafts are
often used for larger payments such as a down payment on a home.
Banks verify and withdraw funds from the payer's account and
 deposit them into an internal account, or a reserve account.

Post-dated checks a check drawn, recorded and already given to the payee but it
bears a date subsequent to the end of reporting period.
- done by writing a check for a future date instead of the
actual date the check was written
dated - after year-end

Drawer POV: A/P (Dr); CIB (Cr)

Payee POV: CIB (Dr); A/R (Cr)

Undelivered checks still in entity’s possession

- an unreleased check is one that is merely drawn and
recorded but not yet given to the payee before the end of
the reporting period.
dated - on or before year-end

Stale checks delivered check;

a check not encashed by the payee within a relatively long period
of time;
dated - on or before year-end
- considered staled if it has been outstanding for over six
months (180 days) from date of issue or as prescribed by
the depository bank
- was written too long ago and that a bank may refuse to
pay when someone tries to get the stated amount,
therefore checks should be encashed immediately
 If drawer still has a liability to If payee still have the right to
settle or issue another check - receive another check - A/R
A/P

Otherwise (if not obligated to Otherwise, recorded as Loss

settle the liability) - Gain

Cash in bank - Demand deposit or current account or checking account (non-interest bearing)
~ accounts are for paying expenses
- Savings deposit (interest bearing)
- Compensating balance (unrestricted or informal)
~ minimum balance needed to maintain in relation to a borrowing engagement

Restricted compensating balance is not part of cash. Classification depends on the

length of its restriction
e.g.
● restriction - 12 mos. or less (Compensating balance is not part of cash but part of
current asset; short-term investment)
● restriction is more than 12 mos - part of non-current asset; long-term investment

Time deposit is not part of cash it is part of cash equivalents (interest bearing)
an interest-bearing bank account that has a date of maturity, such as a certificate
of deposit (CD). The money in a time deposit must be held for the fixed term to
receive the interest in full. Typically, the longer the term, the higher the interest rate
that the depositor receives.
- Has withdrawal restriction; Cannot withdraw on a mount of cash for specific
period
 Escrow deposit is not part of cash since it has restriction as to use (interest bearing)
a sum of money put down by the buyer as a show of good faith and commitment
to the real estate transaction.
- purpose: pay some expenses or bills
e.g. house loan in bank

RULES ON BANK OVERDRAFT

- over withdrawal on bank account; negative balance
- when the cash in bank has a credit balance, it is said to be an overdraft.
General rule: Current Liability
***Not allowed in the Philippines
Exceptions: (Part of Cash - Offset)
● The entity maintains two or more bank accounts in the same bank (offset with other bank
accounts with positive balance)
● Immaterial (Offset with other bank accounts with positive balance even though different banks)
● Integral to cash management (Offset will other bank accounts with positive balance even
though different banks)
***Exceptions 2 and 3 should be clearly stated in the problem

Cash Fund The classification of fund depends on the classification of the item being funded for
~ amount of cash set aside for specific purpose or future plans:
● For use in the operations of the business - part of cash (petty cash fund,
revolving fund, change fund, travel Fund )
petty cash fund - small amount to pay miscellaneous expenses
revolving fund - fund for immediate expenses
change fund - used as change
travel fund - travel allowances for business trips

If the item being fund for is CURRENT> Current fund = Cash

● For acquisition of asset:

○ for current assets - the fund is part of cash
○ for non-current asset - the fund is part of long-term investment
● For settlement of liability:
○ Current liability - the fund is part of cash
e.g.
 dividends funds - for dividends payable
payroll fund - salaries/wages payable
interest fund - for interest payable
VAT fund
○ Non-current liability - the fund is part of long-term investment
e.g.
mortgage fund - mortgage payable
pension funds
insurance fund
contingency fund/emergency fund

CASH
ACCOUNTING FOR PETTY CASH FUND
Petty cash fund is money set aside to defray relatively small amount of cash disbursement
~ small amount to pay miscellaneous expenses
~ amount set aside to pay expenses that is more convenient to pay in cash
Petty cash fund may be accounted for either using IMPREST FUND SYSTEM or FLUCTUATING FUND
SYSTEM

Journal entries:
IMPREST FUND SYSTEM FLUCTUATING FUND SYSTEM
~ intact fund to maintain accountability; handled ~ not constant; moving
by petty cash custodial ~ every transaction (payment of expense and
~ total amount is constant replenishment) are directly deducted/added to
~ only valid expenses (with receipts or valid petty cash fund and recorded immediately to Petty
support) are replenished Cash Fund Account
~ expenses are recognised upon fund
replenishment

Upon establishment:

Payment of expense

**None;
MEMO ENTRY ONLY
 Replenishment

Adjusting Entry for Unreplenished Fund Expenses

By December 31 **NO ENTRY

~ as every transaction are recorded immediately

~ Credit Petty Cash Fund as there is an amount

used
~ This is to update the Petty Cash Balance by the
year-end

Reverse:
~ By January 1, Petty Cash Fund will be Debited
(as replenished)
~ To go back to original balance

Increase in Fund Balance

Decrease in Fund Balance

Cash Short/Over

Short Short
Cash Shortage xx Cash Shortage xx
CIB xx PCF xx

Over Over
CIB xx PCF xx
Cash Over xx Cash Over xx

Bank Reconciliation
A bank reconciliation is a statement which brings into agreement the cash balance per book and cash
balance per bank. It is usually prepared monthly because the bank provides the depositor with the bank
statement at the end of every month.

The BANK STATEMENT is the main source document in the preparation of bank reconciliation.

There are many forms in preparing a bank reconciliation, but it is highly recommended to use the
adjusted balance method since the other forms can also be addressed by using this format.
 Solution guide for bank reconciliation (Adjusted Balance Method)

Unadjusted balance per book/ledger xx Unadjusted balance per bank xx

Add: Credit Memos xx Add: Deposit in Transit xx
Less: Debit Memos (xx) Less: Outstanding checks (xx)
+/- Errors xx +/- Errors xx
(xx) (xx)
Adjusted balance xx Adjusted balance xx

Credit Memos items not representing deposits credited by the bank to the account of the
depositor but not yet recorded by the depositor as cash receipts.

Examples are note or receivables collected by bank in favor of the depositor and
proceeds of bank loan credited to the account of the depositor.

Debit Memos items not representing checks paid by bank which are charged or debited by the
bank to the account of the depositor but not yet recorded by the depositor
as cash disbursements.

Example NSF checks: bank service charges; automatic debits; payments of loans
made out directly from the depositor’s account.

NOTE: NSF Checks redeposited and cleared on the current month are not part of
the reconciling items anymore.

Deposits in transit are collections already recorded by the depositor as cash receipts but not yet
reflected on the bank statement.

Outstanding checks checks already recorded by the depositor as cash disbursements but not yet
reflected on the bank statement.

NOTE: Certified checks should be deducted from the total outstanding checks.

Errors are committed by either the depositor or the bank. The adjustments are to be
made based on the nature of the error and by the side who committed the error.

The following is a guide on the treatment of the errors.

Treatment
Nature of the error Understatement Overstatement
Error on receipt (Collection) Added Deducted
Error on disbursement (Payment) Deducted Added

Based on the guide above, it can be concluded that error on receipt or collection directly affects cash
while error on payments or disbursements affects inversely cash.

collected by/reflected on Recorded by depositor? Examples

 the bank?

Credit Memos ✔️ ❌ note or receivables

cash receipts

Debit Memos ✔️ ❌ bank service charge

checks cash disbursements auto debits

Deposits in transit ❌ ✔️
cash receipts

Outstanding checks ❌ ✔️
cash disbursement

STS

Natural law
- wrong for a person to kill another person
- golden rule
AE2212 - Cost Accounting and Control
4/2/24
ACCOUNTING FOR MATERIALS
✔️Inventory Valuation Methods

● FIFO (First In, First Out)

- Raw materials inventory is reported at latest cost (remaining raw materials; usually at higher
price)
- Cost of good sold is reported at earliest cost
- In a period of rising prices, this method will yield a higher gross profit because the cost of good
sold is assigned lower cost
(The computation of raw materials available for use, raw materials used and raw materials inventory is as follows)
Raw materials available - Raw materials used = Raw materials Inventory
● WEIGHTED AVERAGE METHOD

UC - unit cost
July 2:
Balance Total - 178,400
Unit - 1,800
178,400 ÷ 1.800 = 99.11

July 2:
Balance Total - 236,788
Unit - 2,300
236,788 ÷ 2,300 = 102.95
COMPARISON:
WEIGHTED AVERAGE:

FIFO:
✔️Economic Order Quantity (EOQ)
~ traditional inventory model ; inventory is the investment
- designed to help the Production Manager determines the amount of stock to be purchased every
time and order is made or to produce with each production run to minimize total inventory costs
**Business should maintain inventory to meet the demand but not so much that the storage
cost and inventory investments are excessive

- The lowest total cost for an inventory occurs when the size of an inventory order is large enough so
that the cost of ordering that quantity of inventory is equal to the cost of carrying it
Lowest cost of inventory is:
cost of ordering = carrying cost

Two major costs associated with raw materials inventory:

1. Carrying cost Include costs of storage, insurance, inventory taxes, obsolescence,
spoilage and pilferage, opportunity costs of funds tied up with the
inventory and handling costs.
carrying cost is larger for a larger amount of inventory
larger amount of inventory = large amount of carrying cost
**like variable cost

2. Ordering cost Include costs of placing and receiving orders like cost of processing
documents, insurance for shipments, and unloading costs. The
costs of ordering inventory are the same whether a small quantity
 or big quantity of inventory is ordered.
**fixed cost

***The sum of carrying cost and ordering cost = total cost of inventory for that order size
carrying cost + ordering cost = total cost of inventory

**If the raw materials are internally produced, the two cost associated with these materials are set up cost and
carrying cost

Set up costs
- Include costs of preparing equipment and facilities so they can be used to produce a particular
component. Examples are wages of idled production workers, cost of idled production facilities
(loss of income) and the cost of test runs, like labor, materials, and overhead.
average inventory = 480 ÷ 2 = 240
The Reorder point
- This is the time span from date an order is placed to date of actual receipt. To serve as insurance
against possible delay, the company should maintain enough materials during the waiting period.
- The Reorder Point is the point in time a new order should be placed.
- Let assume that
Lead time……………………. 15 days
Daily requirement...... 13.33 units
REORDER POINT= daily usage x lead time

15 x 13.33 = 199.95 or 200

when inventory is down to 200, that’s the time the company will reorder

Just in time and Backflush costing

JIT
- No materials inventory is maintained because materials are issued directly to production upon
receipt.
- JIT system normally results to the following:
1. Lower investment in inventory
2. Reduced inventory and carrying costs
3. Reduce costs of obsolescence
4. Lower investment in space for inventories
5. Reduce total manufacturing cost

Backflush costing
- In a JIT system, when materials are purchased, Raw and in Process Inventory account is
maintained which includes only the raw materials purchased.
- Conversion costs incurred (labor and overhead) are summarized in a Conversion Costs Control
account. The conversion cost is then charged immediately to cost of sales. In backflush accounting,
there is no work in process or materials inventory accounts.
RIP - Raw in process
A/P - 2,030,000
 Journalizing raw materials transactions using perpetual inventory system.
FIFO method.

Required: Use FIFO method in accounting for the raw materials.

1. Journal entries to record the above transactions,
2. Determine the raw materials inventory balance.

Below are transactions of Ghelee Company regarding its raw materials for the first month of its operation
 1. Purchased raw materials on account, 5,000 units @ P100 on account. The company also paid freight
of P10,000 for the shipment.
2. Recorded requisition for the month, 75% of the total raw materials available for use, of which, 10% is
indirect materials.
3. Excess materials return to the storeroom: direct materials, P5,100 of which and indirect materials,
P800.
4. Materials returned to the vendor two days after the purchase, 40 units, due to defective quality.
5. Purchase raw materials intended specifically for a particular job, P50,000, on account
6. Purchased raw materials, 1,000 @ 105 on account, terms: n/30. Paid freight of P2,000.
7. Issued to production department 1,500 units of which 80% is direct materials.

ACCOUNTING FOR LABOR

✔️Labor
- This is the cost, incurred in the form of remuneration paid to the employees or labor of the
organization. The workforce required to convert material into finished product is called labor.
- It can be direct or indirect.
1. Direct Labor 2. Indirect Labor

The portion of wages and salaries which can be Cannot be directly related with the production
identified and charged to a single cost unit of specific goods or service.
Ex: Foreman, storekeeper, time keeper etc.

✔️Departments involved in labor cost control and reduction

1. Personnel Department
II. Engineering Department
III. Time Keeping Department
IV. Payroll Department
V. Cost Accounting Department

Timekeeping involves recording the total number hours each worker spent in carrying out the job.
It is important in determining the attendance and determination of payroll to each
worker.

Methods of time keeping:

1. Manual method a) Attendance in this method a log book or time register book is maintained by
Register Method the timekeeper. This register or logbook is filled in by the
timekeeper when the workers get inside the factory and the time
when the workers depart from the factory.

b) Token or Disc in this method a token or a disc is given to each worker bearing
Method his / her identification number. The discs or token are placed on
hooks on a board at the entrance of the factory gate.

2. Mechanical a) Time Recording each worker is given a time card. These time cards are arranged
method Clocks alphabetically and with a serial number in a tray at the gate
entrance of the factory.
 b) Dial Time under this method, a machine is used known as dial time -
Records recorder to register automatically the time in and out of the
workers.

Time booking refers to the analysis of time of each worker in terms of department, operation,
process or jobs. It is essential in determining the cost of each job, operation or
process; proper utilization of workers' time; assigning the overhead cost to units; and
effective cost control and cost reduction.

PAYROLL DEPARTMENT
This department is responsible for the computation of the total gross earnings, including the amount of the
payroll deduction of each worker, preparation of payroll/wages of all workers and maintaining the payroll
records.

COST ACCOUNTING DEPARTMENT

This department is responsible in collecting, classifying and assigning all costs to jobs, products and
processes.

✔️TYPES OF WAGE PAYMENT PLANS

1. Time Based Wage Plan wages are determined on the basis of time worked spent by workers
irrespective of the quality of work done. It is calculated by multiplying the
hourly rate of the worker by the number of time spent.

Formula: Wage = Number of Time Worked × Rate per hour

2. Piece-Based Wage Plan wages are determined on the basis of output produced by the workers
without considering the time spent in performing the job. It is calculated by
multiplying the number of units produced by a specified rate per unit.

Formula: Wage = Units Produced x Rate per unit.

Advantages Disadvantages

1. Time Based Wage Plan a. Simple and economical to use. a. Production can suffer because
b. Give a sense of security to workers are not time pressured.
workers because they will know b. No additional incentive for workers
that they are paid based on the to achieve production efficiency
time spent in the factory regardless because they are paid based on the
of efficiency and they can easily time spent.
understand how their wages are
computed.
c. Controls material wastages as
the job is not done in a hurry.

2. Piece-Based Wage Plan a. It provides incentive to workers a. It increases clerical costs because
who produce more. this plan needs an up to date records
 b. It is a fair wage plan because of output produce by each worker.
efficient workers are rewarded and b. More workers feel tired because
inefficient workers get less. they exerted lots of effort to produce
more so that they will earn more.
c. Quality may be sacrificed

✔️TYPES OF WAGE PAYMENT PLANS

3. Modified Based Wage combination of time wage plan and piece wage plan. Under this plan, each
Plan worker is paid based on a minimum hourly rate regardless if an established
quota of production is not met. However, workers are given a bonus for the
additional piece of output if they exceeded the established quota.

4. Bonus or Incentive also known as premium bonus plan. It is given in order to increase
Schemes production. It has two types:

a. Individual Incentive Plan - under this scheme, remuneration will be

based on the performance of individual workers.

b. Group Incentive Plan - under this scheme, remuneration is based on the

productivity of the group or entire workforce of the organization.

PAYROLL ACCOUNTING SYSTEM FOR MANUFACTURING COMPANIES

1. Record the hours worked or units produced by each employee in total and by job, operation and process.
2. Analyze the hours worked by workers to determine how labor time is charged.
3. Charge payroll time to jobs, operation, processes and factory overhead.
4. Prepare the payroll.

The Labor Cost Summary summaries the direct labor and indirect labor costs to a job, process and
department for the period. The accountant records the labor cost to work in process accounts (direct
labor) and factory overhead control account (indirect labor). The journal entry to record the labor costs
will be:
Work in Process XX
Factory Overhead Control XX
Payroll XX

Illustration:
Assume an employee regularly earns P100 per hour for an 8-hour on ordinary working days. If the worker
is called to work more than 8 hours in a working day, an additional pay premium computed as regular
rate plus 50% in excess of 8 hours. Also assume the employee works 10 hours in a working day. The
employee's earnings for that day is computed as:

Earnings at regular rate (8 hours x P100) 800.00

Overtime (2 hours x P100) 200.00
Overtime premium (2 hours x P50) 100.00
Total Earnings 1,100.00
 1. Charged to Specific Job - If the workers are called to work for rush Orders upon specific request of a
customer with the knowledge that Overtime is required to finish the job,
the overtime premium is charged to Work in Process account. The entry would be:
Work in Process 1,100
Payroll 1,100

2. Charged to Manufacturing Overhead Control - if the job is a regular order which cannot be completed
in the regular working hours the overtime premium is charged to Factory Overhead Control account.
The entry would be:
Work in Process 1,000
Factory Overhead Control 100
Payroll 1,100

✔️EMPLOYER'S CONTRIBUTIONS
1. SSS Contribution the Social Security System (SSS) requires all employers to pay social security
taxes/ contribution and to deduct from gross earnings of employee his /her
contribution.

2. Philhealth/ Medicare the amount deducted by the employer is equal to the amount deducted to the
Contribution employee's gross earnings. For example, if a worker earns P8,999.99 and
below, the employee share is P100 which is equal to employer share.

3. PAG-IBIG the amount deducted by the employer to the gross earnings of the employee is
Contribution equal to 2% of his basic compensation or P100 whichever is lower, while the
share of the employer will be the same amount deducted from the employee.

Gross Earning deductions

1. Withholding taxes
2. Social Security System Premiums
3. Philhealth Contribution
4. PAG-IBIG contribution

Illustration: Marie Corporation has the following payroll summary for the month of August:

Factory Workers Administrative And Total

Sales Employees
Gross Earnings 1,000,000 600,000 1,600,000
Less: Deductions
Withholding Tax (WTAX) 320,000 192,000 512,000
SSS Contribution 25,000 15,000 40,000
Philhealth Contribution 10,000 6,000 16,000
PAG-IBIG Contribution 500 500 1,000
Total 355,500 213,500 569,000
The following is the journal entries to be recorded by the company:

1. To record payroll and employee's contribution

Payroll 1,600,000

WTAX Payable 512,000

SSS Premium Payable 40,000

Philhealth Premium Payable 16,000

PAG-IBIG Premium Payable 1,000

Accrued Payroll 569,000

To record payroll for the month of August

2. To record the distribution of payroll

Assume that 10% of the factory employee's salary is considered indirect labor.
Work in Process (90%) 900,000

Factory Overhead Control (10%) 100,000

Administrative and Selling Expenses 600,000

Payroll 1,600,000

To record the labor distribution

3. To record employer's contributions

Assume that the payroll deductions, such as SSS, Philhealth and PAG-IBIG contribution of the employee. is
the same as the contribution share of the employer. The journal entry would be:

Factory Overhead Control 35,500

Administrative and Selling Expenses 21,500

SSS Contribution Payable 40,000

Philhealth Contribution Payable 16,000

PAG-IBIG Contribution Payable 1,000

To record employer's contributions

LABOR TIME LOSSES
A. Idle Time It is the time wasted in which workers spend their time without giving
any production caused by non-availability of materials, inefficient
supervision, machine breakdown, power interruption etc.

1. Normal Idle loss of time which is inherent in production or

Time cannot be avoided.

Example:
Break time or “merienda” break, time for
changing from one job to another, time spent on
getting tool or materials, parts and
instructions etc. (shall form part of
direct labor cost of production)

2. Abnormal Idle loss of time due to abnormal reasons such as

Time power failure, avoidable machine breakdown,
time loss due to inefficiency of workers,
time loss due to striker, layoff, etc.
(accounted as FOH costs).

B. MACHINE SET-UP TIME time for non- productive hours paid to workers while the machines
are being prepared for new jobs.

C. LABOR COST OF REWORKING additional labor cost paid to workers to correct defective unit of
DEFECTIVE UNIT products which fail to pass the quality control inspection.

OTHER LABOR RELATED COST

1. Overtime premium
2. SSS, Philhealth, PAG-IBIG contribution of employer
3. Fringe benefits such as sick leave with pay, vacation pay, holiday, health insurance, pension
payment, hospitalization, benefits etc.
4. Shift premium pay- night differential pay.
5. Incentive Plans.

Factory Overhead
All factory costs incurred in the manufacturing process other than direct materials and direct labor. It is
normally accumulated into cost pools and allocated to units produced during the period and it is charged
to expense account when the units produced are later sold as finished goods. Examples are:
a. Indirect materials
b. Indirect labor
C. Other manufacturing expenses (factory rent, depreciation, insurance, utilities, etc.)

Classification of Factory Overhead according to Behavior

1. Variable factory These are costs that charge in direct proportion to the level of
overhead production within the relevant range. The total cost of variable
overhead varies in direct proportion to the level of activity, but
remains constant per unit cost.

2. Fixed factory overhead These are factory overhead costs that do not change within the
relevant range, regardless of the changes in production activity.
The total fixed overhead remains constant but it varies inversely
proportional to the level of production activity.
(property insurance, depreciation of PPE, salaries of non-production
workers)

3. Mixed factory overhead These are factory overhead costs that have the characteristics of
both variable and fixed overhead.
(utilities, telephone)

✔️Approaches of Charging the FOH cost to Production

1. Actual costing also known as historical costing system, determined the factory overhead
costs as they occur simultaneously with the manufacturing operation but
the total of these costs is known only as the operation has been completed.
FOH - determine after production

2. Normal costing accumulates factory overhead costs based on a predetermined overhead

system rate and direct materials and direct labor are accumulated based on actual
cost.
FOH – has forecasted cost

✔️Determination of FOH Rates

1. Plant-wide or Blanket Rate The company uses a single overhead rate to allocate all of its
factory overhead costs to jobs, products or departments. It is
usually used by small companies because it is simple to apply
and inexpensive to use. It is appropriate to allocate FOH costs
using plant-wide if:
a. the company manufactures similar products.
b. the services provided by various departments are relatively
similar.
c. the total amount of FOH to be allocated is too small that
using multiple allocation rates to achieve a higher level of
accuracy is unnecessary and too costly.
FOH Bases
1. Direct labor costs - expressed as percentage of direct labor costs.
Ex. 125% of direct labor cost.
2. Direct labor hours - expressed as amount of peso per direct labor hour.
Ex. P5 per direct labor hour.
3. Machine hours - expressed as amount of peso per machine hour.
Ex. P20 per machine hour.
4. Direct material costs - expressed as percentage of direct materials costs.
Ex. 50% of direct materials costs.
5. Physical output or units produced - expressed as amount of peso per unit produced.
Ex. P10 per unit.

Predetermined Overhead Rate = Estimated Factory Overhead Costs

Estimated Allocation Base

Illustration:
Sol Corp. has a total estimated factory overhead cost of P500,000 for next year. Iis
estimated that 50,000 units will be manufactured at a total direct material cost of
P1,000,000. It will require 25,000 machine hours and 100,000 direct labor hours at a cost
of P400,000.

1. Direct labor costs

Predetermined Overhead Rate = Estimated Factory Overhead Costs
Estimated Direct Labor Costs
Predetermined Overhead Rate = P500,000 / P400,000 = 125% of direct labor cost

2. Direct labor hours

Predetermined Overhead Rate = Estimated Factory Overhead Costs
Total Estimated Direct Labor Hours
= P500,000 / P100,000 = P5 per direct labor hour

3. Machine hours
Predetermined Overhead Rate = Estimated Factory Overhead Costs
Total Estimated Machine Hours
= P500,000 / 25,000 = P20 per machine hour

4. Direct material costs

Predetermined Overhead Rate = Estimated Factory Overhead Costs
Total Estimated Direct Material Costs
Predetermined Overhead Rate = P500,000 / P1,000,000 = 50% of direct material costs

5. Physical output or units produced

Predetermined Overhead Rate = Estimated Factory Overhead Costs
Estimated Units of Production
= P500,000 / 50,000 units = P10 per unit of production

Capacity of Production
1. Theoretical It refers to plant or departmental capability to produce without any
(Maximum or Ideal) interruption. It assumes that nothing will go wrong in the production. It
gives no allowance for human and non-human errors. It is a production in
full efficiency.
no error

2. Practical It refers to plant or departmental capability to produce with an allowance

for internal factors such as shutdowns for holidays, interruptions due to
delays, machine breakdowns, etc.
unpredictable interruption

3. Expected It refers to the level based on expected capacity utilization for the budget
period.
forecasted

4. Normal The most commonly used capacity. It is a capacity driven by customers or

business demand and not by maximum capacity. It takes into
consideration the seasonal and cyclical demand cycle of the product and is
usually estimated over the number of periods or seasons, taking into
account the loss capacity resulting from planned maintenance. It is
practical capacity less loss of productive capacity due to external factors.
AE0412
4/20/24
PE222
4/20/24

Dance is a form of art that is made by purposefully recreating selected sequences of human motion, which
can be imbued with the values of aesthetic and symbolism that are acknowledged by both performers and
observers from within the particular culture. The dance itself can be freeform or can have a predefined
choreography that may or may not align with traditions of origin or historical period.

TWO DISTINCT FORMS OF DANCE

● THEATRICAL DANCES
Is known for having more elaborate choreography, planning, costume, scenery and other elements
that make the entire production feel more professional. The performers of theatrical dance are usually
professional “virtuoso dancers”, who practice their craft over the years, and are often tasked to
interpret the musical accompaniment with advanced dance moves or routines.
Examples: Contemporary dance, Bharatanatyam, Jazz dance

● PARTICIPATORY DANCES
Are most commonly found at weddings, social gatherings, and festivals, and they can be enjoyed with
folk music both alone or in a group (pairs, lines, chains or other forms).
Examples: Street dance, Latin dance

CORDILLERA DANCES

The Philippine archipelago had been inhabited by different tribes and introduces dances and traditions
that have been cultivated for years. One of the most known forms of traditions is dancing. Dance influences
the diversity of our cultural beginning and the drama of our daily lives. It blends exotic customs and cultures
of many countries and races.

paa - 24 pcs beads each

TWO CATEGORY OF CORDILLERA DANCE

1. BIBAKIIG- Is the acronym for the different Cordillera places. ( Bontoc, Ifugao, Benguet, Apayao,
Kalinga, Itneg, Ilonggot, and Gaddang or Ga’dang.

2. PESHITS AND KANYAO – occasions for the presentation of the Cordillera dances. ( Ceremonial,
courtship, war, festival, and imitative in nature.

DIFFERENT DANCES OF CORDILLERA

● TAKIK- is a flirtation or wedding dance from Western Bontoc.
● PATTONG - dance by one or two warriors.
● DINUYYA – a dance from Lagawe, Ifugao that is dance by men and women during a feast.
● RAGRAGSAKAN- is a working dance of the Kalinga women carrying baskets on their heads or
sometimes layered claypots.
● BENDIAN- a victory dance done by women carrying kayyabang or baskets of flowers.