Lumban Probs

The following information were obtained from the records of Sunshine Enterprises for the current year ended Dec. 31 Cash

P 19,800

Direct Labor

Accounts Receivable

142,500

44,000 Accounts Payable

Factory Supplies Used 22,350

Direct Materials January 1 70,000

30,000 Freight In

9,000

Advertising Expense

December 31 80,000

16,000 Sales salaries

Work in Process January 1 15,000

25,000 Administrative Salaries 41,000

December 31 42,000 Finished Goods January 1

Bad Debts Expense

5,000

Allowance for Bad Debts

3,100

Direct Material Purchase

109,900

137,500

December 31 155,000

Direct Material Returns Sales

6,500 471,000

Indirect Labor 50,000 The costs below were incurred by the various facilities to be allocated as follows Utilities Taxes Insurance Depreciation Direction :

Total Cost P25,000 35,000 10,000 30,000

Factory 60% 60% 60% 60%

Sales 10% 25% 20% 20%

a) Prepare a statement of cost of goods manufactured. b) Prepare an income statement, tax rate is 32%.

Administrative 30% 15% 20% 20%

The following are the transactions of Beauty Products for the month of March, 2007: 1. Raw materials purchased on account, P 80,000 Factory supplies purchased for cash, P 3,000 2. Freight paid in cash for the materials purchased, P 1,500 3. Factory payroll for the month was as follows: Paid

to workers net

of following

deductions

64,200 Withholding taxes

3,200

SS Premiums

2,500

Phil Health Premiums

1,300

HDMF Premiums

600

Note: Debit to Factory Payroll. 4. Employer’s share to the premiums Phil Health

1,300

Combined EC & Maternity SSS

750 3,250

HDMF

600

5. Of the total payroll, direct labor was P74,000 and the balance was for indirect labor. Note: Credit to factory payroll. 6. Monthly depreciation charges for the factory building, P 2,000 and the factory machinery, P 3,000. 7. Factory taxes accrued P 1,500 and factory insurance expired, P 800 8. A total of 1,000 goods were finished out of which 800 units were sold at a 100% mark up. 9. Inventories at the end of the month were : Finished Goods Work in Process

? 15,000

Raw Materials Direction:

14,000

a) Prepare a statement of cost of goods manufactured. b) Compute for the unit cost of the good manufactured c) Compute for the Gross Profit of the Beauty Products for the

month of March. Prove the cost of the unsold goods. d) Journalize the above transactions.