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CHAPTER 12

Introduction to Cost Accounting


E 12-1
1. A
2. A
3. A & C
4. A
5. A
E 12-2

6.
7.
8.
9.
10.

A
A
A
A&C
A

11.
12.
13.
14.
15.

A
A
A
A
A

16.
17.
18.
19.
20.

A
A
C
A
A

Lacbay Manufacturing Company


Income Statement
For the Month Ended April 30, 2010
Sales
Cost of Goods Sold
Gross Profit
Operating Expenses:
Marketing Expenses
Administrative Expenses
Profit before Income Tax
Income Tax
Profit

P1,440,000
966,000
P 474,000
P72,000
14,400

86,400
P 387,600
135,660
P251,940

Lacbay Manufacturing Company


Statement of Cost of Goods Sold
For the Month Ended April 30, 2010
Direct Materials:
Raw Materials Inventory, beginning
Raw Materials Purchases
Raw materials Available for Use
Less Raw Materials Inventory, end
Direct Materials Used
Direct Labor
Factory Overhead
Total Manufacturing Cost
Add Work in Process Inventory, beginning
Total Cost of Work Put into Process
Less Work in Process Inventory, end
Cost of Goods Manufactured
Add Finished Goods Inventory, beginning
Cost of Goods Available for Sale
Less Finished Goods Inventory, end
Cost of Goods Sold
E 12-3
1. Raw Materials, June 30
Add Raw Materials Put into Process
Raw materials Available for Use
Less Raw Materials, June 1
Raw Materials Purchased

P120,000
720,000
P840,000
170,000
P 670,000
300,000
200,000
P1,170,000
160,000
P1,330,000
300,000
P1,030,000
140,000
P1,170,000
204,000
P 966,000

P150,000
240,000
P390,000
120,000
P270,000

Chapter 12- Suggested Answers (APC-2011)

2.

3.

Raw Materials Put into Process


Add Direct Labor
Department A
Department B
Prime Costs
Direct Labor
Add Factory Overhead
Department A (P140,000 x 120%)
Department B (P160,000 x 80%)
Conversion Costs

page 2

P240,000
P140,000
160,000

300,000
P540,000
P300,000

P168,000
128,000

296,000
P596,000

4.

Raw Materials Put into Process


Direct Labor
Factory Overhead
Total Manufacturing Cost

P240,000
300,000
296,000
P836,000

5.

Total Manufacturing Cost


Add Work in Process, June 1
Total Cost of Work Put into Process
Less Work in Process, June 30
Cost of Goods Manufactured

P836,000
160,000
P996,000
128,000
P868,000

6.

Cost of Goods Manufactured


Add Finished Goods, June 1
Cost of Goods Available for Sale
Less Finished Goods, June 30
Cost of Goods Sold

P868,000
108,000
P976,000
120,000
P856,000

E 12-4
Company A
Finished Goods, beginning
Add Cost of Goods Manufactured
Cost of Goods Available for Sale
Less Cost of Goods Sold (P8,000,000 x 60%)
Finished Goods, end

P1,200,000
7,600,000
P8,800,000
4,800,000
P4,000,000

Company B
Cost of goods sold
Add Finished goods, end
Cost of goods available for sale

P2,600,000
380,000
P2,980,000

Company C
Cost of Goods Manufactured
Add Finished Goods, beginning
Cost of Goods Available for Sale
Less Finished Goods, end
Cost of Goods Sold
Add Gross Profit
Sales

P680,000
90,000
P770,000
104,000
P666,000
192,000
P858,000

Chapter 12- Suggested Answers (APC-2011)

page 3

E 12-5
a.

Raw Materials Purchases


Vouchers Payable

80,000
80,000

b.

no entry

c.

Factory Payroll
Withholding Taxes Payable
SSS Contributions Payable
Medicare Contributions Payable
Vouchers Payable

80,000

Vouchers Payable
Cash

64,120

Direct Labor
Indirect Labor
Factory Payroll

64,000
16,000

d.
e.

f.

g.
h.

i.

Factory Payroll Taxes


SSS Contributions Payable
Medicare Contributions Payable
Employees Compensation Contributions Payable
Sundry Factory Overhead
Vouchers Payable
Depreciation Expense Factory
Insurance Factory
Property Taxes Factory
Prepaid Insurance
Accumulated Depreciation Factory
Accrued Property Taxes
Raw Materials, end
Work in Process, end
Manufacturing Summary
P80,000 - P66,000 P4,000 = P10,000

9,600
6,000
280
64,120
64,120

80,000
8,000
6,000
640
1,360
36,000
36,000
4,200
1,560
2,500
1,560
4,200
2,500
10,000
18,260
28,260

P66,000 + P64,000 + P4,000 + P16,000 + P8,000 + P36,000 +

P4,200 + P1,560 + P2,500 P184,000 = P18,260


j.
k.

Accounts Receivable
Sales
Cash
Accounts Receivable

160,000
160,000
80,000
80,000

Chapter 12- Suggested Answers (APC-2011)

l.

m.

Manufacturing Summary
Raw Materials Purchases
Direct Labor
Indirect Labor
Factory Payroll Taxes
Sundry Factory Overhead
Depreciation Expense Factory
Insurance Factory
Property Taxes Factory
Finished Goods, end
Income Summary
P184,000 (P160,000 x 75%) = P64,000

E 12-6
1. Direct Materials, January 1
Add Purchases of Direct Materials
Direct Materials Available for Use
Less Direct Materials, December 31
Direct Materials Used

page 4

212,260
80,000
64,000
16,000
8,000
36,000
4,200
1,560
2,500
64,000
64,000

P12,800
18,000
P30,800
10,800
P20,000

2.

Cost of Goods Sold (3)


Add Gross Profit
Sales

P105,400
22,600
P128,000

3.

Cost of Goods Manufactured


Add Finished Goods, January 1
Cost of Goods Available for Sale
Less Finished Goods, December 31
Cost of Goods Sold

P100,000
16,000
P116,000
10,600
P105,400

4.

Direct Materials Used (1)


Direct Labor
Factory Overhead
Total Manufacturing Cost

P 20,000
26,000
58.000
P104,000

5.

Cost of Goods Manufactured


Add Work in Process, December 31
Total Cost of Work Put into Process
Less Total Manufacturing Cost
Work in Process, January 1

P100,000
4,000
P104,000
104,000
P - 0--

6.

Direct Materials Used (7)


Add Direct Materials, December 31
Direct Materials Available for Use
Less Purchases of Direct Materials
Direct Materials, January 1

P11,800
9,200
P21,000
14,000
P 7,000

Chapter 12- Suggested Answers (APC-2011)

7.

Total Manufacturing Cost


Less: Direct Labor
Factory Overhead
Direct Materials Used

page 5

P43,000
P16,000
15,200

31,200
P11,800

8.

Cost of Goods Sold


Add Finished Goods, December 31
Cost of Goods Available for Sale
Less Finished Goods, January 1
Cost of Goods Manufactured

P44,000
10,600
P54,600
8,000
P46,600

9.

Sales
Less Cost of Goods Sold
Gross Profit

P67,600
44,000
P23,600

10. Total Manufacturing Cost


Add Work in Process, January 1
Total Cost of Work Put into Process
Less Cost of Goods Manufactured (8)
Work in Process, December 31

P43,000
9,600
P52,600
46,600
P 6,000

11.

P80,800

Total Manufacturing Cost (15)


Less: Direct Materials Used
Factory Overhead
Direct Labor

12. Direct Materials Used


Add Direct Materials, December 31
Direct Materials Available for Use
Less Direct Materials, January 1
Purchases of Direct Materials
13. Sales
Less Gross Profit
Cost of Goods Sold

P18,800
26,000

44,800
P36,000
P18,800
11,000
P29,800
13,800
P16,000
P110,000
24,000
P 86,000

14. Cost of Goods Sold (13)


Add Finished Goods, December 31
Cost of Goods Available for Sale
Less Finished Goods, January 1
Cost of Goods Manufactured

P86,000
12,400
P98,400
15,600
P82,800

15. Cost of Goods Manufactured (14)


Add Work in Process, December 31
Total Cost of Work Put into Process
Less Work in Process, January 1
Total Manufacturing Cost

P82,800
600
P83,400
2,600
P80,800

Chapter 12- Suggested Answers (APC-2011)

page 6

16. Direct Materials, January 1


Add Direct Materials Purchased
Materials Available for Use
Less Direct Materials Used
Direct Materials, December 31
17. Total Manufacturing Cost
Less: Direct Materials Used
Direct Labor
Factory Overhead

P 3,000
16,000
P19,000
11,200
P 7,800
P36,200
P11,200
12,000

23,200
P13,000

18. Cost of Goods Manufactured


Add Finished Goods, January 1
Cost of Goods Available for Sale
Less Cost of Goods Sold
Finished Goods, December 31

P36,200
12,000
P48,200
34,000
P14,200

19. Sales
Less Cost of Goods Sold
Gross Profit

P80,000
34,000
P46,000

20. Cost of Goods Manufactured


Add Work in Process, December 31
Total Cost of Work Put into Process
Less Total Manufacturing Cost
Work in Process, January 1

P36,200
5,000
P41,200
36,200
P 5,000

P 12 1
1.

Total Manufacturing Cost


Less Cost of Goods Manufactured
Difference in Work in Process beginning and ending
Work in Process, December 31

P3,600,000
3,400,000
P 200,000

20%
P1,000,000

2.

Total Manufacturing Cost


Add Work in Process, January 1 (P1,000,000 x 80%)
Total Cost of Goods Put into Process

P3,600,000
800,000
P4,400,000

3.

Total Manufacturing Cost


Less: Manufacturing Overhead (P3,600,000 x 25%)
Direct Labor (P900,000 / 72%)
Direct Materials Used

P3,600,000
P 900,000
1,250,000

2,150,000
P1,450,000

P 12 2
1.

a.
b.

Raw Materials Purchases


Vouchers Payable

400,000

Other Factory Overhead

70,000

400,000

Chapter 12- Suggested Answers (APC-2011)

c.

d.
e.

Vouchers Payable
Direct Labor
Indirect Labor
Sales Salaries
Administrative Salaries
Withholding Taxes Payable
SSS Contributions Payable
Medicare Contributions Payable
Pag-ibig Contributions Payable
Vouchers Payable
Vouchers Payable
Cash
Factory Payroll Taxes
Sales Payroll Taxes
Administrative Payroll Taxes
SSS Contributions Payable
Medicare Contributions Payable
Pag-ibig Contributions Payable

f.

No entry

g.

No entry

h.

Accounts Receivable
Sales

i.
j.
k1

page 7

70,000
280,000
60,000
50,000
30,000
37,040
16,800
2,250
12,600
351,310
351,310
351,310
28,400
4,750
2,700
21,000
2,250
12,600

1,078,000
1,078,000

Cash
Accounts Receivable

810,000

Vouchers Payable
Cash

440,000

Work in Process, end


Raw Materials, end
Indirect Materials
Manufacturing Summary

810,000
440,000
94,400
60,000
70,000
224,400

P36,000 + P70,000 + P280,000 + 60,000 + P28,400 +


P370,000 + P70,000 P820,000 = P94,400
P100,000 + P400,000 P370,000 P70,000 = P60,000

k2.

Manufacturing Summary
Raw Material Purchases
Other Factory Overhead
Direct Labor
Indirect Labor
Factory Payroll Taxes
Indirect Materials

908,400
400,000
70,000
280,000
60,000
28,400
70,000

Chapter 12- Suggested Answers (APC-2011)

k3.

k4.

k5.
k6.

k7.

page 8

Manufacturing Summary
Work in Process, beginning
Raw Materials, beginning

136,000

Finished Goods
Income Summary
P70,000 + P820,000 P770,000 = P120,000

120,000

Income Summary
Finished Goods, beginning
Sales
Manufacturing Summary
Sales Salaries
Administrative Salaries
Sales Payroll Taxes
Administrative Payroll Taxes
Income Tax
Income Summary
Income Summary
Retained Earnings

36,000
100,000
120,000
70,000
70,000
1,078,000
820,000
50,000
30,000
4,750
2,700
66,165
104,385
154,385
154,385

Lamasan Company
Cost of Goods Sold Statement
For the Month Ended July 31, 2010
Direct Materials:
Raw Materials, beginning
Add Raw Materials Purchases
Raw Materials Available for Use
Less: Indirect Materials
Raw Materials, end
Direct Materials Used
Direct Labor
Factory Overhead:
Indirect Materials
Indirect Labor
Factory Payroll Taxes
Other Factory Overhead
Total Manufacturing Cost
Add Work in Process, beginning
Total Cost of Work Put into Process
Less Work in Process, end
Cost of Goods Manufactured
Add Finished Goods, beginning
Cost of Goods Available for Sale
Less Finished Goods, end
Cost of Goods Sold

P100,000
400,000
P500,000
P70,000
60,000

P70,000
60,000
28,400
70,000

130,000
P370,000
280,000

228,400
P878,400
36,000
P914,400
94,400
P820,000
70,000
P890,000
120,000
P770,000

Chapter 12- Suggested Answers (APC-2011)

3.

page 9

Lamasan Company
Income Statement
For the Month Ended July 31, 2010

Sales
Cost of Goods Sold
Gross Profit
Operating Expenses:
Administrative Salaries
Administrative Payroll Taxes
Sales Salaries
Sales Payroll Taxes
Profit before Income Tax
Income Tax
Profit

P1,078,000
770,000
P 308,000
P30,000
2,700
50,000
4,750

Lamasan Company
Statement of Financial Position
July 31, 2010
ASSETS
Cash (P200,000 - P351,310 + P810,000 P440,000)
Accounts Receivable (P120,000 + P1,078,000 P810,000)
Finished Goods
Work in Process
Raw Materials
TOTAL ASSETS

87,450
P 220,550
66,165
P154,385

P218,690
388,000
120,000
94,400
60,000
P881,090

LIABILITIES
Vouchers Payable (P36,000 + P400,000 + P70,000 + P351,310 P351,310
P440,000)
Income Tax Payable
Withholding Taxes Payable
SSS Contributions Payable (P16,800 + P21,000)
Medicare Contributions Payable (P2,250 + P2,250)
Pag-ibig Contributions Payable (P12,600 + P12,600)
TOTAL LIABILITIES

66,165
37,040
37,800
4,500
25,200
P236,705

SHAREHOLDERS EQUITY
Ordinary Share Capital
Retained Earnings (P90,000 + P154,385)
TOTAL STOCKHOLDERS EQUITY
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY

644,385
P881,090

P 66,000

P400,000
244,385

P 12 3
1.

Raw Materials, beginning


Add Raw Materials Purchases
Raw Materials Available for Use
Less: Direct Materials Used
Raw Materials, end

P128,000
168,000
P296,000
P156,000
120,000

276,000

Chapter 12- Suggested Answers (APC-2011)

page 10

Indirect Materials Used


Factory Payroll paid
Accrued Payroll
Direct Labor
Indirect labor

P 20,000
P 88,000
12,000
(64,000)
P 36,000

3.

Indirect Materials
Indirect Labor
Factory Insurance
Depreciation of Factory Equipment
Factory Utility Service
Total Factory Overhead

P 20,000
36,000
1,200
6,800
12,000
P 76,000

4.

Direct Materials Used


Direct Labor
Factory Overhead
Total Manufacturing Cost
Add Work in Process, beginning
Total Cost of Work Put into Process
Less Work in Process, end
Cost of Goods Manufactured

P156,000
64,000
76,000
P296,000
164,000
P460,000
188,000
P272,000

5.

Cost of Goods Manufactured


Add Finished Goods, beginning
Cost of Goods Available for Sale
Less Finished Goods, end
Cost of Goods Sold

P272,000
592,000
P864,000
608,000
P256,000

2.

P 12 4
1. P180,000
2. P 30,000
3. P 46,000
4. P 12,000
5. P 34,000
6. P 36,000
7. P 94,000
8. P 30,000
9. P 82,000

1.

10.
11.
12.
13.
14.
15.
16.
17.

P 12,000
P 34,000
P 42,600
P123,600
P 42,000
P 36,600
P132,400
P 95,000

MC
Cost of Goods Manufactured
Finished Goods, beginning
Finished Goods, end
Cost of Goods Sold
Gross Profit
Sales

18.
19.
20.
21.
22.
23.
24.
25.

P260,000
P18,000
P78,000
P53,400
P80,400
P32,600
P36,600
P40,000

P680,000
90,000
( 104,000)
P666,000
192,000
P858,000

Chapter 12- Suggested Answers (APC-2011)

page 11

Raw Materials Purchased


Less Increase in Raw Materials Inventory
Direct Materials Used
Direct Labor
Factory Overhead
Total Manufacturing Cost = Cost of Goods Manufactured
Decrease in Finished Goods Inventory
Cost of Goods Sold

P 860,000
30,000
P 830,000
400,000
600,000
P1,830,000
70,000
P1,900,000

Direct Materials, December 1


Direct Materials Purchases
Direct Materials, December 31
Direct Materials Used
Direct Labor
Prime Cost

P 72,000
168,000
( 60,000)
P 180,000
120,000
P300,000

Direct Labor
Factory Overhead [(P120,000 /15) x 20]
Conversion Cost

P120,000
160,000
P280,000

Prime Cost
Factory Overhead
Total Manufacturing Cost
Work in Process, December 1
Work in Process, December 31
Cost of Goods Manufactured

P300,000
160,000
P460,000
36,000
(24,000)
P472,000

Beginning inventories (P80,000 + P50,000 + P120,000)


Ending inventories (P100,000 + P70,000 + P140,000)
Direct Labor
Factory Overhead
Cost of Goods Sold
Direct Materials Purchases

P250,000
(310,000)
240,000
216,000
(756,000)
P360,000

Cost of Goods Sold


Finished Goods, September 30
Finished Goods, September 1
Cost of Goods Manufactured

P756,000
140,000
(120,000)
P776,000

P756,000 x 200% =

Direct Materials, June 1


Purchases
Direct Materials, June 30
Direct Materials Used in production

10

Direct Materials Used


Direct Labor
Prime Cost

P1,512,000
P246,000
825,720
(375,908)
P695,812
P 695,812
428,216
P1,124,028

Chapter 12- Suggested Answers (APC-2011)

page 12

11

Direct Labor
Factory Overhead (P16,470 x 11)
Conversion Cost

P428,216
181,170
P609,386

12

Prime Cost
Factory Overhead
Total Manufacturing Cost
Work in Process, June 1
Total Cost of Goods Placed in Process

P1,124,028
181,170
P1,305,198
648,040
P1,953,238

13

Total Cost of Goods Placed in Process


Less Work in Process, June 30
Cost of Goods Manufactured

P1,953,238
1,153,382
P 799,856

14

Cost of Goods Manufactured


Finished Goods, beginning
Finished Goods, ending
Cost of Goods Sold

P799,856
1,196,642
(1,587,278)
P409,220

15

P428,216/16470 =

P26.00

16

P125,000/12.5% =

P1,000,000

17

P315,000/75% =

18

Sales
Operating Expenses
Profit
Cost of Goods Sold

P420,000
P1,000,000
P125,000
125,000

19

Beginning Inventories
Ending inventories
Purchases
Direct Labor
Factory Overhead
Cost of Goods Sold
Raw Materials, beginning

20

P200,000 + P230,000 P250,000 =

TM 44
1. T
2. F
3. T
4. F
5. F

6.
7.
8.
9.
10.

F
T
F
T
F

250,000
P750,000
P700,000
(1,115,000)
230,000
420,000
315,000
(750,000)
P200,000

11.
12.
13.
14.
15.

F
T
T
F
F

P180,000
16.
17.
18.
19.
20.

F
T
F
T
F

Chapter 12- Suggested Answers (APC-2011)

TM 45
1.
2.
3.
4.
5.

A
B
H
D
K

TM 46
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.

TM 47
1. B

page 13

E
G
K, L, M
I
N
A plus J
J
C
M
G

1.
2.
3.
4.
5.

B
B
C
C
C

6. D
7. A
8. C
9. B
10. C

Sales
Gross Profit
Cost of Goods Sold
Finished Goods, end
Cost of Goods Manufactured
Finished Goods, beginning

P720,000
(440,000)
P280,000
60,000
(240,000)
P100,000
P1,400,000
(650,000)
P 750,000
70,000
(120,000)
P 700,000

2.

Sales
Gross Profit
Cost of Goods Sold
Finished Goods, end
Finished Goods, beginning
Cost of Goods Manufactured

3.

Total Manufacturing Cost


Prime Cost (P72,000/60%)
Factory Overhead

P170,000
(120,000)
P 50,000

4.

Raw Materials Purchased


Direct Labor
Factory Overhead
Increase in Work in Process
Decrease in Finished Goods
Cost of Goods Sold

P200,000
300,000
400,000
( 30,000)
20,000
P890,000

5.

Direct Materials Used


Increase in Direct Materials Inventory
Direct Materials Purchases

P600,000
100,000
P700,000

6.

Finished Goods transferred out


Work in Process, end
Work in Process, beginning
Total Manufacturing Cost
Direct Materials Used
Direct labor

P340,000
600,000
(100,000)
P840,000
(220,000)
(500,000)

Chapter 12- Suggested Answers (APC-2011)

page 14

Factory Overhead
Cost of Goods Available for Sale
Finished Goods, end
Cost of Goods Sold
Gross Profit
Sales

P120,000
P360,000
(240,000
P120,000
560,000
P680,000

7.

8.

Direct Materials
Direct Labor
Factory Overhead
Total Manufacturing Cost
Work in Process, beginning
Total Cost of Work Put into Process
Cost of Goods Manufactured
Work in Process, end

9.

Total Manufacturing Cost = to Cost of Goods Manufactured


Finished Goods, beginning
Cost of Goods Available for Sale

P120,000
50,000
P170,000

Cost of Goods Manufactured


Work in Process end
Total Cost of Work Put into Process
Total Manufacturing Cost:
Direct Materials
Direct Labor
Factory Overhead
Work in Process, beginning

P190,000
30,000
P220,000

10. B

P3,400,000
1,600,000
2,400,000
P7,400,000
600,000
P8,000,000
(4,800,000)
P3,200,000

P60,000
80,000
40,000

180,000
P 40,000

TM 48
Liwasan Corporation
Cost of Goods Sold Statement
For the Year Ended December 31, 2010
Direct Materials:
Raw Materials Inventory, beginning
Raw Materials Purchases
Add Freight-in on raw materials purchased
Delivered Cost of Raw Materials Purchases
Raw Materials Available for Use
Less Raw Materials Inventory, end
Direct Materials Used
Direct Labor
Factory Overhead*
Total Manufacturing Cost
Add Work in Process, beg
Total Cost of Work Put into Process
Less Work in Process, end
Cost of Goods Manufactured
Add Finished Goods, beginning
Cost of Goods Available for Sale
Less Finished Goods, end

P 176,000
P732,000
13,200
745,200
P 921,200
128,000
P 793,200
1,047,200
1,145,600
P2,986,000
59,600
P3,045,600
77,600
P2,968,000
108,400
P3,076,400
132,000

Chapter 12- Suggested Answers (APC-2011)

Cost of Goods Sold


* Factory Overhead excluding depreciation
Depreciation manufacturing
Total

page 15

P2,944,400
P 936,800
208,800
P1,145,600

TM 49
a. Raw Materials Purchases
Factory Supplies
Vouchers Payable

692,000
196,000
888,000

b.

no entry

c.

no entry

d.

Direct Labor
Cash

98,000

Depreciation Expense Factory Building and Equipment


Accumulated Depreciation Factory Building and
Equipment

44,000

e.

f.
g.
h.
i1.

i2.

Indirect Labor
Cash
Utilities Factory
Cash
Other Factory Overhead
Cash

98,000
44,000
372,000
372,000
52,000
52,000
166,000
166,000

Factory Supplies Inventory


Factory Supplies
P196,000 P186,000 = P10,000

10,000

Direct Materials Inventory, end


Work in Process, end
Manufacturing Summary

178,000
162,000

10,000

340,000

P692,000 + P256,000 P770,000 = P178,000


P770,000 + P186,000 + P98,000 + P44,000 + P372,000 +
P52,000 + P166,000 + P164,000 P1,690,000 = P162,000

i3.

i4.

Manufacturing Summary
Direct Materials Inventory, beginning
Work in Process Inventory, beginning
Manufacturing Summary
Raw Materials Purchases
Factory Supplies
Direct Labor
Depreciation Expense Factory Building and Equipment
Indirect Labor

420,000
256,000
164,000
1,610,000
692,000
186,000
98,000
44,000
372,000

Chapter 12- Suggested Answers (APC-2011)

j.
k.
l1.

l2.
m.

Utilities Factory
Other Factory Overhead
Accounts Receivable
Sales
Cash
Accounts Receivable

page 16

52,000
166,000
2,524,000
2,524,000
2,390,000
2,390,000

Finished Goods, end


Income Summary
P344,000 + P1,690,000 P1,740,000 = P294,000

294,000

Income Summary
Finished Goods, beginning

344,000

Vouchers Payable
Cash

936,000

294,000

344,000
936,000