NOVELTY CRAFTS INC.

GENERAL JOURNAL
January 2011

Date Description PR Debit Credit

Jan. 3 WIP - Painting 1105b 990.00
Materials Inventory 1106 990.00

3 WIP - Molding 1105a 6,000.00

Materials Inventory 1106 6,000.00

5 Cash 1101 268,800.00

Sales 4101 240,000.00
VAT Payable 2107 28,800.00

Cost of Goods Sold 5101 120,000.00

Finished Goods Inventory 1104 120,000.00

5 Withholding Taxes Payable 2101 9,525.00

Cash 1101 9,525.00

5 Accounts Payable 2106 25,000.00

Cash 1101 25,000.00

6 WIP - Packaging 1105c 2,394.00

Materials Inventory 1106 2,394.00

8 WIP - Molding 1105a 280.00

WIP - Painting 1105b 4,200.00
WIP - Packaging 1105c 140.00
Applied Factory Overhead 5105 4,620.00

8 Cash 1101 56,448.00

Sales 4101 50,400.00
VAT Payable 2107 6,048.00

Cost of Goods Sold 5101 25,200.00

WIP - Molding 1105a 5,187.00
WIP - Painting 1105b 17,115.00
WIP - Packaging 1105c 2,898.00

10 SSS, PhilHealth Payable 2103 4,540.00

Cash 1101 4,540.00

10 Pag IBIG Payable 2104 2,200.00

Cash 1101 2,200.00

10 Materials Inventory 1106 18,630.00

VAT Payable 2107 2,235.60
Cash 1101 20,865.60
 NOVELTY CRAFTS INC.
GENERAL JOURNAL
January 2011
10 Factory Overhead Control 5104 4,000.00
Selling and Marketing Expense Control 5103 6,000.00
Gen. and Admin. Expense Control 5102 5,000.00
Cash 1101 15,000.00

10 Accounts Payable 2106 60,000.00

Cash 1101 60,000.00

10 Cash 1101 70,000.00

Accounts Receivable 1103 70,000.00

10 Prepaid Insurance 1110 4,800.00

Cash 1101 4,800.00

10 WIP - Painting 1105b 3,300.00

Materials Inventory 1106 3,300.00

10 Prepaid Insurance 1110 7,000.00

Cash 1101 7,000.00

10 Accounts Receivable 1103 13,440.00

Sales 4101 12,000.00
VAT Payable 2107 1,440.00

Cost of Gooods Sold 5101 6,000.00

Finished Goods Inventory 1104 6,000.00

11 Gen. and Admin. Expense Control 5102 16,000.00

Cash 1101 16,000.00

14 Accrued Expense Payable 2105 5,400.00

Cash 1101 5,400.00

14 Payroll 5106 1,508.00

Cash 1101 1,508.00

14 Payroll 5106 97,365.50

Cash 1101 97,365.50

14 WIP - Molding 1105a 2,020.00

WIP - Painting 1105b 12,423.00
WIP - Packaging 1105c 1,508.00
Factory Overhead Control 5104 25,042.25
Gen. and Admin. Expense Control 5102 39,876.25
Selling and Marketing Expense Control 5103 18,004.00
Payroll 5106 98,873.50

14 Materials Inventory 1106 12,150.00

 NOVELTY CRAFTS INC.
GENERAL JOURNAL
January 2011
VAT Payable 2107 1,458.00
Cash 1101 13,608.00

14 Selling and Marketing Expense Control 5103 3,000.00

Cash 1101 3,000.00

14 Cash 1101 30,000.00

Accounts Receivable 1103 30,000.00

17 Accounts Receivable 1103 8,064.00

Sales 4101 7,200.00
VAT Payable 2107 864.00

Cost of Goods Sold 5101 3,600.00

Finished Goods Inventory 1104 3,600.00

17 Gen. and Admin. Expense Control 5102 4,000.00

Selling and Marketing Expense Control 5103 2,000.00
Factory Overhead Control 5104 14,000.00
VAT Payable 2107 2,400.00
Cash 1101 21,400.00
Withholding Taxes Payable 2101 1,000.00

18 Factory Supplies Inventory 1107 4,500.00

Cash 1101 4,500.00

18 Cash 1101 13,440.00

Accounts Receivable 1103 13,440.00

20 WIP - Molding 1105a 2,400.00

Materials Inventory 1106 2,400.00

20 Selling and Marketing Expense Control 5103 15,000.00

VAT Payable 2107 1,800.00
Cash 1101 16,050.00
Withholding Taxes Payable 2101 750.00

21 Accounts Receivable 1103 26,880.00

Sales 4101 24,000.00
VAT Payable 2107 2,880.00

Cost of Goods Sold 5101 8,500.00

Finished Goods Inventory 1104 8,500.00

22 WIP - Painting 1105b 1,320.00

 NOVELTY CRAFTS INC.
GENERAL JOURNAL
January 2011
Materials Inventory 1106 1,320.00

22 WIP - Packaging 1105c 3,420.00

Materials Inventory 1106 3,420.00

24 WIP - Molding 1105a 400.00

WIP - Painting 1105b 6,000.00
WIP - Packaging 1105c 200.00
Applied Factory Overhead 5105 6,600.00

24 Finished Goods Inventory 1104 36,000.00

WIP - Molding 1105a 7,410.00
WIP - Painting 1105b 24,450.00
WIP - Packaging 1105c 4,140.00

25 VAT Payable 2107 23,262.00

Cash 1101 23,262.00

25 Materials Inventory 1106 2,025.00

VAT Payable 2107 243.00
Cash 1101 2,268.00

25 Accounts Receivable 1103 40,320.00

Sales 4101 36,000.00
VAT Payable 2107 4,320.00

Cost of Goods Sold 5101 12,750.00

Finished Goods Inventory 1104 12,750.00

27 Cash 1101 26,880.00

Accounts Receivable 1103 26,880.00

27 WIP - Molding 1105a 6,000.00

Materials Inventory 1106 6,000.00

27 Cash 1101 40,320.00

Accounts Receivable 1103 40,320.00

31 Payroll 5106 4,212.00

SSS, PhilHealth Payable 2103 491.70
Pag IBIG Payable 2104 100.00
Cash 1101 2,372.30
 NOVELTY CRAFTS INC.
GENERAL JOURNAL
January 2011
Accrued Payroll 2108 1,248.00

31 Materials Inventory 1106 4,050.00

VAT Payable 2107 486.00
Cash 1101 4,536.00

31 Payroll 5106 99,996.50

SSS, PhilHealth Payable 2103 7,516.70
Pag IBIG Payable 2104 1,400.00
Withholding Taxes Payable 2101 13,244.60
Cash 1101 77,835.20

31 WIP - Molding 1105a 4,040.00

WIP - Painting 1105b 14,443.00
WIP - Packaging 1105c 4,212.00
Factory Overhead Control 5104 24,183.75
Selling and Marketing Expense Control 5103 18,079.75
Gen. and Admin. Expense Control 5102 39,250.00
Payroll 104,208.50

31 WIP - Molding 1105a 160.00

WIP - Painting 1105b 2,400.00
WIP - Packaging 1105c 80.00
Applied Factory Overhead 5105 2,640.00

31 Cash 1101 32,256.00

Sales 4101 28,800.00
VAT Payable 2107 3,456.00

Cost of Goods Sold 5101 14,400.00

WIP - Molding 1105a 2,964.00
WIP - Painting 1105b 9,780.00
WIP - Packaging 1105c 1,656.00

31 Materials Inventory 1106 6,075.00

VAT Payable 2107 729.00
Accounts Payable 2106 6,804.00

31 WIP - Packaging 1105c 1,368.00

Materials Inventory 1106 1,368.00

31 Materials Inventory 1106 195.00

Materials Price Variance VA26 195.00

31 WIP - Molding 1105a 210.00

Material Quantity Variance VA26 210.00

31 Labor Qty/Efficiency Variance VA26 303.00

 NOVELTY CRAFTS INC.
GENERAL JOURNAL
January 2011
WIP - Molding 1105a 202.00
WIP - Painting 1105b 101.00

31 FOH Variances VA26 120.00

WIP - Molding 1105a 80.00
WIP - Painting 1105b 40.00

ADJUSTING ENTRIES
Jan. 31 Gen. and Admin. Expense Control 5102 250.00
Office Supplies 1108 250.00

31 Factory Overhead Control 5104 6,100.00

Factory Supplies 1107 6,100.00

31 Selling and Marketing Expense Control 5103 200.00

Prepaid Insurance 1110 200.00

Selling and Marketing Expense Control 5103 58.33

Gen. and Admin. Expense Control 5102 29.17
Factory Overhead Control 5104 204.17
Prepaid Insurance 1110 291.67

31 Factory Overhead Control 5104 5,000.00

Accum. Depreciation - ME 1201-A 5,000.00

31 Gen. and Admin. Expense Control 5102 2,533.33

Selling and Marketing Expense Control 5103 316.67
Factory Overhead Control 5104 316.67
Accum. Depreciation - FF 1202-A 3,166.67

31 Factory Overhead Control 5104 41.67

 NOVELTY CRAFTS INC.
GENERAL JOURNAL
January 2011
Tools 1203 41.67

31 Gen. and Admin. Expense Control 5102 #REF!

Selling and Marketing Expense Control 5103 #REF!
Factory Overhead Control 5104 #REF!
SSS, PhilHealth Payable 2103 #REF!
Pag IBIG Payable 2104 #REF!

31 WIP - Molding 1105a 400.00

Applied Factory Overhead 5105 400.00

31 Gen. and Admin. Expense Control 5102 86,198.52

Income Tax Payable 2102 86,198.52

CLOSING ENTRIES
31 Cost of Goods Sold 5101 73,035.71
Applied Factory Overhead 5105 14,260.00
Factory Overhead Control 5104 87,295.71
.
31 Sales 4101 948,400.00
Retained Earnings 3102 948,400.00

31 Cost of Goods Sold 5101 18.00

Material Quantity Variance VA26 210.00
Material Price Variance VA26 195.00
Labor Qty/Efficiency Variance VA26 303.00
FOH Variances VA26 120.00

31 Retained Earnings 3102 747,211.63

Cost of Goods Sold 5101 483,503.71
Gen. and Admin. Exp. Control 5102 197,865.47
Selling and Mktg. Exp. Control 5103 65,842.45
 NOVELTY CRAFTS INC.
GENERAL LEDGER
January 2011

Cash
Date Description Debit Date Description Credit
Jan. 1 Balance 109,695.00 Jan. 5 9,525.00
3 268,800.00 5 25,000.00
8 56,448.00 10 4,540.00
10 70,000.00 10 2,200.00
14 30,000.00 10 20,865.60
18 13,440.00 10 15,000.00
27 26,880.00 10 60,000.00
27 40,320.00 10 4,800.00
31 32,256.00 10 7,000.00
11 16,000.00
14 5,400.00
14 1,508.00
14 97,365.50
14 13,608.00
14 3,000.00
17 21,400.00
18 4,500.00
20 16,050.00
25 23,262.00
25 2,268.00
31 2,372.30
31 4,536.00
31 77,835.20
647,839.00 438,035.60
209,803.40

Temporary Investments
Date Description Debit Date Description Credit
Jan. 1 Balance 550,000.00

Accounts Receivable
Date Description Debit Date Description Credit
Jan. 1 Balance 613,100.00 Jan. 10 70,000.00
10 13,440.00 14 30,000.00
17 8,064.00 18 13,440.00
21 26,880.00 27 26,880.00
 NOVELTY CRAFTS INC.
GENERAL LEDGER
January 2011
25 40,320.00 27 40,320.00
31 550,000.00
1,251,804.00 180,640.00
1,071,164.00

Finished Goods Inventory

Date Description Debit Date Desctiption Credit
Jan. 1 Balance 417,300.00 Jan. 5 120,000.00
24 36,000.00 10 6,000.00
17 3,600.00
21 8,500.00
25 12,750.00
31 220,000.00
453,300.00 370,850.00
82,450.00

WIP - Molding
Date Description Debit Date Description Credit
Jan .1 Balance 4,977.00 Jan. 8 5,187.00
3 6,000.00 24 7,410.00
8 280.00 31 2,964.00
14 2,020.00 31 202.00
20 2,400.00 31 80.00
24 400.00
27 6,000.00
31 4,040.00
31 160.00
31 210.00 15,843.00
26,487.00
10,644.00
31 Adjusting 400.00

WIP - Painting
Date Description Debit Date Description Credit
Jan. 1 Balance 11,190.00 Jan. 8 17,115.00
3 990.00 24 24,450.00
8 4,200.00 31 9,780.00
10 3,300.00 31 101.00
14 12,423.00 31 40.00
22 1,320.00
24 6,000.00
31 14,443.00
2,400.00
56,266.00 51,486.00
 NOVELTY CRAFTS INC.
GENERAL LEDGER
January 2011
4,780.00

WIP - Packaging
Date Description Debit Date Description Credit
Jan. 6 2,394.00 Jan. 8 2,898.00
8 140.00 24 4,140.00
14 1,508.00 31 1,656.00
22 3,420.00
24 200.00
31 4,212.00
31 80.00
31 1,368.00
13,322.00 8,694.00
4,628.00

Materials Inventory
Date Description Debit Date Description Credit
Jan. 1 Balance 11,784.00 Jan. 3 990.00
10 18,630.00 3 6,000.00
14 12,150.00 6 2,394.00
25 2,025.00 10 3,300.00
31 4,050.00 20 2,400.00
31 6,075.00 22 1,320.00
31 195.00 22 3,420.00
27 6,000.00
31 1,368.00
54,909.00 27,192.00
27,717.00

Factory Supplies Inventory

Date Description Debit Date Description Credit
Jan. 1 Balance 2,000.00 Jan. 31 Adjusting 6,100.00
 NOVELTY CRAFTS INC.
GENERAL LEDGER
January 2011
3 4,500.00
6,500.00

Office Supplies Inventory

Date Description Debit Date Description Credit
Jan. 1 Balance 2,750.00 Jan. 31 Adjusting 250.00

Prepaid Rent
Date Description Debit Date Description Credit
Jan. 1 Balance 15,000.00

Prepaid Insurance
Date Description Debit Date Description Credit
Jan. 10 4,800.00 Jan. 31 Adjusting 200.00
10 7,000.00 31 Adjusting 291.67
11,800.00

Machinery and Equipment

Date Description Debit Date Description Credit
Jan. 1 Balance 600,000.00

Accumulated Depreciation - Machinery and Equipment

Date Description Debit Date Description Credit
Jan. 1 Balance 225,000.00
31 Adjusting 5,000.00
 NOVELTY CRAFTS INC.
GENERAL LEDGER
January 2011

Furniture and Fixtures

Date Description Debit Date Description Credit
Jan. 1 Balance 380,000.00

Accumulated Depreciation - Furniture and Fixtures

Date Description Debit Date Description Credit
Jan. 1 Balance 220,000.00
31 Adjusting 3,166.67

Tools
Date Description Debit Date Description Credit
Jan. 1 Balance 20,500.00 Jan. 31 Adjusting 41.67

Rental Deposit
Date Description Debit Date Description Credit
Jan. 1 Balance 70,000.00

Utilities Deposit
Date Description Debit Date Description Credit
Jan. 1 Balance 25,000.00

Withholding Taxes Payable

Date Description Debit Date Description Credit
Jan. 5 9,525.00 Jan. 1 Balance 9,525.00
17 1,000.00
20 750.00
31 13,244.60
9,525.00 24,519.60
14,994.60

Income Taxes Payable

Date Description Debit Date Description Credit
Jan. 1 Balance 28,500.00
 NOVELTY CRAFTS INC.
GENERAL LEDGER
January 2011
Jan. 31 Adjusting 86,198.52

114,698.52

SSS, PhilHealth Payable

Date Description Debit Date Description Credit
Jan. 10 4,540.00 Jan. 1 Balance 4,540.00
31 491.70
31 7,516.70
4,540.00 12,548.40
8,008.40
31 Adjusting 14,877.60

Pag IBIG Payable

Date Description Debit Date Description Credit
Jan. 10 2,200.00 Jan. 1 Balance 2,200.00
31 100.00
31 1,400.00
2,200.00 3,700.00
1,500.00
31 Adjusting 1,500.00

Accrued Expense Payable

Date Description Debit Date Description Credit
Jan. 14 5,400.00 Jan. 1 Balance 20,163.00
Jan. 31 1,248.00
21,411.00
16,011.00

Accounts Payable
Date Description Debit Date Description Credit
Jan. 5 25,000.00 Jan. 1 Balance 103,750.00
10 60,000.00 31 6,804.00
85,000.00 110,554.00
25,554.00

VAT Payable
Date Description Debit Date Description Credit
Jan. 10 2,235.60 Jan. 1 Balance 23,262.00
14 1,458.00 5 28,800.00
17 2,400.00 8 6,048.00
 NOVELTY CRAFTS INC.
GENERAL LEDGER
January 2011
20 1,800.00 10 1,440.00
25 23,262.00 17 864.00
25 243.00 21 2,880.00
31 486.00 25 4,320.00
31 729.00 31 3,456.00
32,613.60 71,070.00
38,456.40

Accrued Payroll
Date Description Debit Date Description Credit
Jan. 31 1,248.00 Jan. 31 1,248.00

Common Stock
Date Description Debit Date Description Credit
Jan. 1 Balance 1,000,000.00

Retained Earnings
Date Description Debit Date Description Credit
Jan. 31 Closing 747,211.63 Jan. 1 Balance 1,196,356.00
Jan. 31 Closing 948,400.00
2,144,756.00
1,397,544.37

Sales
Date Description Debit Date Description Credit
Jan. 31 Closing 948,400.00 Jan. 5 240,000.00
8 50,400.00
10 12,000.00
17 7,200.00
21 24,000.00
25 36,000.00
31 28,800.00
31 550,000.00
948,400.00

Cost of Goods Sold

Date Description Debit Date Description Credit
Jan. 5 120,000.00 Jan. 31 Closing 483,503.71
8 25,200.00
10 6,000.00
 NOVELTY CRAFTS INC.
GENERAL LEDGER
January 2011
17 3,600.00
21 8,500.00
25 12,750.00
31 14,400.00
31 220,000.00
31 Closing 73,035.71
31 Closing 18.00
483,503.71

General and Administrative Expense Control

Date Description Debit Date Description Credit
Jan. 10 5,000.00 Jan. 31 Closing 197,923.97
11 16,000.00
14 39,876.25
17 4,000.00
31 39,250.00
104,126.25
31 Adjusting 250.00
31 Adjusting 29.17
31 Adjusting 2,533.33
31 Adjusting 4,786.70
31 Adjusting 86,198.52

Selling and Marketing Expense Control

Date Description Debit Date Description Credit
Jan. 10 6,000.00 Jan. 31 Closing 65,842.45
14 3,000.00
14 18,004.00
17 2,000.00
20 15,000.00
31 18,079.75
62,083.75
31 Adjusting 200.00
31 Adjusting 58.33
 NOVELTY CRAFTS INC.
GENERAL LEDGER
January 2011
31 Adjusting 316.67
31 Adjusting 3,183.70

Factory Overhead Control

Date Description Debit Date Description Credit
Jan. 10 4,000.00 Jan. 31 Closing 87,295.71
14 25,042.25
17 14,000.00
31 24,183.75
67,226.00
31 Adjusting 6,100.00
31 Adjusting 204.17
31 Adjusting 5,000.00
31 Adjusting 316.67
31 Adjusting 41.67
31 Adjusting 8,407.20

Applied Factory Overhead

Date Description Debit Date Description Credit
Jan. 31 Closing 14,260.00 Jan. 8 4,620.00
24 6,600.00
31 2,640.00
13,860.00
31 Adjusting 400.00

Payroll
Date Description Debit Date Description Credit
Jan. 14 1,508.00 Jan. 14 98,873.50
14 97,365.50 31 104,208.50
31 4,212.00
31 99,996.50
203,082.00 203,082.00
 NOVELTY CRAFTS INC.
TRIAL BALANCE
January 2011

Debit Credit
Cash 209,803.40
Temporary Investments 550,000.00
Accounts Receivable 1,071,164.00
Finished Goods Inventory 82,450.00
WIP - Molding 10,644.00
WIP - Painting 4,780.00
WIP - Packaging 4,628.00
Materials Inventory 27,717.00
Factory Supplies Inventory 6,500.00
Office Supplies Inventory 2,750.00
Prepaid Rent 15,000.00
Prepaid Insurance 11,800.00
Machinery and Equipment 600,000.00
Accumulated Depreciation - ME 225,000.00
Furniture and Fixtures 380,000.00
Accumulated Depreciation - FF 220,000.00
Tools 20,500.00
Rental Deposit 70,000.00
Utilities Deposit 25,000.00
Withholding Tax Payable 14,994.60
Income Tax Payable 28,500.00
SSS, PhilHealth Payable 8,008.40
Pag IBIG Payable 1,500.00
Accrued Expense Payable 16,011.00
Accounts Payable 25,554.00
VAT Payable 38,456.40
Accrued Payroll
Common Stock 1,000,000.00
Retained Earnings 1,196,356.00
Sales 948,400.00
Cost of Goods Sold 410,450.00
Gen. and Adm. Expense Control 104,126.25
Sell. And Mktg. Expense Control 62,083.75
Factory Overhead Control 67,226.00
Applied Factory Overhead 13,860.00
Payroll -
Material Price Variance 195.00
Material Quantity Variance 210.00
Labor Qty/Efficiency Variance 303.00
FOH Variance 120.00
TOTALS 3,737,045.40 3,737,045.40
 NOVELTY CRAFTS INC.
WORKSHEET
January 2011

Trial Balance Adjustments Adjusted Trial Balance

Debit Credit Debit Credit Debit
Cash 209,803.40 209,803.40
Temporary Investments 550,000.00 550,000.00
Accounts Receivable 1,071,164.00 1,071,164.00
Finished Goods Inventory 82,450.00 82,450.00
WIP - Molding 10,644.00 400.00 11,044.00
WIP - Painting 4,780.00 4,780.00
WIP - Packaging 4,628.00 4,628.00
Materials Inventory 27,717.00 27,717.00
Factory Supplies Inventory 6,500.00 6,100.00 400.00
Office Supplies Inventory 2,750.00 250.00 2,500.00
Prepaid Rent 15,000.00 15,000.00
Prepaid Insurance 11,800.00 491.67 11,308.33
Machinery and Equipment 600,000.00 600,000.00
Accumulated Depreciation - ME 225,000.00 5,000.00
Furniture and Fixtures 380,000.00 380,000.00
Accumulated Depreciation - FF 220,000.00 3,166.67
Tools 20,500.00 41.67 20,458.33
Rental Deposit 70,000.00 70,000.00
Utilities Deposit 25,000.00 25,000.00
Withholding Tax Payable 14,994.60
Income Tax Payable 28,500.00 86,198.52
SSS, PhilHealth Payable 8,008.40 14,877.60
Pag IBIG Payable 1,500.00 1,500.00
Accrued Expense Payable 16,011.00
Accounts Payable 25,554.00
VAT Payable 38,456.40
Accrued Payroll
Common Stock 1,000,000.00
Retained Earnings 1,196,356.00
Sales 948,400.00
Cost of Goods Sold 410,450.00 410,450.00
Gen. and Adm. Expense Control 104,126.25 93,797.72 197,923.97
Sell. And Mktg. Expense Control 62,083.75 3,758.70 65,842.45
Factory Overhead Control 67,226.00 20,069.71 87,295.71
Applied Factory Overhead 13,860.00 400.00
Payroll -
Material Price Variance 195.00
Material Quantity Variance 210.00
Labor Qty/Efficiency Variance 303.00 303.00
FOH Variance 120.00 120.00
Net Income (Loss)
Totals 3,737,045.40 3,737,045.40 118,026.13 118,026.13 3,848,188.19
 NOVELTY CRAFTS INC.
WORKSHEET
January 2011

Adjusted Trial Balance Income Statement Balance Sheet

Credit Debit Credit Debit Credit
209,803.40
550,000.00
1,071,164.00
82,450.00
11,044.00
4,780.00
4,628.00
27,522.00
400.00
2,500.00
15,000.00
11,308.33
600,000.00
230,000.00 230,000.00
380,000.00
223,166.67 223,166.67
20,458.33
70,000.00
25,000.00
14,994.60 14,994.60
114,698.52 114,698.52
22,886.00 22,886.00
3,000.00 3,000.00
16,011.00 16,011.00
25,554.00 25,554.00
38,456.40 38,456.40
- -
1,000,000.00 1,000,000.00
1,196,356.00 1,196,356.00
948,400.00 948,400.00
410,450.00
197,923.97
65,842.45
87,295.71
14,260.00 14,260.00

195.00 195.00 195.00

210.00 210.00
303.00
120.00
201,129.87 201,129.87
3,848,188.19 963,065.00 963,065.00 3,086,253.06 3,086,253.06
 NOVELTY CRAFTS INC.
VARIANCE ANALYSIS
January 2011

ACTUAL COSTS STANDARD COSTS Quantity

MATERIALS MATERIALS Total Variance Price Variance Variance Total Variance
Job No. Department Actual Output Quantity Unit Cost Total Std. Qty Std. U. C. Total
A1400 Molding 105 38.00 3,990.00 105 40.00 4,200.00 210.00 210.00 210.00
Painting 4 330.00 1,320.00 4 330.00 1,320.00
Painting 3 330.00 990.00 3 330.00 990.00
Packaging 7 342.00 2,394.00 7 342.00 2,394.00
Total 8,694.00 8,904.00
2010 210.00

LABOR LABOR
Quantity Unit Cost Total Std. Qty Std. U. C. Total
Molding 14 50.50 707.00 14 50.50 707.00
Painting 140 50.50 7,070.00 140 50.50 7,070.00
Painting 72 50.50 3,636.00 70 50.50 3,535.00 (101.00) (101.00) (101.00)
Packaging 7 52.00 364.00 7 52.00 364.00
Total 11,777.00 11,676.00

OVERHEAD OVERHEAD
Quantity Unit Cost Total Std. Qty Std. U. C. Total
Molding 14 20.00 280.00 14 20.00 280.00
Painting 140 20.00 2,800.00 140 20.00 2,800.00
Painting 72 20.00 1,440.00 70 20.00 1,400.00 (40.00) (40.00) (40.00)
Packaging 7 20.00 140.00 7 20.00 140.00

Total 4,660.00 4,620.00 69.00

 NOVELTY CRAFTS INC.
VARIANCE ANALYSIS
January 2011
ACTUAL COSTS STANDARD COSTS Quantity
MATERIALS MATERIALS Total Variance Price Variance Variance Total Variance
Job No. Department Actual Output Quantity Unit Cost Total Std. Qty Std. U. C. Total
A1401 Molding 150 38.00 5,700.00 150 40.00 6,000.00 300.00 300.00 300.00
Painting 10 330.00 3,300.00 10 330.00 3,300.00
Packaging 10 342.00 3,420.00 10 342.00 3,420.00
Total 12,420.00 12,720.00

LABOR LABOR
Quantity Unit Cost Total Std. Qty Std. U. C. Total
Molding 20 50.50 1,010.00 20 50.50 1,010.00
Painting 300 50.50 15,150.00 300 50.50 15,150.00
Packaging 10 52.00 520.00 10 52.00 520.00
Total 16,680.00 16,680.00

OVERHEAD OVERHEAD
Quantity Unit Cost Total Std. Qty Std. U. C. Total
Molding 20 20.00 400.00 20 20.00 400.00
Painting 300 20.00 6,000.00 300 20.00 6,000.00
Packaging 10 20.00 200.00 10 20.00 200.00

Total 6,600.00 6,600.00 300.00

 NOVELTY CRAFTS INC.
VARIANCE ANALYSIS
January 2011
ACTUAL COSTS STANDARD COSTS Quantity
MATERIALS MATERIALS Total Variance Price Variance Variance Total Variance
Job No. Department Actual Output Quantity Unit Cost Total Std. Qty Std. U. C. Total
A1402 Molding 60 40.50 2,430.00 60 40.00 2,400.00 (30.00) (30.00) (30.00)
Painting 4 330.00 1,320.00 4 330.00 1,320.00
Packaging 4 342.00 1,368.00 4 342.00 1,368.00
Total

LABOR LABOR
Quantity Unit Cost Total Std. Qty Std. U. C. Total
Molding 12 50.50 606.00 8 50.50 404.00 (202.00) (202.00) (202.00)
Painting 120 50.50 6,060.00 120 50.50 6,060.00
Packaging 4 52.00 208.00 4 52.00 208.00
Total

OVERHEAD OVERHEAD
Quantity Unit Cost Total Std. Qty Std. U. C. Total
Molding 12 20.00 240.00 8 20.00 160.00 (80.00) (80.00) (80.00)
Painting 120 20.00 2,400.00 120 20.00 2,400.00
Packaging 4 20.00 80.00 4 20.00 80.00

Total (312.00)

ACTUAL COSTS STANDARD COSTS Quantity

Total Variance Price Variance Variance Total Variance
 NOVELTY CRAFTS INC.
VARIANCE ANALYSIS
January 2011 Quantity
MATERIALS MATERIALS Total Variance Price Variance Variance Total Variance
Job No. Department Actual Output Quantity Unit Cost Total Std. Qty Std. U. C. Total
A1403 Molding 150 40.50 6,075.00 150 40.00 6,000.00 (75.00) (75.00) (75.00)
Painting
Painting
Packaging
Total

LABOR LABOR
Quantity Unit Cost Total Std. Qty Std. U. C. Total
Molding 20 50.50 1,010.00 20 50.50 1,010.00
Painting
Painting
Packaging
Total

OVERHEAD OVERHEAD
Quantity Unit Cost Total Std. Qty Std. U. C. Total
Molding
Painting
Painting
Packaging

Total

MATERIALS LABOR OVERHEAD

Price Quantity Efficiency Efficiency Total Variance
Variance Variance Rate Variance Variance Rate Variance Variance F(UF)
 NOVELTY CRAFTS INC.
VARIANCE ANALYSIS
January
Price 2011
Quantity Efficiency Efficiency Total Variance
Job Numbers Variance Variance Rate Variance Variance Rate Variance Variance F(UF)
A1400 2010 210.00
2011 (101.00) (40.00)
Total 210.00 (101.00) (40.00) 69.00

A1401 300.00 300.00

A1402 (30.00) (202.00) (80.00) (312.00)

A1403 (75.00)

Total per cost sheet

Total per book
Difference 195.00 210.00 (303.00) (120.00) 57.00
 NOVELTY CRAFTS INC.
JOB ORDER COST SHEET

Customer Jenny Santos Job No. A1400

Job Description Model A - Debutante Angel 4" Quantity 210 pcs

Date Ordered 20-Dec-10 Date Needed 8-Jan-11

Date Started 20-Dec-10 Date Completed

DIRECT MATERIALS USED

Molding Department
Date Items MRS No. Measure Quantity Unit Cost Total Cost
20-Dec resins 1542 kls 105 38 3,990

Total Costs 105 3,990

Painting Department
Date Items MRS No. Measure Quantity Unit Cost Total Cost
20-Dec paint 1543 gals 4 330 1,320
3-Jan paint 1545 gals 3 330 990

Total Costs 7 2,310

Packaging Department
Date Items MRS No. Measure Quantity Unit Cost Total Cost
6-Jan set of boxes 1547 pcs 7 342 2,394

Total Costs 7 2,394

TOTAL MATERIAL COSTS 8,694

DIRECT LABOR USED

Molding Department
Date Worker From To Hours Rate Total Cost
31-Dec Aguas, Arnold 20-Dec 21-Dec 14 50.50 707.00

Total Costs 14 707.00

Painting Department
Date Worker From To Hours Rate Total Cost
31-Dec Baluyut, Benhur 22-Dec 29-Dec 70 50.50 3,535.00
31-Dec Cruz, Cartney 22-Dec 29-Dec 70 50.50 3,535.00
8-Jan Baluyut, Benhur 3-Jan 8-Jan 48 50.50 2,424.00
5-Jan Cruz, Cartney 3-Jan 5-Jan 24 50.50 1,212.00

Total Cost 212 10,706.00

Packaging Department
Date Worker From To Hours Rate Total Cost
6-Jan de Leon, Dandee 6-Jan 6-Jan 7 52.00 364.00

Total Cost 7 364.00

TOTAL DIRECT LABOR COSTS 11,777.00
 NOVELTY CRAFTS INC.
JOB ORDER COST SHEET

SUMMARY OF COSTS
Molding Painting Packaging Total Cost Total Cost
Actual Budget Actual Budget Actual Budget (Actual) (Budget)
Materials 3,990.00 4,200.00 2,310.00 2,310.00 2,394.00 2,394.00 8,694.00 8,904.00
Labor 707.00 707.00 10,706.00 10,605.00 364.00 364.00 11,777.00 11,676.00
Overhead 280.00 280.00 4,240.00 4,200.00 140.00 140.00 4,660.00 4,620.00
Total Costs 4,977.00 5,187.00 17,256.00 17,115.00 2,898.00 2,898.00 25,131.00 25,200.00
Variances F(UF) 210.00 (141.00) - 69.00
Contract Price Remarks

Customer For Stock Job No. A1401

Job Description Model A - Cupid Angel 4" Quantity 300 pcs

Date Ordered Date Needed 25-Jan-11

Date Started 5-Jan-11 Date Completed

DIRECT MATERIALS USED

Molding Department
Date Items MRS No. Measure Quantity Unit Cost Total Cost
3-Jan resins 1546 kls 150 38 5,700

Total Costs 150 38 5,700

Painting Department
Date Items MRS No. Measure Quantity Unit Cost Total Cost
10-Jan paints 1548 gals 10 330 3,300

Total Costs 10 330 3,300

Packaging Department
Date Items MRS No. Measure Quantity Unit Cost Total Cost
22-Jan set of boxes 1551 pcs 10 342 3,420

Total Costs 10 3,420

TOTAL MATERIAL COSTS 12,420

DIRECT LABOR USED

Molding Department
Date Worker From To Hours Rate Total Cost
5-Jan Aguas, Arnold 3-Jan 5-Jan 20 50.50 1,010.00
 NOVELTY CRAFTS INC.
JOB ORDER COST SHEET

Total Costs 20 1,010.00

Painting Department
Date Worker From To Hours Rate Total Cost
15-Jan Aguas, Arnold 10-Jan 15-Jan 60 50.50 3,030.00
22-Jan Baluyut, Benhur 10-Jan 22-Jan 120 50.50 6,060.00
22-Jan Cruz, Cartney 10-Jan 22-Jan 120 50.50 6,060.00

Total Cost 300 15,150.00

Packaging Department
Date Worker From To Hours Rate Total Cost
24-Jan de Leon, Dandee 22-Jan 24-Jan 10 52.00 520.00

Total Cost 10 520.00

TOTAL DIRECT LABOR COSTS 16,680.00

SUMMARY OF COSTS
Molding Painting Packaging Total Cost Total Cost
Actual Budget Actual Budget Actual Budget (Actual) (Budget)
Materials 5,700.00 6,000.00 3,300.00 3,300.00 3,420.00 3,420.00 12,420.00 12,720.00
Labor 1,010.00 1,010.00 15,150.00 15,150.00 520.00 520.00 16,680.00 16,680.00
Overhead 400.00 400.00 6,000.00 6,000.00 200.00 200.00 6,600.00 6,600.00
Total Costs 7,110.00 7,410.00 24,450.00 24,450.00 4,140.00 4,140.00 35,700.00 36,000.00
Variances F(UF) 300.00 - - 300.00
Contract Price Remarks

Customer Bobby Roberts Job No. A1402

Job Description Model A - Bride and Groom Quantity 120 pcs

Date Ordered 20-Jan-11 Date Needed 5-Feb-11

Date Started 20-Jan-11 Date Completed

DIRECT MATERIALS USED

Molding Department
Date Items MRS No. Measure Quantity Unit Cost Total Cost
20-Jan resins 1549 kls 60 40.50 2,430.00

Total Costs 60 2,430.00

Painting Department
Date Items MRS No. Measure Quantity Unit Cost Total Cost
22-Jan paints 1550 gals 4 330.00 1,320.00
 NOVELTY CRAFTS INC.
JOB ORDER COST SHEET

Total Costs 4 1,320.00

Packaging Department
Date Items MRS No. Measure Quantity Unit Cost Total Cost
31-Jan set of boxes 1553 pcs 4 342.00 1,368.00

Total Costs 4 1,368.00

TOTAL MATERIAL COSTS 5,118.00

DIRECT LABOR USED

Molding Department
Date Worker From To Hours Rate Total Cost
21-Jan Aguas, Arnold 20-Jan 21-Jan 12 50.50 606.00

Total Costs 12 606.00

Painting Department
Date Worker From To Hours Rate Total Cost
22-Jan Aguas, Arnold 22-Jan 22-Jan 8 50.50 404.00
31-Jan Baluyut, Benhur 24-Jan 31-Jan 56 50.50 2,828.00
31-Jan Cruz, Cartney 24-Jan 31-Jan 56 50.50 2,828.00

Total Cost 120 50.50 6,060.00

Packaging Department
Date Worker From To Hours Rate Total Cost
24-Jan de Leon, Dandee 24-Jan 24-Jan 4 52.00 208.00

Total Cost 4 208.00

TOTAL DIRECT LABOR COSTS 6,874.00

SUMMARY OF COSTS
Molding Painting Packaging Total Cost Total Cost
Actual Budget Actual Budget Actual Budget (Actual) (Budget)
Materials 2,430.00 2,400.00 1,320.00 1,320.00 1,368.00 1,368.00 5,118.00 5,088.00
Labor 606.00 404.00 6,060.00 6,060.00 208.00 208.00 6,874.00 6,672.00
Overhead 240.00 160.00 2,400.00 2,400.00 80.00 80.00 2,720.00 2,640.00
Total Costs 3,276.00 2,964.00 9,780.00 9,780.00 1,656.00 1,656.00 14,712.00 14,400.00
Variances F(UF) (312.00) - - (312.00)
Contract Price Remarks
 NOVELTY CRAFTS INC.
JOB ORDER COST SHEET

Customer For Stock Job No. A1403

Job Description Model A - Baby Jesus Quantity 300 pcs

Date Ordered Date Needed 10-Feb-11

Date Started 27-Jan-11 Date Completed

DIRECT MATERIALS USED

Molding Department
Date Items MRS No. Measure Quantity Unit Cost Total Cost
27-Jan resins 1552 kls 150 40.50 6,075.00

Total Costs
Painting Department
Date Items MRS No. Measure Quantity Unit Cost Total Cost

Total Costs
Packaging Department
Date Items MRS No. Measure Quantity Unit Cost Total Cost

Total Costs
TOTAL MATERIAL COSTS

DIRECT LABOR USED

Molding Department
Date Worker From To Hours Rate Total Cost
29-Jan Aguas, Arnold 27-Jan 29-Jan 20 50.50 1,010.00

Total Costs
Painting Department
Date Worker From To Hours Rate Total Cost

Total Cost
Packaging Department
Date Worker From To Hours Rate Total Cost

Total Cost
 NOVELTY CRAFTS INC.
JOB ORDER COST SHEET

TOTAL DIRECT LABOR COSTS

SUMMARY OF COSTS
Molding Painting Packaging Total Cost Total Cost
Actual Budget Actual Budget Actual Budget (Actual) (Budget)
Materials
Labor
Overhead
Total Costs
Variances F(UF)
Contract Price Remarks
 NOVELTY CRAFTS INC.
PAYROLL

Period Covered: JAN. 1 - 15, 2011

Overtime Late/Absences
Days
Present Rate Basic Pay Hours Amount Hours Amount Total Gross Pay

Santos, J.P 36,000.00 18,000.00 18,000.00

Vasquez, L. 18,000.00 9,000.00 9,000.00
Lopez, K. 15,000.00 7,500.00 7,500.00
Kay, A.K. 10,500.00 5,250.00 2 126.25 5,376.25
Mayo, M. 15,000.00 7,500.00 7,500.00
Junio, M. 404.00 5,252.00 5,252.00
Serrano, R. 404.00 5,252.00 5,252.00
Valdez, S. 11,000.00 5,500.00 5,500.00
Perez, R. 10,500.00 5,250.00 5,250.00
Gonzales, P. 15,000.00 7,500.00 7,500.00
Aguas, A. 404.00 4,848.00 2 126.25 4,974.25
Baluyut, B. 404.00 5,252.00 2 126.25 5,378.25
Cruz, C. 404.00 5,252.00 2 126.25 5,378.25
Ruiz, R. 404.00 5,252.00 4 252.50 5,504.50
TOTAL

Period Covered: JAN. 16 - 31, 2011

Overtime Late/Absences
Days
Present Rate Basic Pay Hours Amount Hours Amount Total Gross Pay

Santos, J.P 36,000.00 18,000.00 18,000.00

Vasquez, L. 18,000.00 9,000.00 9,000.00
Lopez, K. 15,000.00 7,500.00 8 500.00 7,000.00
Kay, A.K. 10,500.00 5,250.00 5,250.00
Mayo, M. 15,000.00 7,500.00 7,500.00
Junio, M. 404.00 5,252.00 1 50.50 5,201.50
Serrano, R. 404.00 5,252.00 2 126.25 5,378.25
Valdez, S. 11,000.00 5,500.00 5,500.00
Perez, R. 10,500.00 5,250.00 5,250.00
Gonzales, P. 15,000.00 7,500.00 7,500.00
Aguas, A. 404.00 5,252.00 10 631.25 5,883.25
Baluyut, B. 404.00 5,252.00 22 1,388.75 6,640.75
Cruz, C. 404.00 5,252.00 22 1,388.75 6,640.75
Ruiz, R. 404.00 5,252.00 5,252.00
TOTAL 99,996.50

Rate Gross Pay Overtime Pay Total Amount

Hours Amount

Santos, J.P 36,000.00 18,000.00 18,000.00

Vasquez, L. 18,000.00 9,000.00 9,000.00
Lopez, K. 15,000.00 7,500.00 7,500.00
Kay, A.K. 10,500.00 7,000.00 2 126.25 7,126.25
Mayo, M. 15,000.00 7,500.00 7,500.00
Junio, M. 404.00 5,252.00 5,252.00
Serrano, R. 404.00 5,252.00 5,252.00
Valdez, S. 11,000.00 5,500.00 5,500.00
Perez, R. 10,500.00 5,250.00 5,250.00
Gonzales, P. 15,000.00 7,500.00 7,500.00
Aguas, A. 404.00 4,848.00 2 126.25 4,974.25
 NOVELTY CRAFTS INC.
PAYROLL

Baluyut, B. 404.00 5,252.00 2 126.25 5,378.25

Cruz, C. 404.00 5,252.00 2 126.25 5,378.25
Ruiz, R. 404.00 5,252.00 4 252.50 5,504.50
TOTAL

Rate Gross Pay Overtime Pay Total Amount

Hours Amount

Santos, J.P 36,000.00 18,000.00 18,000.00

Vasquez, L. 18,000.00 9,000.00 9,000.00
Lopez, K. 15,000.00 7,000.00 7,000.00
Kay, A.K. 10,500.00 5,250.00 5,250.00
Mayo, M. 15,000.00 7,500.00 7,500.00
Junio, M. 404.00 5,201.50 5,201.50
Serrano, R. 404.00 5,252.00 2 126.25 5,378.25
Valdez, S. 11,000.00 5,500.00 5,500.00
Perez, R. 10,500.00 5,250.00 5,250.00
Gonzales, P. 15,000.00 7,500.00 7,500.00
Aguas, A. 404.00 5,252.00 10 631.25 5,883.25
Baluyut, B. 404.00 5,252.00 22 1,388.75 6,640.75
Cruz, C. 404.00 5,252.00 22 1,388.75 6,640.75
Ruiz, R. 404.00 5,252.00 5,252.00
TOTAL
 NOVELTY CRAFTS INC.
PAYROLL

Total
Wtax SSS PhilHealth Pag IBIG Deduction Net Pay

18,000.00
9,000.00
7,500.00
5,376.25
7,500.00
5,252.00
5,252.00
5,500.00
5,250.00
7,500.00
4,974.25
5,378.25
5,378.25
5,504.50
97,365.50

Total
Wtax SSS PhilHealth Pag IBIG Deduction Net Pay

7,249.17 500.00 125.00 100.00 7,974.17 10,025.83

2,235.50 500.00 125.00 100.00 2,960.50 6,039.50
1,466.67 483.30 125.00 100.00 2,174.97 4,825.03
350.00 125.00 100.00 575.00 4,675.00
729.93 500.00 125.00 100.00 1,454.93 6,045.07
333.30 125.00 100.00 558.30 4,643.20
350.00 125.00 100.00 575.00 4,803.25
366.70 125.00 100.00 591.70 4,908.30
350.00 125.00 100.00 575.00 4,675.00
1,563.33 500.00 125.00 100.00 2,288.33 5,211.67
366.70 125.00 100.00 591.70 5,291.55
400.00 125.00 100.00 625.00 6,015.75
400.00 125.00 100.00 625.00 6,015.75
366.70 125.00 100.00 591.70 4,660.30
13,244.60 5,766.70 1,750.00 1,400.00 77,835.20

Factory
Work in Overhead Gen. and Admin Selling and
Process Control Control Mktg. Control

18,000.00
9,000.00
7,500.00
5,376.25
7,500.00
5,252.00
5,252.00
5,500.00
5,250.00
7,500.00
4,545.00 429.25
 NOVELTY CRAFTS INC.
PAYROLL

4,949.00 429.25
4,949.00 429.25
5,504.50
14,443.00 25,042.25 39,876.25 18,004.00

Factory
Work in Overhead Gen. and Admin Selling and
Process Control Control Mktg. Control

18,000.00
9,000.00
7,000.00
5,250.00
7,500.00
5,201.50
5,378.25
5,500.00
5,250.00
7,500.00
5,757.00 126.25
6,363.00 277.75
6,363.00 277.75
5,252.00
18,483.00 24,183.75 39,250.00 18,079.75
 NOVELTY CRAFTS INC.
MATERIALS STOCK CARD
January 2011

NAME OF ITEM: RESINS

RECEIVED ISSUED BALANCE

Date P.O. No. MRS No. Quantity Unit Cost Total Quantity Unit Cost Total Quantity Unit Cost Total
1-Dec Beginning balance 300 38.00 11,400.00
15-Dec 1540 45 38.00 1,710.00 255 38.00 9,690.00
20-Dec 1542 105 38.00 3,990.00 150 38.00 5,700.00

1-Jan Beginning balance 150 38.00 5,700.00

3-Jan 1546 150 38.00 5,700.00 0 38.00 -
14-Jan 1201 300 40.50 12,150.00 300 40.50 12,150.00
20-Jan 1549 60 40.50 2,430.00 240 40.50 9,720.00
25-Jan 1202 50 40.50 2,025.00 290 40.50 11,745.00
27-Jan 1552 150 40.50 6,075.00 140 40.50 5,670.00
31-Jan 1203 100 40.50 4,050.00 240 40.50 9,720.00
31 1204 150 40.50 6,075.00 390 40.50 15,795.00
 NOVELTY CRAFTS INC.
MATERIALS STOCK CARD
January 2011

NAME OF ITEM: PAINTS

RECEIVED ISSUED BALANCE

Date P.O. No. MRS No. Quantity Unit Cost Total Quantity Unit Cost Total Quantity Unit Cost Total
1-Dec Beginning balance 13 330.00 4,290.00
16-Dec 1541 3 330.00 990.00 10 330.00 3,300.00
20-Dec 1543 4 330.00 1,320.00 6 330.00 1,980.00

1-Jan Beginning balance 6 330.00 1,980.00

3-Jan 1545 3 330.00 990.00 3 330.00 990.00
10-Jan 1200 15 330.00 4,950.00 18 330.00 5,940.00
10-Jan 1548 10 330.00 3,300.00 8 330.00 2,640.00
22-Jan 4 330.00 1,320.00 4 330.00 1,320.00
 NOVELTY CRAFTS INC.
MATERIALS STOCK CARD
January 2011

NAME OF ITEM: BOXES

RECEIVED ISSUED BALANCE

Date P.O. No. MRS No. Quantity Unit Cost Total Quantity Unit Cost Total Quantity Unit Cost Total
1-Dec Beginning balance 15 342.00 5,130.00
22-Dec 1544 3 342.00 1,026.00 12 342.00 4,104.00

1-Jan Beginning balance 12 342.00 4,104.00

6-Jan 7 342.00 2,394.00 5 342.00 1,710.00
10-Jan 40 342.00 13,680.00 45 342.00 15,390.00
22-Jan 10 342.00 3,420.00 35 342.00 11,970.00
31-Jan 4 342.00 1,368.00 31 342.00 10,602.00
 NOVELTY CRAFTS INC.
Statement of Financial Position
As of January 31, 2011

ASSETS
Current Assets:
Cash 209,803.40
Temporary Investments 550,000.00
Accounts Receivables 1,071,164.00
Finished Goods Inventory 82,450.00
WIP - Molding 11,044.00
WIP - Painting 4,780.00
WIP - Packaging 4,628.00
Materials Inventory 27,717.00
Factory Supplies 400.00
Office Supplies 2,500.00
Prepaid Insurance 15,000.00
Prepaid Rent 11,308.33
TOTAL 1,990,794.73
Fixed Assets:
Machinery and Equipment 600,000.00
Less: Accumulated Depreciation 230,000.00 370,000.00
Furniture and Fixtures 380,000.00
Less: Accumulated Depreciation 223,166.67 156,833.33
Tools 20,458.33
TOTAL 547,291.66
Other Assets:
Rental Deposit 70,000.00
Utilities Deposit 25,000.00
TOTAL 95,000.00
Total Assets 2,633,086.39

LIABILITIES AND SHAREHOLDER'S EQUITY

Current Liabilities:
Income Tax Payable 114,698.52
Withholding Taxes Payable 14,994.60
SSS, PhilHealth Payable 22,886.00
Pag IBIG Payable 3,000.00
Accrued Expense Payable 16,011.00
Accounts Payable 25,554.00
VAT Payable 38,456.40
TOTAL 235,600.52
Stockholder's Equity:
Authorized 10,000 shares at P 100 par, 10,000 shares issued
and outstanding 1,000,000.00
Retained Earnings 1,397,485.87
TOTAL 2,397,485.87
Total Liabilities and Stockholder's Equity 2,633,086.39
 NOVELTY CRAFTS INC.
STATEMENT OF INCOME AND RETAINED EARNINGS
For the month ended January 31, 2011

Sales 948,400.00
Less: Cost of Goods Sold 483,503.71
Gross Profit 464,896.29
Less: Operating Expenses
General and Administrative Expense Control:
Rent Expense 4,000.00
Salaries and Wages 79,126.25
Taxes and Licenses 16,000.00
SSS, PhilHealth Contributions 4,386.70
Pag IBIG Contributions 400.00
Office Supplies Expense 250.00
Utilities Expense 5,000.00
Donations and Contributions
Insurance Expense 29.17
Depreciation Expenses 2,533.33
Total 111,725.45
Selling and Marketing Expense Control:
Rent Expense 17,000.00
Depreciation Expenses 316.67
Office Supplies Expense
Utilities Expense 6,000.00
Salaries and Wages 36,083.75
SSS, PhilHealth Contributions 2,883.70
Pag IBIG Contributions 300.00
Insurance Expense 258.33
Advertising Expenses 3,000.00
Total 65,842.45
Total Operating Expenses 177,567.90
Net income before income taxes 287,328.39
Less: Income taxes 86,198.52
Net income to Retained Earnings 201,129.87
Retained Earnings, beginning 1,196,356.00
Retained Earnings, ending balance 1,397,485.87
 NOVELRTY CRAFTS INC.
STATEMENT OF COST OF GOODS MANUFACTURED AND SOLD
(MODEL A)
For the month ended January 31, 2011

Materials used:
Inventory, beginning 11,784.00
Add: Net purchases 42,930.00
Available for use 54,714.00
Less: Inventory, ending 27,522.00
Direct materials used 27,192.00
Direct labor 27,472.00
Prime Cost 54,664.00
Add: Factory Overhead Applied (Standard) 14,260.00
Add (Less): Variances UF(F) (39.00)
Total manufacturing costs 68,885.00
Add: WIP, beginning 16,167.00
Total cost to account for 85,052.00
Less: WIP, ending 20,452.00
Total cost of goods manufactured 64,600.00
Add: Finished goods inventory, beginning 154,800.00
Total cost of goods available for sale 219,400.00
Less: Finished good inventory, ending 61,200.00
Cost of goods sold 158,200.00