Solutions:

1. Merchandise Inventory

Beginning Balance ₱ 41, 000

Add: Purchases 210,000
Merchandise Available for Sale 251,000
Less: Cost of Goods Sold (223,000)
Ending Balance ₱ 28,000

2. Direct Materials

Beginning Balance ₱ 7, 000

Add: Purchases 48,000
Total Available for Use 55,000
Less: Ending Balance (14,000)
Direct Materials Used ₱ 41,000

3. Work-in-process

Cost of Goods Manufactured ₱ 21, 000

Add: Inventory Ending Balance 22,000
Cost of Goods Put into Process 43,000
Less: Beginning Balance (8,000)
Current Manufacturing Costs ₱ 35,000

4. Finished Goods Inventory

Cost of Goods Sold ₱ 61, 000

Add: Ending Balance 20,000
Total Goods Available for Sale 81,000
Less: Cost of Goods Manufactured (62,000)
Beginning Balance ₱ 19,000

Problem 1

Cost of Goods Manufactured ₱ 340, 000

Add: Finished Goods, Beginning 45,000
Total Goods Available for Sale 385,000
Less: Finished Goods, Ending (52,000)
Cost Of Goods Sold ₱ 333,000

Cost of Goods Sold ₱ 333, 000

Add: Gross Margin (96,000)
Sales ₱ 429,000

Problem 2

Direct Materials, Beginning ₱ 300, 000

Add: Direct Materials, End 50,000
Direct Materials Purchases ₱350,000