Problem 4

The accounting department of the Blanche Corporation provided the following data for
March, 2011.
Sales P1,200,000
Marketing Expenses 5% of Sales
Administrative Expenses 1% of Sales
Purchases P400,000
Factory Overhead 2/3 of DL costs
Direct Labor P210,000

Inventories: March 1 March 31

Finished goods P100,000 P82,500

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Work in Process 102,350 117,135

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Materials 50,000 47,485

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Required:
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1. Income Statement
Blanche Corporation
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Income Statement
aC s
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For the month ended March 31, 2020

y
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Sales P1, 200, 000

ar stu

Cost of Goods Sold ( 755, 230)

Gross Profit 444,770
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Operating Expenses:
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Marketing Expense (60, 000)

Administrative Expense (12, 000)

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NET INCOME P372, 770

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 2. Cost of Goods sold Statement
Blanche Corporation
Cost of Goods Manufactured Statement
For the month ended March 21, 2020

Direct Raw Materials Used

Mar 1, Raw Materials P50, 000
Purchases 400, 000
Direct Raw Materials Available for Use 450, 000
Mar 31, Raw Materials (47, 485) 402, 515
Direct Labor 210, 000
Factory Overhead 140, 000

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Total Manufacturing Cost 752, 515

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Work in Progress, Beg. eH w 102, 350
Cost of Goods Put into Production 854, 865

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Work in Progress, End (117, 135)
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COST OF GOODS MANUFACTURED P737, 730

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Blanche Corporation
aC s
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Cost of Goods Sold Statement

For the month ended March 31, 2020
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ar stu

Cost of Goods Manufactured P737, 730

Finished Goods Inventory, Beg. 100, 000
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Cost of Goods Available For Sale 837, 730

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Finished Goods Inventor, End (82, 500)

COST OF GOODS SOLD P755, 230
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