Amazing Aluminum Company, a manufacturer of recycled soda cans, had the following inventory b

Inventory Classification January 1, 2020 December 31, 2020

Raw Material P 60,000 P 70,000
Work in Process 120,000 115,000
Finished Goods 150,000 165,000

During 2020, the company purchased P250,000 of raw materials and spent P400,000 on direct labo

Indirect material ........................................P10,000

Indirect labor ............................................. 25,000
Depreciation on plant and equipment...... 100,000
Utilities...................................................... 25,000
Other......................................................... 30,000

Sales revenue was P1,105,000 for the year. Selling and administrative expense for the year amount

Required:
1. Prepare a schedule of cost of goods manufactured
2. Prepare a schedule of cost of goods sold
3. Prepare an income statement
lowing inventory balances at the beginning and end of 2020:

0,000 on direct labor. Manufacturing overhead costs were as follows:

or the year amounted to P110,000. The firm's tax rate is 40%.

Amazing Aluminum Company
Statement of Cost of Goods Manufactured
For the period December 31, 2020

Direct materials used

Direct materials inventory, Jan 1, 2020 60,000
Add: Purchases of direct materials 250,000
Total direct materials available 310,000
Less: Direct materials inventory, Dec 31, 2020 70,000 240,000
Direct Labor 400,000
Manufacturing overhead
Indirect materials 10,000
Indirect labor 25,000
Factory utilities 25,000
Depreciation of plant and equipment 100,000
Other 30,000 190,000
Total manufacuring costs 830,000
Add: Work in process inventory, Jan 1, 2020 120,000
Total cost placed in production 950,000
Less: Work in process inventory, Dec 31, 2020 115,000
Cost of goods manufactured 835,000
Amazing Aluminum Company
Statement of Cost of Goods Sold (Manufacturing)
For the period December 31, 2020

Beginning finished goods inventory 150,000

Add: Cost of Goods Manufactured 835,000
Total goods available for sale 985,000
Less: Ending finished goods inventory 165,000
Cost of Goods Sold 820,000

Amazing Aluminum Company

Income Statement
For the period December 31, 2020

Sales 1,105,000
Less: Cost of Goods Sold 820,000
Gross Profit 285,000
Less: Selling and Administrative Expense 110,000
Net income before tax 175,000
Less: Income Tax 70,000
Net income after tax 105,000