Ralph Lauren C.

Matias
BSA-201A

Product Period
cost cost
Marketing salaries P39,000
Property taxes, factory P8,000
Administrative travel 102,000
Sales commissions 73,000
Indirect labor 31,000
Direct materials 197,000
Advertising 145,000
Depreciation of production equipment 39,000
Direct labor 78,000

P353,000 P359,000
Ralph Lauren C. Matias
BSA-201A

Monster Manufacturing Company

Cost of Goods Manufactured Schedule

ADD: Beginning work in process inventory P700

Direct materials:
Beginning raw material inventory P900
Add: Raw material purchased 8,400
Raw material available 9,300
Less: Ending raw material inventory -750
Raw material used 8,550

Direct (raw) materials used 8,550

Direct labor cost 1,240
Manufacturing overhead 2,070
Total Manufacturing Cost 11,860
Less: Ending work in process inventory -1,050
Cost of goods manufactured P11,510
Ralph Lauren C. Matias
BSA-201A

Monster Manufacturing Company

Cost of Goods Sold Schedule

ADD: Beginning finished goods inventory 970

Cost of goods manufactured 11,510
Cost of goods available for sale 12,480
Less: Ending finished goods inventory -1,120
Cost of goods sold P11,360

Monster Manufacturing Company

Income statement

Sales 16,800
less: Cost of goods sold -11,360
Gross profit 5,440
Less: operating expenses
Administrative expenses 1,890
Selling expenses 1,000 -2,890
NET INCOME P2,550