Problem 1-10

a Materials 18,400.00
Accounts Payable 18,400.00

b FOC - Miscellaneous 53,060.00

Accounts Payable 53,060.00

c Payroll 172,000.00
Accrued Payroll 172,000.00

WIP - Direct Labor 121,000.00

FOC - Indirect Labor 25,000.00
Selling Expenses 16,000.00
Administrative expenses 10,000.00
Payroll 172,000.00

Accrued Payroll (4,500 + 172,000) 176,500.00

Cash 176,500.00

d WIP - Direct Materials 165,000.00

FOC - Indirect Materials 16,600.00
Materials 181,600.00

e Work in Process 94,660.00

Factory Overhead - Applied 94,660.00

f Finished Goods 376,000.00

Work In Process 376,000.00

g Accounts Receiable 482,300.00

Sales 482,300.00

Cost of Goods Sold 371,000.00

Finished Goods 371,000.00

h Cash 417,323.00
Sales Discount 8,517.00
Accounts Receivable 425,840.00

i Administrative Expenses 24,000.00

Marketing expenses 36,000.00
Accounts Payable 60,000.00

j Accounts Payable 208,000.00

Cash 208,000.00
PENA MANUFACTURING COMPANY
Statement of Cost of Goods Manufactured
For the Year Ended December 31, 2018

Raw Materials, Beginning 60,000.00

Add: Purchases 160,000.00
Total Available for Use 220,000.00
Less: Raw Materials, Ending 20,000.00
Direct Materials Used 200,000.00
Direct Labor 120,000.00
Factory Overhead 80,000.00
Total Manufacturing Cost 400,000.00
Add: WIP beginning -
Total Cost of Goods Placed in Process 400,000.00
Less: WiP, ending 25,000.00
Cost of Godds Manufactured 375,000.00

Let X = RM beginng
1/3X = RM ending
Therefore:
x = 160,000 - 1/3X = 200,000
x + 1/3X = 200,000 - 160,000
2/3x = 40,000
x = 40,000 / 2/3
x = 60,000

PENA MANUFACTURING COMPANY

Statement of Comprehensive Income
For the Year Ended December 31, 2018

Sales 500,000.00 100

Cost of Goods Sold
Cost of Goods Manufactured 375,000.00
Finished Goods, Beginning 25,000.00
Total Goods Available for Sale 400,000.00
Less: Finished Goods, ending 100,000.00 300,000.00 60
Gross Profit (40%) 200,000.00 40
Operating Expenses
Selling Expenses 96,000.00
General expenses 24,000.00 120,000.00
Net Income Before Tax 80,000.00
Provision for Income Tax 28,000.00
Net Income After Tax 52,000.00

Let X = FG beg
4x = FG ending
Therefore:
375,000 + X - 4X = 300,000
X - 4X = 300,000 - 375,000
-3x = -75,000
x = -75,000 / -3
x = 25,000