In the course of your review of the accounts, you discover the following adjustments:
- Depreciation – for the year was ₱50,000. 75% is chargeable to factory operation and 25% to general operations.
- There is unpaid payroll of ₱2,800 (direct) and ₱500 for factory supervision.
- Prepayments that expired are ₱8,000 where 50% is applicable to factory operation and 10% to general operation.
- Inventories at Dec. 31, 2005 are:
Finished Goods
|
|
₱25,000
|
Work in Process
|
|
45,000
|
Direct Materials
|
|
25,000
|
- Income tax is 20% of net income of 2005.
Requirement (using above details):
Prepare statement of cost of goods manufactured of 2005.
Extracted text: Directions. Solve the following. Shown below is a trial balance of XYZ, manufacturing company from the beginning of the year 2005. Cash 50,000.00 Accounts Receivable 65,000.00 Allowances of Doubtful accounts 10,000.00 Finished Goods 75,000.00 Work in Process 20,000.00 Direct Material 21,000.00 Repayments (control) 8,000.00 Fixed Assets (control) 750,000.00 Accumulated Depreciation, Fixed Assets 250,000.00 Accounts Payable 25,000.00 Capital Stocks 564,200.00 Retained Eamings 80,000.00 Sales 610,000.00 Direct Material Purchase 200,000.00 Direct Labor 150,000.00 Factory Overhead (control) 50,000.00 Administrative and Selling Expensed (control) 125,000.00 Interest on Loans 200.00 Income Tax 25,000.00 1,539,200.00 1,539,200.00