Manufacturing Company presented the following data:

Cost of goods manufactured and cost of goods sold were P375,000 and P300,000

respectively.

Purchases of raw materials amounted twice as much as net income before taxes.

Gross margin based on sales was 40%. There were no purchases returns but sales returns

amounted to P10,000.

Inventory valuations were as follows:

o

Raw Materials - on hand at end of period was 1/3 as large as at start.

o

Work in process - No beginning inventory, but P25,000 was on hand at the end of

period.

o

Finished goods - End of period was four times as large as at start.

Breakdown of cost incurred in manufacturing was as follows:

o

Raw materials

50%

o

Direct Labor

30%

o

Manufacturing Overhead

20%

Selling expenses amounted to four times larger than general expenses.

Net income after taxes amounted to P52,000. Income tax rate is 35%

Required:

1. Cost of goods Sold statement

2. Income statement.

Answer rating: 100% (QA)

Here are the steps to solve this problem 1 Cost of Goods Sold Statement Cost of Goods Manufactured C... View the full answer