Exercise 7.8

Excel Manufacturing company had the following account balances for 2018:

...........................................................Jan. 1Dec.31

Accounts receivable.........................P54,000P48,000

Raw materials inventory.....................42,00012,000

Work in process inventory...................60,00024,000

Finished goods inventory.....................18,00020,000

Collections on account were P794,000 in 2018.

Cost of goods sold was 60% of sales.

Raw materials purchased amounted to P48,000

Manufacturing overhead was 300% of direct labor cost.

Required:

Calculate the following:

1. Sales revenue (All sales were on account)
2. Cost of goods sold
3. Cost of goods manufactured
4. Raw materials used
5. Direct labor incurred
6. Manufacturing overhead incurred