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GRAY COMPANY produces a household appliance that sells for P1,000. The basic patent is held by the inventor who is paid a royalty of P100

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GRAY COMPANY produces a household appliance that sells for P1,000. The basic patent is held by the inventor who is paid a royalty of P100 on each unit sold. The royalty is considered a selling expense. The data taken from the books and other records on Dec. 31, 2018 are shown below: Sales (4,500 units).. Purchases, materials.. Freight in............... Purchases discount.. Direct labor............ Indirect labor......... Depreciation on plant........... Miscellaneous factory overhead.. Rent expense... Sales salaries....... Royalties paid. Freight out.............. Miscellaneous selling expense. Doubtful accounts expense... Office salaries......... Miscellaneous administrative expense.. Interest Income...... .P4,500,000 955,630 4,700 8,400 683,620 50,260 21,350 180,000 50,000 300,000 450,000 18,000 114,000 3,000 248,000 85,000 1,500 .. Inventories, Jan. 1, 2018: Raw materials.. Work in process.... Finished goods (100 units).. .P70,000 ..40,000 46,000 Inventories, Dec. 31, 2018: Raw materials............ Work in process..... Finished goods (250 units).. wees.es 35,000 82,000 ? Rent expense is apportioned 50% to manufacturing, 40% to selling, and 10% to administrative. The company produced 4,650 units during the year. The company uses FIFO for inventory costing. REQUIRED: 1. Prepare the statement of cost of goods manufactured for the year ended December 31, 2018 2. Prepare the income statement for the year ended December 31, 2018 3. Under the non-cost accounting system and periodic inventory system , prepare the following: a. Year-end adjusting and closing entries to set up the raw materials used. b. Year-end adjusting and closing entries to set the cost of goods manufactured. c. Year-end adjusting and closing entries to set the cost of goods sold

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