P1-3 Amherst Corporation provided the following account balances as of September 30, 2015: Cash P112,000 Accounts receivable 64,000 Finished goods 48,000 Work in process 36,000 Raw materials 52,000 Property and equipment 480,000 Accumulated depreciation 36,000 Accounts payable 40,000 Income tax payable 9,000 Capital stock 500,000 Retained earnings 207,000 The following transactions occurred during October. 1. Materials purchased on account, P150,000 2. Materials issued to production: direct materials - P90,000; indirect materials - P10,000. 3. Payroll for the month of October 2015 consisted of the following (also paid during the month): Direct labor P 62,000 Indirect labor 20,000 Sales salaries 30,000 Administrative salaries 16,000 128,000 CHAPTER 1 Cost Accounting and Cost Concepts 35Payroll deductions were as follows P 19,800 Withholding taxes 7,100 SSS contributions 2.000 PhilHealth contributions 2,600 HDMF contributions P 31,500 4. Employer contributions for the month were accrued: Factory Selling Admin Total P 5,700 P 2,000 P 1,100 P 8,800 SSS contributions 500 300 2,000 PhilHealth contributions 1,200 400 300 200 900 EC contributions 700 400 2,700 HDMF contributions 1,600 P8,900 P3,500 P2 100 P14,400 5. Other costs incurred on account: Indirect factory overhead - P42,000 Sales - P30,000 Administrative - P10,000 6. Depreciation for the month: Factory overhead - P2,000 Sales - P1,000 Administrative - P1,000 7. Factory overhead control account was transferred to work in process, P82.gon 8. Work finished and placed in stock, P178,000 9. Cost of goods sold, P200,000. The markup was 60% of cost. 10. Cash collected from customers, P260,000 11. Materials returned to supplies, P15,000. 12. Payment of accounts payable, P190,000. 13. Provision for income tax, P6,000. Required: a. Journal entries to record the above transactions b. Statement of cost of goods manufactured C. Income statement (assume 30% effective income tax rate) d. Balance sheet as of October 31, 2015