Problem #1Cost of Goods Manufactured

In addition to the year-end statement of financial position and income statement , the management of Esterlina Gevera Company required the controller to prepare the statement of cost of goods manufactured.During 2020, P361,920of raw materials were purchased. Operating cost data and Inventory account balances for 2020 follow:

Direct Labor (10,430at P9.50 per hour)P 99,085

Plant Supervision42,500

Indirect labor (20,280 hours at P6.25 per hour) 126,750

Factory Utilities29,220

Factory Insurance8,100

DepreciationFactory Building46,200

DepreciationFactory Equipment62,800

Manufacturing Supplies9,460

Repairs and Maintenance14,980

Selling and Administrative Expenses76,480

Raw Materials Inventory, Jan I, 202026,490

Work in Process Inventory, Jan. 1, 2020

101.640

Finished Goods Inventory, Jan. 1, 2020

148.290

Raw Materials Inventory, Dec. 31, 2020

24.910

Work in Process Inventory, Dec. 31, 2020

100,400

Finished Goods Inventory, Dec. 31, 2020

141.100

Required:

1.Compute the cost of direct materials used during the year.

2.Compute the total manufacturing costs for the year.

3.Compute the cost of goods manufactured during the year.