PROBLEM 2:

Manufacturing costs and other accounts of Sports Manufacturing Company appeared in its December 31, 2020 trial balance as follows:

Sales Raw Material Purchases Direct Labor Sales Salaries Office Supplies Used	P5,150,000 1,200,000 1,500,000 120,000 7,850	Sales Allowances Freight In Factory Heat, Light & Power Advertising Expense Delivery Expense	P25,000 28,000 1,750,000 150,000 60,000
Machine Repairs	12,250	Office Salaries	80,000
Supervision	75,000	Indirect Materials	15,500
Sales Returns & Allowances	18,500	Purchases Discount	14,400

Inventories: Dec 31, 2020 January 1, 2020

Finished Goods Work In Process Materials

P250,000 78,500 95,000

P320,000 65,000 88,000

Compute for the

a) Total manufacturing costs

b) Cost of goods manufactured

3. Cost of goods sold
4. Gross profit
5. Net taxable income
6. Net income after a 30% tax rate