Question
PROBLEM 5 INCOME STATEMENT OF A MANUFACTURING COMPANY The beginning balances of Luke Steel Manufacturing Company is presented as follows: Beginning Balances Ending Balances Raw
PROBLEM 5 INCOME STATEMENT OF A MANUFACTURING COMPANY
The beginning balances of Luke Steel Manufacturing Company is presented as follows:
Beginning Balances Ending Balances
Raw Materials P 400,000 P 350,000
Work In Process 500,000 420,000
Finished Goods 700,000 600,000
Transactions that transpired during the month were:
1. Raw materials amounting to P40,000 were purchased in cash.
2. Purchase Raw Materials costing P100,000 on account.
3. Rental during the period: 50% Office; 50% Factory, amount, P150.000
4. Depreciation Expense: P15,000 Office Equipment; P25,000 Machineries and Equipment
5. Utilities incurred P25,000
6. Paid Office Salaries, P10,000
7. Indirect Materials used P50,000
8. Factory labor used consisted of: Direct Labor P 270,000 Indirect Labor 100,000
9. Finished goods sold amounts to P 1,520,000 10. Office supplies expenses, P2,500
A. Compute for the following: (10 pts)
1. Raw Materials used( prepare schedule)
2. Manufacturing cost ( prepare schedule)
3. Cost of Goods Manufactured ( prepare schedule)
4. Cost of Goods Sold ( prepare schedule)
5. Gross Profit ( prepare schedule)
B. Prepare the Income Statement of Luke Steel Manufacturing Company for the first quarter of 2020.( prepare schedule)
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