Required in problem above (Exercise 8-2) :

1. Prepare the statement of cost of goods manufactured for the 6-month period ended June 30, 2018.
2. Under the non-cost and periodic inventory systems, prepare the following end of the period:

a. Adjusting and closing entries to set up the raw materials used.

b. Adjusting and closing entries to set up the cost of goods manufactured.

c. Adjusting and closing entries to set up the cost of goods sold.

IN EXCERCISE 8-3 DONT MIND THE PENCIL LINES. JUST PRETEND YOU DONT SEE THOSE PENCILS HAHAHA :) THANK YOU!

298 EXERCISE 8-2 The following account balances were selected from the adjusted June 30, 2018 trial balance of the PINPIN COMPANY: Inventories, Jan. 1. 2018: Raw materials. Work in process. Finished goods..... Purchases, materials.......... Purchases returns & allowances. Purchases discount.... Freight in...... Direct labor.. Indirect labor... Heat, light, & power.... Repairs & maintenance, machine... Property taxes... Miscellaneous factory expenses.. Delivery expense.... Depreciation expense, buildings.... Depreciation, machinery. Depreciation, factory tools. Insurance expense....... P102,500 84,000 236,100 628,500 9,100 6,400 12,400 823,000 165,000 100,000 20,500 40,000 12,000 35,000 60.000 75.000 20.000 25,000 Expense allocations are to be made as follows: Administrative 5% Heat, light, & power Property taxes Depreciation, building Manufacturing 90% 80% 60% Selling 5% 10% 20% 10% 20% Inventories, June 30, 2018: Raw materials. Work in process.. Finished goods.... ..P96,000 124,000 .190,000 EXERCISE 8-3 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.. Miscelianeous factory overhead.. Rent expense.... Sales salaries. 4 Royalties paid. Freight out..... Miscellaneous selling expense.... Doubtful accounts expense..... Office salaries........ Miscellaneous administrative expense. Interest Ineome..... .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 1,500 300 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)..... 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. 298 EXERCISE 8-2 The following account balances were selected from the adjusted June 30, 2018 trial balance of the PINPIN COMPANY: Inventories, Jan. 1. 2018: Raw materials. Work in process. Finished goods..... Purchases, materials.......... Purchases returns & allowances. Purchases discount.... Freight in...... Direct labor.. Indirect labor... Heat, light, & power.... Repairs & maintenance, machine... Property taxes... Miscellaneous factory expenses.. Delivery expense.... Depreciation expense, buildings.... Depreciation, machinery. Depreciation, factory tools. Insurance expense....... P102,500 84,000 236,100 628,500 9,100 6,400 12,400 823,000 165,000 100,000 20,500 40,000 12,000 35,000 60.000 75.000 20.000 25,000 Expense allocations are to be made as follows: Administrative 5% Heat, light, & power Property taxes Depreciation, building Manufacturing 90% 80% 60% Selling 5% 10% 20% 10% 20% Inventories, June 30, 2018: Raw materials. Work in process.. Finished goods.... ..P96,000 124,000 .190,000 EXERCISE 8-3 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.. Miscelianeous factory overhead.. Rent expense.... Sales salaries. 4 Royalties paid. Freight out..... Miscellaneous selling expense.... Doubtful accounts expense..... Office salaries........ Miscellaneous administrative expense. Interest Ineome..... .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 1,500 300 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)..... 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