Victoria Gardens is a maker of garden sets which opened October 2012 in San Miguel, Bulacan. A garden set is made up of one table and four chairs. Raw material is in the form of glass top and steel. A set could be produced by two workers in 3 days. There are 6 of working days in a week and 6 hired workers Material requirement is as follows: Table Chair Steel 750 500 A worker is paid P300 a day. Overhead for the first month of operation aside from direct materials and direct labor are as follows: Factory Supplies Used Tools Used Communication Expense Repairs and Maintenance Advertising Glass Top 500 12,500 9,250 3,750 4,100 8,500 Heat, Light and Power Water Expense Factory Depreciation Office Expense Sales Salaries Required: a) How many units were manufactured? 7,500 1,200 As this is the first month of operation, costs incurred for distribution and administration are minimal. Most of the costs are assigned to manufacturing such as heat, light, power, water. Communication is assigned to distribution. The owner, Victoria, decided on a mark-up of 100% based on product cost and was able to sell ten garden sets to D'wave. b) Compute for the cost of goods manufactured and sold. c) Prepare the income Statement. 5,000 10,000 6,000