The following information were obtained from the records of Sunshine

Enterprises for the current year ended Dec. 31

Cash P 19,800 Direct Labor

Accounts Receivable 142,500
44,000 Factory Supplies Used
Accounts Payable 22,350 30,000
Direct Materials January 1 Freight In 9,000
70,000 Advertising Expense
December 31 16,000
80,000 Sales salaries
Work in Process January 1 25,000
15,000 Administrative Salaries 41,000
December 31 Bad Debts Expense 5,000
42,000 Allowance for Bad Debts 3,100
Finished Goods January 1 Direct Material Purchase
109,900 137,500
December 31 Direct Material Returns 6,500
155,000 Sales 471,000
Indirect Labor
50,000

The costs below were incurred by the various facilities to be allocated as follows
Total Cost Factory Sales Administrative
Utilities P25,000 60% 10% 30%
Taxes 35,000 60% 25% 15%
Insurance 10,000 60% 20% 20%
Depreciation 30,000 60% 20% 20%

Direction : a) Prepare a statement of cost of goods manufactured.

b) Prepare an income statement, tax rate is 32%.
The following are the transactions of Beauty Products for the month of March, 2007:
1. Raw materials purchased on account, P 80,000
Factory supplies purchased for cash, P 3,000
2. Freight paid in cash for the materials purchased, P 1,500
3. Factory payroll for the month was as follows:
Paid to workers net of following deductions
64,200
Withholding taxes 3,200
SS Premiums 2,500
Phil Health Premiums 1,300
HDMF Premiums 600
Note: Debit to Factory Payroll.
4. Employer’s share to the premiums
Phil Health 1,300
Combined EC & Maternity 750
SSS 3,250
HDMF 600
5. Of the total payroll, direct labor was P74,000 and the balance was for indirect
labor.
Note: Credit to factory payroll.
6. Monthly depreciation charges for the factory building, P 2,000 and the factory
machinery, P 3,000.
7. Factory taxes accrued P 1,500 and factory insurance expired, P 800
8. A total of 1,000 goods were finished out of which 800 units were sold at a 100%
mark up.
9. Inventories at the end of the month were :
Finished Goods ?
Work in Process 15,000
 Raw Materials 14,000

Direction: a) Prepare a statement of cost of goods manufactured.

b) Compute for the unit cost of the good manufactured
c) Compute for the Gross Profit of the Beauty Products for the
month of March. Prove the cost of the unsold goods.
d) Journalize the above transactions.