2019

INDIRECT MATERIALS
PARTICULARS QTY Unit Price Total
Mosquito Net (pcs) 2 100 200
Barrels (pcs) 21 500 10,500
Rubber Bands - - 200
Soil (kilos P150 for every 25 kilos) 5 150 750
Filter 3 50 150
Packaging Container (pcs) 7841 70 548,870
TOTAL COST PHP 560,670

OVERHEAD
Amount
Expiration of 3 months Factory Prepaid
Rent of 18 750 (expensed out)
56,250
Rent expense for remaining 9 months
18 750 * 9 168,750
Factory Utilities expense 10 000 * 12 mos. 120,000
Indirect Materials 560,670
Indirect Labor 360,480
TOTAL PHP 1,266,150.00

TOTAL MANUFACTURING COST

Direct Materials Used PHP 1,645,440.00
Direct Labor 480,960.00
Factory Overhead 1,266,150.00
TOTAL MANUFACTURING COST PHP 3,392,550.00

PRICING
Total Manufacturing cost PHP 3,392,550.00
Units to be produced 7841
Cost per unit PHP 432.66802704

Cost of Goods Manufactured

Work In Process Inventory, Beginning 546,869.35
Total Manufacturing Cost 3,392,550.00
Work In Process Inventory, End 1250 units * 432.67 540,835.03
Cost of Goods Manufactured 3,398,584.31

PRICING
Cost per unit PHP 432.67
Mark Up 32%
Cost per unit PHP 571.1217957

PHP 4,478,166.00
 2020

INDIRECT MATERIALS
PARTICULARS QTY Unit Price
Mosquito Net (pcs) 2 100
Barrels (pcs) 21 500
Rubber Bands - -
Soil (kilos P150 for every 25 kilos) 5 150
Filter 3 50
Packaging Container (pcs) 7946 70
TOTAL COST

OVERHEAD
Amount
Expiration of 3 months Factory Prepaid
Rent of 18 750 (expensed out)
56,250
Rent expense for remaining 9 months
18 750 * 9 168,750
Factory Utilities expense 10 000 * 12 mos. 120,000
Indirect Materials 568,020
Indirect Labor 360,480
TOTAL PHP 1,273,500.00

TOTAL MANUFACTURING COST

Direct Materials Used PHP 1,645,440.00
Direct Labor 480,960.00
Factory Overhead 1,273,500.00
TOTAL MANUFACTURING COST PHP 3,399,900.00

PRICING
Total Manufacturing cost PHP 3,399,900.00
Units to be produced 7946
Cost per unit PHP 427.87566071

Cost of Goods Manufactured

Work In Process Inventory, Beginning 540,835.03
Total Manufacturing Cost 3,399,900.00
Work In Process Inventory, End 1250 units * 427.88 534,844.58
Cost of Goods Manufactured 3,405,890.46

PRICING
Cost per unit PHP 427.88
Mark Up 32%
Cost per unit PHP 564.7958721

PHP 4,487,868.00
 2021

INDIRECT MATERIALS
Total PARTICULARS QTY
200 Mosquito Net (pcs) 2
10,500 Barrels (pcs) 21
200 Rubber Bands -
750 Soil (kilos P150 for every 25 kilos) 5
150 Filter 3
556,220 Packaging Container (pcs) 8209
PHP 568,020 TOTAL COST

OVERHEAD

Expiration of 3 months Factory Prepaid Rent

of 18 750 (expensed out)

Rent expense for remaining 9 months

18 750 * 9
Factory Utilities expense 10 000 * 12 mos.
Indirect Materials
Indirect Labor
TOTAL

TOTAL MANUFACTURING COST

Direct Materials Used
Direct Labor
Factory Overhead
TOTAL MANUFACTURING COST

PRICING
Total Manufacturing cost
Units to be produced
Cost per unit

Cost of Goods Manufactured

Work In Process Inventory, Beginning
Total Manufacturing Cost
Work In Process Inventory, End 1250 units * 416.41
Cost of Goods Manufactured

PRICING
Cost per unit
Mark Up
Cost per unit
1 2022

TERIALS INDIRECT MATERIALS

Unit Price Total PARTICULARS
100 200 Mosquito Net (pcs)
500 10,500 Barrels (pcs)
- 200 Rubber Bands
150 750 Soil (kilos P150 for every 25 kilos)
50 150 Filter
70 574,630 Packaging Container (pcs)
PHP 586,430 TOTAL COST

OVERHEAD
Amount
Expiration of 3 months Factory Prepaid Rent
of 18 750 (expensed out)
56,250
Rent expense for remaining 9 months
168,750
120,000 Factory Utilities expense
586,430 Indirect Materials
360,480 Indirect Labor
PHP 1,291,910.00 TOTAL

OST TOTAL MANUFACTURING COST

PHP 1,645,440.00 Direct Materials Used
480,960.00 Direct Labor
1,291,910.00 Factory Overhead
PHP 3,418,310.00 TOTAL MANUFACTURING COST

PRICING
PHP 3,418,310.00 Total Manufacturing cost
8209 Units to be produced
PHP 416.41003776 Cost per unit

Cost of Goods Manufactured

534,844.58 Work In Process Inventory, Beginning
3,418,310.00 Total Manufacturing Cost
520,512.55 Work In Process Inventory, End
3,432,642.03 Cost of Goods Manufactured

PRICING
PHP 416.41 Cost per unit
 37% Mark Up
PHP 570.4817517 Cost per unit

PHP 3,701,285.61
 2022

INDIRECT MATERIALS
QTY Unit Price Total
2 100 200
21 500 10,500
- - 200
5 150 750
3 50 150
8318 70 582,260
PHP 594,060

OVERHEAD
Amount

56,250

18 750 * 9 168,750
10 000 * 12 mos. 120,000
594,060
360,480
PHP 1,299,540.00

TAL MANUFACTURING COST

PHP 1,645,440.00
480,960.00
1,299,540.00
PHP 3,425,940.00

PRICING
PHP 3,425,940.00
8318
PHP 411.870642

520,512.55
3,425,940.00
1250 units * 411.87 514,838.30
3,431,614.24

PRICING
PHP 411.87
 37%
PHP 564.2627795

PHP 3,660,936.91
 Schedule of Cost of Goods Sold
2018 2019 2020
Direct Materials Beginning - - -
Purchases 1,645,440.00 1,645,440.00 1,645,440.00
Direct Materials Ending - - -
Direct Materials Used 1,645,440.00 1,645,440.00 1,645,440.00
Direct Labor 480,960.00 480,960.00 480,960.00
Factory Overhead 1,258,940.00 1,266,150.00 1,273,500.00
Total Manufacturing Cost 3,385,340.00 3,392,550.00 3,399,900.00
Work in Process Inventory Beginning - 546,869.35 540,835.03
Cost of Goods Put into Process 3,385,340.00 3,939,419.35 3,940,735.03
Work in Process Inventory Ending (546,869.35) (540,835.03) (534,844.58)
Cost of Goods Manufactured 2,838,470.65 3,398,584.31 3,405,890.46
Finished Goods Inventory Beginning - - -
Cost of Goods Available for Sale 2,838,470.65 3,398,584.31 3,405,890.46
Finished Goods Inventory Ending - - -
Cost of Goods Sold PHP 2,838,470.65 PHP 3,398,584.31 PHP 3,405,890.46
 2021 2022
- -
1,645,440.00 1,645,440.00
- -
1,645,440.00 1,645,440.00
480,960.00 480,960.00
1,291,910.00 1,299,540.00
3,418,310.00 3,425,940.00
534,844.58 520,512.55
3,953,154.58 3,946,452.55
(520,512.55) (514,838.30)
3,432,642.03 3,431,614.24
- -
3,432,642.03 3,431,614.24
- -
PHP 3,432,642.03 PHP 3,431,614.24
 MECS Company
Statement of Comprehensive Income

2018 2019
Sales 3,746,781.26 4,478,166.00
Cost of Goods Sold (2,838,470.65) (3,398,584.31)
Gross Income 908,310.61 1,079,581.69
Operating Expenses:
Selling Expenses
Advertising Expenses (50,000.00) (50,000.00)
Salaries for Sales and Marketing Employees (257,760.00) (257,760.00)
Administrative Expenses
Rent Expense (75,000.00) (75,000.00)
Salaries Expense (365,760.00) (365,760.00)
Utilities Expense (60,000.00) (60,000.00)
Depreciation Expense (83,012.00) (83,012.00)
Net Income before Income Tax 16,778.61 188,049.69
Income Tax Expense (5,033.58) (56,414.91)
Net Income After Income Tax PHP 11,745.03 PHP 131,634.78

Assumptions:

Net income before Tax 16,778.61 188,049.69

Corporate Income tax of 30% 0.30 0.30
Income Tax expense 5,033.58 56,414.91
pany
hensive Income

2020 2021 2022

4,487,868.00 4,499,907.62 4,498,560.28
(3,405,890.46) (3,432,642.03) (3,431,614.24)
1,081,977.54 1,067,265.59 1,066,946.03

(51,500.00) (52,500.00) (52,500.00)

(265,492.80) (270,648.00) (270,648.00)

(77,250.00) (78,750.00) (78,750.00)

(376,732.80) (384,048.00) (384,048.00)
(61,800.00) (63,000.00) (63,000.00)
(83,012.00) (83,012.00) (83,012.00)
166,189.94 135,307.59 134,988.03
(49,856.98) (40,592.28) (40,496.41)
PHP 116,332.96 PHP 94,715.31 PHP 94,491.62

166,189.94 135,307.59 134,988.03

0.30 0.30 0.30
49,856.98 40,592.28 40,496.41
 MECS Company
Statement of Cash Flows
For the Year Ended December 31, 2018

Cash Flows from Operating Activities

Cash Receipts: 29,622,800.00
Cash Disbursements: (300,000.00)
Prepaid Rent (300,000.00)
Refundable Deposit (26,349,554.00)
Rent Expense (75,000.00)
Advertising Expense (60,000.00)
Salaries Expense (Selling) (1,236,000.00)
Salaries Expense (Admin) 1,302,246.00
Net Cash provided by Operating Activities

Cash Flows from Investing Activties

Cash Disbursements: (265,050.00)
Factory Equipment (500,000.00)
Delivery Vehicle (765,050.00)
Net Cash provided by Investing Activities

Cash Flows from Financing Activities 4,000,000.00

Cash Receipts from Investment 4,537,196.00
Net Increase in Cash -
Add: Cash beginning 4,537,196.00
Cash Balance at the end of the year
 MECS Comapany
Statement of Cash Flows

2019 2020
Net Income for the Year 131,634.78 116,332.96
Add: Depreciation Expense 83,012.00 83,012.00
Adjusted Net Income 214,646.78 199,344.96
Cash Flows from Operating Activities (Indirect)
Decrease in Work in Process Inventory 6,034.31 5,990.46
Increase in Salaries Payable - -
Increase in Utilities Payable - -
Increase (Decrease) in Income Tax Payable 51,381.32 (6,557.92)
Net Increase in Cash for the Year 272,062.42 198,777.49
Add: Cash balance, beginning 3,799,301.26 4,071,363.68
Cash Balance, Ending PHP 4,071,363.68 PHP 4,270,141.17
 2021 2022
94,715.31 94,491.62
83,012.00 83,012.00
177,727.31 177,503.62

14,332.03 5,674.24
- -
- -
(9,264.71) (95.87)
182,794.64 183,082.00
4,270,141.17 4,452,935.81
PHP 4,452,935.81 PHP 4,636,017.81
 MECS Company
Statement of Financial Position
2018 2019 2020
ASSETS
Current Assets
Cash 3,799,301.26 4,071,363.68 4,270,141.17
Work in Process Inventory 546,869.35 540,835.03 534,844.58

Non Current Assets

Refundable Deposit 300,000.00 300,000.00 300,000.00
Delivery Vehicle 150,000.00 150,000.00 150,000.00
Accumulated Depreciation (30,000.00) (60,000.00) (90,000.00)
Computer Equipment 57,000.00 57,000.00 57,000.00
Accumulated Depreciation (11,400.00) (22,800.00) (34,200.00)
Furnitures & Fixtures 91,071.00 91,071.00 91,071.00
Accumulated Depreciation (18,214.20) (36,428.40) (54,642.60)
Office Vehicle 116,989.00 116,989.00 116,989.00
Accumulated Depreciation (23,397.80) (46,795.60) (70,193.40)
TOTAL ASSETS 4,978,218.61 5,161,234.71 5,271,009.75

LIABILITIES AND EQUITY

Liabilities
Salaries and Wages Payable 841,440.00 841,440.00 841,440.00
Utilities Payable 120,000.00 120,000.00 120,000.00
Income Tax Payable 5,033.58 56,414.91 49,856.98

Partners' Equity
M, Capital 1,002,936.26 1,035,844.95 1,064,928.19
E, Capital 1,002,936.26 1,035,844.95 1,064,928.19
C, Capital 1,002,936.26 1,035,844.95 1,064,928.19
S, Capital 1,002,936.26 1,035,844.95 1,064,928.19
TOTAL LIABILITIES AND EQUITY 4,978,218.61 5,161,234.71 5,271,009.75
2021 2022

4,452,935.81 4,636,017.81
520,512.55 514,838.30

300,000.00 300,000.00
150,000.00 150,000.00
(120,000.00) (150,000.00)
57,000.00 57,000.00
(45,600.00) (57,000.00)
91,071.00 91,071.00
(72,856.80) (91,071.00)
116,989.00 116,989.00
(93,591.20) (116,989.00)
5,356,460.36 5,450,856.11

841,440.00 841,440.00
120,000.00 120,000.00
40,592.28 40,496.41

1,088,607.02 1,112,229.93
1,088,607.02 1,112,229.93
1,088,607.02 1,112,229.93
1,088,607.02 1,112,229.93
5,356,460.36 5,450,856.11
 MECS COMPANY
Statement of Partners' Equity
As of December 31, 2018
M E C
Partners' Capital Beg. 1,000,000.00 1,000,000.00 1,000,000.00
Profit Distribution 2,936.26 2,936.26 2,936.26
Partners' Capital, End 1,002,936.26 1,002,936.26 1,002,936.26

MECS COMPANY
Statement of Partners' Equity
As of December 31, 2019
M E C
Partners' Capital Beg. 1,002,936.26 1,002,936.26 1,002,936.26
Profit Distribution 32,908.70 32,908.70 32,908.70
Partners' Capital, End 1,035,844.95 1,035,844.95 1,035,844.95

MECS COMPANY
Statement of Partners' Equity
As of December 31, 2020
M E C
Partners' Capital Beg. 1,035,844.95 1,035,844.95 1,035,844.95
Profit Distribution 29,083.24 29,083.24 29,083.24
Partners' Capital, End 1,064,928.19 1,064,928.19 1,064,928.19

MECS COMPANY
Statement of Partners' Equity
As of December 31, 2021
M E C
Partners' Capital Beg. 1,064,928.19 1,064,928.19 1,064,928.19
Profit Distribution 23,678.83 23,678.83 23,678.83
Partners' Capital, End 1,088,607.02 1,088,607.02 1,088,607.02

MECS COMPANY
Statement of Partners' Equity
As of December 31, 2022
M E C
Partners' Capital Beg. 1,088,607.02 1,088,607.02 1,088,607.02
Profit Distribution 23,622.91 23,622.91 23,622.91
Partners' Capital, End 1,112,229.93 1,112,229.93 1,112,229.93
 S TOTAL
1,000,000.00 4,000,000.00
2,936.26 11,745.03
1,002,936.26 4,011,745.03

S TOTAL
1,002,936.26 4,011,745.03
32,908.70 131,634.78
1,035,844.95 4,143,379.81

S TOTAL
1,035,844.95 4,143,379.81
29,083.24 116,332.96
1,064,928.19 4,259,712.77

S TOTAL
1,064,928.19 4,259,712.77
23,678.83 94,715.31
1,088,607.02 4,354,428.08

S TOTAL
1,088,607.02 4,354,428.08
23,622.91 94,491.62
1,112,229.93 4,448,919.70