PROBLEM 1

Raw Materials, beginnin

Add: Purchases
Raw Materias Available
Less: Raw materials, end
Raw Materials Used
Direct Labor
Factory Overhead

Cost of Manufacturing
Goods in process , beg
Cost of Goods in Proces
Less: Goods in Process,
Cost of Goods Manufac

PROBLEM 2

Sales
 Cost of goods sold
Gross Profit

Less: Expenses
NET INCOME

COMPUTATION:
Sales
Cost of goods sold
Gross Profit

Less: Expenses
NET INCOME

Cost of Goods Sold Ana

75%

25%
100%

PROBLEM 3

INCOME
Dividend income from i
distribution income from
interest incpme on depo
income from bank treas
income from dealing in

Other income

EXPENSES
Administrative costs
Sundry administrative c
Finance costs
Net Income before tax
Income Tax
Net Income

OTHER COMPREHENSIV
Unrealized gain on forw

Comprehensive Income
 MASAY COMPANY
Statement of Cost of Goods Manufactrued
Year ended 2020
Raw Materials, beginning 200,000
Add: Purchases 3,000,000 Net Sales
Raw Materias Available for Use 3,200,000 Less: Cost of Goods Sold
Less: Raw materials, end (280,000) Gross Profit
Raw Materials Used 2,920,000 Other Income
Direct Labor 950,000 Total Income
Factory Overhead
Indirect Labor 250,000 Expenses:
Superintendence 210,000
Light, heat and power 320,000
Rent - factory building 120,000
Repair and maintenance 50,000 Income before tax
Factory supplies used 110,000 Income Tax
Depreciation - machinery 60,000 1,120,000 NET INCOME
Cost of Manufacturing / Total Manufacturing Cost 4,990,000
Goods in process , beg 240,000
Cost of Goods in Process / Total Cost of Goods Placed in Process 5,230,000 NOTES
Less: Goods in Process, end (170,000) 1
Cost of Goods Manufactured 5,060,000

BERNA COMPANY
Income Statement
Year ended December 31, 2020

4,000,000 Current Assets

Cost of goods sold 1,800,000 Cash
Gross Profit 2,200,000 Accounts Receivable
Inventories
Less: Expenses 1,200,000
NET INCOME 1,000,000
Non Current Assets
COMPUTATION: Property, Plant and Equipm
100% 4,000,000 100%
Cost of goods sold 150% of expenses (150% X 30%) 1,800,000 45%
Gross Profit 2,200,000 55%
Liabilities
Less: Expenses 30% 1,200,000 30% Accounts payable
NET INCOME 1,000,000 25%

Shareholders' Equity
Ordinary shares, issued 25,0
Cost of Goods Sold Analysis
Raw Maetrials, beg 0 Share Premium
RM Purchased 2,000,000 1500/.75 Retained Earnings (net inco
RM Available for use 2,000,000
RM, end 500,000 25% of RM purchased
RM USED 50% 1,500,000 75% NOTES
Direct Labor 30% 900,000 1
Factory Overhead 20% 600,000
Total Mfg Cost 3,000,000
Goods in process, beg 0
Cost of Goods in process 3,000,000
Goods in process, end 750,000 1/3 of COGAS
Cost of Goods Manufactured 2,250,000
FG, beg 0
COGAS/TGAS 2,250,000
FG, end 450,000 25% of COGS 2
COGS/COS 1,800,000

ROSE COMPANY
Statemeng of Comprehensive Income
Year ended 2020

Dividend income from investments 9,200,000

distribution income from trusts 500,000
interest incpme on deposits 700,000
income from bank treasury bills 100,000
income from dealing in securities and
derivatives held for trading 450,000
Other income 250,000
Total Income 11,200,000

Administrative costs 3,800,000

Sundry administrative costs 1,200,000
Finance costs 300,000 (5,300,000)
Net Income before tax 5,900,000
Income Tax (1,700,000)
Net Income 4,200,000

OTHER COMPREHENSIVE INCOME

Unrealized gain on forward contracgts
designated as cash flow hedge 400,000
Comprehensive Income 4,600,000
 MASAY COMPANY
Income Statement (Functional Method)
Year ended 2020
Notes
(1) 7,450,000 Net Sales
Less: Cost of Goods Sold ( 2) (5,120,000) Other Income
Gross Profit 2,330,000 TOTAL INCOME
Other Income (3) 210,000
Total Income 2,540,000 Expenses:
Decrease in Inventory
Raw Material Used
Distribution costs (4) 830,000 Salaries
Administrative costs (5) 590,000 Depreciation
Other loses (6) 300,000 (1,720,000) Advertising
Income before tax 820,000 Office Expense
Income Tax (320,000) Delviery expense
NET INCOME 500,000 Product cost
Accounting and Legal Fee
Other Loses
Income before tax
Sales 7,500,000 4 S. Salaries 400,000 Income tax
Sales return & allowances (50,000) Advertisin 160,000 NET INCOME
NET SALES 7,450,000 Depn - SE 70,000
Del Exp 200,000
Cost of Goods Mfd 5,060,000 DIST COST 830,000
Finished goods, beg 360,000
Cost of Goods Avail for Sale 5,420,000 5 Ofc Sal 150,000
Finished goods, end (300,000) Depn - OE 40,000
COST OF GOODS SOLD 5,120,000 A&L Fees 150,000
Ofc Exp 250,000
Interest Income 10,000 ADMIN 590,000
Gain on sale of equipment 100,000
Gain from expropriation of asset 100,000 6 E. Loss 300,000
OTHER INCOME 210,000 O. LOSSES 300,000

BERNA COMPANY
Statement of Financial Position
December 31, 2020
ASSETS
Current Assets Notes
 (1) 500,000
Accounts Receivable (2) 400,000
Inventories (3) 1,700,000
Total Current Assets 2,600,000

Non Current Assets

Property, Plant and Equipment (4) 2,900,000
TOTALL ASSETS 5,500,000

LIABILITIES AND SHAREHOLDERS' EQUITY

Accounts payable (5) 500,000

Total Liabilities 500,000

Shareholders' Equity
Ordinary shares, issued 25,000 shares 2,500,000
at P100 par value
Share Premium 1,500,000
Retained Earnings (net income) 1,000,000 5,000,000
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 5,500,000

Cash, beg 1,000,000 3 Raw Mat 500,000

Cash sales 3,600,000 GIP 750,000
Operating Expenses (1,200,000) FG 450,000
Production Cost INVENTORI 1,700,000
Direct Labor (900,000)
Overhead (500,000) 4 PPE 3,000,000
Paid purchases (1,500,000) Depreciati (100,000)
CASH, END 500,000 PPE 2,900,000

Accounts receivable 5 Accounts payable

(10% of sales collectible) (23% purchases unpaid)
4,000,000 X 10% 400,000 2MX25% 500,000
 MASAY COMPANY NOTES
Income Statement (Natural Method) 1 Sales
Year ended 2020 Sales return & allowances
Notes NET SALES
(1) 7,450,000
(2) 210,000 2 Interest Income
7,660,000 Gain on sale of equipment
Gain from expropriation
OTHER INCOME
Decrease in Inventory (3) 130,000
Raw Material Used (4) 2,920,000 3 Inventories:
(5) 550,000 Goods in process, beg
Depreciation (6) 110,000 Goods in process, end
Advertising 160,000 DECREASE
Office Expense 250,000
Delviery expense 200,000 Finished goods, beg
Product cost (7) 2,070,000 finished goods, end
Accounting and Legal Fees 150,000 DECREASE
Other Loses (8) 300,000 (6,840,000)
820,000 TOTAL DECREASE
(320,000)
500,000 4 Raw materials, beg
Purchases
Raw materials, end
RAW MATERIALS USED
 7,500,000 5 S. Salaries 400,000
rn & allowances (50,000) Ofc Sal 150,000
7,450,000 SALARIES 550,000

10,000 6 Depn -SE 70,000

ale of equipment 100,000 Depn -OE 40,000
expropriation 100,000 DEP'N. 110,000
210,000
7 Dir Labor 950,000
FOH
process, beg 240,000 Ind. Labor 250,000
process, end (170,000) Superin 210,000
70,000 LH Power 320,000
Rent - FB 120,000
360,000 R&M 50,000
(300,000) F. Supp U 110,000
60,000 Depn - Ma 60,000
PRODUCT 2,070,000
130,000 8
8 E. Loss 300,000
200,000 O. LOSSES 300,000
3,000,000
(280,000)
TERIALS USED 2,920,000
PROBLEM 5
PROBLEM 1

PROBLEM 2
PROBLEM 3

PROBLEM 4