The following data were taken from the cost records of Peter Company for last year:

Depreciation, factory...................... P60,000

Indirect labor.................................. 100,000
Utilities, factory............................. 40,000
Insurance, factory........................... 10,000
Lubricants for machines................. 15,000
Direct labor.................................... 200,000
Purchases of raw materials............. 150,000

Inventories at the beginning and at the end of the year were as follows:

Beginnin
g Ending
Raw materials..................... P10,000 P20,000
Work in process................. 25,000 5,000
Finished goods................... 30,000 50,000
Required:
Prepare a schedule of cost of goods manufactured in good form.

Peter Company
Statement of the Cost of Goods Manufactured
For the Year Ended Dec 31, 2020

Direct materials Used

Direct materials, Beginning P 10,000
Add: Purchases 150,000
Raw Materials available for Use 160,000
Less : Direct materials, End 20,000
Direct materials Used P 140,000
Direct labor 200,000
Manufacturing Overhead
Indirect labor P 100,000
Depreciation 60,000
Utilities 40,000
Lubricants for machines 15,000
Insurance 10,000
Ampl Total manufacturing overhead 225,000
Total manufacturing costs 565,000
Add: Work in process inventory, beginning 25,000
Total Cost Goods Put into Process 590,000
Deduct: Work in process inventory, ending 5,000
Cost of Goods Manufactured P 585,000
Required:
Prepare a schedule of cost of goods manufactured in good form.

Peter Company
Statement of the Cost of Goods Sold
For the Year Ended Dec 31, 2020

Direct materials Used

Direct materials, Beginning P 10,000
Add: Purchases 150,000
Raw Materials available for Use 160,000
Less : Direct materials, End 20,000
Direct materials Used P 140,000
Direct labor 200,000
Manufacturing Overhead
Indirect labor P 100,000
Depreciation 60,000
Utilities 40,000
Lubricants for machines 15,000
Insurance 10,000
Total manufacturing overhead 225,000
Total manufacturing costs 565,000
Add: Work in process inventory, beginning 25,000
Total Cost Goods Put into Process 590,000
Deduct: Work in process inventory, ending 5,000
Cost of Goods Manufactured P 585,000
Add: Finished Goods Inventory, beginning 30,000
Total Cost of Goods Available for Sale 615,000
Less: Finished Goods Inventory, ending 50,000
Cost of Goods Sold 565,000
The following is the Adjusted Trial Balance of Reyes Manufacturing as of Dec 31, 2020

Cash ……………………………………………………………………… P 80,000

Accounts Receivable 115,000
Allowance for Doubtful Accounts ……………………………………………..……………… P
15,000
Finished Goods Inventory 40,000
Work in Process Inventory ………………………………………………….. 30,000
Raw materials Inventory 20,000
Prepaid rent ………………………………………………………………… 10,000

Supplies on Hand 8,000

Store Furniture and Equipment ………………………………………………. 280,000
Accumulated Depreciation, Store Furniture and Equipment
40,000
Office Furniture and Equipment …………………………………………… 350,000
Accumulated Depreciation, Office Furniture and Equipment
60,000
Accounts Payable ………………………………………………………………………………..
60,000
Accrued Expenses 25,000
Notes Payable ………………………………………………………………………………….
50,000
Mortgage Payable (due 2024) 120,000
Loans Payable (due 2023)
80,000
Reyes , Capital ………………………………………………………………………………..
573,000
Reyes, Drawing 90,000
Sales ………………………………………………………………………………………………
1,250,000
Sales Returns and Allowances 20,000
Sales Discount ……………………………………………………………..… 12,000
Purchases 532,000
Purchase Discount ……………………………………………………………………………….
12,000
Purchase Returns and Allowances.
28,000
Freight in ………………………………………………………………… 35,000
Freight out 22,000
Direct labor 220,000
Advertising Expense …………………………………………………………. 30,000
Sales Salaries 75,000
Office Salaries ……………………………………………………………….. 90,000
Supplies Expense 15,000
Commissions Expense 25,000
Depreciation Expense , Store Furniture and Equipment ………………… 35,000
Depreciation Expense, Office Furniture and Equipment 45,000
Utilities Expense 60,000
Rent Expense ………………………………………………………………… 40,000
Insurance Expense 24,000
Doubtful Accounts Expense …………………………………………………. 10,000
Additional Information -
1. Utilities , Rent , Supplies and Insurance are allocated : 50% factory ; 30% Selling and
Administrative 20 %
2. Inventories , End :
Finished Goods P 30,000
Work in process 25,000
Direct materials 15,000
 INCOME STATEMENT
For the Year Ended Dec 31, 2020

Sales
Less: Sales returns and Allowances
Sales Discount
Net Sales
Less : Cost of Goods Sold ( see Schedule 1)
Gross Profit
Less: Operating expenses
Selling Expenses (see Schedule 2)
Administrative Expense (see Schedule 3)
Net Loss
 Reyes Manufacturing
Schedule 1- Statement of the Cost of Goods Sold
For the Year Ended Dec 31, 2020
Direct materials Used
Direct materials, Beginning
Add: Net Cost of Purchases
Purchases
Less : Purchase Returns and Allowances
Purchase Discount
Net Purchases
Add: Freight In
Raw Materials available for Use
Less : Direct materials, End
Direct materials Used
Direct labor
Manufacturing Overhead
Utilities expense
Rent expense
Insurance Expense
Supplies expense
Total manufacturing overhead
Total manufacturing costs
Add: Work in process inventory, beginning
Total Cost Goods Put into Process
Deduct: Work in process inventory, ending
Cost of Goods Manufactured
Add: Finished Goods Inventory, beginning
Total Cost of Goods Available for Sale
Less: Finished Goods Inventory, ending
Cost of Goods Sold
Schedule 2 - Selling Expenses

Freight – out P 22,000

Advertising Expense 30,000
Sales Salaries 75,000
Commission expense 25,000
Depreciation Store Furniture Equipment 35,000
Utilities expense 18,000
Rent expense 12,000
Insurance Expense 7,200
Supplies expense 4,500
Total Selling expenses P228,700
Schedule 3 - Administrative expenses

Officers’ salaries P 90,000

Depreciation – Office Furniture Equipment 45,000
Utilities expense 12,000
Rent expense 8,000
Insurance Expense 4,800
Supplies expense 3,000
Doubtful Accounts Expense 10,000
Total Administrative expenses P 172,800
 Reyes Manufacturing
INCOME STATEMENT
For the Year Ended Dec 31, 2020

Sales P1,250,000
Less: Sales returns and Allowances P 20,000
Sales Discount 12,000 32,000
Net Sales 1,218,000
Less : Cost of Goods Sold ( see Schedule 1) 836,500
Gross Profit 381,500
Less: Operating expenses
Selling Expenses (see Schedule 2) P 228,700
Administrative Expense (see Schedule 3) 172,800 401,500
Net Loss P 20,000
 Reyes Manufacturing
Schedule 1- Statement of the Cost of Goods Sold
For the Year Ended Dec 31, 2020
Direct materials Used
Direct materials, Beginning P 20,000
Add: Net Cost of Purchases
Purchases P 532,000
Less : Purchase Returns and Allowances P 28,000
Purchase Discount 12,000 40,000
Net Purchases 492,000
Add: Freight In 35,000 527,000
Raw Materials available for Use 547,000
Less : Direct materials, End 15,000
Direct materials Used 532,000
Direct labor 220,000
Manufacturing Overhead
Utilities expense P30,000
Rent expense 20,000
Insurance Expense 12,000
Supplies expense 7,500
Total manufacturing overhead 69,500
Total manufacturing costs 821,500
Add: Work in process inventory, beginning 30,000
Total Cost Goods Put into Process 851,500
Deduct: Work in process inventory, ending 25,000
Cost of Goods Manufactured 826,500
Add: Finished Goods Inventory, beginning 40,000
Total Cost of Goods Available for Sale 866,500
Less: Finished Goods Inventory, ending 30,000
Cost of Goods Sold 836,500
Schedule 2 - Selling Expenses

Freight – out P 22,000

Advertising Expense 30,000
Sales Salaries 75,000
Commission expense 25,000
Depreciation Store Furniture Equipment 35,000
Utilities expense 18,000
Rent expense 12,000
Insurance Expense 7,200
Supplies expense 4,500
Total Selling expenses P228,700

Schedule 3 - Administrative expenses

Officers’ salaries P 90,000

Depreciation – Office Furniture Equipment 45,000
Utilities expense 12,000
Rent expense 8,000
Insurance Expense 4,800
Supplies expense 3,000
Doubtful Accounts Expense 10,000
Total Administrative expenses P 172,800