A.

From the following, complete the income statement of Mabola Trading for the month of March 2020
by writing the amounts in the appropriate boxes:

Purchases P 95,400 Freight-in P 1,820

Inventory, March 1 25,250 Purchase discounts 3,060
Sales return & allowances 2,500 Sales discounts 1,550
Rent expense - store 24,000 Rent expense - office 12,000
Salaries expense - store 28,500 Store supplies 2,375
Freight-out 3,960 Sales 186,300
Utilities - office 5,840 Sales commission 3,585
Rent income 12,000 Advertising expense 3,000
Interest expense 494 Office supplies 2,135
Salaries expense - office 12,450 Purchase return & allowances 4,600
Telecommunication - office 3,575 Inventory, March 31 32,450

Mabola Trading
Statement of Income
For month ended March 31, 2020
Net Sales * P 182,250
Cost of Goods Sold
Net Purchases ** 89,560
Goods Available for Sale *** +++ 114,810 82,360
Gross Profit 99,890
Operating Expenses
Distribution Expenses **** P 65,420
General & Administrative ***** 36,000 101,420
Income (Loss) from Operation (1,530)
Other Income 12,000
Other Expenses 494 11,506
Net Profit (Loss) P 9,976

* 186,300 (1,550) (2,500) 182,250

** 95,400 1,820 (3,060) (4,600) 89,560
*** 89,560 25,250 114,810
+++ 114,810 (32,450) 82,360
**** 24,000 28,500 3,960 2,375
3,585 3,000 65,420
***** 5,840 12,450 3,575 12,000
2,135 36,000

B. Manufacturing costs and other accounts of Ronda Manufacturing Corporation appeared in its December 31,
2019 trial balance as follows:
Raw materials purchases 1,246,500 Freight-in P 28,000
 Direct labor 1,505,000 Repairs & Maintenance 225,780
Indirect Materials 57,000 Light & water 345,875
Indirect Labor 657,600 Factory Taxes 127,700
Factory Depreciation 148,500 Fuel & Lubricants 187,545

Inventories: Dec. 2019 Dec. 2018

Finished goods P 250,000 P 320,000
Work-in-process 70,000 65,000
Raw materials 95,000 88,000

For year ended December 31, 2019, determine the following:

Raw Materials, Beg. P 88,000
Purchases 1,246,500
Freight-in 28,000
Materials Available 1,362,500
Raw Materials, End 95,000
Materials Used P 1,267,500
Direct Labor 1,505,000
Factory Overhead * 1,750,000
Total Production Cost Qty. P 4,522,500
Work-in Process, Beg. 65,000
Goods Put into Process 50,000 4,587,500
Work-in Process, End 1,000 70,000
Cost of Goods Manufactured 49,000 P 4,517,500

If 50,000 units were put into process during the year and 49,000 units completed, how much
is the Unit Product Cost ? ** P 92.19

Cost of Goods Manufactured P 4,517,500

Finished Goods, Beg. 320,000
Goods Available for Sale 4,837,500
Finished Goods, End 250,000
Cost of Goods Sold 4,587,500

If the unit product cost is P125, and Ronda Manufacturing Corp. mark-up rate is 50% on cost
The unit Selling Price will be ? *** P 187.50

* 57,000 657,600 148,500

225,780 345,875 127,700 187,545 1,750,000
** 4,517,500 / 49,000 92.19
*** 125 X 1.5 187.50