PARCOR Quiz

Manufacturing Operations

Problem:
The following balances of ABC Company, a manufacturing business, for 2019 are as follows:
Advertising PHP 500,000
Amortization of patent 200,000
Cost of Patents 2,000,000
Depreciation on Factory buiding 1,000,000
Depreciation on Factory equipment 100,000
Direct labor 3,000,000
Direct materials purchases 5,000,000
Direct materials, beginning 1,200,000
Direct materials, ending 700,000
Doubtful accounts expense 200,000
Factory building 10,000,000
Factory equipment 1,000,000
Factory insurance 500,000
Factory repairs 200,000
Factory supervision 500,000
Finished Goods inventory, begnning 1,050,000
Finished Goods inventory, ending 750,000
Freight in 10,000
Freight out 50,000
Indirect labor 100,000
Indirect materials 300,000
Marketing salaries 200,000
Miscellaneous factory expense 600,000
Office salaries 400,000
Other administrative expense 500,000
Other selling expense 150,000
Purchase discount 4,000
Purchase returns 6,000
Sales 18,000,000
Work in Process inventory, beginning 1,000,000
Work in Process inventory, ending 500,000

Income tax rate is 30%.

Required: Prepare the following schedule and statement.

 Overhead schedule
 Statement of Cost of Goods Manufactured (single line item for overhead)
 Statement of Cost of Goods Sold
 Income Statement (single line item for cost of goods sold)