[jacquelinejabuen]

Hi! I'm having some problems w/my homework. This is my last trimester and I want to make sure to pass my subject.

Pena manufacturing company presented the following data:
1. cost of goods manufactured and cost of goods sold were P373,000 and P300,000 respectively
2. Purchases of raw materials amounted twice as much as net income before taxes
3.Gross margin based on sales was 40% there were no purchase returns but sales returns amounted to P10,000
4.Inventory valuation were as follows:
a. Raw materials - on hand at end perod was one (1/3)as much as at start
b. work in process - no beginning inventory, but P25,000 was on hand at end of period
c. finished goods - end of period was four times as large as at start
5. breakdown of cost incurred in manufacturin was as follows:
Raw materials - 50%
Direct labor - 30%
Maunfactring overhead - 20%
6. selling expense amounted to four times as much as general expenses
7. net income after taxes amounted to P52,000. Income tax rate is 35%
Required:prepare the following:
1.costof goods manufactured statement
2. income statement

[bhet]

Why don't you try to solve it first yourself, show us your solution. We'll check it if you made some errors.

[jacquelinejabuen]

I already tried to answer it but I can't get it right. Here's my solution:

beg. Raw materials 124,334
net purchase of raw materials 104,000
raw materials available 228,334
less: ending raw materials (62,166)
raw materials transferred to prod'n 166,168
direct labor 111,900
manufacturing overhead 74,600
total manufacturing cost 352,668
less: ending work in process (25,000)
cost of goods manufactured 327,668

raw materials = 373,000 * 50%=186,500
direct labor = 30% 111,900
manufacturing overhead = 20% 74,600

net purchase of raw materials = 52,000*2 = 104,000
sales return 10,000

I can't figure out how to get the sales for the income statement.
I'm a work graveyard shifts and I study during daytime. I only found this web site the day I posted the problems. I really would appreciate if you guys can help me out on these problems. I need it before Saturday. Thanks.