Question

DEF Manufacturing Company presented the following data:

• Cost of goods manufactured and cost of goods sold were P375,000 and P300,000, respectively.
• Purchases of raw materials amounted to twice as much as the net income before tax.
• Gross margin based on sales was 40%. There were no purchase returns but the sales returns amounted to P10,000.
• Inventory valuations were as follows:

1. Raw materials on hand at the end of the period was 1/3 as much as much as at start.
2. Work in process – no beginning inventory but P25,000 was on hand at the end of the period.
3. Finished goods end of the period was four times as larges as at start.

• Breakdown of cost incurred in manufacturing was as follows:

Raw materials                                                    50%

Direct labor                                                         30%

Factory Overhead                                            20%

• Selling expenses amounted to four times as as as general expenses
• Net income after taxes amounted to P52,000. Income tax rate is 35%.

1-A. Raw materials beginning? ________

1-B. Raw materials Purchases? _______

1-C Total direct materials used? _______

1-D Total factory overhead applied? ______

1-E Finished Goods ending? _________

Answer 1

DEF Manufacturing company

Cost of goods manufcactured= Direct material + Direct labour +Factory ovrheads + Opening stock of WIP- Closing stock of WIP

Cost of goods sold= Cost of goods manufcactured+ Opening stock of Finished goods - Closing stock of Finished goods

Table 1
Sales- Cost of Goods sold = Gross Margin
Let sales be' X'
X-300000(GIVEN)= 0.4X (X*40%)
X-300000=0.40X
X-0.40X= 300000
0.60X= 300000
X=300000/0.06
X= 500000
Therefore sales is 500000
Sales- Cost of Goods sold = Gross Margin
500000- 300000 = 200000
Gross Margin = 200000
Gross Margin	200000
Less:General Expenses	24000
Less: Selling Expenses	96000
Net Income Before Tax (NIBT)	80000	x
Less: Income Tax	28000	0.35x
Net Income After Tax (NIAT)	52000	0.65x
NIAT is given
Let NIBT be x
NIBT= 52000*X/0.65x= 80000
Let General expense be 'x'
Gross margin - General exp.- Selling exp. = NIBT
200000- x- 4x= 80000
5x= 120000
x= 24000
Table 2
Particulars	Amount
Direct Material consumed	200000	(400000*50%)
Direct Labour	120000	(400000*30%)
Factory Overheads	80000	(400000*20%)
Total Manufacturing Overheads	400000
Add: Opening stock of WIP	NIL
Less: Closing stock of WIP	-25000
Cost of goods manufcactured	375000
Add: Opening stock of Finshed goods	25000	x
Less: Closing stock of Finished goods	-100000	4x
Cost of Goods Sold	300000
Add: General Expenses	24000
Add: Selling Expenses	96000
Total Cost	420000
COGM+op. FG.- Cl. FG.= COGS
Let opening Finnished goods be x
Closing = 4x
375000+X - 4X= 300000
X= 25000
4X= 100000
Purchase of Raw material = twice NIBT
2* 80000= 160000
	ekkarill92 Next > < Previous Related Solutions Statement of Cost of Goods Manufactured for a Manufacturing Company Cost data for Sandusky Manufacturing Company... Statement of Cost of Goods Manufactured for a Manufacturing Company Cost data for Sandusky Manufacturing Company for the month ended January 31 are as follows: Inventories January 1 January 31 Materials $210,250 $182,920 Work in process 138,770 120,730 Finished goods 109,330 124,390 Direct labor $378,450 Materials purchased during January 403,680 Factory overhead incurred during January: Indirect labor 40,370 Machinery depreciation 24,390 Heat, light, and power 8,410 Supplies 6,730 Property taxes 5,890 Miscellaneous costs 10,930. b. Determine the cost of goods... Statement of Cost of Goods Manufactured for a Manufacturing Company Cost data for Sandusky Manufacturing Company... Statement of Cost of Goods Manufactured for a Manufacturing Company Cost data for Sandusky Manufacturing Company for the month ended January 31 are as follows: Inventories January 1 January 31 Materials $159,750 $135,790 Work in process 105,440 89,620 Finished goods 83,070 90,980 Direct labor $287,550 Materials purchased during January 306,720 Factory overhead incurred during January: Indirect labor 30,670 Machinery depreciation 18,530 Heat, light, and power 6,390 Supplies 5,110 Property taxes 4,470 Miscellaneous costs 8,310 Statement of Cost of Goods Manufactured for a Manufacturing Company Cost data for Disksan Manufacturing Company... Statement of Cost of Goods Manufactured for a Manufacturing Company Cost data for Disksan Manufacturing Company for the month ended January 31 are as follows: Inventories January 1 January 31 Materials $153,000 $134,640 Work in process 105,570 92,900 Finished goods 78,030 91,560 Direct labor $275,400 Materials purchased during January 293,760 Factory overhead incurred during January: Indirect labor 29,380 Machinery depreciation 17,750 Heat, light, and power 6,120 Supplies 4,900 Property taxes 4,280 Miscellaneous costs 7,960 a. Prepare a cost of goods... Statement of Cost of Goods Manufactured for a Manufacturing Company Cost data for Johnstone Manufacturing Company... Statement of Cost of Goods Manufactured for a Manufacturing Company Cost data for Johnstone Manufacturing Company for the month ended March 31 are as follows: InventoriesMarch 1March 31 Materials$149,750 $130,280 Work in process103,330 89,890 Finished goods77,870 88,590 Direct labor$269,550 Materials purchased during March287,520 Factory overhead incurred during March: Indirect labor28,750 Machinery depreciation17,370 Heat, light, and power5,990 Supplies4,790 Property taxes4,190 Miscellaneous costs7,790 a. Prepare a cost of goods manufactured statement for March. Johnstone Manufacturing Company Statement of Cost of Goods Manufactured... Statement of Cost of Goods Manufactured for a Manufacturing Company Cost data for Disksan Manufacturing Company... Statement of Cost of Goods Manufactured for a Manufacturing Company Cost data for Disksan Manufacturing Company for the month ended January 31 are as follows: Inventories January 1 January 31 Materials $217,500 $195,750 Work in process 143,550 129,200 Finished goods 110,930 133,110 Direct labor $391,500 Materials purchased during January 417,600 Factory overhead incurred during January: Indirect labor 41,760 Machinery depreciation 25,230 Heat, light, and power 8,700 Supplies 6,960 Property taxes 6,090 Miscellaneous costs 11,310 a. Prepare a cost of goods... Statement of cost of goods manufactured for a manufacturing company Cost data for Johnstone Manufacturing Company... Statement of cost of goods manufactured for a manufacturing company Cost data for Johnstone Manufacturing Company for the month ended March 31 are as follows: Inventories March 1 March 31 Materials $189,600 $174,340 Work in process 393,550 460,820 Finished goods 529,260 556,070 Direct labor $3,160,000 Materials purchased during March 2,407,190 Factory overhead incurred during March: Indirect labor 288,910 Machinery depreciation 189,600 Heat, light, and power 158,000 Supplies 31,510 Property taxes 27,080 Miscellaneous costs 41,260 This information has been collected in... Statement of Cost of Goods Manufactured for a Manufacturing Company Cost data for Sandusky Manufacturing Company... Statement of Cost of Goods Manufactured for a Manufacturing Company Cost data for Sandusky Manufacturing Company for the month ended January 31 are as follows: Inventories January 1 January 31 Materials $233,750 $203,360 Work in process 154,280 134,220 Finished goods 121,550 138,280 Direct labor $420,750 Materials purchased during January 448,800 Factory overhead incurred during January: Indirect labor 44,880 Machinery depreciation 27,120 Heat, light, and power 9,350 Supplies 7,480 Property taxes 6,550 Miscellaneous costs 12,160 a. Prepare a cost of goods... Statement of Cost of Goods Manufactured for a Manufacturing Company Cost data for Sandusky Manufacturing Company... Statement of Cost of Goods Manufactured for a Manufacturing Company Cost data for Sandusky Manufacturing Company for the month ended January 31 are as follows: Inventories January 1 January 31 Materials $131,500 $117,040 Work in process 88,110 78,420 Finished goods 67,070 78,420 Direct labor $236,700 Materials purchased during January 252,480 Factory overhead incurred during January: Indirect labor 25,250 Machinery depreciation 15,250 Heat, light, and power 5,260 Supplies 4,210 Property taxes 3,680 Miscellaneous costs 6,840 a. Prepare a cost of goods... Statement of cost of goods manufactured for a manufacturing company Cost data for Johnstone Manufacturing Company... Statement of cost of goods manufactured for a manufacturing company Cost data for Johnstone Manufacturing Company for the month ended March 31 are as follows: Inventories March 1 March 31 Materials $180,000 $165,510 Work in process 373,630 437,480 Finished goods 502,460 527,900 Direct labor $3,000,000 Materials purchased during March 2,285,310 Factory overhead incurred during March: Indirect labor 274,280 Machinery depreciation 180,000 Heat, light, and power 150,000 Supplies 29,910 Property taxes 25,710 Miscellaneous costs 39,170 This information has been collected in... Statement of Cost of Goods Manufactured for a Manufacturing Company Cost data for Disksan Manufacturing Company... Statement of Cost of Goods Manufactured for a Manufacturing Company Cost data for Disksan Manufacturing Company for the month ended January 31 are as follows: Inventories January 1 January 31 Materials $196,500 $170,960 Work in process 129,690 112,830 Finished goods 102,180 116,250 Direct labor $353,700 Materials purchased during January 377,280 Factory overhead incurred during January: Indirect labor 37,730 Machinery depreciation 22,790 Heat, light, and power 7,860 Supplies 6,290 Property taxes 5,500 Miscellaneous costs 10,220 a. Prepare a cost of goods... ADVERTISEMENT Subjects Accounting Advanced Math Anatomy and Physiology Biology Chemistry Civil Engineering Computer Science Economics Electrical Engineering Finance History Math Mechanical Engineering Operations Management Physics Psychology Statistics and Probability Nursing Other ADVERTISEMENT Latest Questions Explain at least three reasons why there are so many divisions / denominations in the Christian... COSC 1436 Programming Assignment : Skill Practice Assignment 3 Your skill practice assignment this week will... Waste elimination and process improvement can be applied to virtually any process. Identify a process at... Do you think the FASB should continue to require the Statement of Cash Flows or are... Here is your chance to analyze an actual co-worker conflict situation and make suggestions on how... McKinsey Machines Ltd manufactures a single product A.   It has two cost centers namely molding department... Threads: Assume a multithreaded application using user level threads mapped to a single kernel level thread... ADVERTISEMENT About @ 2020 WizEdu