BCD Company makes industrial cleaning solvents. Different chemicals, detergent, and water are mixed together and then bottled in 10-gallon drums. BDC provided the following information for last year (2020): Raw materials purchases P 250,000 Direct labor 140,000 Depreciation-factory equipment 45,000 Depreciation-factory building 30,000 Depreciation-headquarters building 50,000 Factory insurance 15,000 Property taxes:      Factory 20,000    Headquarters 18,000 Utilities for factory 34,000 Utilities for sales office 1,800 Administrative salaries 150,000 Indirect labor salaries 156,000 Sales office salaries 90,000 Beginning balance, Raw materials 124,000 Beginning balance, Work-in-process 124,000 Beginning balance, Finished goods 84,000 Ending balance, Raw materials 102,000 Ending balance, Work-in-process 130,000 Ending balance, Finished goods 82,000   Last year, BCD completed 100,000 units. Sales revenue equaled P 1,200,000, and BCD paid a sales commission of 5% of sales. Required: Calculate the direct materials used in production for last year. Calculate total prime cost. Calcukate total conversion

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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BCD Company makes industrial cleaning solvents. Different chemicals, detergent, and water are mixed together and then bottled in 10-gallon drums. BDC provided the following information for last year (2020):

Raw materials purchases

P 250,000

Direct labor

140,000

Depreciation-factory equipment

45,000

Depreciation-factory building

30,000

Depreciation-headquarters building

50,000

Factory insurance

15,000

Property taxes:

 

   Factory

20,000

   Headquarters

18,000

Utilities for factory

34,000

Utilities for sales office

1,800

Administrative salaries

150,000

Indirect labor salaries

156,000

Sales office salaries

90,000

Beginning balance, Raw materials

124,000

Beginning balance, Work-in-process

124,000

Beginning balance, Finished goods

84,000

Ending balance, Raw materials

102,000

Ending balance, Work-in-process

130,000

Ending balance, Finished goods

82,000

 

Last year, BCD completed 100,000 units. Sales revenue equaled P 1,200,000, and BCD paid a sales commission of 5% of sales.

Required:

  1. Calculate the direct materials used in production for last year.
  2. Calculate total prime cost.
  3. Calcukate total conversion cost.
  4. Prepare a cost of goods manufactured statement for last year. Calculate the unit product cost.
  5. Prepare an income statement for last year.
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