Dartmouth Company reported the following inventory balances as of October 31, 2015: Raw materials P 80,000 Work in process 110,000 Finished goods 190,000 The following transactions occurred during the month of November: 1. Purchased P 25,000 of raw materials on account. 2. Issued P 18,000 of raw materials to production, of which P 15,000 were direct to the product. 3. Factory payroll of P 34,000 was accrued and distributed as follows: P 30,000 for direct labor and P 4,000 for supervisors (ignore payroll taxes and deductions).
Dartmouth Company reported the following inventory balances as of October 31, 2015:
Raw materials P 80,000
Work in process 110,000
Finished goods 190,000
The following transactions occurred during the month of November:
1. Purchased P 25,000 of raw materials on account.
2. Issued P 18,000 of raw materials to production, of which P 15,000 were direct to the product.
3. Factory payroll of P 34,000 was accrued and distributed as follows: P 30,000 for direct labor and P 4,000 for supervisors (ignore payroll taxes and deductions).
4.
5. Prepaid insurance of P1,000 on factory equipment expired in November.
6. Straight-line
7. Selling and administrative expenses were P 40,000 (P30,000 was paid in cash and P 10,000 was accrued.)
8. Factory overhead was transferred to work in process inventory.
9. Goods manufactured were transferred to finished goods inventory. Ending inventories were: work in process, P 60,000 and finished goods, P 175,000.
10. Sales of P 217,600 was made on account.
Required:
a.
a. Statement of the cost of goods manufactured
b. Income statement
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