Required:Prepare the statement of the cost of goods manufactured and sold in good form. Nilk Specialty ProductsIncome StatementFor the month ended January 31, 2020Sales (net)Less costs and expenses:Raw materials purchasesP790,000P254,000200,00095,00070,00062,00043,00030.000Direct labor costAdvertising expenseSelling and administrative salariesRent on factory facilitiesDepreciation on sales equipmentDepreciation on factory equipmentIndirect labor costUtilities expenseInsurance expense29,00014,0006,000803,000(P13,000)Net lossPrior to 2019, the company has been operating with a profit. Mr. Nilk,the accuracy of the report. As his friend, you were requested to review the income statementand make the necessary corrections. After examining the manufacturing costs record, youhave acquired the following additional data.ownersuspectinga. Inventory balances at the beginning and end of January 2020 were:January 1P20,00014,00030,000January 31P32,00016,00048,000Raw materialsWork in processFinished goodsb. Only 60% of the utilities expense and 70% insurance expense apply to the factory, therests should be charged to the selling and administrative activities.

Work in progress means where the raw material has enter in to phase of production but still finished…

Answered: Prepare the statement of the cost of…

Business

Accounting

Prepare the statement of the cost of goods manufactured and sold in good form.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Required:

Prepare the statement of the cost of goods manufactured and sold in good form.

Nilk Specialty Products
Income Statement
For the month ended January 31, 2020
Sales (net)
Less costs and expenses:
Raw materials purchases
P790,000
P254,000
200,000
95,000
70,000
62,000
43,000
30.000
Direct labor cost
Advertising expense
Selling and administrative salaries
Rent on factory facilities
Depreciation on sales equipment
Depreciation on factory equipment
Indirect labor cost
Utilities expense
Insurance expense
29,000
14,000
6,000
803,000
(P13,000)
Net loss
Prior to 2019, the company has been operating with a profit. Mr. Nilk,
the accuracy of the report. As his friend, you were requested to review the income statement
and make the necessary corrections. After examining the manufacturing costs record, you
have acquired the following additional data.
owner
suspecting
a. Inventory balances at the beginning and end of January 2020 were:
January 1
P20,000
14,000
30,000
January 31
P32,000
16,000
48,000
Raw materials
Work in process
Finished goods
b. Only 60% of the utilities expense and 70% insurance expense apply to the factory, the
rests should be charged to the selling and administrative activities.

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